What Are Packaging Services and When to Outsource the Packaging Process to Specialists? (5 Examples)

If you are an FMCG manufacturer or an e-commerce company, you already know how challenging product packaging can be, especially when the process must be both error-free and cost-efficient. You essentially have two options: you can package, label or shrink-wrap your products in-house, or you can outsource these packaging services to a specialised co-packing partner.

If you are considering the second option, you are probably asking yourself a few questions:

• What exactly is included in packaging services?
• Does it make sense for my business to work with an external co-packing company?
• What tangible benefits can I expect?

This article will walk you through the answers.

Using concrete, real-life examples from the FMCG sector, it will show which services fall under packaging and co-packing, and how outsourcing them can support your business goals. You will also see real cases of companies that faced a similar decision.

If you do not find a full answer to your question here, there is good news: simply click here and get in touch via the contact details provided. For more than ten years, packaging services and co-packing have been the core focus of the author’s work, so you can count on practical, experience-based guidance tailored to your specific situation.

What exactly are packaging services?

Packaging services describe the process of getting your products ready for sale or distribution through dedicated services such as packaging, labelling, shrink wrapping and bundle packaging. These services can be carried out using automated lines or by manual packing teams, depending on your product type, volume and how customised the final presentation needs to be.​

Which services are included and when to outsource them?

In the next sections, you will find an overview of the key services that fall under packaging services for FMCG products.

To help you decide whether to outsource a given process or keep it in-house, the article includes practical examples based on real situations. These examples show how FMCG companies faced similar dilemmas and chose to work with an external partner.

If you have already decided to outsource, make sure to read this article as well: it explains how to choose a reliable co-packer – a company that specialises in product packaging services.

Service #1: Packaging and repacking of goods

This is the most classic of all packaging services. It covers packing individual products, breaking down bulk packaging into single units (e.g. filling sachets), and repackaging existing single units.

Example challenge: Handling seasonal peaks in demand

Imagine you are an organic food manufacturer supplying ecological retail chains. Right before the holiday season, your order volume suddenly triples – from 5,000 to 15,000 cartons per month. Your in-house team usually manages order picking and packing without problems, but now suddenly faces a massive workload. Each order typically contains 5–6 different products. These products not only need to be picked and packed, but also secured properly for transport.

Hiring and training additional staff just for the Christmas period would mean high costs and the risk of inconsistent work quality from temporary, inexperienced employees. In this situation, a packaging services provider can take full responsibility for the packing process and, if needed, offer end-to-end logistics support. With access to professional equipment and an experienced team, the co-packer can ensure that every product is packed correctly, well protected and dispatched on time – even during extreme seasonal peaks

Example challenge: Rapidly scaling your operations

Now imagine your snack company has just signed a contract with a large convenience-store chain. From one month to the next, you have to be ready to process not 10,000 but 100,000 packs. On top of that, every single product needs to comply with strict requirements from the retail chain in terms of packaging, labelling and documentation. Each delivery must arrive at agreed time slots together with complete paperwork.

Organising such an operation by yourself would require significant investment in infrastructure, recruiting and training a new team, and reorganising your logistics flows. A specialised packaging services provider can not only provide the necessary capacity, but also ensure full compliance with the retailer’s requirements. Because the co-packer already has the right machinery, trained staff and proven procedures in place, you can scale up quickly and handle large volumes efficiently while maintaining a consistently high quality level.

Service #2: Contract labelling and product marking

Contract labelling means professionally applying labels, barcodes and other product markings – especially on FMCG items. It often combines automated labelling lines with manual workstations, so even complex or small batches can be processed efficiently and in line with legal and retail requirements.

Example challenge: Launching a new product line

Imagine you are introducing a new range of functional drinks. The range consists of five products, each available in two flavours – in total ten different SKUs. Every SKU needs a precisely applied label with information in two languages, a dedicated barcode, batch number and expiry date for each flavour. You must also include mandatory markings such as allergen pictograms and recycling symbols. The labels must be applied straight and bubble-free, which is especially important for premium products.

A packaging services provider with specialised equipment and an experienced team can ensure high-precision labelling and maintain detailed batch-level documentation – a critical element in the food and beverage sector. The co-packer can also help organise warehouse space so that different product variants are clearly separated, correctly marked and easy to identify.

Service #3: Shrink wrapping and sealing

This service mainly covers securing products with shrink or stretch film for transport and storage, as well as creating sealed promotional sets. It is frequently used for “buy-one-get-one” promotions, multi-packs or premium products that need both protection and a visually attractive appearance on shelf.

Example challenge: Limited production and warehouse space

Suppose your natural cosmetics brand has just launched a limited edition in glass containers. Each product needs standard film protection plus additional protective packaging to make transport safe. Investing in a professional shrink-wrapping line would require a large upfront budget, at least several dozen square metres of space and training for dedicated operators.

By outsourcing shrink wrapping to a co-packing partner, you can free up valuable floor space and use it for your core production processes instead of secondary packaging tasks. At the same time, the co-packer can propose suitable films and wrapping techniques for each product type and, if needed, provide temporary storage for finished goods in its own warehouse – giving you a complete, space-saving solution.

