Contract Packaging Market

Contract Packaging Market Outlook from 2024 to 2034

The contract packaging market size was projected to be USD 47.2 billion in 2023. By the end of 2024, the industry is likely to reach a valuation of USD 49.6 billion. During the forecast period, the global market for contract packaging is expected to garner a 5.10% CAGR and reach a size USD 81.6 billion by 2034.

Attributes	Details
Estimated Market Value in 2023	USD 47.2 billion
Expected Market Value in 2024	USD 49.6 billion
Expected Market Value in 2034	USD 81.6 billion
Value based CAGR from 2024 to 2034	5.10%

Key Industry Trends and Highlights

• Focus on product diversification- Pharmaceuticals, food and beverage and cosmetics industries, among others, are among the many product categories and industries that contract packagers are progressively providing a wide range of services to. They are also providing them with customized packaging solutions made to fit particular requirements. This flexibility and specific knowledge are fueling expansion and offering clients unique services.
• Eco friendly packaging options- Sustainability and eco friendly packaging options are becoming increasingly important in the market. Many contract packaging firms are responding to these demands by providing creative, eco friendly solutions

2019 to 2024 Historical Analysis vs. 2024 to 2034 Industry Forecast Projections

Report Attributes	Details
Market value in 2023	USD 47.2 billion

The global trade tensions that arose in 2018 presented difficulties for the contract packaging sector, resulting in supply chain interruptions and uncertainties. Trade disputes, tariffs, imparities, and regulatory changes impeded market expansion and increased costs for manufacturers and contract packaging firms by affecting the import and export of commodities and packaging materials.

During the end of the historical period, the growing popularity of e commerce, which resulted in a spike in demand for effective, customized packaging solutions to satisfy the particular requirements of online retail, was the main driver of the contract packaging business. The market expansion was significantly fueled by the ongoing emphasis on sustainability and packaging compliance with regulations.

Key Drivers Of The Global Contract Packaging Market

• The pharmaceutical industry is putting an increased emphasis on serialization as well as traceability to prevent counterfeiting and maintain patient safety. This creates immense demand for contract packaging manufacturers, having pharmaceutical packaging compliance knowledge.
• The expanding e commerce sector creates a demand for specialized packaging, including eco friendly, protective, and aesthetically beautiful solutions customized for online retail, generating demand for contract packaging services.
• A distinct market driver has emerged as a result of growing consumer expectations for sustainable packaging and environmental concerns. By developing innovative eco friendly solutions, contract packaging businesses are drawing in clients who are dedicated to lowering their carbon impact.

Challenges in the Global Contract Packaging Market

• Having the capacity to handle the growing complexity of packaging design and materials is a key challenge in the global contract packaging market. Contract packagers are under constant pressure to meet the growing customer preferences for unique and innovative packaging, which can be expensive and technically demanding. They also have to stay up with the consumer demand for innovation by continuously incorporating new materials and techniques.
• Keeping up with changing consumer tastes while remaining flexible is another difficulty confronting the global contract packaging business. Contract packagers need to be quick to adjust and provide fresh, creative packaging solutions in response to shifting consumer behaviors and developing trends in order to fulfill changing market demands and stay competitive in a rapidly changing environment.

Country wise Insights

The table below lists the top five nations expected to forecast prominent growth during the forecast period. India and China are predicted to have the maximum development among these nations.

Forecast CAGRs from 2024 to 2034

Countries	CAGR from 2024 to 2034
The United States	3.3%
The United Kingdom	4.5%
Germany	2.2%
China	6.8%
India	7.7%

Diverse Range of Products and the E commerce Growth in the United States to Boost Sales

The United States market for contract packaging is likely to garner a 3.3% CAGR during the forecast period. The consumer goods market in the United States is enormous and diverse, covering a wide range of products including food and beverages, prescription drugs, cosmetics, and more.

Due to the wide range of products available, custom packaging solutions-such as distinctive materials, designs, and labeling-are required, which fuels the need for contract packaging services. Contract packagers are capable of managing this variability and offering effective packaging solutions tailored to the unique requirements of certain product categories.

The packaging environment has changed as a result of the robust e commerce industry in the region. As more people buy online, there is a greater demand for specialized, effective, and safe packaging options to guarantee that goods arrive to customers undamaged and look good. Contract packaging companies play a critical role in satisfying these needs by providing specialist packaging services for online retailers.

The Retail Industry to Boost Growth in the United Kingdom

The contract packaging market in the United Kingdom is poised to expand at a 4.5% CAGR from 2024 to 2034. The retail sector in the United Kingdom, which includes private label companies, has been steadily growing. Retail brands need high quality, economical, and effective packaging and labeling solutions, which drives up demand for contract packaging services.

Contract packaging manufacturers give a wide range of packaging alternatives, from mass produced to premium, customized packaging for private label businesses, and the flexibility to adjust to the changing needs of the retail sector.

Premium Quality of Gourmets to Boost Growth in Germany

The market for contract packaging in Germany is poised to develop at a 2.2% CAGR during the forecast period. Germany has a great preference for high quality and gourmet goods. Specialized and superior packaging solutions are in high demand as a result of this preference. In order to satisfy the specific packaging needs of these products, which include premium labeling, superior materials, and customized packaging designs, contract packaging services are crucial.

Germany is renowned for its strict packaging laws and excellent standards. This necessitates a high degree of packaging precision and skill. Contract packaging firms are essential to maintaining adherence to these requirements since they have the skills and expertise to handle the intricate regulatory environment. In the German market, their services support brands in upholding regulatory compliance and quality standards.

Rising Middle Class to Shift towards Easy Packaging Options that will Bolster Demand in China

The China market for contract packaging is likely to expand at a 6.8% CAGR from 2024 to 2034. The growing middle class in China is more concerned with convenience and is turning more and more toward pre packaged, clearly labeled goods.

