This article takes an in-depth look at contract packaging.
In this article, we will look at topics such as:
Also known as co-packing or co-packaging, contract packaging entails outsourcing the product packaging process to a specialized company. These firms manage packaging tasks, storage, and distribution for other businesses, such as pharmaceutical entities. The packaging style can vary from straightforward clamshells to intricate designs, crafted to align with the client's specific needs and the product's nature. There's no universal method in contract packaging; typically, solutions are customized for each product's distinct demands.
Contract packaging takes multiple forms and is often the choice of manufacturers lacking the resources or infrastructure to package products independently. These firms provide an extensive array of services to fulfill producers' packaging needs. With the essential tools, resources, organization, and know-how, contract packaging companies handle product packaging, supply chain management, and shipping oversight.
Contract packaging companies offer services such as:
As industry experts, contract packagers assist firms in creating attractive and budget-friendly packaging solutions. Leveraging their experience with diverse packaging formats, they provide numerous options customized for the contracting company’s demands. Contract packaging caters to various industries, including retail, wholesale, mass production, cargo shipping, and industrial equipment.
While contract packagers offer a myriad of packaging techniques, some may concentrate on niche services. Smaller firms might prioritize detailed, low-scale projects, whereas larger ones focus on bulk operations.
For businesses managing part of their packaging in-house, contract packagers provide extra support to enhance the company's capability. Sometimes, a contract manufacturer also functions as a contract packager, handling both the creation and packaging of the hiring company's products.
Unlike in-house packaging done by manufacturers, contract packaging companies offer a tailored set of services designed to meet the specific needs of the contracting company. While there may be some overlap in the services provided, each contract packaging firm specializes in unique areas that set them apart from others.
For example, some contract packagers may focus on blister packaging, while others might specialize in label printing and shrink wrapping. The diverse range of services offered by contract packaging includes store displays, medical packaging, and protective coverings, with each method chosen to ensure optimal presentation and protection of the product.
Packaging design is vital as the packaging is used not only for the protection of the contents but promoting the brand of the company. Packaging design considers brand graphics and packaging sizes in the contract packaging operations.
Packaging design must prioritize aesthetics, as the appearance of a product’s packaging is as important as the product itself. Poor packaging design can adversely affect sales.
When designing packaging, several factors need to be considered, including ease of storage, protection of the contents, effective information display, and the ability to attract customers' attention on the shelf.
The functions of product packaging are detailed below:
Packaging design reflects the manufacturer and the brand it represents. It creates the first impression for customers, influencing whether they are enticed to purchase the product or not.
Here are some reasons why packaging design is important:
A product's first impression matters and can make a product stand out amongst other products. The packaging design must be eye-catching to stand out on the store shelves or e-commerce website pages. Package design is a tool for brand awareness.
The packaging design tells a story about the brand, informing the product's identity. Package design is what the consumer first experiences before knowing much about the brand. The packaging is designed to tell an honest and good story about the brand. Details such as the company logo, trademarks associated with the company, fonts, and colors are essential.
As much as the packaging design should be innovative, it should be informative. The packaging design has to inform the consumer about the key information of the product inside. Some of the critical questions that the packaging design should provide answers to are:
To design packaging that aligns with a brand’s image and values, consider these three key questions:
The packaging design should be based on the product’s unique value proposition. Elements such as product type, size, and material will determine the design approach.
Identifying the target market is essential for making the packaging appealing to potential customers. This understanding helps tailor the design to meet their preferences and needs.
The packaging should reflect the brand’s aesthetics and identity. The contract packager must consider the product’s characteristics, budget constraints, competitive landscape, and market trends to create a cohesive design.
Therefore, the packaging design can be assessed based on factors such as:
Packaging testing is conducted to evaluate the durability and effectiveness of the packaging before it is used or shipped to its final destination. These tests can be either standard or customized to ensure the packaging meets quality standards. Testing can be performed by either the hiring company or the contract packager.
Once the product is on the market, making changes to the packaging design is challenging and costly. Revisions during production can be expensive, and costs escalate further if changes are needed after the product has been released. Additionally, altering the packaging may require recalling the product and redesigning it, especially if there is negative customer feedback.
The packaging testing process must strike a balance with speed to market, taking into account factors such as storage, shipping, and marketing. Additionally, it is crucial to protect and maximize the return on investment for the packaging design. Effective packaging testing should provide guidance on achieving this balance.
