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Co-packing addresses several challenges for businesses, particularly those in the food, beverage, and consumer goods industries. Outsourcing this service to third-party logistics (3PL) partners is a crucial strategy to scale up production for business. This guide delves into the intricacies of co-packing services and how to choose the right co-packer.
Co-packing, or contract packaging, is the process of outsourcing a company's packaging operations to 3PLs or logistics providers. In addition to packaging, co-packing services can include cooking, processing, blending ingredients, and packaging. It can also encompass various services, including filling, labeling, bundling, and distributing goods. Industries such as food and beverages, beauty products, and consumer goods can rely on co-packers to streamline their supply chain operations.
An example of co-packing for our beverage clients such as Coca-Cola, Pepsi, or Starbucks may include handling everything from mixing the ingredients to bottling and applying labels to packaging. Similarly, a co-packing agreement for a skincare brand could involve a co-packer blending the formulas, filling containers, and packaging the items. This would ensure consistent quality and presentation across the brand's product line.
The vital role of co-packing in optimizing supply chain operations is evidenced by its growing market size over the years. Data from Mordor Intelligence estimates that co-packing was worth over $73 billion in 2024 and is expected to increase to over $111 billion by 2029.
The difference between these two can be highlighted in a partnership for co-packing with food manufacturing.
A co-packer may cook or blend ingredients using a company’s original recipe or formula to produce consumer goods. These products will then be packed and distributed with the company’s branding.
In private labeling, a third-party manufacturer may offer a ready-made product that is then labeled and sold under the company’s own brand name.
Understanding the co-packing process can help assess a co-packer's capabilities and how they align with a company’s packaging needs. Here are the proper steps to take when partnering with co-packing companies:
1. Initial Consultation and Assessment
The process begins with a detailed consultation to discuss packaging needs, product specifications, and goals.
For example, the client details specific requirements such as the type of packaging needed, volume expectations, special handling requirements (e.g., temperature control, allergen-free environments), and desired timelines. The co-packer assesses whether they can meet these needs and what adjustments or investments might be necessary.
2. Trial Run and Prototyping
A trial run or prototyping phase is essential before full-scale production. This stage ensures the packaging meets quality standards and allows for adjustments. For instance, the packaging must pass durability tests to withstand shipping conditions and maintain product integrity.
Additionally, it needs to comply with industry regulations, such as the ISTA (International Safe Transit Association) standards, ensuring it can handle real-world transport.
3. Production and Quality Control
Once the trial is successful, full-scale production begins. Co-packers implement rigorous quality control measures to ensure consistency and compliance with industry standards.
An excellent example is a co-packer specializing in organic snack foods. The co-packer would begin by sourcing certified organic ingredients according to the client's specifications. During production, stringent quality checks are routinely conducted, including testing for contaminants and verifying compliance with organic standards.
The co-packer's facility likely operates under Good Manufacturing Practices (GMP), and each batch of products undergoes a final quality assessment before packaging. This system ensures that every product batch remains consistent with the client’s requirements and consumer expectations, maintaining high quality and safety standards throughout the production process.
4. Packaging and Labeling
Products are packaged and labeled according to the client’s specifications. This includes custom branding, barcoding, and compliance with industry regulations. Proper labeling ensures that all necessary information is clearly displayed to meet both legal requirements and customer expectations.
5. Distribution and Logistics
Finally, co-packers can handle the distribution and logistics, ensuring your products reach the market efficiently and on time. This involves coordinating with carriers, managing inventory levels, and optimizing delivery routes to reduce costs and transit times.
Co-packing can significantly enhance your business's production efficiency to meet market demands effectively. Here are some of its notable benefits:
1. Cost Efficiency
Co-packers often provide cost advantages due to economies of scale. By leveraging their existing infrastructure and expertise, they can offer packaging services at a lower cost than in-house operations.
For instance, small food and beverage businesses like Coppertail may partner with a co-packer like Buske to leverage their existing equipment and bulk purchasing power. This can reduce packaging costs, allowing companies to possibly allocate more funds to marketing and product development.
2. Expertise and Innovation
Co-packers bring specialized knowledge and innovation to the table. Their experience with various products and packaging materials can lead to improved packaging solutions, enhancing product appeal and shelf life.
Co-packers often offer innovative solutions, such as eco-friendly packaging. This would allow companies like food and beverage makers to use materials aligned with their sustainability goals without making huge, long-term investments.
3. Scalability
Co-packing allows businesses to scale operations quickly in response to market demands. Whether it's a seasonal spike or a new product launch, co-packers can adjust their capacity to meet their partners’ packaging needs.
Many companies experience a surge in demand during the holidays. For example, a cosmetics brand partnered with a co-packer can quickly scale up production by adding shifts and utilizing additional facilities. This flexibility enables companies to meet the increased demand without any delays.
