What Are OEM and ODM? How Should Food Brands Choose?
For food brands planning to launch new products, expand their product portfolio, or enter new markets, OEM and ODM are two common manufacturing models. Both allow brands to work with professional food manufacturers, but they differ in product development, brand involvement, and project workflow.
OEM, or Original Equipment Manufacturing, generally applies when the brand already has a relatively clear product specification, such as a formulation, product standard, packaging concept, or technical requirement. The manufacturer then produces according to the customer's specifications.
This model is often suitable for brands that already have a mature product concept and mainly need reliable manufacturing capacity.
ODM, or Original Design Manufacturing, places greater emphasis on product development. A brand may provide a product concept, target consumers, flavor direction, price positioning, or market objective, while the manufacturer supports formulation development, sample testing, and process optimization.
When choosing between OEM and ODM, food brands should consider several factors:
1.Whether a mature formulation already exists;
2.Whether the brand has its own R&D capability;
3.Whether strong product differentiation is required;
4.The expected product launch timeline;
5.Long-term plans for product-line expansion.
If the formulation and specifications are already well defined, OEM may be the more straightforward option. If the brand requires support from product concept through formulation and process development, ODM is often more suitable.
FAIVO focuses on cereal food R&D and manufacturing, with products covering granola, cereal and oat blends, cornflakes, puffed cereals, whole-wheat crisps, instant oatmeal, and instant cereal products. OEM and ODM cooperation can be provided according to different project requirements.
