Co-Packing vs. Private Labeling: Which is Right for Your Business?

June 26, 2023

Starting a frozen food business can be overwhelming, especially when it comes to deciding between co-packing and private labeling. Both options have their pros and cons, and each has the potential to benefit your business in different ways.

In this blog post, we’ll take a closer look at co-packing and private labeling and help you determine which is right for your business.

What is Co-Packing?

Co-packing is a process where a company hires a third-party manufacturer to produce their products according to their specifications. In other words, you supply your recipe, packaging, and branding, and the co-packer produces the products with their equipment, labor, and materials.


Benefits of Co-Packing:

Co-packing has several benefits that make it an attractive option for frozen food businesses. Firstly, it saves time and money in terms of buying and maintaining equipment, labor costs, and packaging materials. Co-packers have specialized equipment and can produce in large quantities, which can reduce the cost per unit significantly. Secondly, co-packers can help you meet strict industry regulations and quality standards since they have more experience and knowledge of food safety and regulations. Finally, co-packers can offer flexible production and storage options that can accommodate your business’s fluctuating demand.


What is Private Labeling?

Private labeling has several benefits that make it a viable option for frozen food businesses. Firstly, it saves time and money in terms of product development, recipe testing, and equipment purchasing. Private label manufacturers have established recipes and products that have been tested and proven in the market. Secondly, private labeling allows you to differentiate your business and products from competitors. By having your brand name on the product, you can create brand awareness, customer loyalty, and trust. Finally, private labeling offers flexibility in terms of quantities and production, allowing you to test the market demand for certain products without committing large volumes.


Which is Right for Your Business?

The decision between co-packing and private labeling ultimately depends on your business’s goals, resources, and marketing strategy. If you have a unique recipe that is central to your brand and competitive advantage, co-packing may be the best option since it allows you to maintain the recipe's integrity. Additionally, if you have the necessary resources to control the production processes and quality checks, private labeling can be a great option to create brand awareness and differentiate yourself in the market.




In conclusion, deciding between co-packing and private labeling can be a tough decision for frozen food businesses. It’s important to assess your business's resources, goals, and market strategy before making the final decision. Both options have their advantages and can benefit your business in different ways. We hope this blog post has helped you understand the differences between co-packing and private labeling and how to choose the option that is right for your business.

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