IMARC Group's report titled "Contract Packaging Market Report by Packaging Type (Primary, Secondary, Tertiary), Material (Plastic, Metal, Glass, Paper and Paperboard), Service (Bottling, Bagging/Pouching, Lot/Batch and Date Coding, Boxing and Cartoning, Wrapping and Bund, Labelling, Clamshell and Blister, and Others), End Use Industry (Food and Beverage, Pharmaceutical, Electronics, Personal Care, and Others), and Region 2024-2032". The global contract packaging market size reached US$ 68.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 127.7 Billion by 2032, exhibiting a growth rate (CAGR) of 7.1% during 2024-2032.
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Factors Affecting the Growth of the Contract Packaging Industry:
- Increasing Demand for Outsourced Packaging Services:
There is a growing trend among businesses to outsource their packaging needs, fueling the market growth. This change is primarily due to the cost savings and operational efficiencies that contract packaging offers. Outsourcing packaging operations allows companies to focus on a few core competencies, such as product development and marketing, and leave the packaging process to specialized companies that have the necessary expertise and equipment. Additionally, outsourcing enables scalability, allowing companies to adjust their packaging operations based on fluctuations in demand without incurring large capital expenditures. This flexibility is especially important for small and medium-sized enterprises (SMEs) that do not have the resources to invest in advanced packaging technology or large packaging facilities.
- Advancements in Packaging Technology:
Continuous advancements are contributing to the market growth. Innovations in packaging materials, automation, and digital printing are revolutionizing the industry, improving efficiency, sustainability, and customizability. Modern packaging technology enables contract packagers to deliver high-quality, cost-effective solutions that meet strict industry standards. Furthermore, automation and robotics in packaging lines improve precision and speed, reduce labor costs, and minimize errors. Moreover, advances in eco-friendly packaging materials are increasing demand among environmentally conscious people and businesses looking to reduce their carbon footprint. These technological improvements not only make contract packaging services more attractive but also enable providers to offer a wide range of unique solutions tailored to specific client needs.
- Growth of the E-commerce Sector:
The rapid expansion of the e-commerce sector is supporting market growth. The rise of online shopping is driving demand for efficient, reliable packaging solutions that ensure product safety during transport and appeal to individuals. Contract packaging companies are well positioned to meet these demands by providing customized packaging solutions that meet the unique requirements of e-commerce logistics. This includes developing durable, lightweight, and tamper-evident packaging that can withstand the rigors of transportation while maintaining product integrity. Additionally, high volume and fast processing times make contract packaging an attractive option for e-commerce companies looking to improve supply chain efficiency and customer satisfaction.
Leading Companies Operating in the Global Contract Packaging Industry:
- Aaron Thomas Company Inc.
- AmeriPac
- Assemblies Unlimited Inc.
- Co-Pak Packaging Corporation
- Hollingsworth
- Kelly Products Incorporated
- Marsden Packaging Ltd.
- Multi-Pack Solutions LLC
- Reed-Lane. Inc.
- Sonic Packaging Industries Inc.
- Sterling Contract Packaging Inc.
- Unicep Packaging LLC (Silgan Holdings Inc.)
Contract Packaging Market Report Segmentation:
By Packaging Type:
- Primary
- Secondary
- Tertiary
Primary represents the largest segment as it provides significant cost savings for companies by removing the need for substantial investments in packaging equipment, facilities, and labor.
By Material:
- Plastic
- Metal
- Glass
- Paper and Paperboard
Plastic holds the biggest market share due to its remarkable versatility and capability to be molded into a wide array of shapes, catering to the specific needs of different products.
By Service:
- Bottling
- Bagging/Pouching
- Lot/Batch and Date Coding
- Boxing and Cartoning
- Wrapping and Bund
- Labelling
- Clamshell and Blister
- Others
Bottling accounts for the majority of the market share. It is highly effective in preserving the quality and extending the shelf life of products.
By End Use Industry:
- Food and Beverage
- Pharmaceutical
- Electronics
- Personal care
- Others
Food and beverage represent the leading segment due to the rising need for product safety and preserving quality.
Regional Insights:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
North America's dominance in the contract packaging market is attributed to the increasing preferences for changing packaging requirements in various industries.
Global Contract Packaging Market Trends:
Stricter regulatory requirements across various industries are fueling the market growth. Industries such as pharmaceuticals, food and beverages (F&B), and cosmetics must adhere to strict packaging standards to ensure safety, quality, and compliance with legal regulations. Contract packaging companies specialize in navigating these complex regulatory environments, providing expertise in areas such as labeling, traceability, and tamper-evident packaging. By partnering with a contract packaging company, companies can ensure that their products meet all the required regulatory standards without having to invest heavily in compliance infrastructure. This reduces the risk of regulatory non-compliance, product recalls, and associated financial penalties, making contract packaging a key element of risk management for many companies.
Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
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IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARCs information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.
Our offerings include comprehensive market intelligence in the form of research reports, production cost reports, feasibility studies, and consulting services. Our team, which includes experienced researchers and analysts from various industries, is dedicated to providing high-quality data and insights to our clientele, ranging from small and medium businesses to Fortune 1000 corporations.
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