The Growing Supplement Industry & Why Your Supplement's Format Matters

The supplement industry has grown at an incredible pace over the past few decades, fueled strongly by rising health awareness, aging populations, and growing interest in preventative wellness. From immune support and cognitive health to skincare and energy, consumers are seeking targeted solutions and paying close attention to how those solutions are delivered.

Your chosen supplement format—whether capsule, tablet, powder, gummy, or liquid—affects more than appearance. It can influence absorption rates, user experience, shelf life, production timelines, and regulatory classification. For today's competitive brand owners and founders alike, choosing your delivery format (tablets vs. capsules) isn't just about mere aesthetics or customer convenience; it's a foundational decision that can shape product success.

Understanding these implications early in your supplements' development process is critical. That's why experienced support across formulation, branding, compliance, manufacturing, and scaling can make a measurable difference—not just in getting to market but in building something that lasts.

Why Tablets Have Higher MOQs (and Cost More to Start)

For supplement brands exploring manufacturing options, tablets often seem like an efficient and compact delivery method. But behind that simplicity lies a complex and usually costly process—especially for startups.

Tablet production typically requires custom tooling to press the product's exact size, shape, and imprint. This alone adds both time and expense to the initial setup. Beyond tooling, formulation is more technically demanding—tablets must balance active ingredients with binders, coatings, and stabilizers to ensure they hold their shape, dissolve properly, and deliver consistent potency.

What is custom tooling?
Custom tooling refers to creating specialized equipment—like molds or dies—needed to make a specific product shape or size during manufacturing. In supplements, this often means designing a unique tablet shape or imprint, which adds time and cost upfront because the tools are made just for your formula.

Because of the precision involved, tablet production demands a longer setup time, translating to a higher cost of entry. Smaller batch runs face an increased risk of waste—from breakage during packaging, inconsistency in hardness, or poor mouthfeel—issues that aren't always apparent until production is underway.

This distinction is key. Tablets are ideal for established products and larger production runs. Still, for brands and new-to-market products just getting started, they may offer more risk than reward.

The Advantages of Capsules

Capsules are one of the most popular supplement formats because they're straightforward, scalable, and highly adaptable.

Unlike tablets, capsules don't require custom tooling. The manufacturing process uses standard capsule shells (like gelatin, HPMC, or pullulan), which speeds up and makes the entire setup more cost-effective.

Formulating capsules is typically more forgiving. It offers a simple fill-and-go approach that works well for powders, botanicals, and blends without requiring extensive binders or coatings.

This streamlined process results in faster production cycles and makes capsules ideal for low-MOQ runs.

What is a MOQ?
MOQ (Minimum Order Quantity) is the smallest number of units a manufacturer will produce in one production run. It's their baseline for how much you need to order to make the project worth their time, materials, and setup costs. For example, suppose a factory's MOQ is 5,000 units. In that case, they won't start production unless you commit to buying at least 5,000 bottles, boxes, or bags—depending on the product.

They're great for new product launches, as they reduce the risk of inventory loss and allow brands to test formulations or gauge market response before committing to higher volumes.

If you are looking to balance flexibility, cost, and increase your speed to market, capsules often provide you with the most efficient path forward—without compromising quality or performance.

When to Choose Tablets: Strategic Benefits

Tablets make much more sense once your product has some traction. Why? Because they're incredibly cost-efficient at scale—lower cost per serving can majorly impact margins when you're moving thousands of units.

They also give you more control. Need a slow-release coating? Want to dial in flavor or mask bitterness? Tablets give you the tools to do that. Plus, you can combine multiple actives in one compressed form—making it easier for consumers and simplifying your product line.

There's also a logistical win here. Tablets tend to be more shelf-stable and take up less space in packaging, which means cheaper shipping and longer product lifespan. All that adds up to a solid option—especially when scaling a product already working.

But early on? They might be more trouble than they're worth.

When Capsules Make the Most Sense

If you're still figuring out your product-market fit—or just testing a new formula—capsules are usually the more intelligent move. They require less upfront investment, and with faster turnaround times, you can get to market quicker and start learning what works.

Capsules also lend themselves to clean label transparency. Many consumers love seeing a clear, simple list of ingredients—and capsule shells (especially plant-based options like HPMC or pullulan) make that easy to deliver.

Formulation is also more straightforward with capsules. Capsules usually need fewer excipients, which reduces the chance of interaction issues or stability problems. And capsules offer a lower-risk path if you're working with sensitive ingredients—like probiotics or moisture-reactive compounds.

What are excipients?
Excipients are inactive ingredients added to supplements to help with binding, stability, taste, or absorption. They don't provide nutritional value but are essential for making the product work properly.

In short, when speed, flexibility, and lower risk matter, capsules help you move fast and learn faster—without locking you into high costs or complicated production processes.

Use Cases from the Field

When considering real-world scenarios, understanding when to choose capsules or tablets becomes more apparent. Here's how different types of supplement founders approach the decision:

The Solo Startup Dreamer

For a first-time founder, the focus is often on moving quickly, staying lean, and learning as you go. Capsules are usually the best choice—they allow for low minimums, simple formulation, and faster launch timelines, making it easier to test a product idea without taking on massive risk.

The Amazon-Dependent Entrepreneur

This founder may be selling successfully but wants to optimize profitability or scale. Capsules can continue to be a smart option for proven SKUs, but switching key products to tablets can reduce per-unit cost, extend shelf life, and create a more polished brand presence—especially for bestsellers.

The Multi-Brand Operator

With multiple lines in motion, this founder needs efficiency and flexibility. Tablets work well for high-volume, stable SKUs due to their cost-effectiveness and compact packaging. At the same time, capsules offer a low-commitment format for testing innovation, new formulas, or seasonal releases without overextending operations.

Formulation, Manufacturing, and the Turnkey Advantage

Choosing the proper delivery format is just one piece of the puzzle. The real challenge is putting all the pieces together—R&D, formulation, manufacturing, flavor profile, customer experience, stability, and compliance—in a way that makes sense for your brand.

That's where Turnkey comes in.

From day one, we help founders navigate the complex decisions that come with supplement development. Our team guides you through:

• Research & formulation strategy.
• Finding the right manufacturing partner (not just the cheapest).
• Avoiding common pitfalls with taste, texture, and stability.
• Ensuring your delivery format fits both your brand story and your operational goals.

Our role is to simplify the process—"Bring your ideas — we handle the rest."™

Final Considerations: How to Decide

Still deciding between capsules and tablets? Here are a few key questions to help you get clear:

• What's your MOQ flexibility? Capsules offer a lower barrier to entry.
• How fast do you need to launch? Capsules typically allow quicker turnaround.
• Who is your target customer? Consider preferences around ease of use, clean labels, and supplement style.
• What are your ingredients like? Some actives (like probiotics or moisture-sensitive botanicals) may require special handling.
• Are you selling on Amazon? Format can impact compliance, shelf life, and customer satisfaction.

Conclusion

Both tablets and traditional capsules have their rightful place in supplement and health product manufacturing today. Capsules offer speed, flexibility, and lower risk—perfect for testing and lean launches. Tablets bring control, efficiency, and scale—ideal for growing brands and high-volume products.

There's really no ideal and for sure no one-size-fits-all answer. But with the proper guidance, the right questions, and a clear understanding of your goals, you can make the best choice for your brand's future.

If you're unsure which path to take, our team at Turnkey Health & Beauty is here to help you weigh your options with clarity and confidence.