US CPG Manufacturers Have Excess Capacity

One in 10 US CPG factories is running more than half-empty, according to Keychain's 2026 CPG Intelligence Report. The report, which surveyed over 1,000 CPG manufacturers, found that about 1 in 3 has at least 31% of its production capacity unused. This significant overcapacity could be a major opportunity for brands looking to scale their production. What this means for creators is that they may have more opportunities to partner with manufacturers to produce their own products, potentially leading to more control over their brand and higher profit margins. The excess capacity in the US CPG manufacturing industry is likely due to a combination of factors, including changes in consumer demand and advancements in technology. As the industry continues to evolve, it will be important for manufacturers to find ways to utilize their excess capacity, whether through partnerships with brands or investments in new technologies. For creators, this trend could be a major boon, as it could lead to more opportunities for collaboration and innovation. By partnering with manufacturers, creators can bring their products to market more quickly and efficiently, potentially leading to increased revenue and growth. Source: Digiday (https://digiday.com/media/u-s-cpg-manufacturers-are-sitting-on-excess-capacity-which-could-be-a-boon-for-brands/?utm_campaign=digidaydis&utm_medium=rss&utm_source=general-rss)