Customizing Powder Supplements for Niche Markets: Vegan, Keto, and Allergen-Free Options

By Shabnam
Nassiry
10/27/2025

Standing out requires more than flavor variety. Learn how to align formulations with lifestyle choices like vegan, keto, and allergen-conscious diets!

Walk into any retail store or browse an ecommerce site, and it becomes clear that consumers want products tailored to their unique needs and preferences. The same is true in the nutrition and dietary supplement industry.

The global personalized nutrition market was valued at $13.45 billion in 2024 and is projected to reach $46.87 billion by 2032, growing at an impressive compounded annual growth rate (CAGR) of 16.84%.¹ A major driver within this space is the rising demand for customizing powder supplements. Powdered dietary supplements remain one of the fastest-growing categories, with sales of $27.93 billion in 2024 and projections of $51.7 billion by 2030.² Within this category, customization is increasingly focused on meeting specific consumer needs such as vegan, keto, and allergen-free formulations.

Understanding the Shift Towards Custom Supplement Formulas in Niche Markets

At first glance, offering custom supplement formulas for smaller segments might seem unnecessary. But the real question is: are these markets truly niche?

Addressing the Varied Needs of Today’s Consumers

Let’s start with vegans. The global vegan food market was valued at $20.18 billion in 2024, and is projected to reach $55.42 billion by 2034, growing at a CAGR of 10.63%.³ Much of this demand is driven by millennials, who represent the largest share of self-identified vegans and vegetarians.⁴

The global keto diet market is also expanding rapidly, estimated at $12.8 billion in 2025 and expected to surpass $16.5 billion by 2030 with a CAGR of 5.16%.⁵

Finally, the antiallergic supplements market was valued at $1.2 billion in 2024 and is forecasted to reach $2.5 billion by 2033, at a CAGR of 8.7%.⁶

These numbers make it clear that vegan, keto, and allergen-free products are not fringe categories. They represent significant consumer groups that brands should take seriously, as demand for personalized solutions within these segments continues to grow.

Differentiating Your Brand in a Competitive Market

With hundreds of supplement brands competing for attention, differentiation is critical. To stand out and capture market share, brand owners should focus on:

Identifying a clear, unique selling proposition
Understanding their target audience
Emphasizing quality and transparency
Developing innovative formulations
Offering personalized options
Building a strong branding strategy
Providing responsive customer support
Showcasing reviews and testimonials
Pursuing collaborations and endorsements
Launching seasonal campaigns
Engaging with their community

For more information on this, read our Guide to Differentiating Your Supplement.

Expanding Your Market Reach

Product customization allows supplement brands to enter new consumer segments more effectively. In this case, customization means formulating with vegan, keto, and allergen-free consumers in mind. This requires careful ingredient selection and attention to compliance standards. Partnering with an experienced contract development and manufacturing organization (CDMO) is especially valuable, as they can guide you through the custom powder manufacturing process and ensure your products meet the expectations of these growing markets.

Building Stronger Brand Loyalty with Tailored Products

Tailored supplements help create stronger customer connections, driving both loyalty and repeat business. But how do you create products that truly resonate with specific consumer groups? It requires a deliberate process that considers the following:

Formulation – First, you need to make sure your formulation designs address the needs of vegan, keto, and allergen-conscious consumers.
Manufacturer sustainability practices – Evaluate your CDMO’s approach to sustainability, as this is increasingly important to consumers and can be part of your brand story.
Manufacturer facility certifications – Does the CDMO have GMP and other certifications? Such certifications engender a sense of trust with consumers.
Product certifications – Does your CDMO offer you the opportunity to take advantage of product certifications like “NSF Certified for Sport®”? Such certifications give your product greater credibility.
Packaging and labeling – Sustainable packaging materials and packaging with ease of use have great consumer appeal. Naturally, well-designed labels can also convey important brand messages.

Customizing Powder Supplements for Vegan Diets

Custom supplement manufacturing plays a critical role in developing powdered products for the vegan market. Success in this space requires a clear understanding of vegan nutritional needs, sourcing ethical and sustainable ingredients, and addressing formulation challenges such as taste and texture.

