May 22, 2024
Contract Packaging Market

Contract Packaging Market is Poised to Experience Robust Growth owing to Rise in Demand for Effective Packaging Solutions

Contract packaging refers to outsourcing professional packaging services to third party vendors. This allows manufacturers to leverage packaging and labeling expertise of contract packagers without investing in expensive packaging infrastructure. Contract packaging services ensure product protection during transit, attract consumers through attractive designs and comply with stringent regulations. Rising demand for complex, multi-level packaging from industries such as pharmaceuticals, cosmetics and food & beverages is fueling growth of contract packaging market.

The Global Contract Packaging Market Demand is estimated to be valued at US$ 76.46 Mn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2030.

Key Takeaways
Key players: Key players operating in the contract packaging market are SUSI Studio, Insecta Shoes Canada Inc. ROMBAUT, In The Soulshine, Della La LLC, Reformation, Alabama Chanin, Wawwa, Doshi FCSA, Hiareth Collective, Komodo Fashion, Brave Gentle Man, ECOALF, Rapanui, and Tact & Stone.

Key opportunities: Growing demand for sustainable and customized packaging from e-commerce companies presents significant growth opportunities for contract packagers. Advancements in digital printing technology allow contract packagers to offer personalized packaging solutions.

Global expansion: Leading contract packagers are expanding their operations globally through mergers and acquisitions to cater to multinational consumer brands. They are also investing in automated packaging lines and renewable energy to reduce costs and meet stringent environmental standards worldwide.

Market drivers: A key driver for the contract packaging market growth is the significant cost savings it offers to manufacturers compared to in-house packaging facilities. It allows companies to focus on their core business activities while leveraging contract packagers’ expertise and infrastructure. This drives efficiency and profitability for brand owners.
PEST Analysis
Political: The contract packaging market is regulated by various government regulations regarding packaging, safety standards and import/export. Changes in such regulations can impact market players.

Economic: Growing e-commerce sector and need for varied packaging solutions are driving demand from end-use industries like food and beverages, healthcare and personal care. Economic growth increases consumer spending which boosts market.

Social: Rising health awareness drives demand for innovative packaging with nutrition information and ease of use. Changes in lifestyle and consumption patterns influence type of packaging preferred by consumers.

Technological: Automation, robotics and internet of things solutions help optimize operations and reduce costs. Technologies like printed electronics, active and intelligent packaging are gaining popularity and enhancing product appeal and safety.

Geographical Regions with High Market Concentration
The contract packaging market in terms of value is highly concentrated in North America and Europe. North America accounts for the largest share owing to presence of major FMCG companies and contract packagers in countries like the US and Canada. Europe is another major regional market led by countries such as Germany, UK, France and Italy. Asia Pacific is an emerging market with high growth potential supported by developing economies of China, India and other Southeast Asian nations.

Fastest Growing Region
Asia Pacific region is poised to witness the fastest growth in the contract packaging market during the forecast period. This is attributed to rapid urbanization, rising incomes, growing health awareness and changing lifestyles in developing Asian countries. Furthermore, local and multinational companies are increasingly outsourcing packaging operations to Asian contract packagers to capitalize on lower costs. China, India and other Southeast Asian nations will propel market expansion in the coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it