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Co-packing Market Size, Share, Growth, and Industry Analysis, By Type (Primary packaging, Secondary Packaging, Tertiary Packaging, Handpacking), By Application (Dried Fruit, Pharmaceuticals, Home and Fabric Care, Beauty care, Others) and Regional Forecast to 2033
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CO-PACKING MARKET OVERVIEW
The global Co-packing Market , valued at approximately USD 10 billion in 2024, is projected to grow steadily to USD 10.52 billion in 2025 and is expected to reach USD 16 billion by 2033, maintaining a CAGR of about 5.2% over the forecast period 2025-2033.
The co-packing market is the term for when manufacturers in food and beverage, pharmaceuticals, cosmetics, personal care and household products use outside help to do their packaging. Because of the services co-packers offer such as packaging, labeling and warehousing, companies can concentrate on development, marketing and branding. The demand behind this market comes from requirements for efficiency, spending less, quick growth and a fast introduction of product lines. Under shifting requirements of demand, seasonal highs and changing regulations, co-packing provides businesses with flexible options built on technology, quality control and experience in all types of products. Furthermore, by using co-packing, you can choose packaging that is both eco-friendly and meets the standards of those wanting sustainable solutions. Increasing need for custom and new packaging, mainly seen in e-commerce, health & wellness and convenience foods, is driving the growth of the market. Rising investment in automated, robotic and digital technologies is happening in North America, Europe and Asia Pacific, making them main regional markets. The trend in global co-packing is for brand owners to partner closely with contract packagers, resulting in lasting strategic relationships. Co-packing also helps start-ups and SMEs reduce necessary cash for assets and quickly scale, mainly in markets that are rapidly growing and spread apart. Because packaging design, safety and managing logistics are now top priorities, co-packers greatly help with differentiating products and making the supply chain more efficient. Because sustainability, innovation and saving costs still matter, the co-packing sector is projected to keep growing and appear in more sectors and regions.
COVID-19 IMPACT
Co-packing Market Had a Negative Effect Due to Supply Chain Disruption During COVID-19 Pandemic
The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.
Initially, the co-packing market share was heavily hit because of global supply chain disruptions, not enough workers and temporary plant shutdowns because of COVID-19. Restrictions surrounding lockdowns and travel reduced the number of customers wanting luxury cosmetics and specific industry goods which decreased co-packing quantities. Because of the new health and safety rules, many co-packers struggled to stay compliant which slowed operations and created extra costs for them. Particularly those co-packing agreements linked to moving goods between nations were put off or ended over transport delays. For smaller and medium-sized co-packers, handling money wisely and keeping up with fast changes in demand became a big problem. Additionally, it was difficult for co-packers to plan, because brand owners could not reliably predict what would be sold. Problems with packaging supplies and logistics slowed down the process. Although food and pharmaceutical companies still needed packaging, the clamor for co-packing services lessened across the industry in the early stages of the pandemic. By the end of 2021, businesses adjusted to the new situation by using updated agility and digital systems in their supply chains which led to resilience and growth afterwards.
LATEST TRENDS
Organic and Clean-Label Infant Nutrition Drive Market Growth
An important change affecting the co-packing industry is the increased need for sustainable and intelligent packaging. Because of the focus on the environment, requirements from regulators and rising awareness among consumers, brands are following environmentally friendly packaging and co-packers are making fast changes in response. With many companies choosing biodegradable, recyclable and compostable materials, co-packers are making investments in green packaging lines. As a result, clients are now looking for packaging that is simple and reduces both material waste and carbon emissions. The same way, more companies are starting to include smart packaging—defining safeguards such as using QR codes, RFID tags and tamper-evident labels. This type of solutions allows companies to improve how products are tracked, verified and engaged with by consumers. Sustainability and digital features matter a lot in sectors including pharmaceuticals, food and personal care since they prioritize safety, openness and users' needs. Using digital and automated tools, leading co-packers are now able to handle the changing demands in packaging. As an example, inspections, tracking stock and setting up packaging systems are now often using artificial intelligence and Internet of Things. As a result, both manufacturers and co-packers can improve their brand image, follow regulations better, earn more income and distinguish themselves more. Because companies are putting more emphasis on sustainability, smart and green packaging is becoming an important driver of growth in the co-packing sector.
