In Europe, a similar multiformat focus is evident, especially in the U.K. Over 85% of tracked nutrition CDMOs offer at least two formats, with roughly 20% offering five or more — underscoring a strong skew toward broader capabilities.
That said, the type of formats each CDMO offers is evolving. While tablets and capsules are still common, they’ve lost share of consumer spending in the broader retail market as shoppers gravitate toward more innovative and user-friendly formats — particularly gummies. For example, the share of U.S. CDMOs offering gummies rose 15 percentage points from 2022 to 2024, reflecting widespread efforts to capture rising consumer demand. Many CDMOs as well as brands invested heavily in gummy capacity during this period.
Since then, however, the post-COVID-19 supply-demand balance has shifted — with some CDMOs struggling to fill lines amid rising competition. For investors, it’s important to assess whether recent or planned expansions are aligned with sustainable demand or at risk of leading to underutilized assets and increased margin pressure.
Effervescent powders and liquids are also gaining traction, though they remain less commonly offered than tablets, capsules and powders across the tracked CDMO landscape. This growth is underpinned by consumer preferences and demand as effervescent powders and liquids allow for easier consumption compared with pills, more enjoyable flavors and taste (e.g., carbonation) and often better absorption of nutrients.
Figure 2 illustrates the relative penetration by format, with powders and tablets/capsules being highly penetrated mature formats, while effervescent powders, gummies and liquids have relatively lower penetration but their popularity is increasing more rapidly.
