Differences Between Co-Packing and Private Labeling

Differences Between Co-Packing and Private Labeling

There are several ways you can package your products for customers. Partnering your business with a co-packing or private labeling manufacturer is the most common method. But what is the difference between co-packing and private labeling? Keep reading to learn more about these two packaging solutions so that you can make the best decision for your brand and business.

What Is Co-Packing?

Co-packing, or contract packing, outsources your packaging to a separate manufacturer. In other words, your business can hire a co-packer to create and produce the packaging for your products instead of doing this yourself. These third-party manufacturers can provide the resources and advice to generate the ultimate packaging design.

What Is Private Labeling?

Private labeling is when you use a different company’s products under your business or brand name. Essentially, it means labeling generic products with your brand’s name, logo, and graphics/colors. Private labeling companies can help a business get on its feet when it’s looking to produce products.

Proprietary Rights

A major difference between co-packing and private labeling is the ownership of rights. In co-packing, your business will have the rights to your packaging design and graphics. This means the co-packing corrugated box manufacturer you choose cannot share or use your brand’s information on additional products outside of your agreement.

Private labeling, on the other hand, gives proprietary rights to the labeling manufacturer. So, if the manufacturer decides to work with a business other than yours, they can also use the same products, just with a different label. However, private labeling companies can come to an exclusive agreement.

Other Minor Differences

Other minor differences between the two packaging manufacturing options include costs, marketing, and logistics. Cost will vary between the two options and usually exists on a sliding scale. However, private labeling provides services from the start of a product to its finish, so it will likely cost more.

Additionally, some co-packing companies might not have the capacity or capability to manufacture the number of packages you need depending on your demand for packaging. You may need to consider this when looking for a partnership. When it comes to marketing, you will have more power with a co-packing company because you own the rights to your design.

Choose Golden West Packaging

Golden West Packaging is a co-packing manufacturer capable of producing bulk orders of various designs. We can work with your business to improve packaging and bring your ideas and designs to life. Consider working with us if you’re in the market for a co-packing partnership.

When it comes to the bottom line, both co-packing and private labeling will result in the creation and packaging of products. The only significant difference is the proprietary rights. Take into account your business needs to make the right decision for your brand.