The need for contract packaging services to offer specialized and effective packaging solutions is fueled by this trend. Contract packagers provide a variety of packaging alternatives that suit the convenience as well as lifestyle preferences of the growing middle class population in order to meet these changing needs of consumers.

Booming Export Market in India to Propel Demand

The India contract packaging market is poised to expand at a 7.7% CAGR during the forecast period. The expansion of export prospects has led to a boom in contract packaging services in India.

Contract packaging companies are essential in ensuring that Indian products meet international norms and standards when they are sold in foreign markets. This supports the development of contract packaging in India by facilitating easier exports and global market expansion.

India has seen remarkable growth in both the fast moving consumer goods (FMCG) sector and the rising retail business. Contract packaging is essential for firms to effectively manage large production volumes and offer affordable packaging solutions as consumer demand for goods soars.

Category wise Insights

The table below highlights how the bottles are projected to take up a significant global market share. The food and beverage segment is likely to garner a significant market share in 2024.

Category	Market share in 2024
Bottles	42.6%
Foods and Beverages	70.1%

Bottles are Gaining Traction for Convenience of Usage and Biodegradability

The bottles segment is expected to acquire a market share of 42.6% in 2024. Bottles provide customers with convenience for a range of goods, including medicines, beverages, and personal hygiene products. Customers value the portability, convenience of use, and resealability of bottles, which increases demand and encourages manufacturers to incorporate them into their packaging designs.

Concerns about sustainability are driving companies to switch to more environmentally friendly packaging materials. Bottles are thought to be a more environmentally friendly option than single use plastic packaging, especially if they are composed of recyclable or biodegradable materials. This is in line with consumer and regulatory desires for packaging that is environmentally friendly.

Food and Beverages will occupy the Dominant Share in Terms of End Use Applications

Based on the end use application, the food and beverage segment is anticipated to take up a significant global market share. In 2024, the food and beverage segment is likely to acquire a 70.1% global market share.

Products ranging from snacks and beverages to perishable commodities are included in the food and beverage business. A significant portion of the contract packaging business is devoted to specialized packaging solutions, such as materials and designs that are distinctive, due to this diversity's impact on consumer demand.

Convenient food and beverage items that are ready to eat and portable are in high demand. Contract packaging manufacturers give customers the freedom to design packaging that makes products more convenient, like resealable containers, single serve packaging, and portion controlled packaging, thereby responding to consumer preferences and boosting demand in this market during the forecast period.

Competitive Landscape

Many companies provide highly personalized packaging options to meet the unique requirements of their customers. In order to increase their competitiveness in the market, they do this by offering distinctive and custom package designs as well as value added services like labeling, branding, and quality control.

Contract packaging companies are adopting advanced technologies like robotics, automation, and data analytics more frequently in an effort to boost productivity, cut expenses, and improve the accuracy and speed of their packaging operations. They can offer competitive prices and short response times thanks to this technological advantage, which draws in more customers and increases their market share.

Some of the prominent developments by the key companies in this domain are

Company	Key Developments
Summit Container	In 2021, Summit Container was nearing completion on an expansion project at its European Headquarters located in Almere, The Netherlands. The extra area will be used for component supply chain localization, customer assistance, and the development of new products. There will be a 35% increase in molding capacity, enhanced capabilities in a new mold repair facility, increased capacity as well as capabilities for injection molding actuators and valve components. It will also have an innovative research and development lab that are all included in the 30% increase in manufacturing space provided by the extension.
Sharp Packaging	Sharp has finished the construction of new specifically designed production suites for the packaging, storage, and distribution of gene treatments at its plant in Heerenveen, the Netherlands. The new facility at Heerenveen is a response to the growing need for specialized, dedicated packaging capacity from gene therapy producers and sponsors. In an effort to serve clients in the United States and Europe, the Heerenveen plant supplements comparable capabilities offered at the company's Bethlehem, PA facility.

Report Scope

Attribute	Details
Projected market value in 2024	USD 49.6 billion
Projected market value in 2034	USD 81.6 billion
Forecast CAGR from 2024 to 2034	5.10%
Forecast period	2024 to 2034
Historical period	2019 to 2023
Market analysis	Value in USD billion
Key regions covered	North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa
Key countries profiled	The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Key market segments	Services, Vertical, Region
Key companies profiled	Unicep Packaging; Summit Container; Genco; Stamar Packaging; Sharp Packaging; Jones Packaging; Aaron Thomas Company Inc.; DHL; Green Packaging Asia; Co Pak Packaging; Assemblies Unlimited Inc.; Deufol; AmeriPac Inc.; Nulogy Corporation; Wepackit Inc.; Sterling Contract Packaging Inc.; Kelly Products Inc.; Sonic Packaging Industries; CWS Contract Packaging Services

Segmentation Analysis of the Contract Packaging Market

By Services:

• Primary
• Secondary
• Tertiary

By Vertical:

• Food
• Beverages
• Pharmaceuticals
• Home Products and Fabrics
• Cosmetics and Beauty Care
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• The Middle East & Africa

Frequently Asked Questions

What is the anticipated market value of the contract packaging market outlook in 2024?

The global contract packaging market is expected to reach USD 49.6 billion by 2024.

What is the expected CAGR for the contract packaging market through 2034?

The global contract packaging market is set to expand at a CAGR of 5.10% by 2034.

What is the anticipated market value of the global market in 2034?

The global contract packaging market is forecast to reach USD 81.6 billion by 2034.

Which product type is likely to dominate the contract packaging market?

The bottles segment is projected to attain a 42.6% share in 2024.

Which is the leading end use type in the contract packaging market?

The food and beverage segment is likely to acquire a 70.1% share in 2024.