The global Contract Packaging Market is estimated to be valued at US$60.5 Billion In 2022 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Contract packaging refers to the outsourcing of packaging activities to specialized companies. It involves the packaging of various products on behalf of the brand owner or manufacturer. This market offers several advantages such as cost savings, increased efficiency, and access to specialized packaging capabilities. The need for Contract Packaging Market Size services arises due to the growing complexity of packaging requirements, limited in-house capabilities, and the need for cost optimization in the supply chain.
Market Key Trends:
One key trend in the contract packaging market is the increasing demand for sustainable and eco-friendly packaging solutions. With growing consumer awareness about environmental concerns, brands are under pressure to adopt sustainable packaging practices. Contract packaging providers are responding to this trend by offering eco-friendly packaging materials and innovative designs that minimize waste and carbon footprint. These solutions not only help brands meet their sustainability goals but also appeal to eco-conscious consumers. The adoption of sustainable packaging practices is expected to gain further traction in the contract packaging market in the coming years.
Porter’s Analysis
Threat of new entrants:
The threat of new entrants in the contract packaging market is low. The Contract Packaging Market requires significant investments in equipment, technology, and expertise, which acts as a barrier to entry for new players. Established companies have economies of scale and strong relationships with suppliers and customers, making it difficult for new entrants to compete.
Bargaining power of buyers: The bargaining power of buyers in the contract packaging market is moderate. Buyers have a range of options available and can easily switch between packaging providers. However, they still rely on packaging companies for their expertise and capabilities, giving packaging companies some negotiating power.
Bargaining power of suppliers: The bargaining power of suppliers in the contract packaging market is moderate. Packaging companies require a variety of materials and components for packaging solutions. While there are many suppliers available, packaging companies often rely on a few key suppliers for consistency and quality. This gives suppliers some leverage in negotiations.
Threat of new substitutes: The threat of new substitutes in the contract packaging market is low. Packaging is a necessary component for most consumer and industrial products, and there are few alternatives that can offer the same protection, convenience, and branding opportunities.
Competitive rivalry: The competitive rivalry in the contract packaging market is high. There are many packaging companies competing for market share, offering a wide range of services and solutions. Differentiation and innovation are key factors in maintaining a competitive advantage in this market.
Key Takeaways
The global contract packaging market is expected to witness high growth, exhibiting a CAGR of 9.7% over the forecast period (2023-2030). This growth can be attributed to increasing outsourcing of packaging services by companies across various industries. Outsourcing allows companies to focus on their core competencies while benefiting from the expertise and efficiency of contract packaging providers.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the contract packaging market. The region is experiencing rapid industrialization and urbanization, leading to increased demand for packaged goods. Additionally, the availability of low-cost labor and favorable government initiatives to attract foreign investments are driving the growth of the contract packaging market in this region.
Key players operating in the contract packaging market include 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. These companies have a strong presence in the market and offer a wide range of packaging solutions to meet the diverse needs of their customers. Innovation, customization, and sustainable packaging solutions are some of the key strategies adopted by these players to gain a competitive edge in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it