Why Certain States Are Hotspots for Natural Products Manufacturing
If you’ve ever wondered why so many supplement brands seem to come out of the same few states, you’re not imagining things. California, Utah, Colorado, New Jersey, New York, and Georgia aren’t just random dots on the supplement map — there’s real data (and real strategy) behind their dominance in the dietary supplements manufacturing space.
Whether you're in the industry or considering where to set up shop, here’s a breakdown of why these places stand out — and why a few other states might be catching up.
Market Demand: It Starts With the People
People who care about health… buy health products. Shocking, I know.
California leads the way here with its massive, wellness-obsessed population. But Colorado’s outdoor-loving residents, Florida’s wellness-focused retirees, and New York’s high-income urban professionals also drive huge demand for supplements. In short, where people prioritize feeling good, the supplement industry flourishes.
And demand isn’t slowing down — the U.S. supplement industry was valued at over $53 billion in 2023, with continued growth projected at 5.7% CAGR through 2030. If you’re wondering where those billions are being spent, a good chunk of it is in these states.
Regulation & Tax Incentives: The Less Red Tape, the Better
Let’s talk shop — and by that, I mean taxes and regulations.
Utah stands out with its historically lenient regulatory environment and reduced grocery sales tax rate on supplements (yep, that’s a thing). Georgia, meanwhile, has rolled out attractive tax incentives and low operational costs that make it a magnet for up-and-coming manufacturers.
New Jersey and New York don’t offer the cheapest setups, but their proximity to the pharmaceutical industry and overlapping regulatory frameworks actually create a smoother ride for supplement brands that want to play in both sandboxes.
In short: fewer headaches + more resources = better places to do business.
Logistics: If You Can’t Ship It, You Can’t Sell It
Distribution is the quiet MVP in this whole game.
California flexes hard here with major ports like Los Angeles and Long Beach, while Georgia benefits from the Port of Savannah and one of the busiest airports in the world (Atlanta). Colorado may not be coastal, but it’s centrally located and has Denver International Airport doing some heavy lifting. New Jersey and New York? They're the gateway to the entire Northeast.
Bottom line: these states are great at getting stuff in and out — fast.
Talent, Clusters, and the Power of the Pack
Let’s talk about something every founder, plant manager, or quality director knows: finding good people is hard.
That’s why industry clustering is such a big deal. Utah, for instance, has such a dense concentration of supplement companies that it’s been called the “Silicon Valley of Supplements.” (OK, I might’ve made that exact phrase up — but you get the point.)
New Jersey and New York benefit from powerhouse universities like Rutgers, Columbia, and NYU that pump out top-tier science and manufacturing talent. California has UCLA and Stanford, plus decades of R&D culture thanks to its pharma and biotech roots.
When manufacturers, suppliers, and talent pool together, the whole ecosystem gets more efficient — and a whole lot more innovative.
Raw Materials: You’ve Got to Grow It to Bottle It
Not every supplement ingredient comes from a lab — many come from the ground.
California’s ag sector provides easy access to fruits, veggies, and herbs. Colorado’s known for its botanicals. The closer you are to your ingredients, the faster and cheaper you can produce your products. And in an industry where freshness and efficacy matter, that’s a major edge.
Honorable Mentions: Texas & Florida
Texas and Florida didn’t quite crack the top tier of concentration, but they’re no slouches either.
Texas brings a big population, business-friendly climate, and strong logistics (hello, ports of Houston and Dallas logistics hub). Florida offers year-round access to its massive retiree and tourism markets, plus tax incentives and solid infrastructure.
If you're looking for emerging opportunities, these states are climbing the ranks.
Why It Matters
If you’re a brand founder, R&D leader, operations executive, or investor looking to break into supplements — where you set up shop matters. It affects your costs, your access to talent, how quickly you can innovate, and how fast your products hit the shelves.
Choosing the right state isn’t about where you like the weather. It’s about where the right mix of people, policy, logistics, and demand all come together.
Dietary Supplement Manufacturing State Cheat Sheet
California - Huge market, wellness culture, ports, raw materials, elite research hubs
Utah - Industry clustering, business-friendly policies, lenient regs, MLM powerhouse
Colorado - Health-conscious consumers, access to botanicals, solid logistics
New Jersey - Pharma overlap, tax exemptions, talent from top universities
New York - Massive consumer base, R&D talent, strong distribution
Georgia - Tax incentives, low costs, powerful logistics via port & airport
Texas - Big market, business-friendly, logistics goldmine
Florida - Wellness retirees, tourism demand, warm business climate
Final Thoughts on Top Supplement Manufacturing States
Some people pick a state for its beaches. Others for the tax breaks. In supplements, you pick it based on where your business can thrive.
If you’re in the natural products space and trying to figure out where to scale, launch, or even just survive the next round of supply chain chaos — these eight states should be on your radar.
And if you're trying to find people to help you do it? Well... you know a guy.
