Toll Processing

Toll processing (also called toll manufacturing, tolling, or contract processing) is a third-party service manufacturers use to process raw materials such as powders, resins, or chemicals into finished or semi-finished products. Partnering with an experienced toll processor allows manufacturers to access specialized equipment, technical expertise, and scalable production capacity without capital investment in their own infrastructure.

Although the terms are sometimes used interchangeably, there is a distinction. All toll processors are contract manufacturers, but not all contract manufacturers offer tolling services.

Toll Processing vs. Contract Manufacturing

Toll processing is ideal for companies that want to maintain control over their materials while outsourcing specialized production steps.

Toll processing services vary by provider but often include:

• Size reduction (grinding, milling, crushing)
• Blending and mixing
• Screening and classification
• Drying
• Packaging and repackaging
• Material handling and logistics support

At Custom Processing Services, toll processing capabilities are designed to support industrial manufacturers that require precision, scalability, and regulatory compliance.

Top in-demand custom toll processing methods include:

Jet Milling, Mechanical Milling, and Wet Milling

Milling and grinding are fundamental to toll processing. Equipment and methods include mechanical technologies, air jet mills, and wet media milling processes.

Conventional and fluid bed jet mills are dry milling technologies, each with its own advantages:

• Explore a range of technologies, from coarse to micrometer-range milling gauges:
  Milling Methods Explained — From Coarse Grinding to Micronization →
• Learn about jet mills and their appropriate uses:
  What is Jet Milling and How Does it Work? →
• Evaluate differences between conventional and fluidized bed jet mills:
  Compare Conventional and Fluid Bed Jet Milling →
• Discover key questions to ask about dry grinding projects:
  Four Keys to Dry Grinding Success You Need to Know →

While many materials are suitable for dry milling technologies to achieve specified particle sizes, sometimes wet media milling is the preferred method. Understand why:

• Review similarities and differences between wet and dry grinding technologies:
  What Are the Advantages of Wet Grinding Vs. Dry Grinding? →

• See how particles can be micronized and even nanonized on wet or jet milling equipment:
  Nano Grinding Mills: Tiny Particles Can Be a Big Deal →

Contract Drying Services (Toll Drying)

A toll processing partner can provide contract drying as a standalone service or as part of a broader material processing workflow. Drying is often required to control moisture content before or after milling.

• Before milling: If a material has high moisture content and will undergo dry milling, it typically must be dried first to ensure efficient size reduction and prevent processing issues.
• After milling: If a material is processed using wet grinding but the final specification requires a dry powder, a drying step is necessary after milling.
  

What drying capabilities do toll processors offer?
Custom toll processors can provide multiple drying technologies, most commonly flash drying and fluid bed drying, and help determine which method best fits material and end-use requirements.

• Learn what to evaluate when selecting a drying partner:
  Contract Drying Services — The 5 Keys You Need to Know →
  

How does flash drying work?
Flash drying rapidly removes surface moisture by exposing particles to a high-velocity stream of heated gas. This method is ideal for materials that require fast, efficient moisture reduction.

• Learn more:
  What is Flash Drying Within Custom Toll Processing? →
  

How does fluid bed drying work?
Fluid bed drying suspends particles in a controlled stream of heated air inside a specialized chamber. This allows for uniform drying as particles flow freely and are evenly exposed to heat.

• Compare both methods:
  A Side-By-Side Look at Flash Drying Vs. Fluid Bed Drying →

Can drying processes modify particle performance?
Yes. Advanced toll processors can use drying technologies to apply particle surface treatments, such as coating, shaping, or engineering particle behavior for specialized applications.

• Explore advanced capabilities:
  

  How Particle Surface Treatments Can Expand Your Product Possibilities →
  4 Insights Into Prilling, Shaping, and Particle Coating →

How do you choose the right toll drying processor?
Not all processors offer the same level of expertise, equipment, or process control. Selecting the right partner can directly impact product quality, consistency, and performance.

• Learn what to look for:
  Are All Toll Drying Processors the Same? →

Blending

Blending is a critical step that transforms individual ingredients into a uniform formulation. This applies to dry powders, liquids, and emulsions across a wide range of industries.

• Explore key capabilities:
  3 In-Demand Industrial & cGMP Blending Capabilities →

Why is powder blending important?
Powder blending is widely used in industries such as paints and coatings, chemicals, food, pharmaceuticals, metals, minerals, and plastics. It ensures consistent distribution of ingredients and reliable product performance.

What challenges are involved in blending?
Although common, blending can be technically complex. Key challenges include:

• Achieving uniform distribution of all components
• Preventing agglomeration or segregation
• Maintaining particle size, shape, and functional properties

In some cases, additional processing may be required to optimize results.

Can particle surface treatments improve blending performance?
Yes. Particle surface treatments can enhance flowability, compatibility, and overall performance within a blend, helping achieve the desired material characteristics.

• Learn more:
  How Particle Surface Treatments Can Expand Your Product Possibilities →

What equipment is used for blending?
Blending equipment varies based on the material and process requirements. Common options include ribbon blenders, wet media mills, and jet mills. Selecting the right equipment and the right partner is essential for achieving consistent results.

• Learn how to evaluate providers:
  4 Secrets to Evaluating Powder Blending Companies →
  

How does blending differ in regulated industries like pharmaceuticals and food?
Blending in pharmaceutical and food applications requires strict quality control, regulatory compliance, and specialized expertise to ensure safety and consistency.

