Co-Manufacturing and Co-Packing in 2025

More and more food and beverage brands, large and small, choose to entrust the production and packaging of selected product lines to manufacturing, packaging and logistics partners. These include industry giants such as Unilever and other household names, as well as small companies and start-ups. For small businesses, the benefits of outsourcing not only provide cost and labour solutions but also free up much-needed resources to focus on sales and marketing. Contract manufacturing expanded dramatically during the crisis of 2020, and some industry experts say the sector grew as much in 2020 as it had in the previous four years. Brand owners are looking for flexibility and adaptability and are building new direct-to-consumer (DTC) channels. The industry is expected to grow between 6% and 8% over the next five years, down from the more buoyant 10% to 15% forecasts of 2022. Chris Green, co-founder of Young Foodies, wrote in Food Navigator Europe that small brands are “pushing the boundaries of manufacturing.” Also from Young Foodies, Theadora Alexander echoed these views, describing the importance of outsourced manufacturers in her excellent blog as “the heart of your business.” She went on to say: “They are the people who actually make the product you promise the world — your entire brand reputation depends on these products. That is why it is so, so, so important to understand how they work and to build a relationship with them from the very start.” As Europe's largest Kosher certification body, requiring adherence to the highest standards of safe food practice, it is important that KLBD works with many leading contract packers in the UK and continental Europe. March Foods, based in Cambridgeshire, is one such company — a UK leader in co-packing and co-manufacturing, specialising in a wide range of powder and liquid packaging solutions. The independent family business WePack Ltd is another company providing packaging solutions for bottling, sachet and pouch filling, and hand-assembly projects. The specialist trade association BCMPA (the Association for Contract Manufacturing, Packing, Fulfilment and Logistics), celebrating its 25th anniversary, has launched an exciting #outsourcingIs campaign. The association strongly advocates that brands invest in outsourcing, with CEO Emma Verhaik describing it as an important strategy for brands of all sizes to scale more effectively, manage costs and focus on their core competencies. This is especially important during peak events such as Black Friday, when third-party outsourcing partners can provide the flexibility needed to scale up production, packaging and logistics at the required speed. Another KLBD client and BCMPA member is Express Contract Drying. They are the UK's largest provider of contract spray-drying and contract powder-blending services for food and food supplements. Founded in 1991, ECD is a go-to specialist in the spray-drying process, offering unmatched professionalism. Another respected organisation, the CPA (Contract Packing and Manufacturers Association), put it most succinctly when it described choosing a contract packer as the start of a partnership. The CPA supports member companies by raising awareness and value of outer-packaging and manufacturing services in the fast-moving consumer economy. Its European equivalent is the European Contract Packers Association (ECPA), which represents the professional contract-packing industry in Europe. The ECPA and its member companies provide a valuable resource for brand owners, manufacturers and retailers seeking to outsource. ECPA members include more than 1,000 contract packers and around 100,000 employees working in the field, with facilities for grinding, milling and sieving bulk powders and for contract-filling liquids into PET bottles. Taking the United States as an example, it is well known that finding good outsourcing solutions can pose many problems for both local brands and European brands looking to set up offices in the US. Katlin Smith, founder and CEO of Simple Mills, put it plainly: “Contract manufacturers are often hard to find. The one you end up working with is usually on page 12 of Google, and you have to call each of them.” Fortunately, companies such as Partner Slate are able to connect food and beverage manufacturers with high-quality production partners across the field. According to ePac Custom Flexible Packaging, the benefits of outsourcing food production apply to companies of all sizes — including less upfront investment, faster turnaround times, fewer storage and warehousing needs, and fewer required certifications. When it comes to advanced technology for 3PL packaging services, Granby Marketing offers fulfilment systems with a range of innovative solutions. While third-party contract manufacturing (co-manufacturing and co-packing) offers flexibility and cost advantages, it also brings significant risks related to quality control (QC), especially in allergen management and Kosher compliance. Risks involved in outsourced production The main QC and Kosher-compliance risks at contract manufacturers include: Different quality-control standards — different manufacturers may use different QC schemes, which can lead to inconsistent product safety and quality. Limited transparency — brand owners often have low visibility into a contract manufacturer's production process, which limits their ability to verify compliance with Kosher standards and allergen control. Cross-contamination risk — if cleanliness and segregation are not strictly maintained, shared equipment and facilities increase the chance of allergen or non-Kosher cross-contact. Labelling and traceability issues — ingredient-declaration or labelling errors occur frequently, especially when production is outsourced, increasing the risk of undeclared allergens or violations of Kosher status. When problems such as allergen cross-contamination occur, accountability is harder to enforce in a co-production relationship. Documentation gaps, weak allergen controls and varying cleaning protocols for different clients make contract manufacturers a known risk point in the food safety chain, especially where allergen-free or Kosher products are expected. Kosher compliance in third-party contract production can be particularly vulnerable due to weak contractual controls, limited rabbinical oversight, insufficient staff training, inconsistent communication, inadequate process knowledge, and geographic or cultural disconnects. Specific vulnerabilities include: no contract between the certification body and the contract producer, limiting authority; infrequent or poorly coordinated Kosher inspections; the contract producer's lack of understanding of Kosher requirements; Kosher production not notified to the certification body; inadequate separation of Kosher and non-Kosher materials; use of non-Kosher-approved or substitute ingredients; incorrect or unauthorised use of Kosher labels; incomplete or missing Kosher documentation; and communication breakdowns among the client, the contract producer and the certifier. Potential benefits of third-party contract production from a Kosher perspective Shared audit costs — if several Kosher-certified clients use the same contract manufacturer, the cost of Kosher audits/inspections can be shared, reducing the burden on each company. Existing Kosher infrastructure — some contract manufacturers may already operate under Kosher supervision, with trained staff, approved suppliers and suitable equipment, making it easier and faster to bring new Kosher products online. Access to specialised Kosher runs — facilities experienced in Kosher production (especially Passover, grape, dairy or meat) may offer capabilities that small manufacturers or in-house operations cannot economically support. Reduced need for in-house expertise — clients can leverage the contract facility's existing compliance systems and its relationships with Kosher agencies, reducing the client's need for deep in-house Kosher knowledge. Flexibility — contract production allows a brand to produce Kosher-compliant products without converting its entire operation or investing in segregated production lines. Choosing the right manufacturing partner is very important for the expansion plans of companies of all sizes. Every operation is unique, and the outsourcing process must fit the existing business model and demonstrate that all production, laboratory-testing and packaging requirements can be fully met. The cost of implementing the transition and the future management of key personnel are also critical budget factors to consider. Global success stories such as Nestlé epitomise the advantages of outsourcing, with substantial investment in production facilities across different continents. Whether large or small, protecting brand reputation is a crucial factor when choosing the ideal manufacturing partner.