Understanding the Nutritional Needs and Preferences of Vegan Consumers

While vegan diets can provide many benefits, they may also result in lower intake of certain nutrients that are more readily available in animal-based foods. Key considerations for supplement formulation include:

Vitamin B12 – This vitamin is almost exclusively found in animal products. Vegans not supplementing are at high risk of deficiency.⁷
Iron – Plant-based diets provide non-heme iron, which has lower bioavailability compared to heme iron. Vegan women of reproductive age are at particular risk.⁸
Zinc – Phytates in legumes and grains reduce zinc absorption, making deficiency more likely in vegans.⁹
Calcium – Vegans consuming low amounts of fortified foods or calcium-rich greens risk deficiency and lower bone mineral density.¹⁰
Iodine – Vegans may have low iodine intake, as plant foods contain little unless grown in iodine-rich soil; seaweed is variable.¹¹
Omega-3 fatty acids – Vegans typically have lower plasma and tissue levels of the omega-3 fatty acids EPA and DHA due to absence of fish and seafood in the diet.¹²

Beyond nutrient considerations, vegan consumers also look for ethical sourcing, clean-label ingredients, and flavor and texture that make supplementation convenient and enjoyable.

Sourcing Ethical and Sustainable Ingredients

Surveys ¹³ ¹⁴ ¹⁵ ¹⁶ consistently show that 68-91% of respondents cite animal welfare as primary reason for choosing a vegan lifestyle. In one of those surveys, 73% of respondents cited environmental concerns as a key motivator, right behind animal welfare. Consequently, it is vitally important that ingredients used in dietary supplements provide exclusively plant-based or otherwise vegan-friend sources. When selecting vitamins and minerals, there are many options available, but attention to sourcing is essential. For example, vitamin D3 should be derived from plant lichen rather than animal sources. Similarly, probiotics may be grown using a milk-based medium, so you’ll want to let your CDMO know that you want only a vegan-friendly, non-dairy source of probiotics for your custom supplement formulation.

Sustainability also plays a key role. Using vitamin D3 as an example again, ensure that the plant lichen used is Cladonia rangiferina (reindeer lichen) and that it is harvested ethically and responsibly to maintain ecosystem balance. Not all vegan sources of vitamin D3 are ethically and sustainably obtained.

Overcoming Flavor Challenges in Vegan Powder Supplements

For many vegan powders, such as plant proteins, purchase decisions are strongly influenced by taste and flavor. Plant proteins often carry earthy or bitter notes and may have a gritty or chalky mouthfeel, which some consumers find unappealing. Addressing these challenges can make shakes and mixes more enjoyable, encouraging consistent use and improving the overall consumer experience.

Fortunately, a variety of strategies, ranging from flavor customization to the inclusion of complementary ingredients, can significantly enhance taste and texture. For more insights, read “The Ultimate Guide to Flavoring Plant Protein Powder Supplements.”

Beyond plant proteins, other vegan powders, such as green superfood blends, may present similar taste challenges. The most effective way to ensure a palatable and enjoyable product is to select a CDMO that possesses extensive experience flavoring and formulating a custom supplement powder that aligns with consumer expectations.

Complying with Vegan Certifications and Labeling Standards

When it comes to vegan supplements, certifications are an important signal of trust for consumers. Two of the most recognized options are:

Vegan.org “Certified Vegan” – Administered by the Vegan Awareness Foundation (Vegan Action). Requirements include no animal-sourced ingredients, contamination controls, and a strict ban on animal testing. Certification reviews can take several weeks, depending on the application.
American Vegetarian Association (AVA) “Vegan Certified” – Administered by the American Vegetarian Association. Requirements are similar to Vegan.org, but AVA allows certain historical safety testing conducted more than five years ago. Processing is typically faster, averaging 5-7 business days once all materials are submitted.

Both certifications can help reassure consumers that a product is genuinely vegan, though they differ slightly in flexibility and approval timelines.

Popular Vegan Powder Formulations

Many powdered supplements are naturally vegan-friendly and appeal to both vegan and non-vegan consumers. However, certain categories are especially popular with vegan audiences, including plant protein powders, green superfood powders, and “vegan collagen” alternatives.

