According to PMMI Business Intelligence’s 2024 report “Contract Packaging & Manufacturing: Drivers of Machinery Investments,” 67% of brand owners plan to maintain or increase their use of co-mans and co-packers in the coming years.
We asked three brand leaders that outsource at least some of their packaging to contractors for specific reasons for this appeal, and here’s what they had to say.
“Rising production costs have made outsourcing more attractive,” says Jack Foster, co-owner and operations director at Crosby Coffee. “Co-packers help streamline operations by sharing infrastructure costs across multiple customers, resulting in significant savings.”
“There are two main reasons we outsource manufacturing: capital expenditure and expertise,” says James Smith, co-founder of Arrowtown Drinks, a UK-based vodka RTD brand. “For many brands, the funding required to set up in-house production is simply out of reach.”
“As e-commerce and direct-to-consumer dominate, co-packers give everyday entrepreneurs a shortcut to launching a brand without the upfront costs of packaging infrastructure,” says Eric Gantz, co-founder of Verena Street Coffee Co.
Outsourcing isn’t just a trend—it’s a strategic advantage.
Learn more about contract packaging by reading contract packaging news from Packaging World, visiting the CPA website, and reading the CPA's official publication, Contract Manufacturing and Packaging.