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How co-packer pricing works

A co-packer's quote is built from line time, yield, margin and a set of one-time and recurring fees. Knowing the parts lets you compare two quotes line by line. Most figures here come from a pricing guide written for co-packers, which makes it a useful view from the plant's side. They are examples, not quotes.

Sources researched 2026-10-02. 6 sources cited below.

The per-unit price

One guide for plants with $2 million to $15 million in revenue puts loaded line time at $250 to $500 an hour, depending on the line and the region. The per-unit price is that hourly cost divided by the units the line actually produces per hour, plus a yield or waste allowance of 2 to 5 percent and a margin of 15 to 30 percent for standard work, higher for allergen-controlled, organic or low-volume specialty runs1.

One consultancy's illustrative model, labeled as not a quote, adds $1.10 of variable cost per unit to a $4,000 setup, which works out to about $1.18 per unit at 50,000 units2.

One-time and per-run fees

FeePublished example
Setup per run$250 to $1,500, scaled to line complexity1; illustrated at $2,000 per run3
Simple shelf-stable changeoverAround $2,0002
Allergen changeover1.5 to 2 times the standard fee1
New-SKU onboarding$500 to $2,500, one time1
Storage$20 to $25 per pallet per month, some still $12 to $203
Annual price increaseCPI plus one, or a fixed 3 to 4 percent step-up1

Tolling vs turnkey

Under tolling you supply ingredients or packaging and pay a set conversion charge, usually per unit or SKU4. Tolling carries no materials markup, while turnkey co-packers mark materials up 10 to 20 percent for procurement, carrying cost and shrink1. Other pricing models include hourly or line-time pricing for complex jobs, and day-rate or project pricing3.

Getting the price in writing

UF/IFAS suggests asking whether the plant can guarantee a price for a year and confirming there are no hidden fees, and lists the price, the payment method and when payment is due among the minimum contents of a contract5. A food and beverage law firm recommends spelling out pass-through costs for ingredients, packaging, third-party testing, certifications, warehousing, freight, pallets and waste disposal6.

Sources

  1. Feed The Line, How to Price Co-Packing Services (2026) (Company)
  2. Eightx, Co-Manufacturing Cost and MOQs for CPG (2026) (Company)
  3. MSL Packaging and Fulfillment, Co-Packing Pricing 2026 (Company)
  4. Genie AI, Tolling fee definition (Company; read through a search summary, the page itself was not opened in full)
  5. UF/IFAS Extension FS380, Finding and Using a Co-packer (University)
  6. Cummings Law, Legal Considerations for Co-Packing Agreements (Law firm)

General information, not legal, regulatory or financial advice. Published figures are examples from the cited sources, not quotes. Confirm requirements for your product with a process authority, regulator or adviser.