Third Party Manufacturing vs. In-House Production
Choosing the right production model is one of the most important decisions for any company in food processing, product development, or food tech. Whether you’re launching a new dried fruit snack, scaling up commercial food drying, or innovating with the latest drying technology, the way you manufacture can impact everything from cost and flexibility to speed to market and access to cutting-edge equipment. With the rise of advanced solutions like EnWave’s microwave dehydration, the decision between third party manufacturing and in-house production is more nuanced, and more strategic, than ever.
Understanding Third Party Manufacturing (3PM) and In-House Production
Third party manufacturing, also known as contract manufacturing, involves partnering with an external facility to produce your product. In-house production means you own and operate your own facility and equipment, such as a commercial freeze dry machine, industrial freeze dryer, or microwave drying equipment.
Each approach has its own strengths. The right choice depends on your business goals, resources, and the demands of your market.
Cost Considerations
Upfront investment
Setting up an in-house production line requires significant capital. Commercial freeze dryers, industrial freeze machines, and state-of-the-art microwave drying equipment represent a major investment. Not just in machinery, but also in facility upgrades, staffing, and regulatory compliance.
Third party manufacturing, on the other hand, allows you to avoid these upfront costs. You pay for production as you go, freeing up capital for marketing, product innovation, or expanding your portfolio. This is especially valuable for startups and brands testing new products or entering new markets.
Operating costs
Running your own facility means ongoing expenses: maintenance, utilities, labor, and training. Contract manufacturers spread these costs across multiple clients, offering economies of scale that can reduce your per-unit cost, especially when leveraging advanced technologies like EnWave’s REV™ vacuum microwave dehydration, which is known for its energy efficiency and lower operational costs compared to traditional freeze drying.
Flexibility and scalability
Responding to market changes
Food innovation is fast-paced. Consumer tastes shift, regulations evolve, and new opportunities emerge. Third party manufacturing offers unmatched flexibility. You can quickly ramp up or scale down production, test new products, and respond to demand spikes without the risk of idle equipment or underused staff.
In-house production offers control, but scaling up requires new equipment, more space, and additional regulatory hurdles. If your business is seasonal or you’re experimenting with product development, contract manufacturing can help you stay agile.
Access to technology
Building your own facility means choosing a technology platform, commercial freeze drying, air drying, or newer options like microwave drying. But technology evolves rapidly. By partnering with a third party manufacturer, especially one using EnWave’s REV™ technology, you gain access to the latest advancements without the risk of your investment becoming obsolete.
EnWave’s partners benefit from continuous innovation, as the company invests in R&D and upgrades its facilities to stay at the forefront of drying technology.
Speed to Market
Faster launches
Getting a new product to market quickly is critical for capturing consumer interest and staying ahead of competitors. In-house production can be slow to set up, equipment lead times, facility modifications, and regulatory approvals can delay your launch by months or even years.
Third party manufacturing with a partner like EnWave’s REVworx™ facility enables rapid prototyping, pilot runs, and full-scale production without delay. This is especially valuable for brands developing dried fruit snacks, functional foods, or specialty ingredients that need to capitalize on emerging trends.
Expertise and Support
Contract manufacturers often provide more than just production, they offer technical expertise, quality assurance, and regulatory support.
Quality and consistency
Process control
Maintaining consistent product quality is essential, whether you’re making snacks, pharmaceuticals, or military rations. In-house production gives you direct oversight, but also requires deep expertise and strict process management.
With third party manufacturing, you benefit from established quality systems, certifications, and experienced staff.
Food safety and compliance
Meeting global food safety standards is non-negotiable. Third party manufacturers invest heavily in certifications like Safe Quality Food (SQF), which require rigorous protocols and regular audits. This level of assurance can be challenging and expensive to maintain in-house, especially for smaller companies or those entering new markets.
Technology access and innovation
REV™ Technology Advantages
EnWave’s patented Radiant Energy Vacuum (REV™) technology is transforming commercial food drying and product innovation. Compared to traditional freeze drying, REV™ delivers:
- Faster drying times (minutes or hours vs. days)
- Superior product quality (color, flavor, nutrients)
- Up to 80% lower processing costs
- Flexible, continuous processing for a wide range of products
REV™ is used by more than fifty royalty-generating partners in over twenty countries, spanning snacks, pharmaceuticals, military rations, and more. Many of these partners rely on third party manufacturing to bring products to market efficiently, leveraging EnWave’s expertise and technology to stay ahead of the competition.
Toll Drying Services
For companies seeking to test the waters or expand capacity without investing in new equipment, EnWave offers toll drying services at its REVworx™ facility. This model allows you to access state-of-the-art microwave dehydration for pilot runs, contract manufacturing, or ongoing production—ideal for companies focused on food innovation, product development, or scaling up commercial food drying. Learn more about toll drying here.
Making the right choice for your business
Choosing between third party manufacturing and in-house production is not a one-size-fits-all decision. Consider these questions:
- How quickly do you need to bring your product to market?
- Do you have the capital and expertise to manage your own facility?
- Is flexibility or control more important for your business model?
- Are you seeking access to the latest drying technology without heavy investment?
- Do you need to maintain strict quality and regulatory standards?
For many companies, especially those focused on innovation, speed, and efficiency, third party manufacturing with a technology partner like EnWave offers a compelling path forward. It enables you to stay agile, reduce risk, and deliver superior products, while focusing your resources on growth and brand building.
Ready to explore your options?
EnWave partners with leading brands worldwide, offering both technology licensing and toll drying services to help you succeed in a dynamic market. Whether you’re developing the next big snack, scaling up commercial food drying, or seeking a better alternative to traditional freeze drying, our team is here to support your journey.
Discover how third party manufacturing with EnWave’s REV™ technology can transform your business. Learn more about our toll drying solutions here, or connect with our experts to discuss your project.
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