How to Calculate EGCG Cost per Serving: A B2B Formulation and Procurement Guide

B2B FORMULATION COSTING GUIDE · UPDATED AUGUST 2026

How to Calculate EGCG Cost per Serving: A B2B Formulation and Procurement Guide

When supplement manufacturers compare EGCG suppliers, the lowest price per kilogram is not always the lowest formulation cost. The final cost depends on product purity, required EGCG dosage, inclusion rate, processing loss, packaging, testing and the number of servings produced.

1. Why Price per Kilogram Is Not Enough

Two green tea extract products may have very different prices per kilogram but similar costs per serving.This happens because the lower-purity ingredient may require a higher inclusion level to deliver the same target amount of EGCG.

For example, a formulation requiring 200 mg of EGCG per serving will use a different amount of a 98% EGCG ingredient than a 50% EGCG ingredient.    The correct comparison is based on the amount of active EGCG delivered, not just the net weight of the powder.

Procurement teams should therefore compare suppliers using the following information:

• Actual active assay.
• Target EGCG per serving.
• Price per kilogram.
• Minimum order quantity.
• Processing and blending loss.
• Packaging and freight.
• Testing and documentation costs.

2. Basic EGCG Cost Formula

The basic calculation is:

The assay should be expressed as a decimal in the calculation.    For example, 98% becomes 0.98 and 50% becomes 0.50.

After calculating the required ingredient amount:

3. Worked Example: 98% EGCG vs. 50% EGCG

Assume a supplement manufacturer wants to deliver 200 mg of EGCG per serving.    The following example is for calculation only and does not represent a market quotation.

This example shows why a lower-priced powder may not always reduce the finished-product cost.    A formulator must compare the price of the amount required to deliver the same active EGCG level.

4. Add Production Loss to the Calculation

Commercial production may involve blending, transfer and filling losses.The exact loss depends on the equipment, batch size, powder flowability, operator procedures and packaging system.

If a product has an estimated 3% processing loss, the purchasing quantity should be adjusted accordingly:

For example, if the theoretical requirement is 10 kg and the expected process loss is 3%, the purchasing requirement will be slightly higher than 10 kg.    The manufacturer should use its own validated production-loss data rather than applying a general percentage.

5. Other Costs That Affect the Final Ingredient Budget

The active ingredient price is only one part of the total formulation cost.    A complete procurement calculation may also include:

• Sample and pilot-batch testing.
• Independent laboratory verification.
• HPLC analysis and contaminant testing.
• Special packaging or customized mesh size.
• Freight, insurance and customs charges.
• Currency conversion and payment charges.
• Warehouse handling and inventory financing.
• Rejected or quarantined material risk.

For this reason, procurement managers should calculate both the raw-material cost and the landed cost.    A supplier with a slightly higher factory quotation may still provide a lower total cost if the documentation, packaging and delivery process are more reliable.

6. How to Compare Supplier Quotations Correctly

Always compare equivalent specifications before negotiating price.The quotation request should identify the product grade, assay method, particle size, caffeine requirement, packaging, quantity and delivery terms.