Global Contract Packaging Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type Of Packaging (Primary, Secondary, Tertiary), By Packaging Material (HPDE, LDPE, PET, Paperboard, Fibreboard, Glass, Aluminium), By Package Types (Containers, Blister Packs, Bottles And Jars, Vials, Others), By Contract Packaging Services (Design, Inventory Management/Control, Printing And Component Production, Packaging Production, Package Assembly & Fulfillment, Warehousing & Distribution), By End User Industry (Food, Beverage, Cosmetic, Pharmaceutical, Consumer Electronics, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Sep 2022 Report Code: KSI061613501 Pages: 120

The global contract packaging market is estimated to grow at a CAGR of 15.36% to reach a market size of US$117.702 billion in 2027 from US$43.300 billion in 2020.

Contract packaging is referred to as the packaging solution provider (which is outsourced) from the beginning to the end of the product packaging (from design to storage or distribution). Contract packaging manufacturers work in collaboration with the product managers and product manufacturers for consulting, planning, customizing, and execution of the packaging process as per the timeline, pre-produced or required packaging components, and industry requirements. The growth in the contract packaging market is determined based on the changing manufacturing industry preferences, where product manufacturers are moving towards contract packaging solution providers due to their growing focus on cost optimization with more focus on their core businesses.

The market is propelled to grow at a significant pace with the growing pharma industry delivering several drugs and drug delivery systems. The prevalence of diseases and the elderly population are contributing to industrial growth, fueling the market demand in the forecast period. The growing consumer electronics adoption coupled with the growing disposable income and increasing family income in the emerging economies of the world is providing an opportunity for the contract packaging market to flourish with the growing demand for consumer electronic goods. With the shift in the trend of dietary consumption patterns, there is a high demand for packaged food and beverages, further burgeoning the market growth in the forecast period. The growing retail industry, with growing online retail sales, is further providing an opportunity for the market to grow at a sustainable pace in the forecast period.  Geographically, North America is projected to hold a significant market share, followed by the European region. While the Asia Pacific region is projected to be the fastest-growing in the forecast period.

The growing agricultural packaging industry is further augmenting the market growth in the forecast period.

The agricultural packaging industry is estimated to grow in the forecast period with the growing population coupled with the growing demand for food. Hence, this has created a need for agricultural packaging solutions where consumers demand effective packaging solutions where the food is free from contamination and thus prevents spoilage, further burgeoning the market demand in the forecast period. As a result, fresh food producers seek contract packaging solution providers who have continuous technological advancements in packaging technology, which will drive market demand during the forecast period.  Also, with the growing retail packaging, fresh farm produce needs efficient packaging so that it can be easily transported from one destination to the other. Hence, the growing retail packaging trends are providing an opportunity for the market to grow at a significant pace in the upcoming years. Based on geography, North America is expected to hold a significant market share due to the early adoption of technology. On the other hand, the Asia Pacific region is expected to show significant growth prospects with increasing disposable and family income, where customers are preferring freshly packaged fruits and vegetables.  Hence, their willingness to spend on packaged fresh fruits and vegetables has also increased. Also, a large consumer base with an expanding middle-class population is projected to fuel the market demand in this region, promoting high consumption of fresh agricultural produce.

With the growing application of cosmetics, the market is estimated to surge with the growing demand for efficient cosmetic packaging solutions.

The market is projected to be fueled in the forecast period owing to the increasing popularity of cosmetic products among young women and older women at the international level. The global upper-middle-class population is expanding and is projected to increase, with Asia having the maximum share among all the regions of the world. Hence, this has created a large and active customer base with an increase in disposable income, propelling a huge demand for cosmetic packaging in the forecast period. The global middle-class population is estimated to reach a size of 5.3 billion by the end of 2030, further adding over 2 billion people with increased purchasing power than today (source: The European Union). China and India from the APAC region will comprise the maximum consumer base of around 66% with a middle-class consumption of around 59%. Furthermore, with rapid urbanization leading to the adoption of modern living conditions and changing consumer preferences, the market demand is going to fuel in the forecast period with the changing purchasing behaviour, where the online mode of purchase of premium cosmetic products for skincare, haircare, and other applications is the most preferred option over offline sales. Furthermore, the increasing focus of the male population on personal grooming is further providing an opportunity for market growth with the growing purchase of cosmetic products for skincare, haircare, and other purposes among men. The growing skincare cosmetic brands and the rising popularity of skincare cosmetic products among men and women around the globe are estimated to fuel the market demand in the forecast period.

