An apparatus reduces material left between a shredding unit and a defibrating unit. A sheet manufacturing apparatus including a shredder that separates feedstock containing at least fiber into shreds in air; a defibrating unit that defibrates at least the shreds in air; and a forming unit that forms a sheet using defibrated material defibrated by the defibrating unit; wherein the defibration capacity, which is the amount defibrated per unit time by the defibrating unit, is greater than or equal to the shredding capacity, which is the amount shredded per unit time by the shredder.