Protein powders – Some popular plant proteins include pea protein, which is highly digestible and offers some significant advantages in helping to induce thermogenesis¹⁷, promote satiety¹⁸, maintain healthy blood pressure levels already within normal ranges¹⁹, and promote muscle growth.²⁰ Another is soy protein, which helps to induce thermogenesis²¹, increase bone mineral content and density in postmenopausal women²², promote healthy cholesterol levels already within a normal range²³, and relieve vasomotor symptoms of menopause (hot flashes and night sweats).²⁴ ²⁵ ²⁶ ²⁷ A third is brown rice protein, which helps decrease fat-mass, increase lean body mass, skeletal muscle hypertrophy, power and strength.²⁸ Last, but certainly not least, is hemp protein, which helps maintain healthy blood pressure levels already within normal ranges²⁹, and provides antioxidant protection against oxidative stress.³⁰
Green superfood powders – Green superfoods may contain algae (e.g., chlorella, spirulina, etc.), grasses (e.g., alfalfa, barley grass, wheat grass, etc.), common green vegetables (e.g., broccoli, spinach, etc.), and sprouted versions of grass and green vegetables. Powdered green supplement superfood drink mixes may also contain other nutraceuticals such as fruit powders, herbs, micronutrients, enzymes, and pre- and probiotics. These products are generally consumed to help compensate for a lack of vegetables/leafy green vegetables in the diet, and to support and/or promote some aspects of the body’s detoxification process. There are studies suggesting that green superfood powders may, in fact, offer some of these benefits. One study³¹ found that 1 g/day of wheat grass powder significantly reduced blood malondialdehyde (marker of oxidative stress), increased total antioxidant status, increased vitamin C levels, and increased superoxide dismutase (SOD). There were similar results with 5-10 g/day of broccoli sprouts³² ³³, and with 2 g/day of spirulina.³⁴
“Vegan collagen” powders – It should be understood that collagen is strictly derived from animal sources, so there is no such thing as vegan collagen. That being said, there are some materials offered that provide a combination of vegan-sourced amino acids whose profile closely aligns with the amino acid profile of actual animal-sourced collagen. One such material mimics up to 98% of human collagen’s amino acid profile. A daily dose 1.5 g was shown to significantly improve skin hydration, elasticity, and reduce the appearance of fine lines in just four weeks, with 5 g/day delivering even more pronounced results.³⁵

Creating Custom Powder Supplements for the Keto Diet

The ketogenic or keto diet emphasizes high-fat and high-protein foods while significantly restricting carbohydrates. By limiting carbohydrate intake, the body shifts from relying on glucose to using fatty acids and ketone bodies for energy. This process is known as ketosis.

Research has suggested this type of diet is associated with significantly greater weight loss compared with low-fat diets in head-to-head randomized controlled trials.³⁶ More research confirms that very low-carbohydrate diets can effectively reverse the metabolic abnormalities of patients with diabetes mellitus type 2. Compared with low-fat diets, carbohydrate restriction produces significantly greater reduction in hemoglobin A1c, and weight loss in patients with diabetes mellitus type 2.³⁷

As a result, many keto enthusiasts look for supplements that align with their nutritional approach. Selecting an experienced keto supplement manufacturer enables brands to develop custom powder formulations that support consumers in maintaining their dietary preferences.

Essential Ingredients for Keto-Friendly Powder Supplements

A well-formulated keto powder typically includes ingredients that support the body’s metabolic shift during carbohydrate restriction. Some of these ingredients include β-hydroxybutyrate (BHB), medium-chain triglycerides (MCTs), butyric acid, and proteins. In addition, a few other complementary nutraceuticals don’t directly raise ketones, but they may support metabolic pathways aligned with ketosis, such as AMPK activation, autophagy induction, or improved glucose and lipid metabolism.

BHB – BHB, a type of ketone, was shown to induce a state of nutritional ketosis in animal research, even without carbohydrate restriction.³⁸
MCTs – Supplementation with MCTs is a well-established nutritional approach for increasing ketone levels. MCTs boost blood BHB in a dose-dependent manner, supporting both ketogenesis.³⁹
Butyric acid – Animal studies have highlighted that short-chain fatty acids, especially butyric acid, can raise ketone body concentrations.⁴⁰
Proteins – Research compared the use of whey and plant proteins in overweight people as part of a ketogenic diet. All groups lost weight, but the whey group had better muscle preservation.⁴¹
Complementary nutraceuticals
- Diindolylmethane (DIM) – activates AMPK, modulates microRNAs linked to autophagy
- Quercetin – antioxidant flavonoid; activates AMPK and improves glucose and lipid metabolism via PPARγ
- Milk thistle – supports liver health, inhibits mTOR, promotes autophagy, and supports healthy blood sugar and insulin levels already in a normal range.
- Resveratrol – stimulates AMPK, inhibits mTOR, promotes autophagy and mitophagy (mitochondrial quality control)
- Berberine – strong AMPK activator, lowers blood glucose, promotes fat oxidation
- Cinnamon – reduces fasting glucose and HbA1c, inhibits mTOR, and activates AMPK

