Tips & Advice
3 min read · December 2024
What Is a MOQ and Why It Matters for New Brands
Minimum order quantities can make or break a new brand's launch. Here's what MOQ means, how it's set, and how to negotiate terms that work for you.
Excelsia Labs Team
Gummy Manufacturing Experts · Greece
MOQ Defined
MOQ stands for Minimum Order Quantity — the smallest number of units a manufacturer will produce in a single production run. For gummy supplements, MOQs are typically expressed in number of bottles, pouches, or individual units. They exist because manufacturing has fixed costs: setup time, equipment changeover, raw material sourcing, and quality testing all happen regardless of batch size.
Why MOQs Are a Barrier for New Brands
Many contract manufacturers have MOQs of 10,000–50,000 units per SKU. For a brand just starting out, this can mean tying up $20,000–$100,000+ in inventory before you've made a single sale. That's a significant risk, especially if you're still testing product-market fit, refining your formula, or building your audience.
High MOQs also limit your ability to offer multiple SKUs early on, since each product variant requires its own production run.
How MOQs Are Set
MOQs depend on several factors: the complexity of the formula, the type of gummy (pectin vs. gelatin, coated vs. uncoated), the packaging format, and whether you're using white label or custom formulation. White label products generally have lower MOQs because the manufacturer is already producing that formula at scale. Custom formulations require dedicated setup, so MOQs are typically higher.
How to Negotiate MOQs as a New Brand
Start with a manufacturer that specializes in small-to-mid-size brands. Ask about pilot run options — some manufacturers offer smaller initial batches at a slightly higher per-unit cost to let you validate demand. Be transparent about your growth plans; manufacturers who see long-term partnership potential are more willing to flex on initial MOQs.
Also consider starting with one hero SKU rather than multiple products — concentrating your initial order on a single formula makes it easier to hit MOQ thresholds efficiently.
Excelsia Labs: Low MOQs for Growing Brands
We built Excelsia Labs specifically to serve emerging supplement brands. Our MOQs start significantly lower than industry average, and we offer white label options that let you get to market with minimal inventory risk. As your brand grows, we scale with you — same quality standards, larger volumes, better unit economics.
Ready to Work With Europe's Leading Gummy CDMO?
Excelsia Labs is an EU GMP and BRCGS certified gummy contract manufacturer based in Greece. Our team is ready to discuss your formulation requirements and manufacturing needs.