Introduction
The co-packing industry has been rapidly expanding in recent years, with more brands turning to contract manufacturers to handle their packaging needs. One area that has seen significant growth is custom deli packaging for private label brands. In this report, we will explore the reasons behind this trend, the financial implications for co-packers, and the key players in the market.
Market Overview
The market for custom deli packaging for private label brands has been growing steadily, driven by consumer demand for convenience and unique packaging solutions. According to a report by Grand View Research, the global food packaging market is expected to reach $411.3 billion by 2025, with a CAGR of 5.2% from 2019 to 2025. This growth is fueled by the increasing popularity of private label brands, which often require custom packaging solutions to differentiate themselves from competitors.
Reasons for Expansion
One of the main reasons co-packers are expanding into custom deli packaging for private label brands is the opportunity to offer unique packaging solutions that can help brands stand out on the shelf. Custom packaging allows brands to showcase their products in a way that reflects their brand identity and values. Additionally, custom deli packaging can help brands communicate important information to consumers, such as ingredients, nutritional information, and branding messages.
Financial Implications
For co-packers, expanding into custom deli packaging for private label brands can be a lucrative opportunity. By offering custom packaging solutions, co-packers can differentiate themselves from competitors and command higher prices for their services. Additionally, custom packaging often requires specialized equipment and expertise, which can lead to higher margins for co-packers. According to a report by Packaging World, the custom packaging market is expected to grow at a CAGR of 5.8% from 2020 to 2025, presenting a significant growth opportunity for co-packers.
Key Players
Several co-packers have already made significant investments in custom deli packaging for private label brands. One example is ABC Co-Packing, a leading contract manufacturer that specializes in custom packaging solutions for the food industry. ABC Co-Packing offers a wide range of packaging options, including custom deli packaging for private label brands. Another key player in the market is XYZ Packaging, which has a reputation for high-quality packaging solutions and innovative designs for private label brands.
Industry Insights
The custom deli packaging market is highly competitive, with co-packers constantly innovating to meet the evolving needs of private label brands. One trend that has emerged in the market is the use of sustainable packaging materials, such as compostable or recyclable materials. Brands are increasingly looking for eco-friendly packaging solutions that align with their sustainability goals. Additionally, the rise of e-commerce has created new challenges for co-packers, as brands seek packaging solutions that are both functional and aesthetically pleasing for online sales.
In conclusion, the expansion of co-packers into custom deli packaging for private label brands presents a significant growth opportunity for the industry. By offering unique packaging solutions that help brands differentiate themselves on the shelf, co-packers can command higher prices and increase their margins. With the market for custom packaging expected to continue growing, co-packers that invest in innovation and sustainability will be well-positioned to capitalize on this trend.
