Private label manufacturing presents a compelling opportunity for food retailers seeking to establish distinctive, targeted packaging solutions without the need for heavy investment. Through private label partnerships with packaging manufacturers and distributors, retailers gain access to packaging and design and pre-branded packaging that fit perfectly within their stores.

With Covid wreaking havoc on supply chains, consumers often found their favorite brands missing from store shelves. Forced to change, many opted for private label brands and don’t plan to return. McKinsey & Company reported that quarantine spurred almost 20 percent of shoppers to buy more private brands. Almost all of them said they will keep doing it even with national brands back in stock.

And they have. According to FMI The Food Industry Association (fmi.org) in their late 2023 The Power of Private Brands report, 60% of shoppers say they have been buying private brand much more or somewhat more over the past 12 months.

FMI also reports a majority of shoppers admit private brands are important factors in even deciding which stores to visit, with one third of shoppers already buying private brands all or most of the time.

The McKinsey report notes that “In the past, private-brand packaging tended to resemble the look and feel of national-brand equivalents. Leading retailers are now developing brand language on their packaging that not only draws shoppers’ attention but also conveys the functional benefits of the brand.”

Turnkey private label food packaging suppliers offer restaurants, grocery stores, delis, bakeries, and other food businesses an easy way to capitalize on this trend. Buying wholesale private label food packaging allows category managers to focus on the food and leave the branding to a packaging expert. Under LK Packaging’s private label program, for instance, graphic design and printing services, package engineering, production, warehousing, and functional design meant to optimize product merchandising is already thought out and ready to pack and display.

Benefits of Private Label Food Packaging

Turnkey packaging helps bring food retailers’ unique products and quality into the market quickly. These flexible, low-cost options generate customer loyalty and repeat business. Private label food packaging displays food’s wholesomeness and deliciousness while maintaining strict quality control and sustainable manufacturing processes. All these benefits result in lower costs and more revenue:

• Increased Profitability – Consumers are willing to pay more for food when they perceive the greater value and premium quality of products presented in private label packaging. At the same time, purchasing bags, boxes, and other private label food packaging costs less for production and storage.
• Brand Equity – Fans who become familiar with one private label product’s quality and economy, they naturally gravitate to the label’s other products. Leveraging cross-selling and upselling opportunities with unique private label food packaging design builds brand identity and competitive advantage.
• Fast Pivots – Turnkey private label packaging ensures food retailers can respond quickly to changing market conditions and customer preferences. For instance, grocery stores can offer individual-, family-, and party-sized portions of deli and bakery items based on demand and seasonality.
• Market Share – Since private label products are exclusive to the retailer, the packaging creates a sense of specialty shoppers crave. Customized labeling and packaging allow retailers to target specific customer demographics. And because they earn higher margins with private label products, retailers can give them preferential shelf space and in-store promotion.
• Sustainability –LK offers a comprehensive line of eco-friendly private label food packaging. Retailers whose labels adorn products like our compostable food containers, reusable zipper bags, or recyclable bags project their commitment to the community.

Choose Private Label Packaging Partners Carefully

More than 80% of food-retailer respondents FMI surveyed said they plan to moderately or significantly increase private brand investments in the next two years, which helps set the stage for more innovation opportunities.

For food retailers looking to launch a private label offerings properly vetting packaging partners is an essential step. Though it may require more upfront investment, partnering with reputable, quality-focused packaging manufacturers will pay dividends by avoiding product defects, recalls, and damage to your brand image.

Start by looking for manufacturers that provide a broad range of packaging options – multiple sizes and specialty containers for freezing, microwaving, transporting specific items you sell. The ideal partner will share deep knowledge of packaging formats, materials, labeling requirements, and innovations that align with your customers’ preferences. Leverage their expertise – ask detailed questions about how they monitor quality and track key performance metrics.

Thoroughly evaluate the manufacturer’s production capabilities as well. If possible, tour their facility to take note of machinery, inventory levels, cleanliness, and workforce skills. Review their quality control procedures at each stage of the packaging process. Analyze data on their defect rates and history of recalls or quality issues. This due diligence will reveal whether they can produce at the scale you need while meeting your standards.

Finally, discuss options for customizing packaging and printing to differentiate your private label brand. Unique structural designs, high-impact graphics, special coatings, or sustainability-focused materials can help your products stand apart on crowded shelves. Compare their prices for novel labeling,

Ready to claim all the benefits LK Packaging’s custom food packaging can delivery for your private label products? Contact us to explore the marketing and profit advantages of branding your deli, grocery, bakery, restaurant, or specialty food items.