Its advantages include improving operational efficiency, reducing costs, expanding production capacity, gaining expertise and managing seasonal fluctuations in demand. The need for contract packaging has grown due to increasing demand for pharmaceutical drugs and private label goods. The global Contract Packaging Market is estimated to be valued at US$ 66.37 Bn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growth of the contract packaging market is being accelerated by the expanding pharmaceutical industry globally. As drug manufacturers are focusing more on core competencies like research and development, outsourcing non-core activities like packaging has become a trend. Contract packagers provide specialized packaging solutions required for drugs along with regulatory compliance. The industry is adopting new packaging technologies like smart and adherence packaging at a rapid pace to stay relevant. Contract packagers are well-equipped to customize pharmaceutical packaging as per the changing needs and strict quality standards of drug manufacturers. This is driving the dependence of pharmaceutical companies on third-party contract packagers.
Segment Analysis
Contract Manufacturing Organization (CMO) sub-segment dominates the contract packaging market currently accounting for over 40% share. This is because majority of pharmaceutical and medical device companies opt for outsourcing non-core activities such as packaging to focus on their core competencies of R&D and manufacturing. CMOs providing extensive packaging capabilities for solid, liquid and semi solid dosage forms along with serialization and aggregation services have established as preferred partners for contract packaging needs.
Key Takeaways
The global Contract Packaging Market Demand is expected to witness high over the forecast period of 2023 to 2030 supported by pharmaceutical industry trends of outsourcing non-core activities and focus on core competencies.
Regional analysis- North America currently dominates the global contract packaging market however Asia Pacific is emerging as the fastest growing region on back of expansion of domestic pharmaceutical industries in major countries like India, China and Japan. Countries in Asia pacific also offer competitive manufacturing and labor costs attracting contract packaging players to set up facilities to cater to global markets.
Key players- Key players operating in the contract packaging 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. These players are focusing on expansion into emerging markets and enhancing serialization and aggregation capabilities to capitalize on pharmaceutical serialization and track & trace regulations.
Get more insights on this topic: https://www.newswirestats.com/contract-packaging-market-demand-analysis/
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