The Contract Packaging Market is estimated to be valued at US$ 66.37 Bn or Billion in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Global Contract Packaging Market refers to the process of outsourcing packaging requirements to third-party companies known as contract packagers. Contract packagers provide packaging services that include package designing, filling, labelling, secondary packaging, kitting and assembly. They help eliminate the need for companies to invest in packaging equipment and facilities. Contract packaging is widely adopted by pharmaceutical, food and beverage, cosmetics and personal care industries. It helps companies reduce costs and improve supply chain efficiencies.
Market Dynamics:
The growing pharmaceutical industry is a key driver of the Global Contract Packaging Market Growth. The pharmaceutical industry is undergoing rapid changes and facing rising pressures to reduce costs and improve supply chain efficiencies. This has increased the demand for outsourced packaging services from contract packagers. Secondly, the expanding food and beverage industry is also fueling market growth. Companies in these industries are increasingly focusing on their core competencies and outsourcing non-core activities like packaging to contract packagers. This enables them to maintain high production volumes and meet dynamic consumer demand without making large capital investments in packaging infrastructure and equipment.
Segment Analysis
The contract packaging market is segmented based on end use into food, beverage, pharmaceutical, personal care, household and others. The food segment dominates the market due to the high demand for packed food items among consumers. The changing lifestyle and busy schedules have increased the demand for ready-to-eat packed foods, thus driving the food segment growth.
PEST Analysis
Political: Favorable government regulations regarding contract packaging safety and quality standards are boosting the market growth. However, stringent environmental regulations may increase the operational costs.
Economic: Rising disposable income and improving economic conditions in developing countries are increasing the demand for packaged goods. However, global economic uncertainties pose challenges.
Social: Consumers are increasingly preferring packaged and branded products for convenience. Growing health awareness is also fueling the demand for packaged pharmaceuticals and personal care products.
Technological: Advanced automation, robotics, and IoT solutions help contract packagers improve production efficiency. Track-and-trace technologies ensure product quality and safety.
Key Takeaways
The Global Contract Packaging Market is expected to witness high, exhibiting CAGR of 9.7% over the forecast period, due to increasing demand for flexible and cost-effective packaging solutions from various end-use industries.
The North American region dominated the market, accounting for over 30% share in 2023 due to presence of key players and strong demand from the pharmaceutical industry in the US and Canada. Asia Pacific is anticipated to be the fastest growing region on account of expanding food and beverage industry in China and India.
Key players operating in the contract packaging market are Aaron Thomas Company, Multipack Solutions, Pharma Tech Industries, Reed-Lane Inc., Sharp Packaging Services, UNICEP Packaging, Green Packaging Asia, Jones Packaging Inc., Stamar Packaging, Budelpack Poortvliet BV, and Complete Co-Packing Services Ltd. Major players are focusing on geographical expansion, new product development, and M&A activities to gain a competitive edge in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it