The market for hair care cosmetic applications is projected to gain traction in the forecast period owing to the increasing interest among people to achieve a better quality of hair. Hence, hair care cosmetic products are gaining traction among a wide range of consumers, men, and women, worldwide. Additionally, with the growing demand for professional hair services, the market’s growth is expected to accelerate in the coming years with the burgeoning demand for hair creams, lotions, and hair color cosmetics among other products. Other factors driving the market growth for hair cosmetic products include a growing middle-class population with an increase in purchasing capacity and growing disposable income. Hence, the hair care industry holds a unique position in the cosmetic industry. Furthermore, growing sales alternatives in the form of online sales apart from offline sales channels are also contributing to the growing purchase of hair care cosmetic products, further fueling the market demand during the forecast period.

With the growing internet penetration and digitization, consumers around the globe are interested in purchasing cosmetic products online. Also, the online mode of purchase has provided a user-friendly way to purchase beauty products, providing secure payment options online, in addition to saving a lot of time, effort, and money. Additionally, with the growing e-commerce industry, the younger generation living in an e-commerce era is highly influenced by the digital mode of purchase and is thus having a significant impact on the sales of cosmetic products online, further fueling the market demand in the forecast period and the coming years. Many retailers, in addition to offline sales, are moving on to the creation of online sales channels as well, offering a convenient alternative for people with a busy lifestyle. Furthermore, with the growing adoption of smartphones, tablets, and other mobile modes of electronic purchasing devices, the contract packaging for cosmetic products is expected to thrive at a significant growth rate with the growth of cosmetic sales via e-commerce during the forecast and in the upcoming years.

Recent Development and expansions

A completely integrated two-lane Uhlmann blister packaging line was purchased by Jones Healthcare Group in June 2020 as part of a significant expansion in its packaging services. As increasingly complex pharmaceutical dosage forms and regimens develop clinically and economically, the completely automated technology will increase the company's ability to manage demand surges and unusual blister combinations.

In response to the rise in demand for small batch production, Sepha introduced a contract packaging service in February 2021 to support the pharmaceutical, nutraceutical, & medical device industries.

In May 2020, Sharp purchased a pharmaceutical packaging factory from Quality Packaging Specialists International LLC. The facility has full regulatory approval and a 160,000-square-foot size. To provide both primary & secondary pharmaceutical packaging, comprising bottling, blistering, vial labelling, & medical device kitting, as well as serialization services, it has 12 primary manufacturing locations for numerous secondary packaging lines.

COVID-19 Impact on Contract Packaging Market

COVID-19 had a favourable impact on the market. Due to economic and social distance rules, which caused a surge in the e-commerce market, the majority of consumers have been favouring online channels for buying. To keep up with the rising demand, businesses have been outsourcing their packaging end to end or as separate services. However, the pandemic affected several companies' automation plans, which had a modest influence on the market.

Global Contract Packaging Market Scope:

Report Metric Details
 Market Size Value in 2020  US$43.300 billion
 Market Size Value in 2027  US$117.702 billion
 Growth Rate  CAGR of 15.36% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Type of Packaging, Packaging Material, Package Types, Contract Packaging Services, End User Industry, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered Valk Industries, Inc., Aaron Thomas Company, Inc., Mattpak Inc., WESTERNInnovations, Inc., U.S. Packaging & Wrapping LLC., Action Packaging & Design, Inc., Advanced Concept Innovations, American FlexPack, Inc.
 Customization Scope  Free report customization with purchase

 

Segmentation:

  • By Type of Packaging
    • Primary
    • Secondary
    • Tertiary
  • By Packaging Material
    • HPDE
    • LDPE
    • PET
    • Paperboard
    • Fibreboard
    • Glass
    • Aluminium
  • By Package Types
    • Containers
    • Blister Packs
    • Bottles and Jars
    • Vials
    • Others
  • By Contract Packaging Services
    • Design
    • Inventory Management/Control
    • Printing and Component Production
    • Packaging Production
    • Package Assembly & Fulfillment
    • Warehousing & Distribution
  • By End User Industry
    • Food
    • Beverage
    • Cosmetic
    • Pharmaceutical
    • Consumer Electronics
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • France
      • Others
    • Middle East and Africa
      • UAE
      • Israel
      • Saudi Arabia
      • Others
    • Asia Pacific
      • Japan
      • China
      • India
      • Australia
      • South Korea
      • Indonesia
      • Thailand
      • Taiwan
      • Others

Frequently Asked Questions (FAQs)

Q1. What is the size of the global contract packaging market?
A1. Contract Packaging Market was valued at US$43.300 billion in the year 2020.


