Sirio Pharma, a nutraceutical contract research and manufacturing company, has announced plans to create a new production facility in Chonburi, Thailand.
This is the company's first manufacturing plant in Asia outside of China, with the goal of expanding its capabilities in the fast increasing Asia-Pacific (APAC) market.
The decision comes after Sirio's strong financial performance in 2023, when revenue increased by 42.87% year on year to $508 million (€469 million). The new plant will be the company's eighth global location, joining current sites in the European Union, the United States, and China.
Sirio's board has approved a potential investment of up to $40 million in this project, which would include sophisticated gummy production capabilities as well as automated packaging lines for various nutraceutical types.
This investment demonstrates Sirio's commitment to satisfying increasing demand for nutraceutical products in Southeast Asia, which has been designated as one of the fastest-growing regions in recent years.
According to Alex Du, general manager of Sirio's Asia Pacific Business Unit, "The establishment of a multipurpose nutraceutical plant in Thailand will enable us to better serve our customers in Southeast Asia". He stated that the new site will provide better flexibility and possibilities for local manufacturing, which aligns with Sirio's global approach of supporting international clients through localised production.
In addition to the new manufacturing facility, Sirio intends to open an office in Singapore's central business area later this month. This decision is part of a larger effort to develop relationships with regional customers and trade associations.
The Chonburi project is now being reviewed and approved by key regulatory authorities in Thailand and China, with construction specifics set to be disclosed later in 2025.
CMI Research: Key Nutraceutical Ingredients Market Insights
According to Coherent Market Insights (CMI), the nutraceutical ingredients market is predicted to grow at a 7.1% CAGR from 2024 to 2031, owing to increased consumer health awareness. The market was valued at over US$ 212.43 billion in 2024 and is expected to exceed US$ 343.36 billion by 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: Business Takeaways
Sirio Pharma's $40 million investment in a new manufacturing plant in Thailand strengthens its global reach in the nutraceutical industry. This expansion increases production capacity, allowing the company to fulfill the growing global demand for high-quality nutraceutical ingredients. Businesses should prioritize strategic investments in worldwide expansion and manufacturing innovation to remain competitive in the rising health and wellness market.
