Contract Packaging Market Growth. Future Demand Analysis 2034 |...

Contract Packaging Market Growth. Future Demand Analysis 2034

Posted 2024-08-29 19:57:43

The contract packaging market plays a pivotal role in the broader supply chain and manufacturing landscape, providing specialized packaging services to companies that may not have the in-house capabilities or resources to handle packaging processes themselves. This dynamic sector encompasses a wide range of services, including packaging design, assembly, labeling, and distribution. Contract packaging firms are engaged by diverse industries such as food and beverage, pharmaceuticals, cosmetics, consumer goods, and more.

The primary objective of contract packaging is to offer businesses a flexible and cost-effective solution for their packaging needs. Companies often turn to contract packaging services to streamline their operations, reduce overhead costs, and improve overall efficiency. By outsourcing packaging tasks to specialized providers, businesses can focus on their core competencies, leaving the complexities of packaging to experts who can ensure compliance with industry standards and regulations.

The projected size of the contract packaging market was estimated to be US$ 47.2 billion in 2023, with expectations to further ascend to a valuation of US$ 49.6 billion by the conclusion of 2024. Throughout the forecast period, the global contract packaging market is anticipated to experience a steady Compound Annual Growth Rate (CAGR) of 5.10%, culminating in a market size of US$ 81.6 billion by 2034. This trajectory underscores a consistent and positive growth trend in the contract packaging industry.

The surge in global industries and the emergence of startups across various sectors have fostered a growing demand for systematic and well-organized packaging solutions. This has driven many businesses to embrace contract packaging services, which offer the flexibility to tailor packaging processes according to their specific needs and requirements.

e-Commerce vertical has also been rising, which is actually playing a vital role in upscaling demand for third level of packaging, i.e. tertiary packaging. This factor is bound to take the entire contract packaging market at a greater stride in the near future.

Key Takeaways

North America holds 21% of the market share. This could be attributed to an ever-increasing demand for ready-to-eat food products along with carbonated beverages.
Europe stands second with emphasis on contract packaging companies for outsourcing the packaging requirements. This would, in turn, lessen operational costs. CPG (Consumer Packaged Goods) are looking forward towards vertical integration for offering packaging solutions, inclusive of logistics and procurement of raw materials. Europe holds 16% of the market share.
The Asia-Pacific is poised to grow voraciously in the contract packaging market due to growing awareness regarding the benefits of contract packaging.

Key Players