United States Contract Packaging Market Size

US Contract Packaging Market Analysis

The United States contract packaging market is expected to register a CAGR of 9.42% over the forecast period. Owing to the stability, rising demand, and changing preference of manufacturing firms toward contract packagers, the United States contract packaging market is expected to witness steady growth over the forecast period. To concentrate on their core businesses and decrease operational costs, companies in the country outsource packaging requirements to contract packaging companies, thus driving the market's growth.

• The United States government has placed various laws and regulations on labeling and packaging, especially for drugs. This could lead to an increase in the demand for contract packaging, owing to the inability of an in-house packaging facility for a few pharmaceutical companies in this country.
• Technology is expected to play a vital role in the future, with the emergence of serialization, digital printing, and advanced robotics, thereby helping the companies. Sustainability and customization are expected to positively impact the contract packaging market, leading to growth in consumer-packaged goods, like personal care and food & beverages.
• Also, many governments are mandating stringent laws and regulations on the labeling and packaging of drugs and food products, further expanding the scope of the contract packaging market. For instance, the United States witnessed an increase in demand for contract packaging in the food industries, owing to the inability of an in-house packaging facility for a few companies in the country.
• Various contract packaging companies in the country are adapting to challenging business conditions. The companies are also getting awareness regarding the cost pressures, intense competition, and highly variable demand from OEMs. This environment is further supporting in the growth of contract packaging market in the country. Many European companies, such as Persson Innovation and Langen Group, have also invested in the United States.
• The presence of multiple logistics companies brings out a high demand for secondary and tertiary packaging, owing to their prominence in transportation, thus paving the way for the growth of the contract packaging market. However, the high recycling cost and singringent government regulations related to packaging materials are restarining market growth.
• The COVID-19 pandemic has hampered the growth of the United States Contract Packaging Market due to restrictions on manufacturing activities and limited workforce availability in the production line. However, post-pandemic, the reopening of manufacturing industries at their maximum capacities and growing market demand for food and beverage, pharmaceuticals, personal care, consumer goods, and other industry reflect a positive market outlook. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.