Contract Packaging Market Size to Attain USD 160.52 Billion by 2032

Published Date : 21 Mar 2024

The global contract packaging market size surpassed USD 80.3 billion in 2023 and is estimated to attain around USD 160.52 billion by 2032, growing at a CAGR of 8% from 2023 to 2032.

Contract Packaging Market Size and Growth Rate From 2023 to 2032

Market Overview

The contract packaging market deals with outsourcing the packaging and collecting of products to limited third-party service suppliers. They manufacture the products, store them in a warehouse, and then distribute them. This arrangement permits the industry to focus on its important capabilities while using the resources and expertise of packaging service suppliers. Distributing packaging functions permits industries to decrease capital investments in facilities and machinery and take advantage of economies of scale achieved by the industries.

Contract packaging service suppliers offer the experts to design and implement customized packaging strategies that fulfill evolving customers' needs. Moreover, the globalization of supply chains has created a strong demand for contract packaging solutions that comply with necessary demands and country preferences for packaging or type. Further, is driving the requirement for outsourcing of contract packaging services.

Regional Snapshot

North America dominated the contract packaging market in 2023. The contract packaging industry in North America is rapidly growing because of the enlarged interest in packaging in enterprises such as the excellence of care, drugs, food, beverages, and others. A few contract packaging companies in the United States and Canada have solved how to adjust to problematic business conditions. Companies are likewise becoming more conscious of the enraged worldwide competition, fluctuating OEM requests, and cost difficulties.

The contract packaging industry in the United States is expanding quickly because of this environment. The contract packaging industry in the United States is expected to grow consistently because of market solidity, developing interest, and a change in gathering endeavors tendency for contract package makers. In addition, the United States government has ordered various regulations and guidelines managing medication marking and packaging. Since few drug companies in this region have an in-house packaging plant, this could impact interest in the market.

Europe is estimated to grow fastest in the forecast period. Europe is expected to experience constant growth in the coming years. The region’s dominance is described by a diverse and grown-up contract packaging industry. A strong impact on compliance, innovation, creativity, and sustainability, along with strict environmental regulations, is also driving the European contract packaging market.

Contract Packaging Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 80.3 Billion
Projected Forecast Revenue by 2032 USD 160.52 Billion
Growth Rate from 2023 to 2032 CAGR of 8%
Largest Market North America
Base Year 2023
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Market Dynamics


The rise of e-commerce

E-commerce platforms create significant opportunities for contract packagers. As online shopping increases, there is a high demand for cost-effective packaging solutions. Contract packaging makers can satisfy this demand by offering everything from product containers to shipping boxes. E-commerce platform ensures safe and speedy delivery for the driving online retail market. These major opportunities will drive the contract packaging market growth in the coming years.

Increased outsourcing of packaging services

Across various industries, the constant increase in outsourcing trends among companies is the main driver of the market. Businesses recognize the strategic profit of outsourcing their packaging demands to specialized contract packaging service suppliers. Factors such as the capacity to focus on core capabilities, access to specialized packaging expertise, and the desire for cost optimization are driving the trend.

Outsourcing packaging functions permits industries to take advantage of the specialized knowledge and capabilities of packaging service suppliers. These suppliers are equipped with a deep understanding of industry-leading practices, the latest technologies, and the diverse packaging demands of different regions. Outsourcing packaging processes are becoming an attractive option due to industries seeking to distribute resources and streamline their operations more perfectly. Such exclusive advantages of packaging service will drive the growth of the contract packaging market.


Stringent regulatory demands

The market is crucially affected by the strict regulatory demands imposed on various companies, mainly healthcare, pharmaceuticals, and food & beverages. Regulatory obedience and quality assurance are crucial factors in modeling the landscape of packaging services. Packaging service suppliers must illustrate a healthy commitment to regulatory obedience, impacting the cost of operation and overall product margins. These major factors may restrain the contract packaging market in the coming years.


Increasing demand for customization of packaging

The increasing demand for product customization is an important driver of the market. Today, customers are searching for unique and personalized products, like interactive packaging, and this trend has a direct effect on packaging demands. Contract packaging solution suppliers are increasingly delivering specialized packaging solutions that range from separate brand identities to customer preferences and product variations.

Customization expands beyond the traditional branding items to involve materials, sizes, and customized packaging. Contract packaging includes features like unique packaging, attractive package designs, and personalized labeling. The increasing demand for e-commerce has fueled the requirement for customization by raising the adoption of such packaging.

Recent Developments

  • In August 2023, In Australia, PakTech introduced a contract manufacturing facility in Victoria and an exclusive partnership with Visy. They have significant experience in organic growth. PakTech will authorize the food, beverages, and consumer goods companies in Australia. They respond to the consumer demand for reusable packaging and practices.
  • In October 2023, the company Ryder acquired impact fulfillment services; they will add contract packaging and manufacturing capabilities.
  • In January 2023, Pharmapack launched new zones in Europe. They will support the increasing demand for therapeutics, biologics, mRNA, and contract packaging.
  • In August 2022, Summit Packaging extended its footmark with a new Operations Center of brilliance with a large amount of investment. The center is in Northern Kentucky and would help assist Summit's growth in the Midwestern market with the help of new and existing consumers in the country.
  • In October 2023, Sharp announced the investment in Berkshire Sterile Manufacturing (BSM). BSM is a global leader in clinical trial and commercial pharmaceutical packaging services. It is a Massachusetts-based contract packaging development and manufacturing institute for commercial and clinical products.

Key Market Players

  • Sharp Packaging
  • Aaron Thomas Company Inc.
  • AmeriPac Inc.
  • Assemblies Unlimited Inc.
  • Assured Edge Solutions
  • co-pak packaging corp.
  • Deufol
  • DHL
  • Green Packaging Asia
  • Hollingsworth
  • Jones Packaging
  • Kelly Products Inc.
  • Sonic Packaging Industries
  • Stamar Packaging
  • Sterling Contract Packaging Inc.
  • Silgan Holdings Inc.
  • Wepackit Inc.

Market Segmentation

By Type

  • Primary
  • Secondary
  • Tertiary

By Material

  • Plastic
  • Metal
  • Glass
  • Paper and Paperboard

By Service

  • Bottling and Filling
  • Bagging/Pouching
  • Lot/Batch and Date Coding
  • Boxing and Cartoning
  • Wrapping and Bundling
  • Labelling
  • Clamshells and Blisters
  • Others

By End User

  • Pharmaceuticals
  • Food & Beverage
  • Agriculture
  • Cosmetics
  • Personal Care
  • Others

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