Contract Packaging Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 73.32 Billion |
| Market Size (2029) | USD 111.22 Billion |
| CAGR (2024 - 2029) | 8.69 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Contract Packaging Market Analysis
The Contract Packaging Market size is estimated at USD 73.32 billion in 2024, and is expected to reach USD 111.22 billion by 2029, growing at a CAGR of 8.69% during the forecast period (2024-2029).
The contract packaging market plays a pivotal role in the supply chain, boosting productivity for businesses. Many manufacturers outsource packaging to focus on their core competencies, boosting the demand for contract packaging globally.
- Contract packaging services have several advantages, including providing consistent quality standards for products and product packaging that adheres to industry standards and government regulations. Also, contract packaging companies reduce the operational costs of the manufacturers. Since a contract packaging company has the necessary equipment, expertise, and materials, it can significantly reduce manufacturers' operational costs, thus boosting market growth.
- The rapidly growing pharmaceutical and cosmetic industry globally is propelling the need for contract packaging services for every stage. Meeting such stringent rules and norms requires several inspection and quality check operations. By outsourcing packaging activities, the hectic task of meeting such regulations (also known as mil-spec packaging) is passed on to the contract packaging agency, motivating more manufacturers to prefer contract packaging over in-house packaging activities.
- Increasing consumer awareness about environmental concerns and the producer demand for economical packaging options encourage contract packagers to adopt sustainable packaging alternatives and eco-friendly package designs. Furthermore, sustainability and customization will continue to positively impact the contract packaging market, leading to growth in consumer-packaged goods, such as personal care and food and beverages, over the forecast period.
- In April 2024, Orlandi, a United States-based contract packer, launched its new product, EcoPro Paper Wrap, designed to meet the growing demand for eco-friendly packaging. EcoPro is a high-barrier, heat-sealable paper-wrap material that can be recycled and is a sustainable alternative to plastic film or foil pouches.
- As a part of their expansion strategy, major players are focusing on acquisitions and growing their geographical footprint. For instance, in April 2024, Veritiv Corporation, a United States-based distributor of value-added packaging, announced the acquisition of Ameripac LLC, a US contract packaging service provider. The acquisition will likely enhance Veritiv's contract packaging capabilities in the market, along with enhancing its customer base.
- With the rapidly changing packaging market, it is difficult for many contract packaging providers to keep up with the changing trends, which can be challenging for the growth of the market. In order to stay competitive in the market, contract packaging providers need to adjust to shifting consumer preferences in order to fulfill changing demands.
Contract Packaging Market Trends
Pharmaceuticals is Expected to Experience Significant Growth
- The rapidly growing pharmaceutical market is attributable to the advancements in the medical field. Research methods are evolving, leading to significant improvements in innovative treatments for patient well-being, which is enhancing the demand for contract packaging services in major markets.
- Contract packaging companies provide specialized packaging services for pharmaceutical and medical industries, ensuring that the products are packed according to the highest quality standards, where regulatory compliance and safety are most important. Outsourcing packaging services lowers costs in areas such as packaging, labeling, sterilization, and warehousing for pharmaceutical companies, which boosts market growth.
- Various pharmaceutical companies are now outsourcing the job of packaging end-products to companies with skilled labor specialized in handling the packaging of medicines. The pharmaceutical packaging of drugs is vital, as the product should be safe for patient consumption.
- Contract packaging is increasingly gaining popularity in the pharmaceutical market, particularly with the rise of complex medications and specialty drugs. Contract development and manufacturing organizations (CDMOs) offer comprehensive packaging services to pharmaceutical companies, helping them streamline their operations and focus on core competencies. Companies are partnering with CDMOs as they have advanced infrastructure to help through stages of drug development, manufacturing, and packaging, thus boosting market growth.
- Contract packaging services offer pharmaceutical companies flexibility and scalability, allowing them to adapt to changing market demands and production volumes. Contract packers can handle various packaging formats, including blister packs, bottles, vials, and sachets, catering to the diverse needs of different medications and dosage forms.
