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Are the out-of-the-box geoprocessing tools in QGIS and ArcMap able to analyze rasters stored in a geopackage? Or do they need to be extracted to e.g. GeoTiff first?

I'm thinking, for instance, of making hillshades from DEMs, extracting statistics from a kernel density raster, etc.

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    Have you tried? It works for me in QGIS 3.x. I can add a Geopackage raster using "Layer... Add Raster..." and going to the Geopackage file. – Spacedman Sep 17 '18 at 16:48

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