by The global 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.
Market Overview:
Contract packaging refers to outsourcing various packaging related operations and processes by brand owners to third party vendors. It provides benefits like reduction in fixed capital costs for packaging operations, scalable contract manufacturing capabilities, specialized expertise in packaging technologies and designs etc.
Market key trends:
One of the key trends in the contract packaging market is increased focus on sustainable packaging solutions. Both brand owners as well as contract packagers are developing packaging made from recycled and recyclable materials to cater to the rising consumer demand for eco-friendly products. They are incorporating renewable and biodegradable materials like paper, bamboo, corn starch etc. in their packaging designs. Additionally, contract packagers help brand owners comply with stringent regulatory norms around packaging waste management through innovative packaging disposal and recycling programs.
SWOT Analysis
Strength: Contract packaging can help reduce costs by eliminating the need for in-house packaging operations and resources. This allows companies to focus on their core competencies.
Weakness: Relying entirely on third-party contract packagers reduces control over packaging outputs and quality. There is also a risk of confidential information leakage and intellectual property issues.
Opportunity: Rising demand for flexible and customized packaging solutions from industries such as pharmaceuticals, personal care, and food & beverages presents an opportunity for contract packagers to develop innovative offerings.
Threats: Intense competition among contract packagers may lead to price wars, affecting profit margins. Stricter environment regulations around packaging waste management also present a challenge.
Key Takeaways
The Global Contract Packaging Market Size is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period, due to increasing demand for outsourced packaging from end-use industries.
Regional analysis
North America dominates the global contract packaging market currently. This is attributed to presence of major end-use industries and contract packagers in the region. Asia Pacific is expected to be the fastest growing market for contract packaging during the forecast period, led by China, India and other emerging economies. Increasing manufacturing activities and rising consumerism are driving market growth in Asia Pacific.
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. These players are focusing on new product launches, acquisitions and expansions to strengthen their market presence. For instance, Sharp Packaging Services launched a new 80,000 sq. ft. contract packaging facility in Rocky Mount, Virginia in 2022.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
