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Evolving Challenges and Opportunties in the Co-packing Industry

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by P.Malligeswari , Senior Research Analyst
31 December 2014

1. Introduction: Outsourcing secondary packaging activities like kitting, bundling, assembling etc. to co-packers is a common trend that is being observed in the CPG industry, especially for mass product segments like hair care, oral care, skin care etc. Also, the increasing demand for secondary packaging outsourcing is a major reason for the dynamic growth of the contract packaging industry. The major objective of this whitepaper is to discuss the challenges that are currently being faced by the CPG companies in the co-packing industry and the interesting opportunities that could be explored by the CPG companies in this space. 2. Main: CPG companies typically focus on cost, quality and efficiency when it comes to co-packing and this in turn has driven co-packers to improve their capabilities. Shift in the outsourcing pattern and automation levels are some of the key areas to look out for when outsourcing the co-packing activities.

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