Contract Packaging Market Size
Contract Packaging Market size was valued at over USD 45 billion in 2022 and is anticipated to grow at a CAGR of over 6% between 2023 and 2032.
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Many companies are opting to outsource non-core activities including packaging to focus on their core competencies. Outsourcing packaging allows companies to leverage the expertise and resources of contract packaging providers, leading to cost savings, increased efficiency, and improved productivity. Outsourcing also provides flexibility and scalability, enabling companies to adapt quickly to changing market demands. It allows businesses to tap into global talent pools and leverage economies of scale. Overall, the outsourcing trend helps companies streamline operations, increase competitiveness, and drive business growth.
Contract packaging refers to the process of outsourcing packaging services to specialized companies or service providers. In this arrangement, manufacturers or retailers entrust their packaging needs to contract packaging providers, who offer expertise in packaging design, assembly, labeling, and other related services. Benefits of contract packaging include cost savings, improved efficiency, access to specialized packaging expertise, and the ability to focus on core business activities. It also allows companies to meet customer demands for customized packaging, comply with regulations, and adapt to Contract Packaging Market changes.
Contract Packaging Market Report Attributes
| Report Attribute |
Details |
| Base Year |
2022 |
| Contract Packaging Market Size in 2022 |
USD 45 Billion |
| Forecast Period |
2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR |
6% |
| 2032 Value Projection |
USD 90 Billion |
| Historical Data for |
2018 - 2022 |
| No. of Pages |
250 |
| Tables, Charts & Figures |
249 |
| Segments covered |
250 Packaging Type, Material, End-use, and Region |
| Growth Drivers |
- Growing interest in on-door delivery of food & beverage
- Growth of e-commerce retail business
- Propelling advancement and research in the pharmaceutical industry
- Inclination toward environment-friendly packaging
- Rising interest in customized and unique packaging
|
| Pitfalls & Challenges |
- Rapid changes in consumer preferences and packaging trends
- Stringent regulations for packaging materials
|
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In the current scenario, growing inclination toward environment-friendly packaging is driving the contract packaging market. As consumers and regulators prioritize sustainability, companies are seeking contract packaging providers that offer eco-friendly solutions. Contract packaging providers with expertise in sustainable materials, recycling initiatives, and eco-conscious practices are in high demand. This increased interest in environment-friendly packaging has created opportunities for contract packagers to differentiate themselves in the market and attract clients who value sustainable packaging options.
COVID-19 Impacts
Restrictions in 2020 due to Covid-19 lockdown resulted in significant decline in production and lead to supply chain disruption, which decreased revenue of contract packaging companies. However, growth in e-commerce sales, significant rise in pharmaceutical industry and growing demand for home delivery of food and beverages prevent market from growing negatively. The market witnessed growth but at a declined rate in 2020 due to covid-19.
Contract Packaging Market Trends
Trends in the contract packaging market include the rising focus on sustainable & eco-friendly packaging solutions, increased customization & personalization options, the growth of e-commerce packaging, and the adoption of automation and robotics in packaging processes.
Contract Packaging Market Analysis
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Based on end use, the contract packaging market is segmented into food & beverage, pharmaceutical, electronics, personal care, and others. The pharmaceutical segment held a market share of over 20% in 2022 and is expected to grow with the fastest growth rate during forecast period. This is due to the increasing demand for specialized packaging & labeling compliant with stringent regulations. Also, outsourcing of non-core activities allows pharma companies to focus on research & development, which is growing need for efficient & secure packaging solutions for pharmaceutical products.
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Based on packaging type, the contract packaging market is divided into primary, secondary, and tertiary. The primary segment held over 45% market share in 2022 and is anticipated to grow at a CAGR of over 6% between 2023 to 2032. The increasing demand for customized & visually appealing packaging, the rise of e-commerce & direct-to-consumer channels, and the need for specialized packaging formats for specific products contribute to the growth of primary packaging services. Primary packaging providers design & produce packaging that ensures product safety, brand differentiation, and consumer satisfaction.
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North America contract packaging industry with over 35% share in 2022. Market growth can be attributed to the presence of strong manufacturing and retail industries, high demand for efficient & customized packaging solutions, increasing outsourcing trends, and a focus on sustainability. North America has a well-established regulatory framework that requires compliance with packaging standards, which is propelling the demand for contract packaging services.
Contract Packaging Market Share
Some major players operating in the contract packaging market are
- Aaron Thomas Company Inc.
- Ameripac Inc.
- Assemblies Unlimited Inc.
- Deufol SE
- DHL
These players are focused on strategic partnerships and new packaging solution launches & commercialization for market expansion. They are heavily investing in research to introduce innovative solutions and garner maximum revenue in the market.
Contract Packaging Industry News
- In January 2023, Pharmapack Europe announced plans to establish two more zones by 2024 to meet the increasing need for biologics, mRNA therapies, and contract packaging. The new packaging services and bio packaging zones are designed to fulfill the increasing demand for specialized biological packaging.
- In September 2022, DHL Supply Chain (DHL) announced USD 540 million investment in India over the next five years to dramatically expand its warehousing capacity, staff, and sustainability initiatives. DHL will own and operate wholly-owned big multi-client locations in India as a result of this investment, adding twelve million square feet of warehouse space to the group's current portfolio.
The contract packaging market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments
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By Packaging Type
- Primary
- Secondary
- Tertiary
By Material
- Plastics
- Metal
- Glass
- Paper & paperboard
By End-use
- Food & beverage
- Pharmaceutical
- Electronics
- Personal care
- Others
The above information is provided for the following regions and countries
- North America
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Asia Pacific
- China
- Japan
- India
- South Korea
- ANZ
- Latin America
- MEA
- UAE
- Saudi Arabia
- South Africa
