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According to Technavio's research analysts, the contract packaging market share is estimated to be valued at USD 17.29 billion by 2026, at an accelerating CAGR of 6.3%. The valuable insights, on the post COVID-19 impact on the market that is compiled in this report, will help companies evaluate their business approaches.
The contract packaging market report extensively covers market segmentations by the following:
The contract packaging market report also offers information on several market vendors, including Aaron Thomas Co. Inc., Accu Tec, AmeriPac Inc., Bernard Laboratories Inc., CCL Industries Inc., Co Pak Packaging Corp., Deufol SE, FedEx Corp., gpa GLOBAL, Hanzo Logistics, Hollingsworth, Marsden Packaging Ltd., Multi Pack Solutions LLC, PHARMA TECH INDUSTRIES, Reed Lane Inc., Summit laboratories Inc., Truvant Europe Sp. z o.o., UDG Healthcare, Unicep Packaging LLC, and Verst Logistics Inc. among others.
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Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The TCO advantage by contract packaging is notably driving the contract packaging market growth, although factors such as the growing demand of in-house packaging may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the contract packaging industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Contract Packaging Market Driver
One of the key factors driving the global contract packaging industry growth is the TCO advantage by contract packaging. During the production process, consumer packaged goods (CPG) companies calculate TCO because it is considered the main criteria for buying packaging machines, the cost of which may vary from hundreds to thousands of dollars with an expected lifespan of 15-20 years. The annual maintenance cost of high-quality machines is expected to be 4% of the total cost in an ideal situation, with due consideration to all preventive measures. This percentage may go up to 12%-16%, depending on the quality of the machine. The overall equipment effectiveness (OEE) is expected to be above 80%, which depends on:
Thus, with an increasing focus on TCO by manufacturers, the global contract packaging market is also growing.
Key Contract Packaging Market Trend
Growing demand for e-commerce sales is one of the key contract packaging market trends that is expected to impact the industry positively in the forecast period. The e-commerce players use protective packaging, such as contract packaging damaged to avoid product damage while they are being shipped or transported. As if customers are not satisfied with the service, they may use the Internet to publicly show his/her dissatisfaction with the experience with the supplier, which may hamper the company's /image. Even if a consumer returns the damaged product, the company must bear the additional cost. Therefore, it is essential for e-commerce companies to invest in quality packaging to protect their products. Thus, the growing e-commerce sales will increase the need for contract packaging, thereby fueling the growth of the contract packaging market.
Key Contract Packaging Market Challenge
One of the key challenges to the global contract packaging industry growth is the growing demand of in-house packaging as the manufacturers are sometimes comfortable with having control of the complete production cycle. Additionally, contract packaging can be time-consuming as products are transported several times among manufacturers and packagers. In addition, an unwillingness to share information with contract packagers, availability of in-house machinery and staff, and high switching costs in situations when the relationship between manufacturer and packager does not go well. Recently, events are organized to promote the advantages of in-house packaging. Thus, such aspects are becoming key challenges for the global contract packaging market.
This contract packaging market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global contract packaging market as a part of the global metal and glass containers market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the contract packaging market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the contract packaging market encompasses successful business strategies deployed by the key vendors. The contract packaging market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The contract packaging market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the contract packaging market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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37% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for contract packaging in North America. Market growth in this region will be faster than the growth of the market in MEA.
The rapidly growing e-commerce trade, rising consumer awareness about environmental concerns along with the producers' demand for economical packaging options will facilitate the contract packaging market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The COVID-19 pandemic significantly impacted the economy of North America. Additionally, in 2021, the Chinese government imposed anti-dumping duty on imports of aluminum foil to the US and neighboring countries; which affected the contract packaging market in the US to an extent. However, in 2021, the successful vaccination drives across this region and increase in investment inflows in these sectors such as online groceries, pharmaceuticals, food and beverages, personal care, etc. Therefore it helped to resume operations across sectors, which resulted in the increased demand for contract packaging in this region.
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The contract packaging market share growth by the food and beverage segment will be significant during the forecast period. The growth of the segment is attributed to the growing disposable incomes, shrinking household size, expansion of the middle-class population, and the increasing demand for fresh and healthy convenience-oriented foods along with the benefits such as high barrier from microorganisms and peelable features.
This report provides an accurate prediction of the contribution of all the segments to the growth of the contract packaging market size and actionable market insights on post COVID-19 impact on each segment.
Pharmaceutical Contract Packaging market - The market size is expected to grow by USD 7.07 billion and record a CAGR of 16.80% during 2020-2024.
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Contract Packaging Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.3% |
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Market growth 2022-2026 |
$ 17.29 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
5.0 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 37% |
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Key consumer countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Aaron Thomas Co. Inc., Accu Tec, AmeriPac Inc., Bernard Laboratories Inc., CCL Industries Inc., Co Pak Packaging Corp., Deufol SE, FedEx Corp., gpa GLOBAL, Hanzo Logistics, Hollingsworth, Marsden Packaging Ltd., Multi Pack Solutions LLC, PHARMA TECH INDUSTRIES, Reed Lane Inc., Summit laboratories Inc., Truvant Europe Sp. z o.o., UDG Healthcare, Unicep Packaging LLC, and Verst Logistics Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by End-user
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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