Quick Answer
The three models differ in “who designs, whose brand”: OEM (Original Equipment Manufacturer) produces to the customer’s specifications; ODM (Original Design Manufacturer) designs and produces the product itself, sold under the customer’s brand; OBM (Original Brand Manufacturer) designs, produces and sells under its own brand. According to English Wikipedia, some manufacturers move from ODM toward OBM; and under ODM, unless the customer specifically buys it, the intellectual property usually stays with the manufacturer, who may sell the same product to others, so contracts should clearly state who owns recipes and designs.
OEM vs ODM vs OBM Compared
| Comparison | OEM | ODM | OBM |
|---|---|---|---|
| Who designs | Customer | Manufacturer | Itself |
| Brand | Customer’s brand | Customer’s brand | Own brand |
| Ownership of recipe or design | Usually the customer | Per contract; may stay with the manufacturer if not agreed | Itself |
| Customer capability needed | R&D, specification | Product selection, marketing | — |
| Best for | Brands with their own recipes | Launching a private label product quickly | Manufacturers building their own brand |
English Wikipedia also notes that in 2020, the world’s ten largest electronics ODMs by revenue were all Taiwanese companies, reflecting Taiwan’s mature contract manufacturing experience.
OEM/ODM for Bubble Tea Ingredients
Common customization in the bubble tea industry includes:
- Pearls and toppings: size, texture, cooking conditions and applications
- Syrups and flavors: exclusive flavor formulas
- Tea bases: blends, roast level, aroma profile
- Specifications and labeling: product specs and labels that meet target-market rules
- Packaging and brand visuals: pack sizes, materials and design
What the Contract Should Spell Out
- Ownership of recipes and designs: exclusive or not, and whether they can be sold to others.
- Confidentiality (NDA): recipes, processes and business information.
- MOQ and lead times: minimum order quantity, sampling and production times.
- Quality standards: specification sheets, testing and acceptance.
- Labeling responsibility: who confirms ingredient, nutrition and allergen labeling.
Tang Sugar’s Product Customization
Tang Sugar’s product customization services offer OEM/ODM manufacturing of bubble tea ingredients and private label development, covering pearls and toppings, syrups and flavors, tea bases, product specifications and regulatory labeling, and packaging and brand visuals, with NDAs available. Partner factories hold ISO 22000 (SGS verified), FSSC 22000 and HACCP certification. Contact us.
Products in this article
All 82 Bubble Tea & Boba Ingredients →
FAQ
What is the difference between OEM and ODM?
OEM produces to the customer’s specifications; ODM designs and produces the product itself, then sells it under the customer’s brand.
What is OBM?
A model in which a company designs, produces and sells products under its own brand.
Who owns the recipe in an ODM arrangement?
It depends on the contract. English Wikipedia notes that unless the customer specifically buys it, the intellectual property usually stays with the manufacturer.
Can bubble tea ingredients be made OEM or ODM?
Yes. Common customization covers pearls and toppings, syrup flavors, tea bases, specifications and labeling, and packaging design.
Further Reading
- Private Label Bubble Tea Ingredients
- What Is a Brand-Authorized Distributor?
- The Tang Sugar Brand Story
Sources
- Wikipedia: Original design manufacturer
- Tang Sugar: Product Customization Services, Our Services
