[manachar]

> The hurdles for starting up in the US market are astronomical, and there's only one contract manufacturer Perrigo Nutritionals which not surprisingly has a large minimum order size. ByHeart became the 4th brand to have its own factory, first in 15 years.

The regulatory hurdles for starting a brewery are even more intense (likely one of the most regulated of any consumable product short of marijuana), yet there's not been a shortage of new ones of those starting even during this current pandemic.

I think the article leans too heavily on "heavily regulated" as a blame for lack of new players in the game and ignores the economic aspects are probably the bigger player.

That division of a mature market seems fairly standard for a consumer food product. I suspect you could say much the same about peanut butter or cream cheese (both of which have had some shortages).

[Throwawayaerlei]

"The regulatory hurdles for starting a brewery are even more intense"

What I was able to find just now says that's a qualitatively different thing, mostly pertaining to Prohibition and its end and taxes, and does not require a proctological safety exam of your supply chain, manufacturing, etc.

As in, get a lawyer and jump through various hoops, as well as maybe some lower level government food safety licencing. It obviously makes a difference when you're selling something that's intrinsically poisonous to microbes by what a chemist once told me was merely the least toxic alcohol. Plus the difference in risks we're willing to have adults vs. babies take.

And of course this is just one of many issues in the market, some of which I outlined, see also the subthread starting with a _Reason_ Volokh Conspiracy column and its links.