Contract packaging industry primarily deals with outsourcing of packaging activities to contract packagers. Contract packaging services includes primary packaging, secondary packaging, labeling and kitting. Growing demand from pharmaceutical and healthcare industries for outsourcing packaging functions is the prime reason driving the contract packaging market. Pharmaceutical industry requires frequent packaging changes which is difficult to handle in-house. This has increased reliance on contract packagers.
The Global Contract Packaging Market is estimated to be valued at US$ 76.46 Mn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 To 2031.
Key Takeaways
Key players: Key players operating in the contract packaging market are SUSI Studio, Insecta Shoes Canada Inc. ROMBAUT, In The Soulshine, Della La LLC, Reformation, Alabama Chanin, Wawwa, Doshi FCSA, Hiareth Collective, Komodo Fashion, Brave Gentle Man, ECOALF, Rapanui, and Tact & Stone. These players are focusing on expansion of facility, new product launches and mergers & acquisitions to strengthen their market position.
Growing demand: Pharmaceutical industry is the major end-user of Contract Packaging Market Trends . Increasing generic and biopharmaceutical production is expected to drive the need for high-quality and regulatory compliant packaging. Rising health awareness and chronic diseases has increased pharmaceutical consumption worldwide.
Technological advancement: Contract packagers are investing in automation, robotics and IoT based track and trace solutions. Advanced packaging lines ensure high speed production with minimal errors. Serialization and aggregation technologies allows track and trace of individual packs. 3D printing is being used for specialized primary packaging in pharmaceuticals.
Market Trends
Sustainable packaging: Growing environmental concerns is pushing brands to use eco-friendly and sustainable packaging materials like paper, glass, bioplastics etc. Contract packagers are developing capabilities to provide sustainable packaging solutions.
Digitalization: Blockchain, AR/VR and cloud technologies are enabling transformation of contract packaging operations. Digital tools allows virtual validations, remote monitoring of production and real-time sharing of packaging data with brand owners.
Market Opportunities
Outsourcing of secondary packaging: Secondary packaging functions like cartoning, outer carton packing are expected to be increasingly outsourced. This reduces fixed capital costs and improves flexibility for brand owners.
Emerging markets: Latin America, Middle East, Africa offers robust growth potential for contract packagers. Rising income, healthcare expenditure in these regions attracts domestic and global pharmaceutical companies creating outsourcing opportunities.
Impact of COVID-19 on Contract Packaging Market:
The COVID-19 pandemic has impacted the growth of the contract packaging market in varied ways. During the initial stages of the pandemic, strict lockdowns imposed across major economies led to temporary closures of manufacturing facilities. This disrupted supply chains and led to a decline in outsourcing volumes for contract packagers. As the pandemic progressed, demand for healthcare and pharmaceutical products surged exponentially. Contract packagers aligned their production capabilities to meet the rising needs of these essential sectors. This provided stability to their businesses during the crisis period.
However, lockdowns also disrupted logistics networks worldwide. Movement restrictions and limited air/sea freight capacities posed challenges in transporting finished goods. This temporarily hindered the ability of contract packagers to deliver products on time. With economies gradually reopening, businesses are returning to normalcy. Contract packagers are leveraging digital technologies to optimize operations and fulfill orders efficiently. They are implementing safety protocols within facilities to ensure the well-being of workers. In the post-COVID period, companies are expected to outsource non-core operations more to focus on their core competencies. This will stimulate higher outsourcing volumes for contract packagers. Their end-to-end solutions are also well-suited to handle unexpected demand fluctuations.
Europe remains largest region for Contract Packaging Market:
Europe has been the largest regional market for contract packaging globally, accounting for over 35% of the total revenues. This is attributed to presence of well-established contract packagers across countries like Germany, UK, France, Italy etc. These companies have built robust infrastructure and capabilities to serve diverse industries. Europe is also a major manufacturing hub worldwide with a strong base of pharmaceutical, healthcare, automotive, consumer goods and other industries. This promotes higher dependency on outsourcing of secondary activities like packaging. Countries like Switzerland, Denmark, Austria have emerged as fastest growing hubs within Europe due to expanding healthcare and biotech industries.
Asia Pacific emerges as fastest growing region for Contract Packaging Market:
Asia Pacific region is poised to witness strongest growth in the contract packaging market during the forecast period. This can be accredited to ongoing industrialization and emergence of new manufacturing capacities across Southeast Asian countries. Nations like China, India, Indonesia, Vietnam and others are attracting significant foreign investments due to availability of low-cost skilled labor. This is translating to higher production of pharmaceuticals, medical devices, consumer electronics, homecare and personal care goods. Since packaging is a critical step, companies are increasingly outsourcing these requirements to enable smooth manufacturing and logistic processes. Domestic contract packagers in Asia are capitalizing on these opportunities with international standards and consolidated services. Their centralized location helps minimize transportation costs.
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The Contract Packaging Market research report provides the latest industry data, growth, key segments and future trends on the basis of the detailed study.
This market report also allows you to identify the future opportunity and growth rate of the leading segment based on regions and countries.The research report also covers the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide.
The major players in the contract packaging market include Unicep Packaging, Summit Container, Genco, Stamar Packaging, Sharp Packaging, Jones Packaging, Aaron Thomas Company Inc., DHL, Green Packaging Asia, Co-Pak Packaging.
This section includes a holistic view of the competitive landscape that includes various strategic developments such as key mergers & acquisitions, future capacities, partnerships, financial overviews, collaborations, new product developments, new product launches, and other developments.Get more information on "Global Contract Packaging Market Research Report" by requesting FREE Sample Copy at https://www.valuemarketresearch.com/contact/contract-packaging-market/download-sampleMarket DynamicsThe growing market access, penetration, and greater control of brands enable enormous popularity of contract packaging.
Rising awareness among producers and exporters about the advantages and potentials of contract packing in the developing countries presents an opportunity for the market.
The report covers Porter’s Five Forces Model, Market Attractiveness Analysis and Value Chain analysis.
