Packaging plays an important role in ensuring that the produced product is well contained, protected, and preserved. Due to its significance, the researcher decided to undertake research aiming at examining the awareness of local producers towards products’ packaging. This research employs a descriptive design in carrying it out where a sample of 120 respondents from different companies give a list of questions regarding packaging and also inspection is done in the market to observe how the products have been packed. Findings revealed that the awareness of Tanzanian local producers is still very low whereby 75% of packaging workers are unskilled. Also, training regarding packaging is not conducted in an effective manner as most companies train their employee only once when they employ them. It is also noted that the local producers mainly focus on the ability of the package to contain the product paying less attention to the ability of the package to protect and preserve. Based on these findings, it is suggested that the knowledge of value chain management has to be imparted to local producers by the local business institution. It is also proposed that training should be given frequently to packaging crew to ensure they do their job effectively. Moreover, it is recommended that to increase the efficiency and cost reduction, it is better for companies to employ experienced workers or those with at least form six or high level of education in packaging section as it is easy to train and they can understand easily.