Market Size of North America Contract Packaging Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.70 % |
| Market Concentration | Medium |
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?
North America Contract Packaging Market Analysis
The North American contract packaging market is expected to register a CAGR of 9.7% over the forecast period (2021 - 2026). With the outbreak of COVID-19, the contract packaging market has witnessed tremendous growth as the e-commerce market has taken a boom owing to lockdown and social distancing norms where the majority of the consumer prefer online channels for shopping, and companies are outsourcing their packaging end to end or standalone services to meet the growing demand.
- Increasing demand and the changing preference of manufacturing firms toward contract packagers, along with the U.S. government imposing various laws and regulations on the labeling and packaging of food, beverages, and pharmaceutical drugs, there is a positive impact on the demand for contract packaging in the region.
- Contract packaging for household and personal care industry has seen an increasing demand in the region with the pandemic, as there was a shortage in supply of hand sanitizers, disinfectant liquids, etc., which has compelled the U.S. cosmetics manufacturing industry to retrofit their facilities to produce these necessities which, while providing opportunities, may have also slowed production of the usual range of products.
- Many governments are also mandating stringent laws and regulations on the labeling and packaging of drugs and food products, further expanding the scope of contract packaging. For instance, in the United States, due to similar laws, the companies have preferred to outsource their manufacturing and packaging due to capital and others.
- The aforementioned factors might act as a challenge for contract packaging companies, owing to the requirement of using high-quality plastics, which might ultimately lead to increasing prices in raw materials and packaging. Such regulations highly challenge the growth of a specific type of packaging materials and, in turn, challenge the market growth. However, this threat is now minimal due to innovations by companies.
