Global Contract Packaging Market Size USD 191.02 billion by 2030 | CAGR of 11.35%

Introduction

Contract packaging describes the procedure whereby one company enters into a legal agreement with another company (the contract packager) to produce the packaging, assemble, kit, store, and distribute the items. Most of the time, businesses choose a contract packaging company to manage their packaging supply chain because they lack the money, time, or resources to build their production and packaging facilities or buy expensive technology.

Contract packagers—often called co-packers—offer structural design and testing, print and graphic services, production labor, and, in some circumstances, full-service fulfillment. Many contract packagers specialize in just one type of packaging, including shrink wrapping, corrugated (cardboard), or bottling. Others focus on packaging for specialized markets like food, electronics, cars, or medicines. The rise of the e-commerce industry will likely continue during the forecast period. Due to the stringent laws and regulations that many governments are establishing regarding the labeling and packaging of food and pharmaceutical products, contract packaging is becoming more common.

Market Dynamics

Companies Focusing on Core Functions and the Growing Demand for E-commerce Fosters the Contract Packaging Market

Industries have been modernizing and adapting to the continuously changing demands of consumers while also changing their operational procedures. The best course of action is typically to outsource their non-core operations. Additionally, the complexity of learning supplementary skills makes it challenging to stay on the cutting edge of the industry in competitive, developing marketplaces, and the range of practices necessary to maintain efficient operations frequently exceeds what is manageable. Due to this, outsourcing is more common than ever, especially in the packaging industry, where forward-thinking companies use contract professionals to help with their total packaging needs.

E-commerce packaging enterprises are one factor driving modern technology's widespread adoption. The expanding number of international e-commerce companies has also increased the sector's desire for packaging solutions to fulfill customer expectations efficiently. Over the past ten years, contract packaging has grown significantly, now driving much innovation for significant CPGs and providing end-to-end services for startups selling through the e-commerce distribution channel. Contract packaging's primary end users are the food, beverage, pharmaceutical, and cosmetic goods industries. Materials such as paper, metal, and plastic are frequently used for packaging these products. The packaged goods may become damaged due to improper concentrations or quality degradation in these ingredients, affecting the finished product.

Regional Insights

North America commands the market and is estimated to grow at 10.43% CAGR during the forecast period. Due to the increased need for packaging in sectors including food and beverage, pharmaceuticals, personal care, and other industries, the region's contract packaging market is growing significantly. The US is home to many contract packaging companies that have adapted to the challenging business environment and are becoming more conscious of the tough global competition, cost issues, and highly variable OEM demand. The increasing demand, the manufacturing companies' shifting preferences toward contract packagers, and the US government's implementation of various laws and regulations on the labeling and packaging of food, beverages, and pharmaceutical drugs all positively impact the demand for contract packaging in the region.

Europe owns the second-largest market share and is anticipated to account for USD 36.52 billion by 2030, growing at a CAGR of 10.26%. Germany, the continent's most populous country, currently commands the most significant market share for healthcare and home care goods. German companies are using new packaging techniques to enhance aesthetics and guarantee sustainability. Medical equipment packaging is expanding in Germany due to hospitals putting more emphasis on sterile and disinfected packing due to an increase in viral infections and numerous severe regulatory safety rules. The UK's retail industry is also gradually growing, which presents numerous opportunities for the packaging industry to grow.

One of the most important economies in the Asia-Pacific region is China, and its beverage, food, pharmaceutical, and other industries are expanding. It holds a significant position in the market for contract packaging as well. China is currently one of the most desirable countries for outsourcing. Co-packing services are expanding nationally as more providers enter the market. Additionally, the emphasis on green packaging spreads across the country has contributed to sustainable packaging rises.

Key Highlights

• The global contract packaging market size accounted for USD 72.59 billion in 2021. It is expected to reach USD 171.31 billion by 2030, growing at a CAGR of 11.35% during the forecast period (2022–2030).
• Based on packaging, the global contract packaging market is classified into Primary, Secondary, and Tertiary. The primary segment holds a significant share of the market, and it is expected to grow at a CAGR of 10.48% during the forecast period.
• Based on end-users, the global contract packaging market is bifurcated into Food, Beverage, Pharmaceutical, Household & Personal Care, and Others. The Food industry dominates the market and is anticipated to grow at a CAGR of 10.63% during the forecast period.

Competitive Players

Competitive Landscape

The major market players are Aaron Thomas Company, Multipack Solutions, Pharma Tech Industries, Reed-Lane Inc., Sharp Packaging Services, UNICEF Packaging, Jones Packaging Inc., Stamar Packaging, Complete Co-Packing Services Ltd, and Hollingsworth LLC.

Recent Developments

Market News

• In March 2022, Jones Health Care partnered with SMP to create digital-first medical information prototypes and smart packaging technologies.
• In March 2022, Hollingsworth announced the launch of its third facility in Columbus, Ohio.
• In February 2022, Aaron Thomas expanded, adding a new location in the middle of Texas, giving them 1.5 million square feet of packaging area.
• In February 2022, wax corrugated Cartons were introduced by Stamar Packaging.
• In January 2022, Sharp Strengthens gene therapy packaging and delivery capabilities at the EU Heerenveen Facility.

Segmentation

Global Contract Packaging Market: Segmentation

By Packaging

• Primary
• Secondary
• Tertiary

By End-user

• Food
• Beverage
• Pharmaceutical
• Household &Personal Care
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The MiddleEast and Africa