Groups of people gathered together to comfort each other, hugging and crying as they stood on the beach.
The surfers were greeted with clapping, cheering and whistles as they returned to the beach.
Jack's parents Karen Spargo and Wayne Dixon yesterday thanked the community for their support and said they remained determined to bring their son home.
"We haven't given up on finding Jack and we're so grateful for the surf lifesavers, the search and rescue personnel, the police and all the members of the public who continue to look for him.
"We're also overwhelmed by the response from our local community, from New Zealanders and people around the world. Your warmth and caring has helped give us strength. Although our whole focus remains on finding and bringing Jack home, we're aware of all the people who have brought in food, who have donated online or in person and who continue to be vigilant. Please know we appreciate it and accept our deepest thanks."
A friend of the family, who brought balloons to release, choked up as she explained the impact Jack had left.
"Jack touched our hearts and our lives in our small community at Greerton," she told the Bay of Plenty Times.
Tauranga mother Rachel McLeod recalled often seeing Jack bouncing around as she dropped her own son off at Greerton Early Childhood Centre.
"It's so very sad. He was always fun and full of energy. Always just running around on a mission somewhere," she said. "I didn't know him really well but certainly I remember him quite clearly and fondly."
Mrs McLeod said her son, who was just a couple of months younger than Jack, was sad to hear the news but understood Jack was "in heaven with his Grandpa".
The tragedy had hit parents throughout the city particularly hard, she said.
"I know that for a lot of the mums, it's really upset them because it could have been any little boy and they just really feel for the family."
Paddleout organiser Brett Morrison said he was thrilled with the turnout.
"It was massive. When I first started I thought if I could get 20 to 30 people I'd be stoked," he said.
Mr Morrison met Jack's family briefly before the paddleout and said they were grateful for the outpouring of support.
"They said Jack would have loved it."
Trying to talk to everyone before they headed out was emotional but out on the water was "peaceful", Mr Morrison said.
Flowers had been sent from Hamilton, Tokoroa and Waihi while Kiwis on the Gold Coast and Sydney had also planned paddleouts in Jack's honour, he said.
"It's something that everyone in New Zealand can relate to being a kid playing on the beach or on the rocks. It's something that we all take for granted. The ocean's really beautiful but it can also be really powerful."
Local surfer Peter Demooij joined the paddleout as a way to support the family.
"It was pretty moving. You kind of reflect on where you are in life and your own family. I was pretty cut up. I've never seen anything like it before in New Zealand."
James Ririnui, 11, had the honour of throwing the first flower during the paddleout.
"I came to support the family because they are going through some tough times. He plays rugby and I also like rugby as well," James said.