Contract Packaging Business Valuation
Contract Packaging & Co-Packing Business Valuation Calculator & Exit Planning Built for Packaging Company Owners
We built one platform that tracks your contract packaging company's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
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Most Contract Packaging Owners Have No Idea What Their Business is Actually Worth
Current Contract Packaging / Co-Packing Valuation Multiples (2026)
Contract packaging valuations depend on capabilities, customers, and certifications. Here's the market:
Every business is different. That's why you need to track your value.
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Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
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What Actually Drives Contract Packaging Value
Your packaging quality matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Customer Diversification
No Customer > 20% Revenue
Contract packaging is project-driven; customer concentration creates significant risk. Diversified customer bases across CPG companies, food brands, and other industries provide stability. No single customer should exceed 20% of revenue.
Concentrated = dangerous dependency
Capabilities
Diverse: Filling, Assembly, Shrink, Display
Broad capabilities—liquid filling, powder handling, blister packaging, shrink wrapping, display assembly, kitting—capture more customer needs. Specialized equipment and processes enable projects that generalists can't handle. Capability breadth increases value.
Limited capability = narrow market
Quality Certifications
SQF, Organic, Kosher as Applicable
Quality certifications—SQF for food, organic certification, kosher/halal—enable serving customers with specific requirements. Certified facilities can access projects that non-certified competitors cannot. Certifications demonstrate operational quality.
No certifications = customer limits
Industry Focus
Food, Personal Care, Household
Different industries have different requirements and margins. Food co-packing may require more certifications but has consistent demand. Personal care and household products have different dynamics. Understanding your industry focus helps position for relevant acquirers.
No focus = generalist positioning
Equipment & Automation
Modern Lines, Flexible Capacity
Packaging equipment affects capabilities and efficiency. Modern, automated lines with flexibility to handle different products and run sizes are valuable. Dated equipment may require investment. Know your equipment age and capability.
Manual operations = efficiency gap
Labor & Management
Trained Workforce, Stable Management
Contract packaging is labor-intensive. Trained workforce and stable supervisory staff enable quality production. Management that operates without daily owner involvement demonstrates transferable operations.
Owner-dependent = key person risk
How to Value a Contract Packaging Business
The U.S. contract packaging (co-packing) market includes thousands of companies providing packaging, labeling, kitting, and fulfillment services for consumer products, food, pharmaceutical, and industrial companies. The industry generates approximately $20 billion in annual revenue.
EBITDA is the primary valuation method. Contract packaging businesses typically sell for 3.0x to 6.0x EBITDA, or 2.0x to 3.5x SDE for smaller operations. Companies with food-grade certifications, automated packaging lines, and long-term contracts command the highest multiples.
Revenue multiples generally range from 0.30x to 0.60x annual revenue. Companies with certified facilities (SQF, BRC, FDA-registered) and multi-year contracts achieve the upper end.
The unique valuation factor for co-packers is the facility certification and contract structure. Food-grade certifications (SQF, BRC, organic, kosher) require significant investment and audit compliance but open access to major CPG and food brand clients. Multi-year contracts with volume commitments provide revenue predictability. Automation investment — automated case packing, shrink wrapping, labeling lines — increases throughput and reduces labor dependency. Customer concentration is the primary risk, as losing a major brand client can significantly impact revenue.
Contract packaging has grown with the proliferation of consumer brands and the trend toward outsourcing manufacturing and packaging functions. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do contract packaging companies sell for?
Contract packagers typically sell for 3.0x – 6.0x SDE or 5x – 10x EBITDA. Companies with diversified customers, quality certifications, and broad capabilities command premium multiples.
How does customer concentration affect packaging value?
Significantly. Project-driven businesses face concentration risk. No single customer should exceed 20% of revenue. Diversification provides stability.
Who buys contract packaging companies?
Larger contract packagers building scale, PE-backed packaging platforms, CPG companies seeking captive capacity, and 3PL companies adding value-added services.
Do certifications matter in contract packaging?
Yes. SQF, organic, kosher and similar certifications enable serving customers with specific requirements. Certified facilities access projects others cannot.
How important is equipment condition?
Important. Modern, automated equipment affects capabilities and efficiency. Dated equipment may limit capabilities or require investment.
What's the fastest way to increase my contract packaging value?
Three high-impact moves: 1) Diversify customer base to reduce concentration, 2) Achieve relevant quality certifications (SQF, organic), 3) Expand capabilities through equipment investment.