The Contract Packing Industry

Packaging has long fallen into two distinct categories. Bulk packaging is generally used for wholesale goods. Individual packaging is for goods sold directly to the consumer in retail shops. The difference between retail and wholesale goods can be more than 200 percent in some markets. It is no wonder that many wholesale companies are now looking into creating and servicing their own local retail markets.

Bulk manufacturers often have difficulty converting from wholesale to retail. Some of them are interested in only a small retail market as they continue to sell their product in bulk lots to other companies. Opening a small retail market area is not easy and packaging is often where these manufacturers discover issues that must be overcome. Many of them turn to bagging companies as an easy and less expensive way to turn bulk items for wholesale into retail products.

Contract bagging is an industry that has bloomed in recent years. Some companies that specialized in wholesale bulk products bought their own machines. Over time, they found out that their markets were still mainly seasonal, and they continued to need other sources of income for their company. They found that bagging for other companies filled their coffers and kept their people working all through the year.

Once companies with their own bagging equipment discovered this market, they needed an outlet to showcase their abilities. Contract bagging trade shows have given them a venue of their own for selling their bagging services. Vendors in these shows are often small manufacturers, and they understand the needs of buyers attending the show. They can offer personalized service to these vendors and make a tidy profit for their company. It saves the buyer's company the necessity of purchasing expensive equipment they may need only a few months of the year.