Contract packaging, also called co-packaging or simply co-packing, is the overall procedure of putting a product into its final finished packaging. One business hires another business (the contract packager) to produce their packaging, assemble the product, and potentially even store the product in a warehouse and distribute them. In many cases, companies don’t have the time or resources to invest in the expensive equipment needed for packaging or to build their own packaging facilities, so they hire a contract packaging company with the equipment and know-how to manage the packaging supply chain for them.
A contract packaging companies services include blister packing and shrink-wrapping, sterilization, cardboard package design, liquid dispensing and packaging, and military-grade packaging. Contract packagers can also help a company design a cost-effective and attractive packaging system. Generally, a good contract packager has experience with several types of packaging and can offer a variety of different solutions to the hiring company, as well as variations on a single packaging plan. Contract packaging is an essential service for industry sectors such as bulk manufacturing, retail and wholesale, original equipment manufacturing (OEM), industrial equipment, and cargo shipping.
Contract packagers often focus in different areas and types of service. Large contract packagers can provide high-volume packaging operations, while small contract packagers usually excel with more detail-oriented and small-scale promotions. If a company already does some of its own packaging, a contract packager can provide additional support in terms of taking on projects beyond the company’s capacity. A contract manufacturer may also be a contract packager. This means they both create and package the product for another company. If the contract manufacturer doesn’t have packaging capabilities, a separate contract packager can be employed by the contract manufacturer.
Read more: All About Contract Packaging (Co-Packing)