The Contract Packaging Market is estimated to be valued at US$ 66.37 Bn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

 

Market Overview:

Contract packaging refers to outsourcing of packaging related functions and services to specialized packaging companies. Contract packaging companies offer services ranging from primary packaging of pharmaceutical products and medical devices to secondary and tertiary packaging. Owing to the advantages like reduced operational costs, improved productivity and scalability, contract packaging services are gaining popularity across industries like pharmaceuticals, food and beverage, personal care among others.

 

Market key trends:

One of the key trend boosting growth of contract packaging market is increasing demand from pharmaceutical companies. Pharmaceutical companies are increasingly outsourcing their secondary and tertiary packaging operations to contract packagers to focus on their core competencies. Further, contract packaging allows pharmaceutical manufacturers to scale up or down their production based on market demand in a cost effective manner. Contract packagers offer expertise, specialized machinery and packaging materials which helps pharmaceutical companies ensure compliance with stringent quality and regulatory standards. This trend is expected to continue driving demand over the forecast period.

 

Porter’s Analysis

Threat of new entrants: New entrants face high initial investment costs to set up packaging facilities and infrastructure. They also need to build strong clientele which is difficult against existing major players.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to the presence of many contract packagers. They can negotiate better prices and quality standards from suppliers.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to low switching costs for contract packagers to change suppliers.
Threat of new substitutes: There is a low threat of substitutes as contract packaging offers value added services like inventory management, mixing, and labelling.
Competitive rivalry: Intense competition exists among major contract packagers.

 

SWOT Analysis

Strength: Contract packaging provides end-to-end services to simplify supply chain. It ensures compliance with safety and quality standards.
Weakness: Dependency on few lead companies for majority of revenues. Lack of innovation and differentiation from competitors.
Opportunity: Growth in pharmaceutical and healthcare industries boost outsourcing of packaging activities. Rising e-commerce penetration expands opportunities.
Threats: M&A activities increase market consolidation. Stringent regulations raise compliance costs.

 

Key Takeaways

The Global Contract Packaging Market Growth is expected to witness high at a CAGR of 9.7% over the forecast period, due to increasing outsourcing of non-core activities by manufacturers. The market size for contract packaging was US$ 66.37 billion in 2023.

Regional analysis - North America dominated the global contract packaging market in 2023 with a share of around 35%, owing to strong pharmaceutical sector and rising biosimilars industry in the region. Asia Pacific is anticipated to grow at the fastest pace during the forecast period, with China, India, and Japan emerging as major markets.

Key players - Key players operating in the contract packaging market are 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. They are focusing on new product development, acquisitions and expansion strategies to strengthen their market presence.

For more insights, read-  https://www.dailyprbulletin.com/contract-packaging-market-growth-and-trnds-analysis-share-size-demand-forecast/