Addressing Manufacturing Challenges in Keto Powder Formulation

A key component of the keto diet is maintaining low carbohydrate intake. Because many powdered supplements use sweeteners, this can present a challenge during the formulation process. Keto-friendly supplements should avoid the use of common sugars and instead use sweeteners that do not raise blood sugar or interfere with ketosis, such as:

Stevia (steviol glycosides)⁴²
Monk Fruit (Luo Han Guo, Mogrosides)⁴³
Erythritol⁴⁴
Allulose⁴⁵

Another challenge in formulating keto-friendly supplements is maintaining the stability of high-fat ingredients. This can be accomplished in a few ways. One is to include the use of antioxidants like vitamin E, rosemary extract, green tea catechins, and ascorbyl palmitate, which help reduce the oxidation, rancidity, and degradation of high-fat ingredients. Another way is by microencapsulating fat/oils in a protective matrix to reduce oxygen exposure. Lastly, choose more stable oils like MCTs that are less prone to oxidation.

As with vegan formulations, some keto ingredients can have undesirable flavor profiles. Flavor customization and the inclusion of complementary ingredients can significantly improve taste and mouthfeel. The most effective approach is to partner with a CDMO that has extensive experience in flavoring and sweetening powdered supplements.

Customizing Specialized Allergen-Free Powder Supplements

Specialized allergen-free powder supplements are increasingly important to the many consumers with food allergies who also use dietary supplements. To meet their needs, brands must understand the common allergens found in supplements, as well as the manufacturing requirements for producing allergen-free products.

Common Allergens in Supplements

About 11% of adults and 8% of children have at least one allergy to the “big 9” allergens: peanuts, tree nuts, milk, eggs, fish, shellfish, wheat, soy and sesame.⁴⁶ That’s roughly 33 million people in the United States. The following nutraceuticals are sources of some of these allergens:

Peanut protein powders
Nut butters or powders in functional powders or bars
Milk is found in whey protein, casein, colostrum, and lactoferrin
Egg white protein
Fish oil, fish liver oil, and marine collagens (fish collagen peptides)
Glucosamine, chitosan, and green-lipped mussel extract from shellfish
Wheat germ oil, wheat grass (if not certified gluten-free)
Soy protein, soy isoflavones, soy lecithin, and soy oil (in softgels)
Sesame oil (in softgels)

Manufacturing Considerations for Allergen-Free Products

Producing allergen-free powders requires strict manufacturing protocols to avoid cross-contamination. Key practices include:

Using dedicated equipment or production lines
Implementing cleanroom standards
Conducting a complete cleaning of the equipment between batches
Performing swab testing or other verification methods to confirm allergen-free status

Additional quality assurance steps (i.e., gluten-free or allergen-specific testing) may be needed to substantiate product claims.

Examples of Specialized Allergen-Free Formulations

It should be noted that, although the term “allergen-free” has been used in this blog article, you need to be careful about using this term in your marketing materials, product labels, and packaging. “Allergen-free” typically refers to the Big 9 allergens but does not guarantee the absence of all possible allergens. For example, if your powdered supplement product uses natural strawberry flavor, it could trigger reactions in consumers with strawberry allergies.

For this reason, it is best to define exactly what “allergen-free” means on your product (e.g., free of the Big 9 allergens) and confirm your approach with regulatory counsel. Alternatively, brands can use more specific claims such as “gluten-free” or “dairy-free.” In those cases, appropriate testing is required, and for gluten-free claims, testing is mandated by regulation.

Key Steps to Create Your Own Powdered Supplement Formula for Targeted Audiences

The key steps to creating your own supplement formula for targeted audiences include identifying the right market niche, creating the perfect ingredient profile, developing flavors that appeal to your niche, navigating compliance and labeling requirements, and collaborating with an experienced powder supplement contract manufacturer.

Identify the Right Market Niche

The first step is to define the niche you want to pursue. High-demand categories such as vegan, keto, and allergen-free continue to grow and present strong opportunities. Conduct market research to determine which niche best aligns with consumer trends, unmet needs, and your existing product line.

