Small batch production refers to the manufacturing of goods in limited quantities, often to ensure quality and customization. This method allows businesses to focus on specific customer needs and preferences, making it popular among artisans and niche markets. By producing smaller amounts, companies can quickly adapt to changes in demand and experiment with new products without significant financial risk. This approach is commonly used in industries like food and beverage, fashion, and handcrafted goods, where uniqueness and craftsmanship are highly valued.