Contract Packaging is an Excellent Way to Save Money and Time

 

Contract Packaging

The ultimate goal of contract packaging is to safely deliver the product to retail locations in a high-quality, appealing package. Quality control and inventory control procedures are followed throughout the process. The growing number of e-commerce companies around the world has also fueled the industry's demand for packaging solutions to better meet the needs of customers. Companies' increased emphasis on adopting cutting-edge and innovative packaging solutions is also expected to fuel growth.

Companies, for example, can avoid the costs of establishing a production facility, packaging equipment, staff training, and material purchases by outsourcing to a contract packager. According to the European Co-packers Association, choosing a contract packaging solution can save a company up to 7% to 9% of the cost incurred in its entire production cycle.

According to Coherent Market Insights, The global Contract Packaging Market was valued at US$ 55.27 Bn in 2021 and is forecast to reach a value of US$ 97 Bn by 2030 at a CAGR of 10.37% between 2022 and 2030.

In order to improve the safety of food distributed throughout the European Union, the European Agency for the Evaluation of Medicinal Products (EMA) has issued various regulations on food labelling and packaging. In March 2019, the European Parliament approved a new law prohibiting single-use plastic items, which are also key components of packaging materials widely used in the industry.

Companies that use an outside contract packager extend their distribution cycle by up to seven days and lose visibility of their product during this time. This is expected to be a stumbling block for businesses looking to distribute their products quickly and efficiently.

Contract packaging, also known as co-packing, is the process of putting together a product or good into its final finished packaging. Contract packaging can be a simple or complex process because it is tailored to the specific scope of the product packaging, which varies greatly between retail, commercial, and trade industries. Contract packaging and co-packaging firms offer contract packaging services to product manufacturers and frequently act as an extension of the company.

Depending on the product, the final packaging could be a thermoformed / plastic clamshell or blister packaging, a plastic bag, a standing corrugated retail point-of-sale display, or a transport tray (to give a few examples). Contract packagers may be tasked with something as simple as affixing a bar code sticker to a product or something as complex as planning, designing, manufacturing, and fulfilling the entire package.