Why do global brands, legacy brands, and emerging brands use external manufacturing partners?
The use of food contract manufacturers (external manufacturing) by brands of all sizes is becoming more and more common. The overall size of the market, now approaching $100 billion, is growing much faster than the industry it serves.
Here are the top twelve reasons, based on 2022 polling results.
- Cost savings: Food contract manufacturers often have economies of scale and can produce goods at a lower cost than a company’s internal manufacturing operations.
- Flexibility: Food contract manufacturers can quickly adapt to changes in demand and can handle fluctuations in production volume.
- Expertise: Food contract manufacturers often specialize in specific types of manufacturing and can bring a high level of expertise to the production process.
- Equipment and technology: Food contract manufacturers may have access to more advanced equipment and technology than a company’s internal manufacturing operations.
- Quality control: Many food contract manufacturers have robust quality control systems in place, which can help ensure that products are of high quality.
- Scalability: Food contract manufacturers can quickly scale up or down production to meet changing demand.
- Speed-to-Market: Using a food contract manufacturer can help speed up the time it takes to bring a product to market.
- Risk Management: Food contract manufacturers can help manage the risks associated with manufacturing and supply chain disruptions.
- Access to global markets: Food contract manufacturers often have global supply chains and can help companies access new markets.
- Compliance: Food contract manufacturers can help ensure compliance with industry regulations and standards.
- Environmental sustainability: Many food contract manufacturers have implemented sustainable manufacturing practices, which can help companies reduce their environmental impact.
- Innovation: Food contract manufacturers can bring new ideas and technologies to the production process and can help companies stay competitive.
TMG is the leading industrial marketing agency serving the food contract manufacturing industry. We also help connect brands with the contract manufacturing resources they need to succeed. If you are a contract manufacturing or packaging firm seeking to move more powerfully in the market, find out how TMG can help you fulfill your mission.