Packaging design should be tested with consumers before the product launch to ensure it meets their needs. It should also align with current packaging trends and incorporate innovative ideas. Testing provides valuable insights that help companies make informed decisions before the product is finalized and launched.
Real-time feedback from target consumers is highly beneficial as it allows for informed and appropriate decision-making. This feedback helps refine and improve the design, providing clarity on why certain elements work or need adjustment.
The design, testing, and consumer engagement processes must address several key considerations or questions.
The design, testing, and consumer engagement processes must address several key considerations or questions. These fundamental questions include:
The packaging design testing is the final phase of the product innovation cycle. At this stage, the company can determine whether and why the packaging design will succeed in the market. Thorough testing during this phase is crucial to ensure that the significant investment in product development is well-placed.
The essence of contract packaging is the physical packaging and assembly of products. Examples include blister packaging, which involves heat sealing printed cardboard with a plastic blister, and flow wrapping, which uses a protective film to wrap the product.
Different contract packagers often have specialized niches within their industry. Additionally, there are various types of product packaging, each suited for different applications.
The main types of primary packaging are:
They are also known as blister carding. It is best applied in small consumer products. Blister packaging is when a plastic blister is heat-sealed to printed cardboard. There is an easy view of the product as it is placed between the two materials. Blister packaging is commonly used in small electronic gadgets, over-the-counter pharmaceuticals, chewing gum, etc. It takes the shape of a bubble or blister, which is a 'blister' that covers the product completely.
The traditional blister packaging type is the face seal blister, which features a cardboard backing. Blisters can be molded into various shapes—either uniform to protect evenly shaped products or customized to accommodate irregularly shaped items.
Blister packs are particularly well-suited for:
In addition to protecting products, blister packaging helps keep items uncontaminated and clean, which is why it is often used for pharmaceutical tablets. Blister packs are also tamper-proof, safeguarding consumers from purchasing products that may have been tampered with.
The commonly used types of blister packaging include:
This packaging method is similar to the face seal blister but features an additional cardboard layer that surrounds and fits around the blister shape. The blister is sandwiched between two pieces of cardboard, with the top piece die-cut to match the blister's shape. This approach is more cost-effective than many other methods because it does not require heat sealing. Any tampering will be noticeable if the front cardboard is disturbed. Additionally, this design improves the appearance by covering the plastic with cardboard.
Also known as fin sealing, flow wrapping involves encasing a product in a protective film. This film can be customized to be transparent, opaque, or colored. Flow wrapping is typically recommended for applications where aesthetics are not the primary concern, such as industrial products, business-to-business items, and goods shipped directly to customers. In some instances, a second layer of wrapping, called overwrapping, is applied for additional protection.
Clamshell packaging has improved security compared to blister packaging and involves sealing a product within two preformed plastic sheets. Clamshell products are much harder to open and thus more tamper-proof. Electronics and other expensive products use clamshell designs, which provide extra security. It is also known as clam packs or clam packaging and does not use a cardboard backing. Different clam packs have different orientations. Some can stand upright when placed on shelves. Others have a hole that enables them to be hung on racks. The bubble can either be uniformly sized in the front and back or uniquely shaped to match the product shape.
Clamshell packaging is ideal for products that don't fit well in blister packs or for sets with multiple parts. Examples include:
Shrink wrapping involves using a plastic polymer film that is shrunk around a product. Heat is applied to the shrink film, conforming it to the shape of the product. Examples of items commonly shrink-wrapped include meats, beverages, books, and appliances.
Shrink wrapping can be done using various ways. For example, smaller items can be put in a shrink wrap bag, then heated using a hand heat-gun. In addition, when using adjustable shrink wrap, more oversized products can shrink wrap easier. Thus, environments with bigger items to shrink wrap can use shrink wrap machines that typically wrap, then heat and seal simultaneously.
Many contract packagers specialize in packaging powder or liquid products. They use injection and funneling equipment to fill tubes, bottles, pouches, and other containers. Examples of such products include consumer beverages, glue, baby powder, and similar items.
Labeling services can be offered as stand-alone solutions or as part of the shipping process. Labeling is crucial for inventory control, which is essential for manufacturing and shipping consumer goods. This is typically achieved through two main types of contract labeling services: radio frequency identification (RFID) and barcoding.
