The Rising Adoption of Co-Packing in Cannabis

CREDIT: ORIGINALLY POSTED ON CALICOPACK.COM

The cannabis industry is rapidly evolving, and one significant trend shaping its growth is the increasing adoption of co-packing services, where cannabis brands outsource production, packaging, and compliance tasks to specialized contract manufacturers. This shift is driven by a combination of economic, regulatory, and operational factors, and it spans a wide range of cannabis products from pre-rolls to edibles and concentrates.

Why Cannabis Brands Are Turning to Co-Packing

1. Cost Savings and Lower Barriers to Entry

For many cannabis brands,  especially startups and small to mid-sized companies,  building a fully equipped production facility is cost-prohibitive. State licensing, manufacturing equipment, labor, and compliance systems require significant investment and specialized know-how. By partnering with a co-packer, brands avoid heavy upfront costs and instead leverage existing infrastructure,  freeing capital to focus on marketing, sales, and distribution. 

This outsourcing model dramatically reduces the financial barriers to entry and allows companies to launch products with minimal startup expense.

2. Regulatory Compliance and Expertise

Cannabis packaging is among the most regulated in any consumer goods category. Requirements like child-resistant and tamper-evident packaging, precise labeling, dosage disclosures, and track-and-trace compliance vary by state or country. Co-packers have the expertise and systems in place to meet these stringent regulations, ensuring products are compliant every time they go to market. 

For many brands, this regulatory complexity is one of the biggest reasons to outsource rather than manage packaging and compliance in-house.

3. Faster Time to Market

Speed matters in the cannabis industry. Trends shift quickly, and product lifecycles are compressed compared to traditional consumer goods. Co-packers often maintain ready-to-run lines, compliance-approved labeling templates, and quality systems that help brands launch new SKUs faster than if they had to set up production from scratch. 

This faster launch cycle helps businesses stay competitive and respond swiftly to emerging market trends or seasonal demand.

4. Scalability and Flexibility

Product demand can fluctuate widely,  especially in emerging markets or during new product launches. Co-packing enables brands to adjust production volumes up or down without the risk of underutilized equipment, staffing overhead, or warehouse space. 

Whether a business is testing a small batch of new gummies or scaling up production of multiple SKUs for national distribution, co-packing offers unmatched flexibility.

5. Enhanced Quality Assurance

Established co-packers invest in quality control and consistent production processes. This level of standardization is critical in cannabis, where product consistency affects brand trust and regulatory approval. Outsourcing these functions to experts lets brands focus on quality assurance and brand experience rather than production logistics.

What Types of Cannabis Products Are Being Co-Packed Most Often?

The adoption of co-packing spans virtually every product format in the regulated cannabis space, but several categories stand out:

• Pre-rolls

Pre-rolled joints remain one of the most popular cannabis products and a significant category for co-packing due to the labor and equipment needed for consistent quality. Automated pre-roll machines and experienced co-packers help brands produce high volumes with uniform weight and density.

• Edibles (Gummies, Chocolates, and More)

Cannabis edibles require precise dosing and compliance-friendly packaging. From gummies to baked goods and infused chocolates, co-packers manage both formulation and packaging in ways that preserve potency and meet regulatory standards.

• Concentrates and Extracts

Products like live resin, shatter, and wax demand specific handling and packaging formats — such as syringes or terpene-resistant containers — that many brands outsource to specialists.

• Tinctures and Sublinguals

Bottled tinctures need precision dosing, dropper assembly, and often child-resistant closures. These production and packaging requirements make tinctures a strong candidate for co-packing relationships.

• Vape Cartridges and Hardware

Though hardware (like cartridges and batteries) sits at the intersection of packaging and electronic components, many brands rely on co-packers who either integrate hardware into their service offerings or coordinate with component manufacturers to ensure seamless final packaging.

Market Trends: Growth and Future Outlook

Industry projections show the cannabis contract packaging market growing at double-digit compound annual growth rates over the next decade, reflecting both the continued legalization of cannabis and rising consumer demand for diverse products. 

Other trends shaping co-packing adoption include:

• Sustainable and eco-friendly packaging demands, as consumers prefer recyclable, biodegradable, and minimalistic formats. 

• Smart packaging technologies aimed at traceability and consumer engagement (e.g., QR codes, NFC). 

• Premium and differentiated packaging to help brands stand out in crowded retail environments.