Create the Perfect Ingredient Profile

Once your niche is defined, develop an ingredient profile that aligns with your audience’s needs and expectations. Pay close attention to sourcing and compatibility. For example: Is your vitamin D3 plant-based? Is the sweetener in your protein powder keto-friendly? Does your joint support formula include a non-shellfish source of glucosamine? Attention to detail at this stage results in a more credible and marketable product.

Develop Flavors That Appeal to Your Niche

It bears repeating that it is so important to work with custom powder manufacturers that possess a proven track record of developing powders that sell well in the market. Furthermore, look for a CDMO that has flavor specialists on-site who can point you in the right direction in identifying flavor profiles that will resonate with your niche market products.

Navigate Compliance and Labeling Requirements

Compliance is critical to long-term success. Stay informed by maintaining regular communication with your CDMO, reviewing industry trade publications (e.g., Vitamin Retailer, Nutraceuticals World, Whole Foods Magazine), and engaging with trade organizations such as UNPA, NPA, or CRN. Choose a CDMO with third-party certifications, such as NSF GMP, to verify adherence to regulatory standards.

Collaborating with an Experienced Powder Supplement Contract Manufacturer

Choose a powder supplement manufacturing company that possesses at least 4 decades of industry experience and has a proven track record of creating high-quality, great-tasting products that have been sold on the market for an extended period. Such expertise helps prevent costly mistakes, ensures ingredient quality, and delivers great-tasting products that consumers are likely to embrace. As the saying goes, “You only have one chance to make a first impression.” In the supplement industry, that first impression is often the flavor and quality of your powder. Make sure it’s a positive one.

Concluding Thoughts

The growing demand for vegan, keto, and allergen-free products underscores the importance of customizing powder supplements to meet the needs of today’s diverse consumers. From identifying the right market niche to creating clean ingredient profiles, overcoming flavor challenges, and ensuring compliance, every step requires careful strategy and execution. Partnering with an experienced CDMO gives brand owners the expertise needed to deliver high-quality powders that resonate with their target audiences and stand out in a competitive market.

Are you ready to “Deliver What’s Next” in dietary supplement powders? Call 800-526-9095 to speak with one of our friendly production specialists or request a nutraceutical manufacturing price quote if you’ve already finalized your project requirements!

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Frequently Asked Questions About Customizing Powder Supplements

Are custom supplement formulations more expensive to manufacture than private label products?

The cost of custom supplement formulations depends largely on the ingredients that are selected. Premium ingredients supported by credible research generally increase the cost of goods but can also result in higher-quality products that foster consumer satisfaction and repeat purchases. By contrast, private label products often share identical formulations across multiple brands, offering little differentiation and limited potential to build lasting consumer loyalty.

How long does it take to create a custom supplement formula from start to finish?

Timelines can vary depending on factors such as delivery format, ingredient selection, and whether the product is being manufactured for the first time. For an entirely new product, the process of conceptualizing, formulating, and completing the first production run typically takes 4–6 months. Once the formula is established, subsequent runs are considerably faster and can often be completed within 90 days, provided there are no formulation changes.

What are some common mistakes to avoid when creating a custom supplement formula?

One of the most common mistakes is choosing lower-cost ingredients that lack credible research to support their effectiveness. While this approach may reduce the initial cost of goods, it often leads to poor consumer experiences, limited repeat sales, and ultimately higher marketing expenses to replace lost customers. In the long run, investing in well-researched, high-quality ingredients builds stronger consumer trust and brand loyalty.

What are the environmental impacts of creating vegan, keto, and allergen-free supplements?

The environmental impacts are a function of the ingredients you choose to use in these products. If you choose ingredients from sustainable sources that respect the ecosystem from which they are obtained, then there can be a minimal or net-zero impact on the environment. Conversely, if ingredients are sourced without consideration for sustainability, the environmental effects may be significantly more negative.

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Shabnam

Nassiry

Formulations Manager, Flavored Products

Shabnam Nassiry, Formulations Manager at Vitaquest, brings over 16 years of experience to the company’s product development team. She holds a Bachelor’s degree in Dietetics and a Master’s degree in Nutrition and Food Science, providing a strong foundation in formulation and applied nutrition. At Vitaquest, Shabnam specializes in developing supplement formulations that align with industry standards and evolving consumer preferences. Her extensive background and dedication to innovation supports brand partners in creating high-quality products for the marketplace.