The global contract packaging market is estimated to grow at a CAGR of 13.98% to reach US$96.781 billion in 2025 from US$44.138 billion in 2019. Contract packaging is referred to as the packaging solution provider (which is outsourced) from the beginning to the end of the product packaging (from designing to the 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 produced packaging components and industry requirements. The growth in the contract packaging market is determined on the basis of the changing manufacturing industry preference where the 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 the industrial growth, fueling the market demand in the forecast period. The growing consumer electronics adoption 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. The shift in 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 propel 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. Therefore, the fresh food producers look for contract packaging solution providers with continuous technological advancements in packaging technology, surging the market demand in the forecast period. Also, with the growing retail packaging, the fresh farm produce needs efficient packaging so that these 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. On the basis of geography, North America is expected to hold a significant market share with 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 the packaged fresh fruits and vegetables has also increased. Also, a high consumer base with the 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 fuel 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 further created a large and active customer base with the 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 an increased purchasing power than today (source: The European Union). China and India from the APAC region will comprise of the maximum consumer base of around 66% with a middle-class consumption of around 59%. Furthermore, 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, hair care, and other applications is the most preferred option than the offline sales. Furthermore, the increasing focus of men population in personal grooming is further providing an opportunity for the market growth with the growing purchase of cosmetic products for skincare, hair care, and other purposes among men.
The growing skincare cosmetic brands with the rising popularity of skin care cosmetic products among the many 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 fuel in the forecast period owing to the increasing interests 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 growth is expected to propel 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 the 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, propagating the growth of the hair care 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, 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 in 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, 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 the cosmetic sales via e-commerce during the forecast and in the upcoming years.
Frequently Asked Questions (FAQs)