Service #4: Filling display stands and assembling promotional sets

This service covers the end-to-end preparation of promotional stands and display units, as well as other campaign sets that combine different products in non-standard ways. It includes kitting all components, arranging products according to the planogram and preparing the sets so they are ready to be shipped directly to stores.

Example challenge: Running a campaign with an unusual packaging concept

Imagine you are a healthy snack manufacturer preparing a promotion in 200 stores nationwide. Every display has to contain the same set: 6 units of each of 5 different products, plus leaflets, price tags and point-of-sale materials. On top of that, you create special promotional sets that combine several items, such as a “Healthy Breakfast” bundle with muesli, dried fruit and cereal bars. The products need to be arranged in exactly the same order on every stand to keep your brand presentation consistent, while each promotional set requires precise kitting, special packaging and the addition of extras such as recipes or nutrition tips.

All displays must reach every store within the same week, before the national campaign goes live. Organising this operation in-house would be a major logistical challenge, involving not only the preparation of several hundred identical sets but also coordinating deliveries to many locations. A packaging services provider can ensure accurate, consistent preparation of all displays and, in many cases, also handle the transport logistics. Thanks to dedicated floor space for building large batches of displays, trained staff and tried-and-tested procedures, the co-packer brings both operational capacity and practical know-how to execute such campaigns smoothly.

What are the benefits of professional packaging services?

Time savings and cost reduction

When you outsource product packaging to a specialist, you avoid a number of hidden costs that are often underestimated in initial business cases. You do not need to invest in dedicated machinery such as sealing, wrapping or labelling lines, nor in their maintenance and repairs over the years. You also reduce labour-related costs: there is no need to recruit, train and retain an in-house packaging team or maintain backup staff to cover holidays and sickness absences, because the co-packer takes responsibility for securing continuous operations.

In addition, you do not have to allocate budget to extra warehouse and production space to handle packaging processes. This is especially important for companies operating in large cities or high-rent locations, where every extra square metre significantly increases fixed costs. Instead, you can use your own space and resources for core activities such as production, sales or product development.

Flexibility and the ability to scale quickly

Working with a professional co-packer gives you the flexibility to respond quickly to changing market needs. In practice, this means you can handle large, unplanned orders without worrying about internal capacity, run seasonal campaigns without hiring temporary staff, test and launch new products without long-term commitments, and serve multiple sales channels with different packaging requirements.

A packaging partner can ramp operations up or down in a relatively short time, which is particularly valuable during product launches or in sectors with strong seasonal peaks. This scalability reduces operational risk and helps you keep service levels high even when demand is volatile.

Professional equipment and experience

By partnering with a specialised co-packing company, you gain access to experience built up across many projects and categories, often over several decades. This typically includes consulting on the most efficient and low-risk packaging solutions for your products, up-to-date knowledge of market trends and technical options, and established relationships with packaging suppliers that can translate into better prices or lead times.

Experienced co-packers also bring robust quality-control procedures that help reduce material waste and avoid costly errors, as well as a good understanding of different retail chains’ requirements and how to meet them in practice. In many cases, they can additionally advise on logistics or compliance topics, especially for products that need special handling, labelling or documentation to meet regulatory standards.

Quality assurance

Professional packaging services cover much more than the physical tasks of packing or labelling; they also include a complete quality assurance system. This system contains elements that many FMCG companies would find too expensive or too complex to implement on their own, such as detailed batch inspections, label and marking checks before production, in-process quality control at every step, random inspection of finished goods, photo documentation for premium or non-standard packs, retention samples from each batch and full traceability in case of a product recall.

These measures are particularly important for manufacturers who find it difficult to maintain the same quality level when packaging is done in-house. Hiring a dedicated quality controller for a relatively small internal packaging operation is often hard to justify financially, while assigning these tasks to production staff increases the risk of human error. Cutting corners in this area may look like a cost saving in the short term, but it can quickly lead to expensive mistakes and reputational damage.

A professional co-packing partner has standardised procedures and dedicated quality staff in place, which makes it possible to keep consistently high standards at a reasonable cost. Certifications such as ISO, GMP and HACCP are an additional assurance that the processes meet the expectations of retail chains and regulators.

Focus on your core business

Outsourcing product packaging allows you to focus on the activities that create the most value for your company. These typically include developing new products, building stronger customer relationships or improving internal processes that you do not want to outsource. In other words, instead of managing the day-to-day details of packaging and logistics, your team can concentrate on projects that have a much bigger impact on the long-term growth of your business.

Are packaging services the right solution for your company?

Professional packaging services can solve many of the operational challenges FMCG manufacturers face. Working with an external partner is particularly attractive during periods of rapid growth, when you need a flexible co-packer that can scale capacity as demand for your products increases. It is also an excellent option if you are dealing with strong seasonal peaks or planning to launch new products to market.

By outsourcing packaging services, you can focus on growing your business rather than on the operational details of packing, while still benefiting from a professional quality-control system without having to expand your in-house team. Every company is different, so if you are unsure whether this approach fits your situation, it is worth arranging a free consultation to analyse your needs and design a tailored solution together with an experienced co-packing team.

Every business is different and has its own specific needs. If you are still wondering whether packaging services are the right solution for your company, get in touch using these contact details and book a free consultation. Together with the TRANSPAK Copacking team, your situation will be analysed and a tailored solution will be proposed that fits your company’s requirements.