4. Quality Assurance
Reputable co-packers adhere to strict quality standards and regulatory compliance, ensuring your products are packaged safely and consistently.
Expert 3PLs like Buske Logistics provide quality inspection services so that our partners meet product standards and comply with regulations. Buske inspects up to 300 million bottles for beverage companies every year with top-of-the-line equipment.
As co-packing evolves in 2025, brands are prioritizing agility, intelligence, and sustainability more than ever. To stay competitive, co-packers must embrace smart technologies, flexible formats, and data-driven solutions that align with modern supply chain demands.
The co-packing industry continues to evolve rapidly, driven by smart technology, sustainability demands, and shifting consumer expectations. Here’s what’s leading the way in 2025:
AI-powered robotics, predictive batching, and computer vision QC (quality control) are transforming packaging lines from reactive to intelligent systems. For example, inline AI checks now detect packaging defects in milliseconds, reducing waste and downtime.
Eco-friendly innovations like compostable films and reusable formats are being paired with AI-driven material optimization to balance cost and impact. Gen Z-led demand for minimalist, carbon-conscious packaging is reshaping design standards across industries.
Brands are turning to AI-based packaging configurators to design protective, compact, and brand-consistent parcels for direct-to-consumer shipments. Frustration-free, tamper-evident formats now use machine learning to adapt to varied SKU sizes and reduce shipping waste.
Dynamic co-packing lines with robotic kitting and real-time AI inventory management enable hyper-customized product drops. Limited-run influencer collabs and seasonal gift packs are now produced faster thanks to AI-guided order segmentation.
Leading co-packers are integrating with TMS/WMS platforms to offer real-time data sharing, predictive fulfillment, and adaptive routing. Buske Logistics now use AI-powered logistics dashboards to proactively adjust for delays, weather, or demand spikes.
Selecting the right co-packer isn’t just about outsourcing—it’s a strategic move that directly impacts your product quality, compliance, scalability, and brand reputation. These best practices will help you identify a co-packing partner that’s equipped for success in today’s fast-evolving landscape.
1. Choose a Co-Packer with Industry-Specific Expertise
Partner with a co-packer who understands the regulatory, technical, and production nuances of your niche.
Example: Organic snack brands should look for co-packers with certifications like USDA Organic and FDA compliance.
Buske Tip: Industry-aligned co-packers reduce compliance risk and streamline production from day one.
2. Prioritize Flexibility and Customization
In 2025, agility is everything. Your co-packer should support varied packaging formats, scale with seasonal spikes, and accommodate both short-run and large-scale production.
3. Assess Technology and Automation Capabilities
Advanced tech is now a baseline. Choose co-packers equipped with:
Example: A beverage brand launching a new energy drink needs high-speed bottling, temperature-controlled processing, and predictive batching powered by AI.
Buske Insight: We integrate enterprise-grade systems for real-time inventory and fulfillment visibility across the supply chain.
4. Evaluate Their Commitment to Sustainability
Today’s consumers expect greener packaging—and retailers are demanding it. Choose a co-packer with:
Sustainability adds brand value while meeting regulatory and retailer expectations.
5. Optimize for Location and Logistics
Strategically located co-packing facilities reduce shipping time, lower transportation costs, and increase fulfillment speed.
What’s the Difference Between Co-Packing and Packaging?
Co-packing involves a third party handling a product's manufacturing and packaging, often including material sourcing and assembly, which is ideal for companies looking to expand without extra infrastructure. In contrast, packaging focuses solely on designing and producing containers or wrappings for finished products, not involving product manufacturing.
What is Co-Production?
Co-production in logistics refers to a partnership between a company and a third-party logistics provider. It involves planning, communication, and technology integration to streamline supply chain processes. More specifically, this partnership may involve various logistics services, such as warehousing and transportation of goods between manufacturers and consumers.
Can co-packers handle product formulation changes?
Many co-packers offer formulation services or can work with your formulation changes. It’s important to discuss potential changes during the initial consultation to ensure that a co-packer can accommodate a company’s packaging needs down the line.
How is AI used in modern co-packing?
AI helps with real-time qc, predictive maintenance, yield optimization and reduces packaging errors.
Can co-packers offer sustainable packaging options?
Yes—many now partner with green material suppliers and implement zero-waste protocols.
Selecting the right co-packing partner is crucial for any business aiming to streamline production and enhance market delivery. A suitable co-packer aligns with your product requirements and quality standards and contributes to operational efficiency and scalability.
By forging a strong partnership with a capable co-packing company, businesses can focus more on core competencies like product development and marketing while confidently leaving the complexities of production logistics in expert hands.
Call Buske today to learn how our reliable co-packing solutions can help your business.
For an in-depth evaluation process, check out our strategies for evaluating co-packing partners, which includes comparison tables, checklists, and vendor questions.
