Vitamins & Supplements M&A Update – June 2025

Vitamins & Supplements M&A Trends Higher, Headwinds Remain for Branded Products

1060 Capital, LLC latest Vitamins & Supplements M&A Report shares that merger and acquisition (M&A) activity in the sector has increased year-over-year (YOY) to date despite market pressures challenging growth and acquisition appetite for branded consumer products. As a result, strategic acquisitions of manufacturing assets—contract manufacturing consolidation or vertical integration—are expected to support M&A activity through year end. Additionally, private equity buyers have viewed the Contract Manufacturing subsector as a more stable market to target amid the highly competitive environment for vitamins and supplements brands.

Broad macroeconomic headwinds, such as prolonged inflation, recession concerns, geopolitical uncertainty, and higher-for-longer interest rates, have continued to pressure branded consumer products companies including Vitamins & Supplements sector participants. These headwinds, coupled with the sector’s susceptibility to trends that can rapidly change product demand, have challenged sector sales and created increased competition for wallet share. Consumers have been scrupulous in brand selection, leveraging robust access to information to research vitamin and supplement providers. Differentiated products, typically those with patents, scientific backing, or clinical trials have benefited from an increasingly informed consumer while brands lacking ingredient transparency and proven efficacy have found difficulty convincing consumers and investors alike to choose its brand over others in the market. Founder stories, such as former or actively practicing medical professionals bring added legitimacy, and specific end markets or use cases have also served as differentiators. Preventative vitamins and supplements targeting heart health, liver support, and other areas often aligned with health complications have garnered demand as consumers seek more personalized health and wellness regimes. Additionally, products catering to issues prevalent in unique communities—geographic, demographic, and other—have also gained momentum via a personalized market fit. Vitamins and supplements contract manufacturing has become more attractive as branded consumer products have faced continued headwinds in 2023, 2024, and through mid 2025. Vertical integration and consolidation of contract manufacturing operations is expected to support strategic growth initiatives and Vitamins & Supplements M&A activity in 2025 and 2026.

Also included in this report:

• Why contract manufacturers in the Vitamins & Supplements space are positioned well in the current environment and receiving heightened acquisition interest.
• A breakdown on the types of buyers investing in Health & Wellness and targeting Vitamins & Supplements companies.
• An analysis of M&A valuations and the key characteristics driving deal rationale.
• How data analytics performance improvement initiatives can enhance manufacturing operations, including a case study from Capstone’s Financial Advisory Services (FAS) Group.

1060 Capital, LLC’ Consumer investment company Team provides M&A, capital formation, and financial advisory services to the owners of middle market businesses in the consumer and retail industries. Our team partners with leading mid-to-large sized consumer businesses that serve growing end-markets. For more information on the Vitamins & Supplements M&A trends featured in this report or to speak with one of our Consumer investment company Team members about how to grow, value, and/or sell your company, we are here to help. Contact us today to start a conversation.