The food and beverage contract manufacturing (CM) industry, part of the trillion-dollar U.S. market, has been experiencing tremendous growth. However, just like cooking a perfect dish requires the right ingredients, success in this fragmented industry demands the right connections, and PartnerSlate is aiming to make those connections smoother and more efficient.
The Landscape of Food and Beverage Manufacturing
The CM industry is a $200 billion segment growing at a rapid pace. There is even potential for the domestic side of the industry to be the majority of the $1 trillion food and beverage manufacturing market in the U.S., but some obstacles are getting in the way.
The good news? If the challenges are overcome, the domestic CM industry could continue to scale at a similar rate through 2030. That makes it a ripe industry for investment.
Challenges Faced by the Industry
One of the largest factors for any industry or business is the ability to scale and control costs. The domestic food and beverage CM industry has a lot of promise, but it has to first battle against inefficiency and costs. That includes issues like:
- Expense Comparison: Even at scale, contract manufacturing remains more expensive than owning a facility.
- Global Competition: The domestic CM industry also faces competition against CMs in lower-cost labor markets.
- Technology Integration: While current innovations modernize important aspects, they don’t resolve underlying systemic issues faced by the industry.
Transparency and liquidity are also key problems, affecting most startups and growth stage Consumer Packaged Goods (CPG) brands. The issues seen in this space include things like:
- Difficulty Finding CMs
- Lead Generation Issues
- Lack of Clearinghouse
Issues like lead generation can be so extreme that certain businesses decide against having a website just to avoid unsuitable leads.
PartnerSlate’s Transparency and Liquidity Solution
As two of the largest issues faced by the industry, transparency and liquidity deserve special attention. That is where PartnerSlate is focusing its efforts, stepping in as the first marketplace to enhance transparency and liquidity in the food and beverage CM market. How exactly?
- Brands: Can easily share their project details with relevant CMs actively looking to partner, eliminating the need for cold-calling and wasted time on non-matching CMs.
- CMs: Find qualified leads all in one place, allowing them to engage on multiple projects, rather than waiting for brokers to bring qualified leads.
It presents a win-win situation that brings lower costs to brands and higher productivity to CMs. That translates into consumer benefits, such as lower prices, creating a recipe for success that helps the entire industry.
The Solution Necessary to Scale
PartnerSlate’s platform may not solve every challenge, but it’s a formula that’s proving successful in an industry that needs innovation and efficiency. With the potential to change the way brands and manufacturers connect, it is leading the food and beverage CM market towards a new era.
It’s not just about finding the right connections. It’s about crafting a system that benefits everyone involved. That’s a recipe worth trying.