Barranquilla-based pharmaceutical company Procaps Group (NASDAQ: PROC), has announced that it will build a new gummy manufacturing facility to meet rising global demand for its Funtrition gummy nutraceutical and medical chewable products. Funtrition is an oral delivery system for vitamins, minerals, and other supplements.
The Colombian company’s specialized facilities for the development and manufacturing of wide-ranging gummy technologies, both gelatin and plant-based, currently delivers over 100+ SKUs of unique nutraceutical products to global brands across 15 countries.
Procaps Group plans to model its new U.S. facility after its gummy manufacturing plant in Bogota, Colombia with current total gummy facility capacity of 300 tons per month. Development will include a three-phase project starting with logistics, warehousing and offices scheduled to begin in Q1 2022, and packaging operations scheduled to begin in Q2 2022. The project is expected to be completed in Q4 2022, with full gummy manufacturing.
New Funtrition Gummy Manufacturing Facility in Florida Slated to be Fully Operational by Q1 2023
“This new facility is expected to substantially increase our capacity for the first time outside of Procaps Group’s Colombian headquarters for the manufacture of animal and plant-based nutraceutical gummies,” said Camilo Camacho, Procaps Group President. “The U.S. location will ensure redundancy in supply to the market, and position manufacturing of a wider product array closer to key current and potential new customers. The higher production capacities are expected to also be a significant addition to our global growth plans.”
According to New Hope, gummy supplements alone have gained the most market share globally in relation to other non-pill formats doubling in size over the last five years. Grand View Research indicates the gummy vitamins market is estimated to rise at a CAGR (Compound Annual Growth Rate) of over 13% globally and 11% in North America between 2021 and 2028, gaining each time more and more relevance.
“Complementing our recent West Palm Beach, Florida acquisition, the expansion of our U.S. capacity for our Funtrition business is an important step towards our commitment to meet the requirements of our growing base of U.S. customers,” said Ruben Minski, Procaps Group CEO. “Our new Inspiration Center is a critical piece in our value proposition, underscoring our commitment to deliver better health and nutrition to the world through innovative oral delivery systems. Taken together, we believe these long-term investments will further position Funtrition as a leader in extraordinary and enjoyable gummy products and position us to capture emerging growth opportunities within the space.
The gummy vitamins market had 657 new products launched globally in 2021, and a CAGR of 26% from 2017 to 2021, and 201 new products launched in North America in 2021, and a CAGR of 15% from 2017 to 2021, based on research by Mintel GNPD.
“This project is part of a larger plan to strengthen our global capabilities. Our capex plan also includes important automation and efficiency initiatives in our Bogota and Barranquilla pharmaceutical facilities, increases in capacity across our different locations, and the strengthening of our R&D facilities,” concluded Minski.
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