The contract development and manufacturing organisation (CDMO) is set to build a nutraceutical production site in Chonburi, east of Thailand.
Aside from gummies, the production plant will also come with automatic packaging lines.
Sirio Pharma’s board has approved a potential total investment of up to US$40m for the project - which is currently pending review and approval from both Thai and Chinese regulators.
Once approved, it will be Sirio Pharma’s first Asian production plant built outside of China.
The company will also open a new office in Singapore’s central business district at 6 Battery Road later this month, as part of its efforts in increasing regional customer and trade association partnering.
Responding to queries from NutraIngredients-Asia, Alex Du, general manager, Asia Pacific BU said that the site would primarily cater to regional customers across Southeast Asia, although it would also be available for global supply.
The decision to build production site in Thailand is based on “strong growth” coming out of the region.
The company declined to disclose its year-on-year sales growth from SEA, but said that the business saw its compound annual growth rate (CAGR) between 2022 and 2024 exceed 100 per cent.
“We have seen strong growth all across the SEA region and this new facility will give our customers additional flexibility for local manufacturing,” said Du.
New brand launches, increased consumer uptake to drive SEA growth
Sirio Pharma is expecting to see sustained growth in SEA due to the launch of newer brands in the region.
Additionally, e-commerce and social media have led to increased use of nutraceuticals among younger consumers, said Du.
The Chonburi site will be the company’s eighth production site worldwide.
“In fact, as a nutraceutical CDMOs, one of our unique advantages is that we have multiple sites in three continents. This is our first plant in APAC outside of China,” said Du.
The company also has two production sites in the US, one in Europe, and four in China - including Ma’anshan in Anhui.
In 2022, Sirio Pharma also acquired 80 per cent equity of US’s nutraceutical contract manufacturer Best Formulations.
Gummy sensory requirements
According to the company, it is seeing an increased demand globally for higher quality gummy products.
This would cut across taste, texture, appearance requirements.
“Globally we are seeing increased demand in all markets for higher quality gummy products and nutraceuticals with proven shelf life and excellent organoleptic properties.
“The end consumer now wants best in class nutraceuticals with excellent taste, texture and appearance as well as quality ingredients,” said Du.
