Contract Packing Costs: What to Expect in 2026

Contract packing is priced per unit in most cases, with rates ranging from AUD $0.10 to over $10.00 depending on what's involved. The problem is that most providers don't publish their rates, which makes it hard to benchmark what you should be paying.

This guide gives you real pricing data from thousands of projects managed across Australia, New Zealand and Singapore. We break down costs by complexity tier, explain the factors that push pricing up or down and show you how to get quotes that reflect what you'll actually pay.

The bottom line: simple packing runs $0.10 to $0.50 per unit, medium-complexity work costs $0.50 to $2.00 and complex projects range from $2.00 to $10.00 or more. Where your project falls depends on labor time, materials handling, quality requirements and volume.

The table below shows typical per-unit costs for contract packing in Australia, based on project complexity. These are indicative ranges. Actual pricing depends on volume, turnaround and specific requirements.

No two contract packing projects cost the same. These are the variables with the biggest impact on your per-unit rate:

• Labor time per unit: This is the single biggest cost driver. A task that takes 10 seconds per unit costs a fraction of one that takes 2 minutes. Complex assembly, wrapping and multi-step quality checks all increase labor time.
• Volume: Higher volumes generally mean lower per-unit costs. A run of 100,000 units costs less per unit than a run of 1,000 because setup costs are spread across more units and production lines run more efficiently at scale.
• Materials handling: If the co-packer needs to receive, inspect, sort and stage materials from multiple suppliers, that adds handling time and cost. Supplying materials pre-sorted and palletized reduces this overhead.
• Quality and compliance requirements: Projects requiring HACCP-certified facilities, batch traceability, photographic verification at each step or clean room environments carry higher rates than general packing work.
• Turnaround urgency: Rush jobs cost more. If you need production completed in 48 hours instead of 10 business days, expect a premium of 15% to 30% to cover overtime or priority scheduling.
• Seasonality: Peak periods like the lead-up to Christmas or major promotional windows can push rates up by 10% to 20% due to higher demand for labor and facility capacity.
• Location: Labor costs and facility rates vary by region. Metro facilities in Sydney or Melbourne typically cost more than regional locations but offer faster access to distribution networks.

The per-unit rate isn't always the full story. Watch for these additional charges that some co-packers add on top of the quoted rate:

• Setup fees: Some providers charge $200 to $1,000 per project for line setup, work instruction preparation and quality standard configuration. At CleverPak, setup is included in the per-unit rate for standard projects.
• Minimum order charges: If your project falls below a provider's minimum volume (often 500 to 1,000 units), you may be charged a flat minimum fee of $300 to $500 regardless of the actual unit count.
• Storage fees: Materials or finished goods sitting in the co-packer's warehouse beyond an agreed window (usually 3 to 5 business days) can incur storage charges of $5 to $15 per pallet per week.
• Materials handling surcharges: Receiving, inspecting and staging inbound materials from multiple suppliers sometimes triggers additional charges, especially if goods arrive in non-standard packaging.
• Rush premiums: Expedited timelines typically add 15% to 30% to the base rate. Some providers also charge overtime rates for weekend or after-hours production.

The accuracy of your quote depends on the quality of your brief. Vague specifications lead to padded estimates because the co-packer has to price in uncertainty. Here's how to get quotes you can trust.

Start with a detailed specification document that includes product dimensions, packaging type, number of components, assembly sequence and quality requirements. Include photos or diagrams of the finished product.

Provide a physical sample whenever possible. Co-packers can assess labor time much more accurately when they can handle the actual product and packaging rather than working from descriptions alone.

Share your volume forecast for the initial run and the expected annual volume. This helps the co-packer price appropriately and flag whether their facility is the right fit for your scale.

Request fully loaded pricing that includes labor, supervision, quality control, standard consumables and setup. Ask specifically what's excluded so you can compare quotes on a like-for-like basis.

Get at least three quotes from different providers. Pricing varies significantly between co-packers, and the cheapest option isn't always the best value when you factor in quality systems, turnaround reliability and communication.