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The Demand for Contract packaging Market was estimated at US$ 52.6 Bn in 2019. It is expected to grow at a CAGR of 15% during Forecast Period (2020-2028).
Contract packaging market is expected to grow at rapid pace as manufacturers view contract packaging as a strategic imperative as it requires less investment and quicker output. New innovations in the packaging market and customization is boosting the growth of contract packaging market. For instance, late-stage customization and postponement packaging are becoming more popular, especially for small volumes. However, this kind of packaging can be expansive when carried out internally, and requires expertise that can be fulfilled by co-packers.
Brand owners are opting for contract packaging companies to manage complexities at a relatively fixed cost as there is significant rise in costs, both, indirectly and directly, in managing their supply chain. Additionally, it also helps to speed up the process in the market, as most contract packers have warehousing and manufacturing facilities that offers an advantage to manufacturers.
Other factors that influence the growth of global contract packaging market are development of various retail chains across the globe, the growth of e-commerce businesses. Technological executions is one of the major growth driver for the contract packaging market. Also, factors such as rise in internet penetration and increasing trend of online shopping would boost the global contract packaging market during forecast period.
By Application, Food and Beverage is Expected to Witness High Demand during Forecast Period
Food and beverage had accounted for a significant share of xx% in 2019 and is expected to remain dominant during the forecast period. In contract packaging market, food and beverage application segment plays a vital role in the growth of the market and accounts for the maximum revenue share. Factor such as rising disposable income and health concerns among consumers in the developing countries are expected to drive the demand for appropriate packaging solutions. Contract packers usually have all faciltiies required for food & beverage packaging.
High demand for packed and ready-to eat food in developing countries is expected to boost the growth of contract packaging market. Rapid growth in population and urbanization in countries in Asia Pacific is also contributing to the high demand of packaged foods. Further, rapid growth in alcoholic and non-alcoholic beverages that employs closures, caps, bottle, can, and pouch is expected to be a driver for this market over the forecast period (2020-2028).
By Packaging Type, Primary Packaging is expected to Witness High Demand during Forecast Period
Primary Packaging accounted for a significant share of xx% of global contract packaging market in 2019 and is expected to remain dominant during the forecast period. Various benefits offered by primary packaging over other forms of packaging is expected to boost its revenue share in the market. End users prefer primary packaging as it makes a difficult object easier to pack and also protects the product from external environment.
Primary Packaging ranges from simple wrapping to elaborate transit mounts that can be very protect the product from moving in different directtion while shipping/transporting. Others benefits that incline end users towards primary packaging is that it not only reduces the dependence on the packing system at the time of shipping, it also makes the object less susceptible to damage when it is handled in houses.
North America is expected to dominate the Global Contract Packaging Market during Forecast Period
North America accounted for a significant share of xx% in 2019 and is expected to remain dominant during the forecast period. The contract packaging market in North America is rapidly growing due to the increasing demand for packaging in different segments such as food and beverages, beauty care, pharmaceuticals, and other segments.
Key manufacturers in North America are rapidly investing in contract packaging as they are becoming aware of the intense gloval competition and cost pressures. Many players in Europe such as Persson Innovation and Langen Group, have invested in various regions such as North America to stay competitive and expand in untapped regions.
Owing to the rising demand, stability, and changing preferences of manufacturing firms towards contract packaging, North America contract packaging market is expected to witness steady growth.
Key manufacturers in the global contract packaging market are focusing on various services that can be provided under contracts such as labelling, bottling, filling, coding, etc. Other strategies adopted by key players such as acquistions and mergers are also anticipated to help expand ther production facilities for contract packaging.
The major competitors of contract packaging markets are DHL, Green Packaging Asia, Co-Pak Packaging, Assemblies Unlimited Inc., Deufol, Unicep Packaging, Summit Container, Genco, Stamar Packaging, Sharp Packaging, Jones Packaging, Aaron Thomas Company Inc., AmeriPac Inc., Nulogy Corporation, Wepackit Inc., Sterling Contract Packaging Inc., Kelly Products Inc., Sonic Packaging Industries, CWS Contract Packaging Services,
Key players in the contract packaging market are involved in strategic supply chain decisions, such as product development, vendor selection & qualification, and formulation and quality assurance.
Contract Packaging Market Segmentation
- Food and Beverages
- Home products and fabrics
- Cosmetics and beauty care
By Packaging Type
- Primary packaging
- Secondary Packaging
- Tertiary Packaging
- North America
- Asia Pacific
- Latin America
- Middle East & Africa