by The Contract Packaging Market is estimated to be valued at US$ 60.5 Bn In 2022 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Contract packaging refers to the outsourcing of packaging activities to contract packaging service providers. This includes packaging, labeling, and other related activities. Contract packaging offers numerous advantages such as reduced costs, increased efficiency, and improved product quality. It also allows companies to focus on their core competencies while leaving the packaging responsibilities to specialized professionals. The contract packaging market caters to various industries including food and beverage, healthcare, cosmetics, and consumer goods.
Market Dynamics:
The contract packaging market is driven by the increasing demand from the food and beverage industry. As consumers become more health-conscious and seek convenience, ready-to-eat and processed food products are gaining popularity. This is driving the demand for contract packaging services to ensure efficient and attractive packaging.
Additionally, the growing e-commerce sector is creating opportunities for the contract packaging market. With the rise of online shopping, there is a need for specialized packaging solutions that can withstand the rigors of transportation and ensure safe delivery of products.
commerce sector.
Segment Analysis:
The Contract Packaging Market can be segmented based on packaging type, end-user industry, and geography. In terms of packaging type, flexible packaging dominates the market and is expected to continue its dominance over the forecast period. This is due to the increasing demand for flexible packaging materials in various industries such as food and beverage, pharmaceuticals, and consumer goods. Flexible packaging offers advantages such as convenience, lightweight, and cost-effectiveness, which are driving its adoption in the market. Within the flexible packaging segment, stand-up pouches are gaining traction due to their attractive design, resealable feature, and ability to extend shelf life.
PEST Analysis:
Political: The contract packaging market is influenced by political factors such as regulations imposed by governments on packaging materials, environmental sustainability initiatives, and trade policies.
Economic: The market is also impacted by economic factors such as GDP growth, disposable income, and consumer spending patterns, as these factors determine the demand for packaged goods.
Social: Changing consumer preferences, increasing health consciousness, and convenience-oriented lifestyle are the social factors influencing the contract packaging market.
Technological: Technological advancements in packaging materials, machinery, and automation are driving innovation and efficiency in the contract packaging industry. This includes advancements in robotics, smart packaging, and sustainability solutions.
Key Takeaways:
The global contract packaging market is expected to witness high growth, exhibiting a CAGR of 9.7% over the forecast period, due to increasing outsourcing of packaging services by various industries. The market size is projected to reach US$ 60.5 Bn by 2022.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the contract packaging market. The region is witnessing rapid industrialization, urbanization, and a growing middle-class population, leading to increased consumption of packaged goods.
Key players operating in the contract packaging market include Aaron Thomas Company, Multipack Solutions, Pharma Tech Industries, Reed-Lane Inc., Sharp Packaging Services, UNICEP Packaging, Green Packaging Asia, Jones Packaging Inc., Stamar Packaging, Budelpack Poortvliet BV, and Complete Co-Packing Services Ltd. These players offer a wide range of packaging solutions and have a strong presence in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