CO-PACKING MARKET SEGMENTATION
BY TYPE
Based on type, the global market can be categorized into Primary packaging, Secondary Packaging, Tertiary Packaging, Handpacking
- Primary Packaging: Bottles, blister packs and sachets are the first type of packaging that touches the product. It keeps the product safe, clean and preserved for a longer time. Companies typically brand their products to draw attention from final buyers.
- Secondary Packaging: To combine a number of primary packages such as cartons or shrink wrappings into one unit. It assists with all elements of handling, showing and managing products. Also gives me more room for labels.
- Tertiary Packaging: For transporting and handling bulk goods, manufacturer use boxes called pallets and crates. Provides both stability and security for logistics processes. This component isn’t visible to end users.
- Handpacking: Hands-on packaging is used for things that require gentle handling, need special customization or are produced in low numbers. This packaging is suited for items that are luxury or don’t fit well into regular shapes. Provides an alternative where machine automation isn’t possible.
BY APPLICATION
Based on application, the global market can be categorized into Dried Fruit, Pharmaceuticals, Home and Fabric Care, Beauty care, Others
- Dried Fruit: The food processing industry relies on co-packing for vacuum sealants, nitrogen flushing and resealable bags. Makes freshness storage and food safety necessary. Is presented with eco-packaging to show its high position in the market.
- Pharmaceuticals: Medicines have to be packaged in sterile, safely sealed and traceable containers. It is required by law that co-packers meet strict demands set by the GMP and FDA. Usually, medications are supplied in blister packs, vials or strip packaging.
- Home and Fabric Care: Packaging products for detergents, sprays and cleaning wipes is part of what we offer. Make sure children are protected, the furniture lasts and it’s simple to use. You will normally see these products in the form of pouches or bottles.
- Beauty Care: Because it needs to be attractive, easy to use and fit the brand, packaging is required. Co-packers are responsible for putting together tubes, compacts and sample sachets. It is important to maintain hygiene and stable products.
- Others: Covers products for the automotive, industrial and pet care industries. There is a large difference in needs, ranging from tough boxes to complex packaging. The main reason for using customization and saving costs is important.
MARKET DYNAMICS
Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.
DRIVING FACTORS
Increasing Demand for Outsourcing Non-Core Operations Boost the Market
Major firms are turning to co-packing because handling packaging in-house has become less of a priority. Since competition is rising and companies must concentrate on advancements, marketing and distribution, many manufacturers are passing off packaging tasks to specialist third-party firms. With co-packers, people can get affordable, flexible and high-quality options, even if they do not have to buy their own packaging equipment or facilities. As a result, companies can better plan their resources to save money. Also, value-based outsourcing means companies can meet shifts in demand or face new compliance rules more quickly. With co-packing, startups and SMEs can become market ready without spending a lot of money up front. In addition, when businesses grow their products and clients change their tastes, co-packers offer the technology needed to manage various sizes of stock. This strategic way of outsourcing improves how things are done, faster time to the market for new products and increased competitiveness, all leading to the industry’s global expansion.
Growth of E-commerce and Customization Trends Expand the Market
Thanks to more shopping online and the need for custom product packaging, co-packing market is experiencing strong growth. Because online shopping uses couriers, packaging must be safe, in line with rules, attractive to buyers and easy to manage. Because of this, brands can reach their shoppers all over the world by packaging each shipment appropriately with the help of co-packers. Because many beauty, food and wellness offerings are personalized and shipped through subscriptions, co-packers must manage small-batch packages on flexible assembly lines. In addition, e-commerce fulfillment centers cooperate with co-packers to provide kitting, promotional packaging and direct-to-consumer shipments for their clients. Because people are drawn to one-of-a-kind or short-lived designs, companies must turn to flexible co-packing partners to meet consumer demand. A rising number of online sales throughout Asia and Latin America will push the co-packing market to offer cheaper and more flexible and customized packaging.
RESTRAINING FACTOR
Dependency on Raw Material and Packaging Supply Chains Potentially Impede Market Growth
A big barrier to growth in co-packing is depending on both constant availability and reasonable pricing of raw materials and packaging parts. Such things as global crises, new trade rules and higher costs for input materials can seriously affect co-packing operations. Packaging that depends on plastics, aluminum and paper makes co-packers face problems with rapid changes in supply and costs. Shortages of sustainable materials can also prompt co-packers to modify how they work or find alternate supplies which may cause inconvenient delays and cuts in profits. #### 1 Trying to meet the different rules of each industry adds to the complexity of the procurement process for packagers serving various industries. That’s why taking care of supply chain management and having robust connections with suppliers is important for dealing with this barrier.

