U.S. CPG manufacturers are sitting on excess capacity, which could be a boon for brands

This article was first published by Digiday sibling Modern Retail.

CPG manufacturers in the U.S. are sitting on excess capacity that’s just waiting to support a new wave of brand growth.

Keychain, a platform that connects brands with manufacturers, released its 2026 CPG Intelligence Report this week, which included a survey of over 1,000 CPG manufacturers. Results showed that one major theme they’re grappling with is significant overcapacity: About 1 in 10 factories is running more than half-empty, and about 1 in 3 has at least 31% of its production capacity unused.

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