Why does mass production depend on large numbers of customers buying goods?

Mass production relies on a large customer base because high-volume consumption is a necessary condition for the economic viability of the system. This dependency exists for several key reasons:1

• Justifying Capital Investment: Mass production requires substantial capital investment in specialized machinery and facilities. Large production runs are essential to maximize output per unit of investment, ensuring that these expensive assets are employed efficiently.23
• Achieving Economies of Scale: By producing goods in great quantities, manufacturers can significantly reduce the cost per unit. This decrease in cost allows for lower selling prices, which in turn expands the number of people who can afford the product, further driving demand and consumption.13
• Operational Efficiency: High volume is required to justify the division of labour into specialized, repetitive tasks. Without a large, continuous flow of products, the specialized tools and assembly line processes would be used inefficiently, leading to rising production costs.2

Ultimately, mass production functions as a complete system where production and consumption are mutually dependent; the ability to absorb large quantities of goods enables the efficiencies that make those goods affordable in the first place.21