Integration of Automation and Digital Technologies in Packaging Creates Opportunity for The Product in The Market
Opportunity
An important chance in co-packing is using automation and smart technologies throughout packaging. Because the industry needs to respond to growing demand for speed, accuracy and customization, co-packers are relying more on robotics, AI, machine vision and IoT for smooth operations. Automated packaging allows for swift sorting, filling, labeling and sealing, while also saving both work hours and money for labor. Thanks to modern tracking systems and digital devices, it is easy to manage, check quality and predict maintenance for stock items. In addition, automation promotes compliance with standards for pharmaceuticals, food safety and sustainability. Those who adopt smart factories and digital methods can deal more easily with various SKUs, high order volumes and on-time shipments. Because more clients are now seeking transparency, traceability and fast delivery, digital change increases co-packers’ competitiveness and leads to lasting relationships with big brand owners. Because of this change, the future of co-packing is expected to look quite different.

Managing Complex and Diverse Client Requirements Could Be a Potential Challenge for Consumers
Challenge
Managing the changing and often complicated requests of many clients from various industries is a major obstacle in the co-packing sector. Co-packers have to handle a range of packaging shapes, materials, labeling rules and regulations that fit the markets where their clients operate. Taking pharmaceuticals as an example, strict compliance with regulations and traceability are necessary, but beauty products need careful attention given to looks and brand identity. Besides, quick production, seasonal packaging choices and individualized solutions make things more complicated for manufacturing teams. To do so, production lines must be adaptable, the workforce skilled and controls on quality tightly enforced. Staying reliable, maintaining secrecy and adjusting to changes in demand cause various difficulties for companies. Besides, onboarding customers with particular requirements usually means the first orders take longer to prepare and set up. To keep competition at bay, co-packers need reliable systems for planning, staff development and handling clients to manage multiple needs and still profit.
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CO-PACKING MARKET REGIONAL INSIGHTS
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NORTH AMERICA
Because of a robust consumer goods industrial base, strict rules on packaging and high outsourcing demand, North America is an important contributor to the global co-packing market. Among Latin American countries, the U.S. shows the most dynamic activities in food, beverage, pharmaceutical and personal care sectors. A lot of brand owners trust co-packers to take on some of their work, fill gaps in labor and improve the speed with which they serve different regions. Due to more people using D2C (Direct-to-Consumer) models and subscription services, co-packers are now well-prepared to meet the rising need for personalized packaging. In addition, innovative sustainable packaging is being developed in North America, leading co-packers to switch to green and environmentally friendly processes. More money is being put into automation, robotics and smart packaging, allowing for faster and simpler operations. Growth in the market is also supported by having major co-packing companies available and the presence of advanced logistics infrastructure. The market for co-packing in North America is largely driven by innovation, fits different scales and is committed to quality and customizing products.
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EUROPE
The co-packing market relies heavily on Europe thanks to its well-established industry, solid regulations and demand from buyers for packages that are sustainable and freshly designed. Leading in outsourcing for packaging food, pharmaceuticals and personal care are Germany, the UK, France and Italy. More and more European businesses are looking for co-packing options that support the EU’s eco-friendly goals, including the European Green Deal and limits on plastic and circular packaging ideas. As a result of these rules, co-packers are looking for new ways to use environmental-friendly materials and improve energy savings. Because European countries rely heavily on exports, there is a greater need to meet various international packaging needs which helps grow multi-capability co-packers. Flexible, high-quality co-packing is more in demand as more private-label and organic products appear on the market. The co-packing sector in Europe is on track for continuous growth and transition thanks to increased spending on automation, compliance and eco-friendly efforts.
