Co-Packing Costs & Minimum Order Quantities in Canada

“What’s your minimum?” is usually the first question a new food brand asks a co-packer, and the answer can decide whether a launch happens at all. But the minimum order quantity (MOQ) is only one part of what you’ll pay. This guide explains why minimums exist, what goes into a co-packing quote in Canada, and how to keep first-run costs under control.

What is a co-packing minimum order quantity, and why does it exist?

An MOQ is the smallest production run a co-packer will schedule for your product. Every run carries fixed work that doesn’t change with volume: setting up and changing over equipment, cleaning (especially between allergens), quality checks and paperwork. Spread over a small run, those costs make each unit expensive, so co-packers set a floor.

Minimums vary widely by product type and format, which is why most co-packers, COPACK Canada included, quote case by case. Watch for a second floor too: your packaging supplier may set its own minimum on printed film, labels or bottles, and that can become the real limit on your first run.

What goes into a co-packing quote?

Alberta’s co-packing guidance says a contract should state the price and exactly how it’s determined, for example per unit or per hour. In practice, quotes are usually built from some combination of these components:

To compare offers fairly, add everything into a landed cost per unit at your realistic run size. A low per-unit fee with high set-up charges can lose to a higher fee once you divide by a small run. Our article on comparing co-packing quotes with a landed-cost worksheet shows how to lay this out.

Why does price per unit drop as volume rises?

Fixed costs are spread over more units, ingredients and packaging can be bought in larger quantities, and lines run longer with fewer changeovers. Manitoba Agriculture’s co-packing guidance notes that, ideally, margins grow with volume, allowing volume pricing for your own customers. Ask each co-packer for price breaks at two or three volume tiers so you can plan how costs fall as you scale.

How to lower first-run costs

• Start with stock packaging. A stock pouch with a printed label usually carries a lower minimum than fully printed film, and off-the-shelf containers already run well on existing equipment. When you’re ready for printed bags, see the packaging formats guide.
• Limit SKUs at launch. Every flavour adds changeovers and packaging minimums.
• Write a clear specification. Vague specs lead to trial-and-error runs you end up paying for.
• Ask for a sample run before committing to full production.
• Look for category fit. A co-packer already making similar products needs fewer adjustments.
• Compare landed cost, not distance. If you sell nationally, a co-packer in another province may still deliver a lower landed cost.

Co-packing or private label: how the cost structure differs

In co-packing you own the recipe and pay for development, scale-up and testing; in private label the product already exists, so launch costs are often lower, but you don’t own the formula and switching suppliers can mean reformulating. Read private label manufacturing for a side-by-side comparison.

Do regulatory requirements affect co-packing costs?

Yes. If your product will be sold across provincial borders or exported, the CFIA requires a Safe Food for Canadians licence for whoever manufactures, packages or labels it, and most licence holders also need a written preventive control plan. Traceability rules require a lot code on consumer prepackaged food where they apply. A licensed co-packer carries much of this work, and the cost is built into its rates. Labelling changes cost money too: front-of-package nutrition symbol compliance has been required since January 1, 2026, so budget for label revisions if your product is high in saturated fat, sugars or sodium. Our guide on how to choose a co-packer in Canada covers licensing in more detail.

What should a co-packing quote request include?

The more complete your request, the more accurate the quote. COPACK Canada’s quote form asks for exactly these details:

• What your product is, and more about it
• Type of packaging required
• Type of certificate required (for example organic, non-GMO, CFIA, HACCP or SQF)
• Whether you need us to source the ingredients
• Whether you need us to source packaging
• Volume requirement

Add where you plan to sell and your expected annual volume, and you’ll have everything needed for a like-for-like comparison.

This guide is general information for Canadian food brands, not legal, regulatory or financial advice. Confirm your obligations with the CFIA and a qualified advisor.

Costs and MOQ FAQ