February 9, 2025

The Global Contract Packaging Market Is Driven By Growing Healthcare Sector

The global contract packaging market has witnessed significant growth over the past few years due to the growth of the healthcare sector. Contract packaging services are used by pharmaceutical and medical device manufacturers to package, label, and assemble their products with required specifications for distribution. Contract packaging helps manufacturers to focus on core competencies by outsourcing non-core packaging operations to specialized vendors. It reduces costs associated with asset ownership and manages seasonal or unexpected fluctuations in demand.

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 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Sustainable packaging is a key trend in the Global contract packaging market Size. Rising environmental concerns are pushing brand owners and manufacturers to focus on sustainable and eco-friendly packaging solutions. Contract packers are offering packaging made from recyclable materials like paper, glass, aluminum to appeal environment conscious consumers. They are utilizing renewable and recyclable materials to manufacture primary and secondary packaging. Advanced technologies like bio-based plastics and fiber-based packaging are gaining traction. Automation is another trend being adopted by contract packagers to improve efficiency, reduce costs and meet large production volumes. Robotics, artificial intelligence and internet of things are being integrated across packaging operations. This is helping them offer high-quality services at competitive prices.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the contract packaging market is moderate. The market requires significant capital investments for setting up facilities and obtaining packaging machineries and equipment. However, the market is fragmented with the presence of several regional and local players.

Bargaining power of buyers: The bargaining power of buyers in the contract packaging market is high. Buyers have the option to choose from various contract packaging service providers based on their pricing and service offerings.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. The suppliers of raw materials such as packaging films, boxes, bottles are fragmented worldwide. This enables buyers to negotiate the pricing with suppliers.

Threat of new substitutes: The threat of substitutes is low. There are limited product substitutes for contract packaging services. However, in-house packaging can be considered as a potential substitute.

Competitive rivalry: The competitive rivalry in the market is high. The contract packaging market is fragmented with the presence of several regional and global players. Players compete based on service offerings, quality, and pricing.

Key Takeaways

The global contract packaging market is expected to witness high growth. The market in North America dominates due to presence of leading contract packaging service providers and strong pharmaceutical industry in the US and Canada. Asia Pacific contract packaging market is expected to grow at fastest pace during the forecast period with China, India, and Japan being major markets.

Key players operating in the contract packaging market are Hindalco Industries Ltd., Arconic Corp., Norsk Hydro ASA, Constellium N.V., Kaiser Aluminum, Alupco, Gulf Extrusions Co. LLC, Balexo Bahrain Aluminium Extrusion Company, and QALEX. The key players are focusing on expanding their service offerings and capabilities through acquisitions and by setting up new production facilities to cater to the growing demand for contract packaging services.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Ravina
+ posts

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

Ravina Pandya

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

View all posts by Ravina Pandya →