by The global contract packaging market is experiencing significant growth driven by the growing need for efficient and cost-effective packaging solutions from end-user industries such as pharmaceutical, food, and beverages. Contract packaging provides multi-level benefits to companies such as reducing operational cost, improve efficiency, allowing companies to focus on core competencies, and gain access to advanced packaging technologies. In the pharmaceutical industry, contract packaging is growing rapidly as pharmaceutical manufacturers are increasingly outsourcing secondary packaging functions to contract packagers. This helps drug manufacturers to leverage contract packager’s technical expertise and enhance supply chain management.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:
There are a few emerging trends that are set to influence the contract packaging market in the coming years. One of the major trends is increased adoption of sustainability initiatives. Consumers and regulators are putting pressure on brands to use environment-friendly packaging materials and processes. Many contract packers are investing in green packaging technologies and sustainable business practices to meet this demand. Digitalization is another trend, with contract packagers incorporating automated machinery, internet of things (IoT), and industry 4.0 technologies for better efficiency, tracking, and transparency. Emergence of omnichannel distribution is also driving customized solutions for different retail channels. With e-commerce growing rapidly, contract packagers are developing innovative packaging formats suitable for online shopping and supply chain requirements. Growing complexities in packaging and regulatory standards continue to strengthen the business case for outsourcing packaging services to specialized contract packagers.
Porter’s Analysis
Threat of new entrants: Low-moderate. High capital requirements for infrastructure and equipment pose a barrier. However, easy availability of contract manufacturers limits threat.
Bargaining power of buyers: Moderate-high. Large buyers can negotiate on price and demand additional services. Smaller buyers have less influence.
Bargaining power of suppliers: Moderate. Few dominant suppliers for specialty materials increase power. However, many alternative suppliers limit influence.
Threat of new substitutes: Low. No cost-effective substitutes exist for contract packaging services.
Competitive rivalry: High. Intense competition on pricing and service quality. Players differentiate based on capabilities, quality, and customer relationships.
Key Takeaways
The global Contract Packaging Market Growth is expected to witness high. The market size is projected to reach US$ 66.37 Billion in 2023 from US$ 60.43 Billion in 2021, registering a CAGR of 9.7% during the forecast period.
Regional analysis: North America dominates the market currently due to stringent regulations and a large pharmaceutical industry. Asia Pacific is expected to grow the fastest owing to rising investments in contract packaging from pharmaceutical and consumer goods companies based in China, India, and Southeast Asia.
Key players: 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. Key players operating in the contract packaging market focus on expanding their geographic presence and capabilities through mergers and acquisitions to strengthen their positions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
