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Building AppExchange Products Today: Why 2GP Matters

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Published by yuliya.dzemidchuk
29 December 2025

Salesforce Second‑Generation Managed Packaging: Why It Matters and When to Use It

 

Introduction

If you’ve spent any time building on Salesforce, you already know that packaging isn’t just a technical detail — it’s the backbone of how apps, components, and entire product ecosystems are delivered. For years, First‑Generation Managed Packages (1GP) were the standard. They powered thousands of AppExchange apps, enabled ISVs to build real businesses, and gave developers a way to ship code with confidence.

But the world changed. Development practices evolved. Teams wanted version control, automation, modularity, and the kind of release discipline that modern engineering takes for granted. And so Salesforce introduced something new — Second‑Generation Managed Packaging (2GP).

2GP isn’t just an upgrade. It’s a rethinking of how Salesforce apps should be built, versioned, and delivered in a world where Git is king and CI/CD is the norm.

Let’s break down what changed, why it matters, and when each generation still makes sense.

 

What First‑Generation Managed Packaging Gave Us

Before we talk about the future, it’s worth appreciating what 1GP accomplished.

1GP was built for a time when Salesforce development happened mostly inside the org. You clicked, configured, wrote Apex in the Developer Console, and packaged everything up in a UI-driven workflow. It was simple, approachable, and — honestly — pretty revolutionary for its time.

Key characteristics of 1GP:

  • Org‑based development: You built your product directly in a packaging org.
  • Namespace tied to the org: Once created, it lived forever.
  • Patch versions: You could release small fixes without touching the main package.
  • Limited source control integration: Git was optional, not foundational.
  • Metadata restrictions: Some metadata types simply couldn’t be packaged.

1GP worked beautifully for many years. But as teams grew and engineering practices matured, its limitations became harder to ignore.

 

Enter Second‑Generation Managed Packaging

2GP is Salesforce’s answer to modern software development. It shifts packaging from an org‑centric model to a source‑driven one. Instead of building in a packaging org, you build in your repository. Instead of clicking through UI screens, you use the Salesforce CLI. Instead of manually tracking changes, you let your version control system do the heavy lifting.

What makes 2GP different:

  • Source‑driven development: Your repo becomes the single source of truth.
  • Scratch orgs for development: Clean, disposable environments for every feature branch.
  • Namespace belongs to the Dev Hub, not a packaging org: More flexibility, less clutter.
  • Automated versioning: Perfect for CI/CD pipelines.
  • Modular architecture: You can break your product into multiple packages.
  • No patch orgs: Instead, you simply release a new version—cleaner and more predictable.

In short, 2GP brings Salesforce packaging into the same universe as modern engineering.

 

The Real Differences — Explained Simply

Here’s the heart of it:

Topic

1GP

2GP

Development model

Org‑based

Source‑based

Where you build

Packaging org

Git repo + scratch orgs

Versioning

Manual, patch orgs

Automated, CLI‑driven

Modularity

One big package

Multiple packages, dependencies

Metadata support

Some limits

Broader support

CI/CD

Possible but clunky

Native and smooth

Namespace

Bound to packaging org

Bound to Dev Hub

If 1GP was a reliable old car, 2GP is the electric model with autopilot, over‑the‑air updates, and a dashboard that actually makes sense.

 

So When Should You Use 1GP?

Despite being older, 1GP isn’t dead — and it still has valid use cases.

Use First‑Generation Managed Packaging when:

  • You already have a mature 1GP product with many customers.
  • You rely heavily on patch versions for quick fixes.
  • Your team is deeply invested in org‑based development.
  • Migrating to 2GP would be more expensive than beneficial.

In other words, if your existing 1GP app is stable, profitable, and not hitting technical limits, there’s no urgent reason to rewrite your entire world.

 

When Is 2GP the Better Choice?

If you’re starting fresh — or you want to modernize — 2GP is the clear winner.

Choose Second‑Generation Managed Packaging when:

  • You’re building a new product.
  • You want true source‑driven development.
  • Your team uses Git, branching strategies, and CI/CD pipelines.
  • You want to break your solution into modular packages.
  • You need a clean, scalable architecture for long‑term growth.

2GP is simply more aligned with how modern engineering teams operate.

 

The Bottom Line

Salesforce didn’t create 2GP to replace 1GP overnight. They created it because the ecosystem needed a packaging model that matched the sophistication of today’s development practices.

  • 1GP is the legacy workhorse — reliable, familiar, and still perfectly valid for many existing apps.
  • 2GP is the future — flexible, modular, automated, and built for teams that treat Salesforce development like real software engineering.

If you’re building something new, go 2GP.
If you’re maintaining something old, 1GP may still serve you well.

And if you’re somewhere in between? Well, that’s where the real architectural thinking begins. Packaging strategy is often a bottleneck — and that’s exactly the kind of challenge we help companies work through.


Ivan Laptsionak
Salesforce Developer
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