• Explore industry-specific insights:
  

  3 Critical Things to Know About the Blending Process in the Pharmaceutical Industry →
  Is There a Key to Blending in the Food Industry? →

Do some applications require multiple processing steps?
Yes. Advanced formulations often require a combination of processes—such as particle size reduction, extraction, blending, and surface treatment—to achieve the desired performance.

• See an example in paints and coatings:
  Milling and Blending Paints and Coatings: 3 Tops Challenges and Solutions →

Extraction

Extraction services isolate valuable compounds from raw materials for use in a wide range of industries, including food, pharmaceuticals, nutraceuticals, hemp, and industrial applications.

These processes are commonly used to produce ingredients such as natural flavorings, cannabinoids, and other phytochemicals that are used across consumer and specialty products.

What industries rely on extraction services?
Extraction plays a key role in:

• Food and beverage (flavors, additives)
• Pharmaceuticals and nutraceuticals (active compounds)
• Hemp and cannabis (CBD and other cannabinoids)
• Agricultural, industrial, and veterinary products

What extraction methods are used?
Toll processors offer a range of extraction techniques depending on the material and desired outcome, including:

• Solvent-based extraction
• Supercritical CO₂ extraction
• Decarboxylation of hemp biomass
• Molecular isolation and purification of target compounds

Explore key methods and expertise:
Key Processes & Know-How for Botanical Extractions →

How is CBD extracted from hemp?
CBD extraction typically involves multiple steps, including extraction, refinement, and purification to achieve the desired potency and quality.

• Learn more about the process:
  How to Extract CBD from Hemp: All You Need to Know for the Best Results →

Extrusion

Extrusion is a processing technology used to blend, shape, and enhance materials—especially those that are difficult to mix or require precise performance characteristics.

It is widely used in food, pharmaceutical, nutraceutical, polymer, pigment, and industrial chemical applications.

Why is extrusion used for complex materials?
Extrusion is particularly valuable for:

• Blending hard-to-mix or incompatible ingredients
• Improving material uniformity and stability
• Controlling how active ingredients are delivered
• Enhancing strength and performance in polymers and composites

What industries benefit from extrusion?
Extrusion supports a wide range of applications, including:

• Food and nutraceuticals (functional ingredients, fortified products)
• Pharmaceuticals (controlled delivery systems)
• Polymers and plastics (durability, consistency)

• Pigments and industrial chemicals (dispersion and performance)

What are the advantages of extrusion blending?
Extrusion can enable stronger materials, more consistent formulations, and cost-effective production, especially for complex or high-performance applications.

• Learn how extrusion solves material challenges:
  Extrusion: Blending for Complex Material Challenges →

Manufacturers choose toll processing for several strategic reasons:

• Avoid capital equipment investment
• Increase production capacity quickly
• Access specialized processing equipment
• Reduce operational risk
• Test new products before scaling Improve speed to market

For industrial companies, toll processing provides operational flexibility without long-term overhead commitments. Toll processing partners add upstream and downstream value, eliminate bottlenecks, and improve supply chain efficiency:

7 Insider Tips to Get the Best From Your Toll Processor’s Experts →
7 Supply Chain Efficiencies to Look for in a Toll Processor →
Everything Your Toll Processor Needs to Know About Your Material →
5 Raw Materials Factors That Impact Toll Processing Costs →
7 Factors You Need to Know About Shipping Materials for Toll Processing →

How Does Toll Processing Save Money?

Toll processing reduces:

• Capital equipment investment
• Maintenance and labor costs
• Facility overhead
• Equipment downtime risks

Key Benefits for Manufacturers

• Lower upfront costs
• Faster speed to market
• Scalable production capacity
• Access to specialized expertise
• Reduced operational risk
• Flexible production volumes

By outsourcing complex processing steps, manufacturers can focus on core competencies like product development, sales, and distribution.

Toll processing may be the right solution if:

• You need additional production capacity
• Your facility lacks specialized processing equipment
• You want to scale without building new infrastructure
• You are launching a new product and want to validate demand
• Your production volume fluctuates seasonally

The trust you place in your toll processing partner is about a lot more than innovation, cost control, and efficiency in your production and supply chain. Just as essential as capabilities and expertise are quality management, analysis, and reporting:

Why Care About Quality Management Systems in Toll Processing? →
Trust Your Toll Processor on Target Specifications and Quality →
Toll Processor Certifications — Everything You Need to Know →

1. When does toll processing make more sense than investing in your own equipment?

Toll processing is often the better choice when capital equipment costs are high, production volumes are uncertain, or specialized expertise is required. It’s especially valuable for pilot runs, new product launches, or processes that require advanced technologies like micronization or controlled drying.

2. What types of materials are best suited for toll processing?

Toll processing is particularly effective for powders, bulk solids, resins, and specialty chemicals that require precise particle size reduction, blending, or moisture control. Materials that are difficult to handle, hazardous, or require tight specifications are often strong candidates.

3. Can toll processing support product development and scale-up?

Yes. Many toll processors offer pilot-scale testing and process development support. This allows manufacturers to refine formulations, validate processing parameters, and scale from lab to full production without investing in internal infrastructure.

4. What are the biggest risks in toll processing–and how can they be mitigated?

Common risks include inconsistent product quality, material loss, contamination, and misaligned specifications. These can be mitigated by working with a processor that has strong quality systems, proven experience with similar materials, and clear communication during process development and scale-up.

5. How does toll processing impact supply chain flexibility?

Toll processing can significantly improve supply chain agility by allowing companies to scale production up or down quickly, avoid bottlenecks, and access specialized capabilities without long-term capital commitments. It also enables geographic flexibility and faster response to market demand.