Sirio Pharma - a global nutraceutical contract research and manufacturing company - has signed an agreement to build a new production facility in Chonburi, Thailand.
This will be the company's first Asian plant outside of China and will therefore be a vital milestone to build up their capacity in this burgeoning Asia-Pacific market.
This is after a phenomenal performance by Sirio in the financials last year, where its revenues doubled to post $508 million or €469 million in 2023. The increase is 42.87% year-over-year. The new plant will be the eighth Sirio has around the world and also form one of the production facilities spread within the European Union, the United States, and China.
The board of Sirio has sanctioned a possible investment of as much as $40 million in this project, which would feature state-of-the-art gummy production capabilities along with automated packaging lines for all kinds of nutraceutical types.
This investment reflects Sirio's commitment to meeting the growing demand for nutraceutical products in Southeast Asia, which has been designated as one of the fastest-growing regions in recent years.
According to Alex Du, general manager of Sirio's Asia Pacific Business Unit, "The establishment of a multipurpose nutraceutical plant in Thailand will enable us to better serve our customers in Southeast Asia". He stated that the new site will provide better flexibility and possibilities for local manufacturing, which aligns with Sirio's global approach of supporting international clients through localized production.
In addition to the new manufacturing facility, Sirio intends to open an office in Singapore's central business area later this month. This decision is part of a larger effort to develop relationships with regional customers and trade associations.
The Chonburi project is under review and approval from Thailand's key regulatory authorities as well as those of China. Later this year in 2025, specifics regarding the construction are set to be announced.
CMI Research: Market Insights for Key Nutraceutical Ingredients
The nutraceutical ingredients market, according to Coherent Market Insights (CMI), will expand at 7.1% CAGR during the years 2024 to 2031 as the result of higher health consciousness among consumers. It was more than US$ 212.43 billion in 2024 and is going to reach US$ 343.36 billion in 2031.
North America is predicted to dominate the global nutraceutical ingredients market as health consciousness grows and people seek natural alternatives to standard medications. Chronic disease prevalence is increasing, the population is aging, and there is more disposable cash.
Analyst Opinion: Strategic Role in Nutraceutical Ingredients Market Growth
According to senior research consultant Pankaj Poddar, rising consumer health consciousness is a significant growth driver, as more individuals incorporate nutrition-rich foods and supplements into their regular meals.
Conclusion
Sirio Pharma invested $40 Mn in an upgraded manufacturing site in Thailand which is a key development for expansion across the nutraceutical vertical worldwide. The capacity to increase their production will serve as a means for the business to fulfill and answer the higher global demand requirements of high-end nutraceutical ingredients. With that, worldwide business expansion should have strategic investment strategies and constant innovation in making or producing a competitive advantage, especially on the side of health wellness business.
