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.
Many businesses choosing to concentrate on their core strengths are outsourcing non-essential tasks including packaging. By using the knowledge and tools of contract packaging suppliers, outsourcing packaging lets businesses save money, boost efficiency, and raise output. Outsourcing also offers scalability and flexibility, which helps businesses to react fast to evolving consumer needs. It lets companies use economies of scale and draw on worldwide pools of talent. All things considered, the outsourcing trend helps businesses simplify processes, boost competitiveness, and stimulate corporate development.
Contract packaging is the arrangement of outsourced packaging services to specific businesses or service providers. Under this approach, manufacturers or stores hand their packaging requirements to contract packaging companies, who supply knowledge in assembly, labeling, packaging design, and other allied services. Contract packaging offers cost savings, increased productivity, access to professional packaging knowledge, and the opportunity to concentrate on main business operations. It also lets businesses satisfy consumer needs for tailored packaging, follow laws, and change with the Contract Packaging Market.
| 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 |
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| Pitfalls & Challenges |
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Under the current situation, contract packaging market is driven by growing tendency toward environmentally friendly packaging. Consumers and legislators give sustainability first priority, hence businesses are looking for contract packaging providers with environmentally friendly solutions. Demand is great for contract packagers with knowledge of sustainable materials, recycling programs, and environmentally friendly methods. Contract packagers now have chances to stand out in the market and draw customers that appreciate sustainable packaging solutions thanks to growing demand in environmentally friendly packaging.
COVID-19 Impacts
Covid-19 lockout restrictions in 2020 led to notable drop in output and disturbance of the supply chain, therefore affecting contract packaging firms' income. But developments in e-commerce sales, notable increase in the pharmaceutical sector, and increased demand for home food and beverage delivery help to prevent a negative market development. Covid-19 caused the market to have development but at a slowed pace in 2020.
Contract Packaging Market Trends
Rising attention on sustainable and environmentally friendly packaging solutions, more options for customizing and personalizing, e-commerce packaging, and the acceptance of automation and robotics in packaging operations define the trends in the contract packaging business.
Contract Packaging Market Analysis
End use determines the segmentation of the contract packaging market into food and beverage, pharmaceutical, electronics, personal care, and others. With a market share of more than 20% in 2022, the pharmaceutical segment is estimated to expand quickest over the projected period. This is a result of growing need for specialized packaging and labeling compatible with strict rules. Outsourcing non-core tasks also helps pharma businesses concentrate on research and development, which is increasingly important for safe and effective packaging solutions for pharmaceuticals.
The contract packaging market is split depending on kind of packaging into primary, secondary, and tertiary. Forepected to hold over 45% market share in 2022, this category is expected to rise at a CAGR of over 6% between 2023 and 2032. Primary packaging services are growing in response to the growing demand for tailored and aesthetically pleasing packaging, the expansion of e-commerce and direct-to-consumer channels, and the necessity of certain package forms for particular products. Design and manufacturing of packaging that guarantees consumer satisfaction, brand uniqueness, and product safety falls to main packaging providers.
Contract packaging market in North America holding more than 35% share by 2022. Strong industrial and retail sectors, great need for customized packaging solutions, rising outsourcing trends, and a focus on sustainability help to explain market expansion. Contract packaging services are driving demand in North America thanks to a well-established legal system that mandates adherence to packaging criteria.
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
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
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Asia Pacific
- China
- Japan
- India
- South Korea
- ANZ
- Latin America
- Brazil
- Mexico
- MEA
- UAE
- Saudi Arabia
- South Africa
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