Q2. What will be the contract packaging market size by 2027?
A2. The global contract packaging market is estimated to reach a market size of US$117.702 billion by 2027.


Q3. What are the growth prospects for the contract packaging market?
A3. The contract packaging market is estimated to grow at a CAGR of 15.36% over the forecast period.


Q4. What factors are anticipated to drive the contract packaging market growth?
A4. The contract packaging market is propelled to grow at a significant pace with the growing pharma industry delivering several drugs and drug delivery systems.


Q5. Which region holds the largest market share in the contract packaging market?
A5. Geographically, North America is projected to hold a significant share of the contract packaging market followed by the European region.

1. Introduction
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. Research Methodology  
2.1. Research Data
2.2. Assumptions

3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. Global Contract Packaging Market Analysis, by Type of Packaging
5.1.  Introduction
5.2.  Primary
5.3.  Secondary
5.4.  Tertiary

6.  Global Contract Packaging Market Analysis, By Packaging Material
6.1.  Introduction
6.2.  HPDE
6.3.  LDPE
6.4.  PET
6.5.  Paperboard
6.6.  Fibreboard
6.7.  Glass
6.8.  Aluminium

7.  Global Contract Packaging Market Analysis, by Package Types
7.1.  Introduction
7.2.  Containers
7.3.  Blister Packs
7.4.  Bottles and Jars
7.5.  Vials 
7.6.  Others

8.  Global Contract Packaging Market Analysis, by Contract Packaging Services
8.1.  Introduction
8.2.  Design
8.3.  Inventory Management/Control
8.4.  Printing and Component Production
8.5.  Packaging Production
8.6.  Package Assembly & Fulfillment
8.7.  Warehousing & Distribution

9.  Global Contract Packaging Market Analysis, by End User Industry
9.1.  Introduction
9.2.  Food
9.3.  Beverage
9.4.  Cosmetic
9.5.  Pharmaceutical
9.6.  Consumer Electronics
9.7.  Others

10.  Global Contract Packaging Market Analysis, by Geography
10.1.  Introduction
10.2.  North America
10.2.1. United States
10.2.2.  Canada
10.2.3.  Mexico
10.3.  South America
10.3.1.  Brazil
10.3.2.  Argentina
10.3.3.  Others
10.4.  Europe
10.4.1. UK
10.4.2.  Germany
10.4.3.  France
10.4.4.  Others
10.5.  Middle East and Africa
10.5.1. United Arab Emirates
10.5.2.  Israel
10.5.3.  Saudi Arabia
10.5.4.  Others
10.6.  Asia Pacific
10.6.1.  Japan
10.6.2.  China
10.6.3.  India
10.6.4.  Australia
10.6.5. South Korea
10.6.6. Indonesia
10.6.7. Thailand
10.6.8. Taiwan 
10.6.9.  Others

11.  Competitive Environment and Analysis
11.1.  Major Players and Strategy Analysis
11.2.  Emerging Players and Market Lucrativeness
11.3.  Mergers, Acquisitions, Agreements, and Collaborations
11.4.  Vendor Competitiveness Matrix

12. Company Profiles
12.1. Valk Industries, Inc.
12.2. Aaron Thomas Company, Inc.
12.3. Mattpak Inc.
12.4. WESTERNInnovations, Inc.
12.5. U.S. Packaging & Wrapping LLC.
12.6. Action Packaging & Design, Inc.
12.7. Advanced Concept Innovations
12.8. American FlexPack, Inc.

Valk Industries, Inc.

Aaron Thomas Company, Inc.

Mattpak Inc.

WESTERNInnovations, Inc.

U.S. Packaging & Wrapping LLC.

Action Packaging & Design, Inc.

Advanced Concept Innovations

American FlexPack, Inc.

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