April 20, 2024
Contract Packaging Market

Contract Packaging Market is Trending Driven by Personalized Medicine

The contract packaging market offers contract packaging services to various industries including pharmaceutical, food, beverage, and personal care. Contract packaging provides a variety of packaging solutions including primary packaging, secondary packaging, and end-of-line packaging with printed labels and barcodes. It helps companies to outsource their packaging activities and focus on their core competencies. The global contract packaging market is estimated to be valued at US$ 76.46 Mn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the contract packaging market are SUSI Studio, Insecta Shoes Canada Inc. ROMBAUT, In The Soulshine, Della La LLC, Reformation, Alabama Chanin, Wawwa, Doshi FCSA, Hiareth Collective, Komodo Fashion, Brave Gentle Man, ECOALF, Rapanui, and Tact & Stone.

The growing demand from the pharmaceutical industry is driving the Global Contract Packaging Market Demand. The trend of personalized medicine and specialty drugs has increased the need for flexible packaging solutions in the pharmaceutical industry. Contract packaging helps pharmaceutical companies to improve production efficiency and focus on drug development.

The market is also witnessing growth due to the global expansion of players. Many contract packagers are expanding globally to provide packaging services near the manufacturing facilities of client companies. Local presence helps them to ensure just-in-time delivery and on-time fulfillment of packaging orders from international clients.

Market Key Trends
Sustainable packaging is a key trend in the contract packaging market. Growing consumer demand for eco-friendly packaging has prompted packagers to focus on sustainable materials and reduce waste generation. Contract packagers are investing in recycling and reusing packaging materials to deliver sustainable packaging solutions to their customers in industries like food and consumer goods. This helps companies to strengthen their environmental credentials and market their products as sustainable.

Porter’s Analysis
Threat of new entrants: High capital requirements and established customer relationships create significant barriers for new entrants.

Bargaining power of buyers: Individual buyers have low bargaining power due to the availability of substitute products and options. However, large retail chains may negotiate better pricing.

Bargaining power of suppliers: Major suppliers have some bargaining power due to their specialized equipment and service requirements. However, availability of substitutes limits their power.

Threat of new substitutes: Substitutes like self-packaging and private label brands impose a moderate threat.

Competitive rivalry: The industry has many competitors battling for market share and profits through pricing strategies.

Geographical Regions
North America accounts for the largest share in the contract packaging market, value-wise. This is attributed to the established pharmaceutical and consumer goods industries in the region.

The Asia Pacific region is expected to witness the fastest growth during the forecast period owing to rapid industrialization, rising disposable incomes, and growth in end-use industries like food & beverage and pharmaceutical in emerging economies such as China and India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it