For small brands venturing into the food and beverage industry, navigating the production process can be complex. One crucial aspect to consider is the minimum order size required by manufacturers. In this guide, we will provide a brief overview of minimum order sizes for different categories of food and beverage products, offering rough estimates to help you plan your production effectively.
Minimum Order Size Estimates by Category
It's important to note that minimum order sizes can vary significantly depending on the manufacturer, product type, packaging, process complexity, and other factors. The estimates provided below are meant to serve as a general guideline, but it's always recommended to reach out to specific manufacturers for accurate information based on your unique requirements.
- Packaged Food Products: Minimum order sizes for packaged food products typically range from 1,000 to 10,000 units, depending on factors such as product complexity, packaging type (e.g., cans, jars, pouches), and production capabilities of the manufacturer. Simple products with standardized packaging may have lower minimum order requirements, while more specialized or custom packaging options may require higher quantities.
- Beverages: The minimum order sizes for beverages can vary significantly depending on factors such as the type of beverage (e.g., carbonated, non-carbonated, alcoholic), packaging format (e.g., bottles, cans, tetra packs), and production capabilities. Generally, minimum order sizes for beverages can range from 1,000 to 20,000 units. Customization, such as unique flavors or specialized packaging, may require higher minimum order quantities. Overall, beverages tend to have higher minimums than other food products.
- Fresh or Perishable Food: For fresh or perishable food products, minimum order sizes can be more challenging to estimate due to factors such as shelf life, production timelines, and transportation requirements. It's common for minimum order sizes to be higher than packaged food products or beverages. Estimates can vary widely, starting from a few pallets or cases to several truckloads, depending on the manufacturer and the specific product.
What are MOQs based on
MOQs are set in order to optimize manufacturing time. Some things manufacturers based their MOQs on include:
- Kettle size (MOQ of 1,000 gallons b/c kettle cooker is 1,000 gallons)
- Daily capacity (minimum 1 shift of production)
It is crucial to start by realistically assessing the range of volumes you believe you can sell or are targeting to sell. Consider factors such as market demand, your marketing efforts, and your production and distribution capabilities. Once you have a clear understanding of your sales goals, take into account your shelf life and storage needs to determine ideal production volumes and frequency. Generally, the absolute minimum production size for contract manufacturers is between 1,000-2,000 units per SKU. The smaller the production volume, the higher the cost per unit because of the overhead costs associated with each production (set-up, clean up, down time between productions, etc). However, increasing your production volume does leave you with product you need to store, so keep in mind shelf life and storage conditions, as well as storage cost.
Some examples of MOQs - these have been taken from manufacturers we work with of varying sizes:
- Jarred nut butter: 10,000 units/sku
- Pouched nut butter: 25,000 units/sku
- Cookies/bars in overwrap: 10,000 units/sku
- Fruit juice: 1000 gallons per run
- Biscuits: 20,000 lbs/sk
- Sauce: 40 gallons
- Gluten free snacks: 10,000 - 25,000 units/sku
- Granola: 60,000 - 75,000lbs
- Coffee: 1,000 lbs
- Granola: 2,500 lbs
- Bakery items: 1,000 lbs
- Coffee or plant-based beverages: 7,500 gallons/sku
- Dry seasonings: 50,000 lbs
- Bars: 100,000 bars/sku with 3-4 run annual comittment
- Nut butter: 2,500 units
- Ice cream: 4,500 cases of pints
- Dressings: 1 day (10 hr) production
- Tortilla chips: 12,000 lbs