- Additionally, contract packaging providers often invest in modern equipment and technology to optimize packaging processes, minimize errors, and enhance efficiency. By outsourcing packaging to CDMOs, pharmaceutical companies are able to scale production volume to meet the increasing demand.
- According to the Pharmapack Europe 2024 survey results, contract packaging will grow over the coming 12 months. The surge in specialty and biologic medicines has intensified the need for specialized packaging solutions, driving manufacturers to seek contract packaging services. Contract packaging companies offer expertise in creating customized packaging solutions, enabling pharmaceutical manufacturers to effectively differentiate their products and meet the unique requirements of specialty medications.
North America is Expected to Account For the Largest Share
- The contract packaging market in North America is experiencing exponential growth across various segments, including pharmaceuticals, cosmetics, personal care, and beverages. In the pharmaceutical sector, contract packaging services are in high demand due to the growing investment in drug manufacturing and stringent regulatory requirements for packaging in the region.
- Contract packaging companies specialize in providing customized packaging solutions tailored to the unique needs of pharmaceutical products, such as blister packs, bottles, and unit-dose packaging. With expertise in regulatory compliance and quality assurance, contract packagers ensure that medications are packaged safely, accurately, and in accordance with industry standards, which boosts the demand for contract packaging services in North America.
- In the cosmetics industry, contract packaging offers brands flexibility and agility in bringing their products to market. Contract packagers collaborate with cosmetics companies to develop innovative packaging designs, incorporating features that enhance product aesthetics and consumer appeal. From skincare products to make-up items, contract packaging companies offer a wide range of services, including filling, labeling, assembling, and transportation.
- Contract packaging companies often invest in advanced technologies and equipment to meet the growing demand for sustainable packaging solutions in the cosmetics segment, such as the use of eco-friendly materials and recyclable packaging options, which further boosts market growth.
- The growing trend of personalization packaging in cosmetic products is driven by advancements in packaging technologies, boosting the demand in the North American market. Companies such as Cosmopak USA LLC provide customized contract packaging services to enhance brand image.
Contract Packaging Industry Overview
The contract packaging market is moderately fragmented, with the presence of many domestic and international companies. The companies in the market are continually expanding their geographical footprint with the help of partnerships and mergers. With the growth of outsourcing activities among various established players, the market has been witnessing significant competition in terms of providing reliable and quick services, making it a competitive market.
- January 2024: Cold storage provider Magnavale announced the expansion of its contract packing, labeling, and date-coding lines at its Easton facility, allowing a significant boost in capacity. Capable of adapting between ambient, chilled, and frozen applications, these new highly automated lines allow Magnavale Easton to significantly increase packing, labeling, and date-coding output and flexibly adjust to peak-demand periods.
- January 2024: Hood Container Corporation, a United States-based contract packaging company, announced the acquisition of Sumter Packaging Corporation, a packaging company in the United States. The acquisition will improve Hood's packaging strength and provide the ability to offer vertical supply chain integration by leveraging Sumter's manufacturing capabilities.
Contract Packaging Market Leaders
Aaron Thomas Company
Multipack Solutions LLC
Pharma Tech Industries Inc.
UNICEP Packaging LLC
Jones Packaging Inc.
*Disclaimer: Major Players sorted in no particular order
Contract Packaging Market News
May 2024: Tide Rock, a United States-based buyout firm, announced the acquisition of Premier Packaging LLC, a contract packaging company. The acquisition will likely enhance Tide Rock's customer base as they will leverage Premier's contract packaging capabilities and help them take their services to the next level in the North American market.
February 2024: WePack, an independent contract packing company, partnered with software provider Nulogy to digitalize its contract packing operations. The digitalization effort intends to enhance visibility and traceability over inventory and materials and improve forecasting, labor capacity, line efficiency, and quality control. The implementation at WePack's East Midlands, UK, production site was expected to be completed by Q2 2024.
