Contract packaging is a general term used to describe the group of services offered by a third-party packaging provider. These companies provide an outsourced option to manufacture, assemble, and package products that other businesses market and distribute.

Contract packaging can come in a variety of shapes and sizes. Depending on the type of product being packaged, final packaging solutions may take the form of:

• Thermoformed/plastic clamshell
• Blister packaging
• Bags
• Liquid filling
• Shrink wrapping
• Retail point-of-purchase displays
• Customized packaging solutions

Operations performed during contract packaging can range from relatively simple tasks such as barcode labeling to more complex processes including planning, designing, and fulfillment.

Contract packaging providers offer numerous benefits and represent an essential point in the industrial supply chain. Outsourcing packaging to third parties places the responsibility and capital required for equipment, training, materials, staff, and software into the hands of another entity. This allows businesses to focus resources on core tasks related to their business, such as development and growth. Third-party product packaging services are frequently used in many industries, such as:

• Food and beverage
• Consumer products
• Pharmaceutical
• Consumer appliance
• Cosmetics

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