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  • Published On : Jul 2022
  • Code : CMI5094
  • Industry : Packaging
  • Pages : 136
  • Formats :

Using contract packaging is a great way to save money and time. The end goal of contract packaging is to deliver the product safely to retail locations in a high quality, attractive package. The entire process follow quality control and inventory control procedures.

Market Statistics:

The global contract packaging market was valued at US$ 55.27 Bn in 2021 and is forecast to reach a value of US$ 97 Bn by 2030 at a CAGR of 10.37% between 2022 and 2030.

North America held dominant position in the global contract packaging market in 2020, accounting for 35% share in terms of volume, followed by Europe and Asia Pacific, respectively.

Figure 1. Global Contract Packaging Market Value Share (%), By Region, 2021

Contract Packaging  | Coherent Market Insights

Market Drivers:

Growing demand from e-commerce industry is a prime factor driving growth of the contract packaging market. The increasing number of e-commerce companies across the world has also been fuelling the demand for packaging solutions by the industry to cater to the needs of customers in a better way. According to SEMrush, in June 2020, the average monthly visit to retail e-commerce websites accounted for 21.96 billion, thereby, driving the global eCommerce industry.

Increasing focus of companies on adopting latest and innovative packaging solution is also anticipated to foster market growth. For instance, companies can avoid the cost of setting up a production facility, packaging equipment, staff training, and purchasing materials, by outsourcing to a contract packager. The European Co-packers Association stated that adopting the strategy to choose for contract packaging solution can save the company up to 7% to 9% of the cost incurred in its complete production cycle.

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Contract Packaging Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 55.28 Bn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 10.37% 2030 Value Projection: US$ 97 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Packaging: Primary, Secondary, Tertiary
  • By End-User Industry: Food, Beverage, Pharmaceutical, Household and Personal Care, Other End-user Industries
Companies covered:

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, Complete Co-Packing Services Ltd

Growth Drivers:
  • Growing demand from e-commerce industry
  • Strong growth in food industry
Restraints & Challenges:
  • Competition from in-house packaging
  • Strict regulation regarding packaging material

Figure 2. Global Contract Packaging Market Value Share (%), By Packaging, 2021

Contract Packaging  | Coherent Market Insights

Market Restraints:

Strict government regulation regarding packaging of material is expected to restrict the market growth. For instance, the European Agency for the Evaluation of Medicinal Products (EMA) has released various regulations on the labelling and packaging of food, in order to enhance the safety of food distributed throughout the European Union. In March 2019, the parliament of Europe approved a new law banning single-use plastic items, which are also key components of packaging materials significantly being used in the industry.

Competition from in-house packaging is another major key factor expected to have negative impact on the market growth of contract packaging. For instance, companies that use an outside contract packager add up to seven days to their distribution cycle and lose visibility of their product during this time. This is expected to act as a barrier for companies aiming to distribute their products quickly and efficiently.

Market Opportunities:

Rapid growth of food &beverage industry is expected to bring potential growth opportunities for the market players in contract packaging. Also, growing sale of various packaging products such as luxury packaging, rigid packaging, flexible packaging, and pharmaceutical packaging are driving the need for contract packaging services, logistic services, design services, and warehousing services. This will further favour the market growth.

Strong growth in smart packaging technologies is also one of the key factors that are projected to support the contract packaging over the forecast period. This  would  involve  the  incorporation  of technologies  such  as  desiccants  and  oxygen  scavengers, antimicrobial materials and temperature control packaging, labels,  and  devices  that  control  or  monitor  the environmental conditions to ensure the product is maintained at the appropriate temperature.

Market Trends/Key Takeaways:

Increasing use of corrugated boxes with NFC- enabled RFID tags that offer real-time location tracking, alerting a company when something goes somewhere it should not, helping prevent theft is expected to shape the market growth positively.

Growing environmental concern is encouraging companies to take initiatives for reducing disposable costs and environmental impacts. This factor is expected to foster the market growth over the forecast period. For instance, Warren Industries Inc. is recycling its own pallets, thus ensuring cutting down costs for the customers in the market.

Competitive Landscape:

  1. Aaron Thomas Company
  2. Multipack Solutions
  3. Pharma Tech Industries
  4. Reed-Lane Inc.
  5. Sharp Packaging Services
  6. UNICEP Packaging
  7. Green Packaging Asia
  8. Jones Packaging Inc.
  9. Stamar Packaging
  10. Budelpack Poortvliet BV
  11. Complete Co-Packing Services Ltd

When it comes to packaging, contract packaging can be beneficial for many companies. Outsourcing to a third-party company can save a company money until production levels are reached, or until capital expenditures can be approved. Outsourcing can also help a company with their display. A contract packaging company is able to meet the packaging regulations and guidelines of industry. A contract packager understand the FDA and the regulations surrounding packaging, and they know how to properly use child-safe caps and other components.

Market Dynamics:

Growing demand from e-commerce industry and increasing adoption of advanced packaging solution by manufacturing industries are projected to propel contract packaging market. According to the Office for National Statistics (UK), over 70% of the UK population prefer online shopping. Additionally, most of the small vendors in the European region selling through e-commerce lacks in-house packaging and are bound to prefer contract packaging solutions. Moreover, the market is also driven by increasing focus of company on outsourcing their noncore operation to gain a competitive advantage.

On the other hand, competition from in-house packaging and strict regulation regarding packaging solution are major factors expected to restrict the market growth.

Key features of the study:

  • This report provides in-depth analysis of the global contract packaging market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2022–2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global contract packaging market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include 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
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global contract packaging market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global contract packaging market

Detailed Segmentation:

  • Global Contract Packaging Market, By Packaging:
    • Primary
    • Secondary
    • Tertiary
  • Global Contract Packaging Market, By End-User Industry:
    • Food
    • Beverage
    • Pharmaceutical
    • Household and Personal Care
    • Other End-user Industries
  • Global Contract Packaging Market, By Geography:
    • North America
    • Europe
    • Asia-Pacific
    • Latin America
    • Middle East & Africa

Frequently Asked Questions

The global contract packaging market size is estimated to be valued at US$ 55.28 Billion in 2022 and is expected to exhibit a CAGR of 10.37% between 2022 and 2030.
Growing demand from e-commerce industry and increasing adoption of smart packaging solution are fuelling the growth of the market.
The primary packaging segment is the leading component segment in the market.
Competition from in-house packaging is the major factors restraining growth of the market.
Major players operating in the 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

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