Terms such as co-packing, fulfilment and co-manufacturing are becoming increasingly common in today’s manufacturing industry. Although they may sound similar, each one means something different and serves a different purpose.
While co-packing and fulfilment are mainly associated with packaging and distributing finished products, co-manufacturing goes one step further.
What is co-manufacturing?
Co-manufacturing, also known as contract manufacturing, means that an external partner handles part or all of the product manufacturing process, while the finished product is sold by the brand that owns it. This may include assembly, raw material processing, component finishing or the entire manufacturing process — always according to the brand’s specifications and design.
Simply put, you have the idea, formula or design — and the co-manufacturer produces it for you.
How does co-manufacturing differ from co-packing?
Co-packing begins at the packaging stage. You already have a finished product and are looking for someone to package it. Co-manufacturing begins with the production of the product itself — or one of its components.
| Process stage | Co-manufacturing | Co-packing |
|---|---|---|
| Begins with | Manufacturing or assembly | Packaging the finished product |
| Type of service | Manufacturing partnership | Packaging, labelling and promotional packaging |
| Suitable for | Brands without their own production capacity | Brands without their own packaging capacity |
Why do brands use co-manufacturing?
Cost savings
Companies do not have to build their own production facilities or invest in machinery, premises and staff.
Flexibility
Products can be brought to market more quickly without major upfront investment.
Expertise
Companies benefit from the know-how of a partner specialising in a particular type of manufacturing.
Scalability
Production volumes can be increased easily in response to demand.
Co-manufacturing in practice: The Pedal Cars
Although we primarily provide co-packing services, we also use elements of co-manufacturing in practice — particularly through our own brand, The Pedal Cars, which manufactures and assembles children’s pedal cars.
The brand began as an internal project, but production takes place in our own facilities, using our team, technology and processes. Although it is our own product, the entire process — from design to assembly — would be considered co-manufacturing if we performed it for another brand.
Through this project, we have experienced all the challenges our customers face:
- prototype development
- sourcing suppliers
- assembly in both small and larger production runs
- preparation for dispatch
That is why we understand the needs of brands that want to manufacture products but do not have their own production line.
When is co-manufacturing the right solution?
Co-manufacturing may be suitable if you have an innovative product but lack the necessary production capacity, or if you want to test the market before making a major investment. It is also an effective solution when you need to accelerate product development without establishing your own factory or when you are looking for a partner to handle assembly, product completion or component manufacturing.
Co-manufacturing is more than just a buzzword — it is a strategic tool. It allows brands to innovate, grow and expand without unnecessary investment. If you also see potential for your product, it may be time to discuss the possibilities of working together.
Would you like to find out whether we could help manufacture your product? Contact us — we will be happy to explore the possibilities of contract manufacturing or assembly with you.
