Contract Packaging Market Synopsis:
Contract Packaging Market Size Was Valued at USD 57 Billion in 2023, and is Projected to Reach USD 99 Billion by 2032, Growing at a CAGR of 7% From 2024-2032.
The Contract Packaging Market has continued to expand and evolve rapidly over the last decade primarily due to the increasing industry movement towards third party packaging services specifically within the food and beverage, pharmaceuticals cosmetics and consumer goods industry sectors. Outsourcing of packaging has become now a trend for the firms in the general organizational performance and to reduce the cost related to those operations which are carried out internally. Where time to market and ability to respond are major parameter known as denominators; the reasons being; contract packagers come with added pre–skills; technologies & solutions which are better suited to the packaging requirements of various products.
Apart from cost cutting, e commerce another boost to the growth of the Contract Packaging Market. With e-commerce growing as a popular trend, companies are looking for appropriate product packaging arrangements that meet the requirements of delivery and transportation as well as protect products and appeal to customers. Contract packagers are in a good place to offer tailored packaging services that can help in improving the appeal of products and also help in the protection of goods when in transit as per the current needs of the retailers and the consumers. This shift towards the growth of e-commerce business has made most firms sign contracts with contract packagers that can design, fill, label, and distribute their products.
In addition, global opportunity in Contract Packaging Market is influenced by changes in technology and new developments in packaging materials and techniques. Automation, Robotics, and Smart Packaging Technologies are offering contract packagers to have optimal packaging lines along with minimizing wastage and controlling quality. Further, the concern of sustainability has made the use of packaging more environmentally friendly and forced contract packagers to incorporate sustainable practices and materials into their packaging services. It can be forecasted that with the market developing, contract packaging will even grow to be more important to a company for helping them acquire the right sort of packaging and assist them in solving the issues of the changing market.
Contract Packaging Market Trend Analysis:
Rise of Sustainable Packaging Solutions
- One of the key trends through our Contract Packaging Market analysis is that customers are increasingly demanding environmentally friendly packaging. Due to increasing concern from the consumers on the impact of products on the environment and increased regulations being placed on product packaging, firms are looking for environmentally friendly packaging. Contract packagers are adapting to this through production of biodegradable, recyclable, or reusable material, and through developing distinctive designs that will eventually minimize on waste material. In addition to benefiting brands’ sustainable development, this shift benefits brands in improving their marketability since consumers prefer products that are sustainable. Thus, deciding to implement the principles of sustainability in relation to their services, contract packagers can set themselves up for success, constituting an attractive proposition for the brands corresponding to the spirit of this era.
Integration of Automation and Smart Technologies
- The increasing use of automation as well as smart technologies as factors that influence the Contract Packaging Market is another important trend to mention. In order to meet the goals and objectives of efficient and cost-effective performance, modern contract packagers increasingly turn to the use of modern production facilities and robotic lines. For instance, IoT (Internet of Things) makes it possible to monitor a process as it happens or monitor stocks, and enhance quality or inventory control respectively. This automation not only OF increases efficiency but it also enables greater differentiation within the packaging solutions that can be offered and implemented for a certain client. The former can be achieved through contracting with these technologies, the latter, through acquisition and implementation of the contract packagers’ services hence the following insights.
Contract Packaging Market Segment Analysis:
Contract Packaging Market Segmented on the basis of By Packaging Type, Material, Service, End Use Industry, and Region
By Packaging Type, Secondary segment is expected to dominate the market during the forecast period
- When categorizing the Contract Packaging Market by packaging type, there is primary packaging, which is the innermost layer of protection and secondary and tertiary packaging, which have their unique importance and uses in the supply chain. Secondary packaging is the wrapper around the primary package and is usually employed to create compact easy to handle rows, cartons, shipper or display units, and display units, but it may also provide a prestigious container for the product such as cartons for confectionery packs, shoe boxes for footwear etc. Marketing and identification wrapping or boxes and cartons that contain the primary packages in lots for sale purposes make up the secondary packaging. Tertiary packaging is primarily concerned with the packaging used for bulk handling and transportation or storage packaging such as pallets and stretch films. This segmentation helps contract packagers to offer customized services to their various clients with various requirements across industries, to increase the visibility of the product, safety and manageability in the supply chain.
By End Use Industry, Pharmaceutical segment expected to held the largest share
- When categorizing the Contract Packaging Market by packaging type, there is primary packaging, which is the innermost layer of protection and secondary and tertiary packaging, which have their unique importance and uses in the supply chain. Secondary packaging is the wrapper around the primary package and is usually employed to create compact easy to handle rows, cartons, shipper or display units, and display units, but it may also provide a prestigious container for the product such as cartons for confectionery packs, shoe boxes for footwear etc. Marketing and identification wrapping or boxes and cartons that contain the primary packages in lots for sale purposes make up the secondary packaging. Tertiary packaging is primarily concerned with the packaging used for bulk handling and transportation or storage packaging such as pallets and stretch films. This segmentation helps contract packagers to offer customized services to their various clients with various requirements across industries, to increase the visibility of the product, safety and manageability in the supply chain.
Contract Packaging Market Regional Insights:
North America held the biggest Contract Packaging market share
- The leading regional Contract Packaging Market was North America because of its sound manufacturing industry, increased focus on the development of new products, and many packaging manufacturers. The industries of the area embrace food and beverages, pharmaceutical and cosmetic production, consumer goods industries, among others that use the services of contract packaging to improve on their production capacities and lower dpending as much cost as possible. Furthermore, the developments in modern technologies support the increase in the active use of Internet services, which led to growth in the need for appropriate protective packaging materials that will safely transport the product to the consumer and create an attractive appearance among the population. The supporting attitude of North American organisation for sustainability and adoption of superior technologies add onto the region’s trends in contract packaging market dominance. Considering all these factors, the North American region will continue its domination in the Contract Packaging Market in the future years.
Active Key Players in the Contract Packaging Market:
- Aaron Thomas Company Inc. (USA)
- AmeriPac (USA)
- Assemblies Unlimited Inc. (USA)
- Co-Pak Packaging Corporation (USA)
- Hollingsworth (USA)
- Kelly Products Incorporated (USA)
- Marsden Packaging Ltd. (Canada)
- Multi-Pack Solutions LLC (USA)
- Reed-Lane, Inc. (USA)
- Sonic Packaging Industries Inc. (USA)
- Sterling Contract Packaging Inc. (USA)
- Unicep Packaging LLC (Silgan Holdings Inc.) (USA)
- Other Active Players
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Contract Packaging Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
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Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 57 Billion |
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Forecast Period 2024-32 CAGR: |
7% |
Market Size in 2032: |
USD 99 Billion |
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Segments Covered: |
By Packaging Type |
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By Material |
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By Service |
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By End Use Industry |
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By Region |
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Key Market Restraints: |
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Companies Covered in the report: |
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Frequently Asked Questions :
The forecast period in the Contract Packaging Market research report is 2024-2032.
