Private label supplement manufacturers allow businesses to produce a range of customised and branded supplements with minimal involvement in the supplement NPD process. While private label supplement manufacturing provides flexibility in terms of the type of supplement products that can be produced, businesses must consider the minimum order quantity (MOQ) of manufacturers against business needs.
MOQ is the minimum amount that a manufacturer will accept for an order. Private label supplement manufacturers use the MOQ as a benchmark for balancing production costs with client demand.
Average MOQ of Private Label Supplement Manufacturers
The minimum order quantity (MOQ) of most supplement manufacturers is 5,000 units per stock-keeping unit (SKU). This means the manufacturer's clients must place an order of at least 5,000 units for a private label supplement product.
Each manufacturer will have different MOQs based on their production capabilities and supply chain network. Established private label supplement manufacturers usually offer higher MOQs due to the costs of sourcing quality supplement ingredients from around the world and maintaining higher production standards.
How Private Label Supplement MOQ Affects Costs
Cost is one of the biggest considerations of MOQ when looking for a private label supplement manufacturer. The higher the minimum order quantity, the higher the upfront cost of the order.
However, there are significant benefits to opting for a higher MOQ. Placing an order for a higher volume of private-label supplement products enables manufacturers to reduce the cost per unit, resulting in potential savings for clients.
The table below showcases how the total cost of the order and the cost per unit changes with MOQ. While the upfront cost of a MOQ of 10,000 is higher, it is more cost-effective than the 2,500 and 5,000 MOQ orders.
| Minimum order quantity | Total cost of the order | Cost per unit |
| 2500 | $20,000 | $8 |
| 5000 | $25,000 | $5 |
| 10,000 | $30,000 | $3 |
What To Know About Private Label Supplement MOQs
Private label supplement manufacturers can have different approaches to MOQ, depending on the costs of production processes, such as research and development, testing, and packaging.
Single Product MOQ vs Combined MOQ
Private label supplement manufacturers may have either a single product MOQ or a combined MOQ.
A single product MOQ simply refers to the minimum quantity a manufacturer is willing to produce for one type of product (or SKU). Single-product MOQs commonly apply to custom formulations, where a significant amount of work is required to create a refined outcome. For example, a single product MOQ of 5000 per SKU means at least 5000 units of a single type of product are required for a valid order.
A combined MOQ allows clients to split the total order for one SKU into separate batches. For example, a combined MOQ of 5000 for vitamin B tablets can be packed into batches of 30, 60, and 120 units to meet various distribution requirements.
MOQ Can Vary for Different Supplement Delivery Forms
Private label supplement manufacturers may have different MOQs for different supplement delivery formats, including tablets, capsules, liquids, gels, and powders.
At Lipa Pharmaceuticals, we have minimum order quantities in validated batch sizes of 300 kg, 500 kg and 700 kg for tablets and capsules. For liquid supplements such as sport gels, we have a minimum order quantity of 750 L.
Businesses must check the manufacturer's MOQ for the specific types of supplement products to be produced.
Benefits of High MOQ Manufacturers
Businesses may come across private label supplement manufacturers that offer extremely low MOQs, such as 500 or 1000 units per SKU. While this may seem ideal at first glance, it raises questions about the quality of the produced supplements.
Manufacturers include the cost of sourcing quality ingredients from suppliers, research and testing costs, and operating costs in the MOQ. Established manufacturers have substantial MOQs in order to maintain a high level of quality and service for customers. If a private label supplement manufacturer has an extremely low MOQ, it usually translates to a lower production quality.
Private label supplement manufacturers with higher MOQs are also better equipped to handle high-volume orders for commercial clients. An MOQ is representative of the manufacturer's operational scale, infrastructure, and production capability - the higher the MOQ, the greater the ability of the manufacturer to meet high-volume orders.
High MOQ supplement manufacturers also benefit from economies of scale, which are passed on to clients in the form of cost savings. By increasing production levels, manufacturers can reduce the cost per unit of each product, resulting in proportionate cost savings for businesses with high-volume orders.
At Lipa Pharmaceuticals, we have a high MOQ to keep the cost of production as low as possible for our clients while upholding a high standard of quality and service. We offer an MOQ of 10,000 units per batch, with four batches per year for commercial business with high-volume requirements.
As eight-time winners of Complementary Medicines Australia's 'High Quality Manufacturer' award, we are Australia's leading private label supplement manufacturers. We have an in-house team of researchers and pharmacists and handle the entire process from formulation to packaging - get in touch with us to find out how we can create custom supplements for your brand.