MOQs are established by manufacturers to ensure that the time, labor, and changeover costs associated with setting up a production line are financially viable. Running very small batches often results in higher per-unit costs due to these setup requirements.

For brands and CPG companies, understanding a partner’s MOQ is critical when launching new products or testing markets. Choosing a co-manufacturer with flexible MOQs allows brands to scale operations smoothly without tying up too much capital in excess inventory.