Supply Chain

Packaging World’s 2026 Annual Outlook Report: External Manufacturing

Packaging World
Packaging World•Apr 8, 2026

Why It Matters

The surge in confident, higher‑volume outsourcing reshapes the CPG supply chain, creating growth opportunities for contract manufacturers that can deliver specialized capabilities with transparent, responsive service.

Key Takeaways

  • •Brands show heightened confidence in external manufacturing partnerships.
  • •42% plan to increase outsourcing, up 12 points YoY.
  • •21% of brands operate without any own facilities.
  • •Top outsourcing driver: access to specialized machinery and formats.
  • •Communication, transparency, and flexibility remain key improvement areas.

Summary

Packaging World released its 2026 Annual Outlook on external manufacturing, based on a survey of CPG brand owners who regularly work with contract manufacturers and packagers. The study repeats the 2025 benchmark to track year‑over‑year shifts and is available via PWGO.T/9052.

The data reveal a clear mood shift: 42 % of respondents plan to increase outsourcing in the next two to three years, up 12 points from last year, while uncertainty fell from 14 % to 3 %. Most brands outsource modestly—about a quarter at 10‑24 % and the majority between 1‑49 %—and only 3 % rely on partners for 79‑89 % of production. Notably, 21 % of surveyed brands have no manufacturing or packaging facilities at all, underscoring the rise of pure‑play, fully outsourced models.

Access to specialized machinery and packaging formats drives 64 % of outsourcing decisions, followed by short‑run customization (45 %) and capacity supplementation (≈30 %). Real‑world examples include Maine Love, which leverages local brewers’ infrastructure to launch sustainably packaged water, and a halal meat brand that depends on a contract partner for food‑safety expertise and consistent quality. Respondents also flagged communication, transparency, and flexibility as the top areas needing improvement.

For contract manufacturers, the report signals expanding demand and a transition from ad‑hoc support to long‑term strategic partnership. Brands are willing to deepen relationships but expect clearer timelines, cost visibility, and consistent quality, pushing CDMOs to invest in digital traceability and dedicated account management to capture the growth.

Original Description

PMMI Media Group editors Liz Cuneo and Joe Derr sit down to discuss the results of the 2026 Packaging World reader survey on external manufacturing looking at the top trends happening now.
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ABOUT PACKAGING WORLD MAGAZINE
Packaging World is the flagship title of PMMI Media Group, founded in 1994 and the world's best read publication for professionals who use, recommend and purchase packaging equipment, materials and services. Via our website, newsletters and monthly print editions we offer case studies, applications and original articles on design, e-commerce, automation, regulatory topics, strategies and trends that are enhancing packaging across all industries.

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