Barcoding involves using a series of lines with varying widths that can be read by checkout or warehouse scanning tools. Each barcode is unique to a specific product or stock-keeping unit (SKU) and contains information such as pricing and product category.
RFID tags can be applied directly to the product or to its shipping containers. They enable real-time tracking and provide visibility of the product's movement from the moment it leaves the warehouse.
Contract packaging services may focus solely on packaging, with the hiring company handling shipping. However, in some cases, the contract packager can also manage shipping the product to its final destination. Additionally, tracking services for the product may be provided.
Various machinery, sometimes used within automated lines, are utilized in packaging processes to yield faster production and shorter turn-around times. For example, liquids such as soft drinks can be bottled using automated bottling lines. Dry products like powders and seeds can be packaged using auger filling machines.
Complex machinery, such as vertical form fill seal machines and automated assembly lines, can be employed in contract packaging. Vertical form fill seal machines create stand-up pouches from flat reels of film, fill them with the product, and then seal them. These machines are suitable for packaging both solid and liquid products.
The choice of machinery depends on the type of packaging required. For shrink-wrapping, a heat tunnel on a conveyor is typically used. Conversely, for blister packs, a thermoforming machine and other equipment for formats such as sealed trays, clamshells, and stand-up sachets would be employed.
Contract packaging has become a key strategic business decision due to changing consumer preferences and the push for sustainability. To remain competitive, many companies integrate contract packagers into their supply chains. These packagers act as collaborative partners, providing or facilitating the development of sustainable packaging solutions that are then tested on the production lines.
Increasing consumer demand for sustainability and the need for eco-friendly, cost-effective packaging designs are driving more companies to use contract packagers. By aligning with these trends, businesses can enhance their market position.
Strategic business decisions regarding contract packaging can be guided by:
Contract packagers help conserve resources in two main ways. First, they bring expertise, production facilities, and materials that address various packaging needs while employing lean manufacturing techniques to reduce waste, lower carbon footprints, and save costs. Second, utilizing contract packagers allows companies to avoid investing in their own production materials and facilities, thereby lowering overhead costs and improving ROI.
Contract packagers offer cost-effective packaging solutions that optimize resource use, time, and space. Their collaboration with hiring companies supports research and development, leading to improved market products. While consumer preference initially shifted from paper and cardboard to plastic, there is now a trend back toward paper due to its more eco-friendly properties.
Single-use packaging is creating a significant environmental burden, overwhelming waste collection and recycling systems. Sustainable packaging should be designed to be fit for its purpose, with a reduced carbon footprint and resource savings. Efficient and effective packaging design and production are essential for achieving sustainability and advancing towards a circular economy.
The packaging design needs to be reusable, biodegradable, or recyclable. Furthermore, consistent with a circular economy, the materials should circulate in a closed loop with no waste. Manufacturers thus need to respond to regulatory requirements and consumer demands by adopting sustainable packaging best practices. As a result, sustainability has become a point of competitive advantage.
Contract packagers are often preferred for test runs, promotional products, or short production runs. Short runs help the hiring company avoid the cost of procuring expensive equipment that may only be used occasionally. Contract packaging is also beneficial for existing products that require promotional packaging for a limited period.
There are four key advantages of using contract packaging. These include:
A contract packager may be needed in the following circumstances:
The scope of the project must be clearly defined before consulting a contract packager. This clarity is crucial for making informed decisions about investment, collaboration, and partnership. Key considerations when selecting a contract packager include:
Contract packaging involves putting a specific product into its completed packaging using a contracting business. A business can hire another business entity for the production of its packaging, product assembly and potentially even offer storage and distribution of these finished products.
Most companies take this route because they do not have the capacity in terms of equipment and knowledge. It is necessitated by a lack of time and resources to develop their packaging facilities or invest in expensive equipment. They then hire a packaging company on a contract that has the equipment, knowledge, and resources to manage the packaging supply chain on their behalf.
It is critical to make the right choice of a contract packager as this will be key in business strategy and brand awareness.
Blister packaging, or blister packs, are pre-formed packaging materials composed of a thermoformed plastic cavity and a pliable lid. In this type of packaging, the product is placed in deep-drawn pockets or cavities resembling a blister...
Thermoforming is the process of heating thin plastic sheets to its forming temperature and stretching it over a mold which takes its shape. After cooling and setting of the molded plastic sheet, each part will be separated from its batch to form a single unit or product...