How British brands benefit from outsourced contract packing
Outsourced contract packing is an opportunity for British businesses to focus on their core activities, unlocking a competitive advantage while staying at the forefront of packaging processes and consumer demands alike.
The expansion of the UK retail sector is creating new openings for the packaging industry, with the value of the European contract packing market forecast to grow by over 10% a year until 2030.[1]
For retailers operating in the ecommerce space, the potential of contract packaging is particularly great, due to the high expectations of consumers for faster deliveries, and the impact this has at every stage along the supply chain.
By the end of the 2020s, Straits Research predicts contract packaging will be worth $36.5 billion (£28 billion) in Europe, the second-largest regional market behind North America. Globally, the industry is expected to top $190 billion by the end of the decade.
What is contract packing?
Contract packing covers a huge range of packaging designs and purposes. Some of the main industries served include food & beverages, cosmetics, pharmaceuticals, and consumer packaged goods (CPG) including ecommerce products.
Packing spans three segments:
- Primary packaging i.e. the direct box or wrapper a product is sold in, which offers opportunities for on-pack promotions and brand-building
- Secondary packaging e.g. the outer carboard shipping cartons used to transport CPG in bulk from the supplier to the retailer
- Tertiary packaging i.e. additional outer packaging that protects against physical damage during shipping and handling
For example, goods intended for international shipping may benefit from additional secondary and tertiary packaging, both to label the carton for faster processing by Customs officials, and to protect the contents against bumps and knocks during transit.
Adding value with contract primary repacking
It is in primary packing where the most brand value can be added, to create limited editions, gift boxes and other innovative ways to boost sales:
- Cosmetics/toiletries gift boxes
- Complementary products (e.g. box containing tea/coffee and biscuits)
- Multi/variety packs (e.g. promotional holder of six different beers)
MRM have a strong track record of expertise and success in contract packaging campaigns, from practical applications such as updating obsolete barcodes and replacing damaged cartons, to the design and delivery (with end-to-end fulfilment) of brand-building promotions.
By outsourcing your primary repacking contract to us, you can benefit from the full competitive advantage of our experience, without the need to build an in-house team of your own.
Why should we outsource contract packing?
Contract packaging can be used for one-off or short-term campaigns, such as seasonal gift boxes, special editions and time-limited promotions (e.g. on-pack coupons and competitions).
Alternatively, long-term contract packing ensures efficient supply chains in ecommerce and bricks-and-mortar retail, all the while benefiting from the scalability and flexibility of accessing specialist outsourced packaging services.
Cutting costs and accessing expertise
Outsourced contract packing allows brands to offload non-core business activities, while removing the need for internal resources dedicated to packing and repacking physical goods.
This includes reducing or eliminating the need for:
- Employee expertise
- Graphic design capability
- Purpose-built machinery
- Storage for packaging materials
- Time and financial budgets
Marketing agencies can also benefit from the physical fulfilment capabilities of contract packing providers, as a way to sell ideas for promotions, special offers and competitions to brand owners.
Again, this allows contract packing providers to add value to the supply chain as a whole, whether directly to the physical goods sold by retailers and manufacturers, or by enhancing the service offering of marketing agencies.
Benefits of British contract packing providers
British contract packing providers are naturally better placed to handle domestic fulfilment, with native expertise when it comes to issues like Customs rules, import/export regulations and any guidelines in place for road haulage of goods
The BCMPA (British Contract Manufacturers and Packers Association) has seen increased demand from companies for UK-based fulfilment and logistics since Brexit, including from European businesses looking to establish a distribution base within UK borders.
Speaking at the chemical industry trade show CHEMUK in May 2024, BCMPA CEO Emma Verkaik said: “Demand for UK manufacture would appear to be on the increase due to the difficulties from new legislation and transportation across country borders, and our members are increasingly proving to be ideal outsourcing partners for overseas businesses to overcome these challenges.”[2]
How MRM can help with outsourced contract packing
Outsourcing contract packing to a specialist provider like MRM gives brands and marketing agencies access to skills they might not have in-house, including graphic design and print capabilities, structural design and testing, and an understanding of the relevant labelling laws and regulations.
We are in a unique position to combine this with our full range of multi-resource marketing services, including packing and repacking, domestic and international despatch, packaging-based promotions, subscription boxes and hampers, and specialist services for ecommerce.
A central location for UK fulfilment
From our East Midlands location, we are 50 miles from Birmingham, less than 100 miles from London and under 150 miles from Liverpool and Manchester. IBISWorld notes the strategic importance of the East Midlands as a location for packaging services:
“Manufacturers draw packaging companies to the Midlands. The East and West Midlands are pivotal regions for UK manufacturing, making them an ideal hub for packaging services. They also have strong transport links to the rest of the UK.”
– Packaging Services in the UK – Market Research Report (2014-2029)[3]
With fulfilment services spanning packaging manufacture, warehousing and storage, and start-to-finish logistics, MRM can take care of every stage of your contract packing.
Contact MRM for contract packing and multi-channel marketing
To find out more about any of our services in contract packing and multi-channel marketing, contact MRM today. We welcome all enquiries, from the very early stages through to clients who are ready to proceed with a campaign.
Our team is friendly and knowledgeable, and ready to share our expertise with our valued clients in campaigns that deliver measurable value to you and your supply chain.
Call us on 01858 410510 during office hours for a no-obligation chat, or fill in our message form and we’ll get back to you as soon as we can.