Co-packaging

It should be pointed out that co-packaging is a distinctly different service from general private labeling services. Even though, on the surface, they do seem to serve the same purpose, there are distinct differences which distinguish private labeling from co-packaging. The main differences come down to the pricing, ownership of the formula and the process of production.

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Co-packaging services

Co-packaging services allow a client to have ownership over their own formula for a product, which then the contracted manufacturer will produce. However, the customer will retain all their rights to the product which is produced. Usually, these services come with non-disclosure agreements between the clients and manufacturers. That agreement entails that the manufacturer and producer of the product, which the client contracted, are obliged not to, or are forbidden to further produce, share or market that product and its formula on their own. That agreement holds until the client who is holding the rights to the formula approves.

Differences between co-packaging and private labeling

What differentiates co-packaging from standard private labeling is that often the private labeling manufacturers produce their own formula for the client under the client's private label. Although, often clients can and will seek from private labeling companies to create and produce their own formula. A lot of manufacturing companies allow such services in those cases, and do provide the availability of producing a specific and distinct formula that is not their own but is part of their expertise. However, what differentiates their services from standard co-packaging is that under an agreement the manufacturing company which produced the formula holds ownership of it. Once the manufacturers in private label business have been contracted for the production of a distinct client's formula, they would need the research and ingredients which they provide themselves. Therefore, they usually hold the rights over the formula's production and share.

Why retailers and clients benefit from these services

Services such as co-packaging and private labeling are widely available among new and rising manufacturing companies that offer both. Private label companies typically do offer the service of co-packaging as well. There as so many more manufacturing companies out there ever since the private label market has grown in success. The service for co-packaging often offered by private label companies exists to reduce the time for shipping and the handling of expenses. What these manufacturers offer when it comes to packaging or co-packaging is the transparency in production and a wide variety of packaging that will suit your individual product and style. These services are very convenient and helpful for clients or retailers seeking private label assistance with their product.

Retailers and clients can now safely depend on professional partners who will take care of the manufacturing, producing and packaging of their private label product. Establishing a private label product together with a manufacturing parent is quick and easy. If you seek the best manufacturer who will help you co-package your distinct product, find the best ones on our website once you register.