Contract Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Companies Looking to Gain Competitive Advantage by Outsourcing Non-core Operations
5.1.2 Increasing Demand from the E-commerce Industry
5.1.3 Increasing Need for Latest Technology and Innovative Packaging
5.2 Market Restraints
5.2.1 Stringent Government Regulations
5.2.2 Competition from In-house Packaging
5.3 Industry Regulations and Standards
5.4 Evolution of Contract Packaging
6. MARKET SEGMENTATION
6.1 By Packaging
6.1.1 Primary
6.1.2 Secondary
6.1.3 Tertiary
6.2 By End-user Industry
6.2.1 Food
6.2.2 Beverage
6.2.3 Pharmaceutical
6.2.4 Household and Personal Care
6.2.5 Other End-user Industries
6.3 By Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 Germany
6.3.2.2 United Kingdom
6.3.2.3 France
6.3.2.4 Netherlands
6.3.2.5 Italy
6.3.2.6 Spain
6.3.3 Asia
6.3.3.1 China
6.3.3.2 India
6.3.3.3 Japan
6.3.3.4 Australia and New Zealand
6.3.4 Latin America
6.3.5 Middle East & Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Aaron Thomas Company
7.1.2 Multipack Solutions LLC
7.1.3 Pharma Tech Industries Inc.
7.1.4 Reed Lane Inc.
7.1.5 Sharp Packaging Services
7.1.6 UNICEP Packaging LLC
7.1.7 Green Packaging Asia
7.1.8 Jones Healthcare Group
7.1.9 Stamar Packaging Inc.
7.1.10 Budelpack Poortvliet BV
7.1.11 Complete Co-Packing Services Ltd
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK
Contract Packaging Industry Segmentation
Contract packaging is the process of assembling a product and putting it into its final finished packaging. Depending on the product, the final packaging constitutes a variety of forms, such as thermoformed/plastic clamshell/blister packaging, a plastic bag, a standing corrugated retail point-of-sale display, or a transport tray.
The contract packaging market is segmented by packaging (primary, secondary, and tertiary), end-user industry (food, beverage, pharmaceutical, household and personal care, and other end-user industries), and geography (North America [United States and Canada], Europe [United Kingdom, Germany, France, Netherlands, Italy, Spain, and Rest of Europe], Asia-Pacific [China, India, Japan, Australia and New Zealand, and Rest of Asia-Pacific], Latin America, and the Middle East & Africa). The report offers market sizes and forecasts in value (USD) for all the above segments.
| By Packaging | |
| Primary | |
| Secondary | |
| Tertiary |
| By End-user Industry | |
| Food | |
| Beverage | |
| Pharmaceutical | |
| Household and Personal Care | |
| Other End-user Industries |
| By Geography | ||||||||
| ||||||||
| ||||||||
| ||||||||
| Latin America | ||||||||
| Middle East & Africa |
Contract Packaging Market Research FAQs
How big is the Contract Packaging Market?
The Contract Packaging Market size is expected to reach USD 73.32 billion in 2024 and grow at a CAGR of 8.69% to reach USD 111.22 billion by 2029.
What is the current Contract Packaging Market size?
In 2024, the Contract Packaging Market size is expected to reach USD 73.32 billion.
Who are the key players in Contract Packaging Market?
Aaron Thomas Company, Multipack Solutions LLC, Pharma Tech Industries Inc., UNICEP Packaging LLC and Jones Packaging Inc. are the major companies operating in the Contract Packaging Market.
Which is the fastest growing region in Contract Packaging Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Contract Packaging Market?
In 2024, the North America accounts for the largest market share in Contract Packaging Market.
What years does this Contract Packaging Market cover, and what was the market size in 2023?
In 2023, the Contract Packaging Market size was estimated at USD 66.95 billion. The report covers the Contract Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Contract Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Contract Packaging Industry Report
Statistics for the 2024 Contract Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Contract Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
