What is Co-packing?
‘Co-packing’ is short for contract packaging. A co-packer company packages products for their clients in order to make them shelf-ready. These co-packing services may be used for a number of different product types, including pharmaceuticals, cosmetics, foods, household products, and industrial products.
This gives companies the opportunity to outsource all packaging requirements – such as bottling and labelling – which can hold many advantages over fulfilling these processes themselves. A co-packing company will have specialised equipment and expertise required for packaging a particular type of product.
What are the Advantages of Co-Packing?
Outsourcing packing requirements to a co-packer company means you can take advantage of an existing set-up. You can focus on producing and selling your product without having to take on the extra process of packaging. This offers companies a chance to improve their operational efficiency, upscale, and move into new markets – all without having to invest in new equipment, new staff, or training.
Additionally, co-packing is perfect for fulfilling large short-term or one-off projects – for example, if there is a sudden surge in your business and you need to fulfil a large amount of packaging, you will probably need to outsource this to a co-packer.
The benefits of co-packing:
- Reduces costs
- Uses the experience and expertise of another manufacturer
- Uses another manufacturer’s existing equipment and certifications
- Increases scalability
Do I Need a Co-Packer?
Now we understand what co-packing is and what the advantages are, let’s discuss whether co-packing is suited to your business.
Things to consider…
Outsourcing to a co-packer means you won’t get to oversee the packaging process – this involves putting your trust into another company’s capabilities. However, if something goes wrong during the packaging process, it is the co-packers job to put it right – not yours. For this reason, you should always find a manufacturer who has the necessary experience & certifications and makes you feel comfortable.
It will cost you money – you need to pay the co-packer, plus they need to make a profit on top of this. If you have the capacity and capability to package yourself, then it may not make sense to have this extra cost. However, if you don’t have the capability to package yourself, you would need to invest money in automation, equipment, and staff. In this case, co-packing will probably save you a lot of time and money.
If you produce a very unique product, then you may struggle to find a co-packer who can package your goods without charging extra costs. Co-packers have an existing set-up which allows them to package large quantities of product – but this set-up will usually be designed for one type of process. For example, pharmaceuticals. If your product requires very specific or unusual processes, then it may require additional labour or tools which will add on to your co-packing cost.
Co-packing is best suited to businesses who need a large amount of packaging done. If you are a small business with a limited number of units that need packaging, then you may be able to fulfil this yourself.
If you are unsure about any of these points and would like some more help determining whether co-packing is right for you, then contact us today.
Co-Packing at SVC Labs
At SVC Labs, we co-pack for CBD, e-liquid, and supplement brands spanning across the globe. Our state-of-the-art manufacturing facility here in the UK houses a lab with a semi-automated co-packing multi-line – this has the capacity to finish 28,000 units of product per day. In addition, we have 2 fully-automated bottling production lines – this has the capacity for 110,000 bottled, labelled, and finished products of CBD, e-liquid, or supplements per day.
We have been manufacturing since 2014 for multiple brands in this industry. We have built up a wealth of knowledge and experience, as well as expanding our team and equipment massively. We are ISO 9001 and 14000 certified, GMP approved, and quality assured.
Contact us today to find out more.
