4 Key Contract Packaging Trends Shaping the Future — And How Co-Packers Can Stay Ahead
The contract packaging industry is evolving at record speed. Just a few years ago, co-packers could count on steady seasonal demand, predictable client relationships, and stable packaging formats.
Today, those certainties have disappeared. Contract packaging trends are being driven by shifting consumer behavior, rapid SKU growth, and the relentless push for sustainability. In North America, brands are launching new products faster than ever, retailers are tightening compliance standards, and supply chains are under constant strain.
For co-packers, this creates a mix of huge opportunities and intense pressure. Brands aren’t just seeking a vendor anymore; they’re looking for a partner who can adapt quickly, deliver innovative packaging, and help them stay competitive in a rapidly changing market.
To thrive in this environment, co-packers must anticipate key contract packaging trends, not just react to them. Here are four of the biggest forces shaping the future of contract packaging and what they mean for your business.
Trend 1: Convenience and Single-Serve Formats Are Driving Growth
Across North America, consumers are looking for products that fit their fast-paced, on-the-go lifestyles. They want packaging they can toss in a bag, open easily, and finish in a single use. This shift has fueled explosive growth in single-serve packaging formats like sachets, stick packs, and small flexible pouches, formats that deliver portability, portion control, and convenience.
This isn’t just a fad. The numbers show how powerful this trend has become:
- The North American pharmaceutical sachet packaging segment alone was worth USD 520 million in 2024 and is projected to reach USD 880 million by 2032, growing at a 6.8% CAGR.
- The broader U.S. single-serve packaging market generated USD 2.88 billion in 2024 and is expected to grow to USD 4.07 billion by 2030, at an annual growth rate of about 6%.
These formats are especially popular in industries like:
- Nutraceuticals: protein powders, vitamins, collagen
- Beverage: portion-controlled drink, powdered drinks
- Beauty and personal care: serums, travel-size lotions
Why this matters for co-packers:
As brands launch more single-serve products, they’re actively seeking co-packers who can keep up with this demand. Being able to deliver sachets and other single-serve packaging with speed, accuracy, and flexibility has become a true competitive edge, one that helps co-packers secure long-term contracts and stand out as strategic partners.
Trend 2: The Explosion of SKUs and Customization Pressure
Consumers crave variety and personalization more than ever. Beverage brands, in particular, are constantly rolling out seasonal flavors, limited-edition collaborations, and health-focused specialty lines. Even smaller companies are experimenting with multiple product variations to test new ideas and appeal to niche markets.
While this variety excites shoppers, it creates a tangle of operational challenges for co-packers:
- Frequent changeovers between products and packaging formats slow production and increase costs.
- Quality control becomes harder as packaging diversity grows.
- Smaller production runs strain efficiency and profit margins.
This rapid SKU growth is pushing many brands to outsource packaging entirely, relying on co-packers to manage the complexity they can no longer handle in-house. But with this opportunity comes pressure: brands expect their partners to be fast, flexible, and consistent, delivering flawless packaging across a constantly changing mix of SKUs.
Why this matters for co-packers:
The ability to pivot quickly between products has become a critical differentiator. Co-packers with equipment and processes designed for rapid, efficient changeovers will win the most lucrative contracts. Those relying on slow, manual methods risk being left behind as brands demand speed, agility, and seamless customization in today’s fast-moving market.
Trend 3: Labor Shortages Are Accelerating Automation Adoption
Finding and retaining skilled labor has become a serious challenge for manufacturers and co-packers alike. Rising wages, high turnover, and staffing shortages make manual packaging processes unsustainable.
This reality is pushing co-packers toward automation as a necessity rather than a luxury. Automation addresses several key challenges:
- Reduces reliance on hard-to-find labor
- Minimizes human error and rework
- Increases throughput and consistency
- Provides real-time data for better decision-making
As contract packaging trends evolve, brands are gravitating toward co-packers who can guarantee speed and quality at scale. Automated systems, like multi-lane sachet machines, enable co-packers to handle diverse SKUs, smaller batches, and tighter deadlines without compromising efficiency.
Why this matters for co-packers:
Automation doesn’t just solve labor issues. It positions your operation as a future-ready partner, able to deliver predictable, high-quality output that builds client confidence and drives repeat business.
Trend 4: Sustainability Is Now a Must-Have, Not a Nice-to-Have
Sustainability has moved far beyond being a marketing buzzword; it’s now a core requirement in packaging contracts. Retailers, regulators, and consumers expect packaging to be eco-friendly, recyclable, or compostable, and brands are under growing pressure to hit ambitious environmental targets.
For co-packers, this shift brings both challenges and opportunities:
- Many new eco-friendly films and materials are harder to run on older machines, leading to jams, mis-seals, or slower production speeds.
- Brands are actively seeking co-packers who can reliably run recyclable and biodegradable substrates at full production capacity.
- Early adopters of sustainable practices gain a clear competitive edge, winning long-term contracts with eco-conscious brands and staying ahead of upcoming regulations.
The growth of sustainable packaging in North America reflects how urgent this trend has become:
- The U.S. sustainable packaging market is expected to expand from USD 49.2 billion in 2024 to USD 73.8 billion by 2034, growing steadily at a 4.15% CAGR.
- Across North America, sustainable packaging overall is projected to nearly double in size, climbing from USD 83.4 billion in 2022 to USD 156.7 billion by 2032, at a 6.6% CAGR.
Why this matters for co-packers:
Brands don’t just want sustainable packaging; they need it to stay relevant with consumers and compliant with retailer and regulatory standards. Co-packers who invest in the right equipment and processes now will be positioned as essential partners in helping brands meet their green goals. Those who delay risk losing high-value contracts to competitors who are ready to deliver.
By aligning with this sustainability-driven contract packaging trend, co-packers can future-proof their operations, strengthen relationships with premium brands, and set themselves apart in a rapidly evolving marketplace.
Preparing Your Co-Packing Business for the Future
These contract packaging trends are interconnected.
- SKU proliferation drives demand for single-serve sachets and specialty formats.
- Labor shortages make automation essential for maintaining speed and quality.
- Sustainability pressures influence both material selection and machinery requirements.
To prepare, co-packers should take a step back and assess their current capabilities:
- Agility: Can your operation handle rapid SKU changes without costly downtime?
- Efficiency: Are you leveraging automation to reduce labor dependency and improve throughput?
- Sustainability: Can your equipment run eco-friendly materials seamlessly while maintaining output?
The answers to these questions will determine whether you’re positioned as a reactive vendor or a strategic partner for your clients.
Final Thought: Lead the Change, Don’t Chase It
The future of contract packaging won’t wait for anyone. Co-packers who anticipate trends like single-serve growth, SKU diversity, automation, and sustainability will be positioned to thrive, while those who lag will find themselves scrambling for relevance.
Now is the time to:
- Audit your capabilities
- Invest in flexible, future-proof systems
- Partner with brands to build sustainable, scalable solutions
The most successful co-packers won’t just follow contract packaging trends; they’ll lead them, becoming the trusted partners brands rely on to navigate an ever-changing marketplace.