Packaging and Labeling Services Revenue Benchmarks
The average packaging and labeling services business in the United States generates $2.7M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 1,568 packaging and labeling services businesses in the U.S., employing 47,664 workers with an average profit margin of 8.0%. The average employee in this industry earns $56K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Packaging and Labeling Business Actually Do?
Contract packaging services — private-label bottling, kitting, fulfillment assembly, promotional packaging.
Who buys: Product brands outsourcing packaging, promotional agencies, subscription boxes.
Average Revenue
$2.7M
per year
Profit Margin
8.0%
industry average
Revenue / Employee
$90K
per year
Total Businesses
1,568
in the US
Est. Owner Income
$218K
small business avg
Labor Cost
55.0%
of revenue
Avg Employee Wage
$56K
per year (BLS)
Market Saturation
0.5
firms per 100K people
How Much Do Packaging and Labeling Services Charge?
Contract packaging and labeling — private-label bottling, fulfillment kitting, product assembly.
| Service | Typical range |
|---|---|
Basic kitting (per unit) | $0.50–3.00 per kit |
Bottling contract packaging | $0.15–1.00 per bottle |
Full contract manufacturing | quoted per SKU |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete packaging and labeling business plan
A 12-section data-backed business plan for a packaging and labeling services business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the packaging and labeling services industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Direct service costs | $7 | $202K | Cleaning supplies, uniforms, equipment consumables — depends on service type. |
Wages & benefits | $55 | $1.5M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $151K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $101K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $20 | $555K | Insurance, background checks, training, transportation, admin. |
Net profit | $8 | $218K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
12.41%
openings/year
Closure Rate
9.36%
closings/year
Net Job Growth
+3.94%
annual
Businesses Closed
1,363
in 2023
Firm Count Trend
Should You Start a Packaging and Labeling Business?
Startup Cost
$50K – $250K
Break-Even
8 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a packaging and labeling services business do?
- Contract packaging services — private-label bottling, kitting, fulfillment assembly, promotional packaging. Product brands outsourcing packaging, promotional agencies, subscription boxes.
- How much do packaging and labeling services charge?
- Contract packaging and labeling — private-label bottling, fulfillment kitting, product assembly. See the pricing table above for typical rates by service type.
- How much does the average packaging and labeling services make per year?
- The average packaging and labeling services business generates $2.7M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $218K per year at a 8.0% profit margin.
- How many packaging and labeling services businesses are there in the US?
- There are 1,568 packaging and labeling services businesses operating in the United States, employing a total of 47,664 workers.
- How much does it cost to start a packaging and labeling services business?
- Startup costs for a packaging and labeling services business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the packaging and labeling services industry?
- The average employee in the packaging and labeling services industry earns $56K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The packaging and labeling services industry is actively growing — adding jobs at a net rate of 3.9% per year. New establishments are opening faster than existing ones close (12.4% entry vs 9.4% exit), indicating healthy demand.
Approximately 61% of packaging and labeling services businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 1,363 firms in this industry closed permanently.
Employment & Wages
The average employee in the packaging and labeling services industry earns $56,203/year. This is near the national average of ~$65K. With 3,019 establishments employing 64,715 people, the typical business has about 21 employees.
Industry Trend (2000–2023)
The packaging and labeling services industry has declined 20% since 2000 (from 20,024 to 16,003 firms).
See full historical statistics →Compare Packaging and Labeling Services revenue with other industries: