How to Navigate Tariffs and Global Supply Chain Disruptions in the Supplement Industry
As the supplement industry continues to grow, so do the challenges of keeping products affordable, high-quality, and consistently available. In 2025, these challenges are being intensified by a resurgence of tariffs under the Trump administration, along with ongoing supply chain instability in key regions like China, India, and Southeast Asia.
For brands, manufacturers, and suppliers, adapting to these changes isn’t optional—it’s essential for maintaining profit margins and customer trust.
The Tariff Landscape: What’s Changing in 2025
The Trump administration has reinstated and expanded tariffs on a wide range of Chinese imports, including many materials central to supplement manufacturing, such as:
- Raw materials (amino acids, vitamins, minerals)
- Herbal extracts (ginseng, berberine, ashwagandha)
- Packaging components (PET bottles, scoops, silica packets)
- Machinery and parts used in production lines
These tariffs can range from 10–25%, significantly increasing costs for brands that depend on global sourcing.
Tips for Brands
Audit your supply chain to identify which components are subject to tariff increases. Your manufacturer or procurement partner should provide updated cost breakdowns reflecting these changes.
Diversifying Your Supply Chain
Heavy dependence on China has become a vulnerability. Brands that relied on single-source ingredients are now looking to diversify their sourcing and reduce risk. Alternatives include:
- India and South Korea for herbal actives and vitamins
- Eastern Europe and South America for specialty botanicals
- U.S.-based suppliers for packaging and select raw materials
This shift not only helps offset tariffs but also improves resiliency in the face of future political, environmental, or logistical disruptions.
Tips for Brands
Develop a backup supplier list for your top 5 ingredients and packaging components. Consider dual sourcing whenever possible to reduce exposure.
Reformulating to Cut Costs Without Sacrificing Quality
For brands impacted by tariff-heavy ingredients, reformulation may be the smartest move. In some cases, switching to a more cost-effective version of an ingredient (e.g., synthetic vs. natural, or fermented vs. plant-extracted) can retain efficacy while improving COGS.
Additionally, newer, domestically available branded ingredients may offer improved bioavailability, allowing for lower doses and better consumer outcomes.
Tips for Brands
Work with your contract manufacturer or formulation expert to explore ingredient substitutions that meet your quality and efficacy standards while reducing tariff impact.
Planning for Longer Lead Times and Higher Freight Costs
Shipping delays, container shortages, and customs holdups are still ongoing challenges in 2025—especially when importing from Asia. Combine that with tariffs, and you’re looking at higher freight rates and longer fulfillment timelines.
Tips for Brands
Build a larger buffer into your production schedules. Place POs earlier and keep at least one extra production run’s worth of raw materials in inventory if you’re scaling or in high demand.
Communicating Price Adjustments Strategically
If tariffs or shipping costs are forcing a price increase, be transparent with your customers—especially if you’re a practitioner brand or premium supplement company.
Most consumers understand global instability and inflationary pressures. What matters is how you frame it:
- Reinforce your commitment to quality and ingredient integrity.
- Highlight your steps to maintain product consistency and supply.
- If applicable, offer loyalty discounts, bundles, or education to add value.
Tips for Brands
Transparency builds trust. Turn a price increase into an opportunity to educate your audience on your sourcing, manufacturing standards, and value.
Strengthening Supplier Relationships
In uncertain times, supplier relationships are your greatest asset. A reliable manufacturer or ingredient supplier can offer:
- Priority access to limited materials
- Flexible payment terms
- Early notice of disruptions
- Collaborative solutions like pre-purchasing or inventory holds
Tips for Brands
Schedule regular check-ins with your supplier reps. Ask about forecasted availability, backup sources, and tariff impact across their network—not just yours
Final Thoughts: Building a Resilient Supplement Supply Chain
Tariffs and supply chain disruptions are not temporary headaches—they’re becoming part of the new normal. But with strategic planning, agility, and a proactive mindset, brands can not only survive—but emerge stronger.
Whether it’s reformulating, diversifying sourcing, or strengthening supplier networks, the key to thriving in 2025 is building a flexible, transparent, and resilient supply chain.
Looking for a partner to help you weather the economic shifts?
At Health Genesis®, we work with brands of all sizes to optimize sourcing, improve margins, and protect your supply chain.