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ASIA
Asia-Pacific is fast becoming a main area in the co-packing business due to more customers, rising incomes for individuals and outsourcing choices by manufacturers. Packaged food, pharmaceuticals and personal care items are in higher demand in China, India, Japan and South Korea now, making efficient co-packing services a necessity. Manufacturers are drawn to the area because its and growing capabilities, coupled with a trained and affordable workforce, make co-packing there affordable. At the same time, the growth in Asian e-commerce is driving demands for packaging that is practical, secure and has an appealing appearance. Literature from India also covers ways governments encourage the packaging industry’s development by building new infrastructure and helping small and medium-sized enterprises (SMEs). Even so, companies face troubles with inconsistent regulations and diverse quality levels. As industrialization, digital growth and sustainability spread further, Asia-Pacific is forecast to take a leading part in forming the future co-packing market.
KEY INDUSTRY PLAYERS
Key Industry Players Shaping the Market Through Innovation and Market Expansion
There are companies in the co-packing business that are big internationally and others that are expertly focused regionally, serving a broad range of packaging needs. Among the main companies in the field are Sonoco Products Company, Multipack Solutions, AmeriPac Inc., Jones Healthcare Group, Reed-Lane Inc., Marsden Packaging Ltd and Unicep Packaging, Inc. They offer services from basic and advanced packaging up to labeling, kitting and help with logistics in the pharmaceutical, food and beverage, beauty and home care industries. Sonoco offers co-packing services in the Display and Packaging segment, customized for large FMCG companies. Multipack Solutions, part of Essentra PLC, focuses on creating personal care and health packaging. Reed-Lane focuses on pharmaceutical packaging and follows the important standards known as cGMP. They spend a lot on automation, sustainability and quality compliance to make their operations more efficient and to please their customers. Trying to compete with larger rivals, regional players are now adding flexible local services and technology to their co-packing capabilities. They regularly collaborate, acquire companies and enter new markets, all to increase their visibility and appeal to clients. Because they focus on development and meet their clients’ needs, these companies play a leading role in how the global co-packing industry competes.
List of Top Co-packing Companies
- Jones Packaging (Canada)
- Green Packaging Asia (China)
- Wepackit Inc. (Canada)
- Sharp Packaging (U.S.)
KEY INDUSTRY DEVELOPMENT
June 2023: Reed-Lane Inc. Reed-Lane expanded its pharmaceutical co-packing capabilities by adding a new high-speed blister packaging line to enhance service efficiency and compliance.
REPORT COVERAGE
Robust growth in the co-packing market is being seen due to outsourcing, the spread of e-commerce, custom packaging requests and concerns about sustainability. With co-packers supplying custom services, brand owners can introduce items faster, keep their processes efficient and address both guidelines and customer preferences for food, pharmaceuticals, personal care and home care products. The areas of worldwide leadership in innovation and following regulations are North America and Europe, but Asia-Pacific is drawing attention as it is less expensive and has a boosting industry. Locally, the market deals with difficulties related to raw materials missing from the supply chain and having to handle difference requirements from clients. Thanks to technology, co-packers today can now work faster, cut costs and handle increased workloads. In addition, using environmentally friendly packaging is changing what companies offer, encouraging firms to invest in things that break down and emit less carbon. Strategic partners and mergers are creating a new landscape and top players invest to increase their service options. When brands manage expenses and support new packaging designs, co-packing will be vital in strengthening both agile and sustainable supply chains. Overall, the co-packing market is set to increase steadily if investors continue to invest in modern tools, experienced people and sustainable measures for the changing needs of the consumer goods industry.
Attributes | Details |
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Market Size Value In |
US$ 10 Billion in 2024 |
Market Size Value By |
US$ 16 Billion by 2033 |
Growth Rate |
CAGR of 5.2% from 2025 to 2033 |
Forecast Period |
2025 - 2033 |
Base Year |
2024 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
|
By Type
|
|
By Application
|
FAQs
The global Co-packing Market is expected to reach USD 16 billion by 2033.
The Co-packing Market is expected to exhibit a CAGR of 5.2% by 2033.
North America is the prime area for the Co-packing Market.
Increasing Demand for Outsourcing Non-Core Operations Boost the Marke & Growth of E-commerce and Customization Trends Expand the Market
The key market segmentation, which includes, based on type, the Co-packing Market is Primary packaging, Secondary Packaging, Tertiary Packaging, Handpacking. Based on by Application, the Co-packing Market is Dried Fruit, Pharmaceuticals, Home and Fabric Care, Beauty care, Others.