Procaps to expand gummy capacity with new Florida facility
Consumer demand for gummy supplements has been growing, resulting in more and more gummy products hitting the market. According to Mintel, there were 201 new gummy product launches in North America in 2021, and a CAGR of 15% from 2017 to 2021.
Globally, there were 657 new products launched globally in 2021, and a CAGR of 26% from 2017 to 2021 (Mintel).
Grand View Research estimates the gummy vitamin market to grow with a CAGR of over 13% globally and 11% in North America between 2021 and 2028.
Procaps Group develops and manufactures a range of gummy technologies, including both gelatin and plant-based. The company currently delivers over 100+ unique nutraceutical SKUs to global brands across 15 countries, according to a release.
As demand for gummies grows both domestically and internationally, Procaps is planning a new capacity expansion in the US.
The company’s new US facility will be modeled 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.
“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.”
“This project is part of a larger plan to strengthen our global capabilities,” added Ruben Minski, Procaps Group CEO. “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 operations.”
