Even someone with a proven reliable crystal ball could not have predicted the ways in which our industry would be tested since 2020. Yet even as we have more or less figured out how to move past the pandemic, the nutraceutical industry continues to face a unique set of challenges.

News reports and uncertainty surrounding new — and in some cases, hefty — tariffs are inescapable. Supply chain disruptions have become the norm rather than the exception, and inflationary pressures are not letting up. Together, these factors will undoubtedly result in an influx of poor-quality ingredients, adulterated materials, and reformulations that prioritize cash savings over efficacy.

As brands grapple with rising costs, the temptation to seek out cheaper alternatives is hard to resist — but this path can lead to long-term damage to both brand reputation and consumer trust.

Instead of cutting corners, brands should hyper-focus on strengthening their relationships with trusted suppliers. We’re united in our efforts toward a shared goal. Through collaboration, we can identify solutions to minimize price impacts while maintaining the highest quality standards.

Consumer confidence is the backbone of the nutraceutical and dietary supplement industry, and preserving it requires a steadfast commitment to transparency, quality assurance, and responsible sourcing. 

Economic Pressures vs. Ingredient Quality 

Threatened tariffs and global economic shifts are disrupting supply chains, causing raw material costs to fluctuate unpredictably. A move to an even greater just-in-time model for input material and manufacturing are inevitable as we chase cost savings wherever we can get them.

Ingredient suppliers are facing increased costs in manufacturing, sourcing, transportation, and regulatory compliance and doing their best to absorb at least some of the burden, but higher prices for ingredients are all but a given. These challenges are leading some companies to seek lower-cost alternatives, opening the door for subpar ingredients to enter the market. 

The risk of adulteration is especially high in botanical and nutraceutical ingredients, where cost-saving substitutions can have serious consequences. A compromised supply chain can lead to ingredients diluted with fillers, mislabeled plant extracts, or the presence of contaminants, all of which put consumer safety at risk. This is not just an industry problem; it’s a consumer health issue that can erode trust in an entire product category. Adulterated ingredients have been at the forefront of ongoing conversations and actions in our industry and the potential to thrive in this new environment is significant. 

The Real Cost of Cutting Corners 

Today’s consumers are more informed than ever, demanding transparency in sourcing and manufacturing practices. When companies choose cost-cutting over quality, they put their brand’s reputation on the line. A single instance of ingredient adulteration or mislabeling can lead to both short-term negative consequences (recalls) and longer-term ramifications, such as lawsuits.

Worse still is the likelihood of irreversible damage to brand credibility. Because consumers rely on our products to support their health, trust is critical. Any breach can push them toward competitors that demonstrate a stronger commitment to quality or away from nutraceutical products altogether. 

Why Supplier Relationships Matter

Rather than seek out cheaper alternatives, brands should focus on strengthening their relationships with reputable ingredient suppliers. Strong supplier partnerships offer several key benefits: 

• Consistency in Quality: Established relationships with trusted suppliers ensure that brands receive high-quality, authenticated ingredients that meet stringent testing standards. 

• Better Price Stability: Working closely with suppliers can help negotiate fair pricing strategies that benefit both parties. Long-term commitments often lead to better pricing structures and priority access to raw materials. 

• Transparency and Traceability: Trusted suppliers offer full traceability, providing detailed documentation and third-party testing to verify ingredient purity and potency. 

• Regulatory Compliance: Regulations in the dietary supplement and nutraceutical industries are always changing, so partnering with suppliers who prioritize compliance helps brands stay ahead of potential legal pitfalls. 

Smart Moves for Quality-Conscious Brands 

The key to maintaining product integrity is to adopt a proactive approach to sourcing and supplier collaboration. That comes down to five things:

1. Commit to Long-Term Supplier Partnerships. Instead of engaging in transactional purchasing, brands should invest in building long-term relationships with their ingredient suppliers. Multi-year agreements or preferred supplier partnerships foster trust and stability, ensuring consistent access to premium ingredients even during market volatility.

2. Prioritize Transparency and Testing. Brands must insist on rigorous testing protocols to verify ingredient authenticity and potency. Certificates of analysis (COAs), third-party testing, and in-house quality assurance programs should be non-negotiable. 

3. Educate Consumers on Quality Over Price. Consumer education plays a crucial role in maintaining trust. Brands should communicate openly and often about their commitment to quality and the risks associated with low-cost alternatives. Transparency initiatives, such as providing sourcing details and testing results, can reinforce consumer confidence. 

4. Advocate for Industry Standards. Brands, manufacturers, and suppliers should actively participate in industry organizations that promote high-quality standards, such as the American Botanical Council (ABC), the United Natural Products Alliance (UNPA), and the Council for Responsible Nutrition (CRN). Collaboration within the industry can help set and maintain high standards, keeping adulterated products out of the market. 

5. Innovate Without Compromise. Rather than reformulating with cheaper ingredients, brands and manufacturers should explore innovation within their existing quality framework. Take the opportunity to develop unique and novel formulations. This may include optimizing formulations for better bioavailability, exploring new sustainable ingredient and processing options, or investing in new processing technologies that enhance ingredient efficacy without increasing costs. More than ever, consumers will be looking for value solutions including multiple-benefit products. Optimization across the board is essential. 

Potential Positive Industry Upsides 

Tariff uncertainty and rising costs make it easy to focus on the difficulties we face. However, challenges also have a history of creating opportunities. A new perspective from the current administration could bring renewed attention to the role of naturopathic therapies in supporting consumer health.

With a growing emphasis on preventive care and wellness, there’s potential for greater recognition of science-backed natural ingredients and holistic approaches. This shift could lead to new avenues for education, policy support, and market growth, ultimately benefiting both consumers and the industry. 

A Stronger Industry Overall

While economic pressures and uncertainty are an undeniable challenge, they need not lead to declining innovation and ingredient quality. By prioritizing strong supplier relationships, advocating for transparency, and educating consumers, brands can maintain trust and continue developing new products that meet the highest standards. 

Artemis values its strong relationships and partnerships with customers, working collaboratively to develop not only effective formulations but also cost-efficient and value-driven solutions. We are available to explore ways to enhance value, optimize costs, and support healthy margins while delivering high-quality products to consumers. 

Consumer confidence is the lifeblood of our industry. Protecting that confidence requires a collective commitment to integrity, even in the face of rising costs. Consumer education — helping people understand not just what to look for in a quality product, but why it matters — is critical.

By empowering consumers, brands can shift the conversation from price alone to value, reinforcing that quality ingredients backed by science are an investment in long-term health. In the long run, those who prioritize education, transparency, and quality over shortcuts, will not only survive, but thrive.