Latin America Contract Packaging Market - By Services (Primary Packaging, Secondary Packaging, Tertiary packaging), Vertical (Beverages, Food, Pharmaceuticals, Home and Fabric Care, beauty care and Others), Country, Trends, Forecasts - (2020 - 2025)
Looking to buy the report?
Contract Packaging refers to the outsourcing of packaging activities to Third party vendors. Manufacturing companies tend to subcontract these non-core services in which they don’t have expertise. The LATAM Contract Packaging market was worth $XX.XX billion in 2014 and is projected to reach $XX.XX billion in 2020, at a compound annual growth rate of XX.XX%.
F&B industry leads the market with a share of XX% in 2014 while; on the other hand, Pharmaceutical industry is estimated to drive the market. For FMCG products, for the same brand name, the sales are highly dependent on the impact created by packaging on the customer during the point of purchase, and thus, contact packagers work along with the product manufacturing companies and are regarded as an extension of their arm.
On the other hand, for Pharmaceutical products, stringent regulation posed by the government requires them to perform the activities in Class X Clean rooms and as such, these activities are outsourced to contract packaging companies who have all the relevant infrastructure and expertise to perform these activities.
Contract packaging industry is estimated to have a huge potential and as such, Third party logistics providers like DHL are entering into this segment by providing secondary packaging services. With the arrival of 3PL providers, the industry dynamics is changing, since companies are preferring 3PL providers for contract packaging as well over traditional co-packers since it reduces costs and lead time.