Co-Packing & Food Manufacturing

Co-packers provide food production and packaging services for food brands that develop recipes but need manufacturing capacity.

With specialty food brands growing rapidly and seeking production partners, co-packers generate revenue of $350,000-$1,000,000+ annually with profit margins of 20-30% through production contracts.

The business requires commercial food facility, packaging equipment, HACCP and food safety programs, and often SQF or other food safety certification.

Services include ingredient sourcing, food production, packaging, labeling, quality control, and sometimes warehousing.

Common products include sauces and dressings, snack foods, baked goods, beverages, and packaged meals.

Pricing includes setup fees plus per-unit costs marked up 25-50%.

Success factors include food safety excellence, production efficiency, flexibility for various batch sizes, and ability to source ingredients.

Minimum runs typically 1,000-10,000 units.

Marketing focuses on food industry networking, demonstrating certifications and capabilities, and successful brand partnerships.

With food entrepreneurs launching products in 2025, co-packing offers opportunities for food manufacturing entrepreneurs willing to invest in certified facilities.