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The global contract packaging market size is estimated to grow by USD 20.9 billion between 2023 and 2028, exhibiting a CAGR of 6.54%. The growth rate of the market depends on several factors such as the total cost of ownership (TCO) advantage by contract packaging, the growing automotive market in emerging economies, and the increasing demand for packaged products.
The report offers extensive research analysis on the Contract Packaging Market, with a categorization based on End-user, including food and beverages, consumer goods, personal care, pharmaceuticals, and others. It further segments the market by Type, encompassing primary, secondary, and tertiary. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the contract packaging market growth is the growing automotive market in emerging economies. There is an increasing use of contract packaging by several automotive manufacturers to transport automotive parts. In addition, the global automotive industry is expected to grow on the backdrop of rising demand from emerging markets, such as China and India. Furthermore, compared with the mature markets, developing countries have low vehicle penetration.
Moreover, as the middle-class population grows, sales in the automotive industry are expected to rise as one of the aspirations of the middle-class population is to own a car. In addition, as the automotive industry market grows, original equipment manufacturers (OEMs) will increase the production of automotive parts that are used in the final automotive vehicle. Hence, the increasing demand for contract packaging needed to pack automotive parts will drive the global contract packaging market during the forecast period.
A key factor shaping the contract packaging market growth is the growing demand for e-commerce sales. It is essential in the e-commerce sector to securely package the product being sold or else it will get damaged. In addition, this may increase the chances of consumers not opting for the same supplier again. Therefore, e-commerce players use protective packaging.
Moreover, the consumers may use the Internet to publicly show their dissatisfaction with the experience with the supplier. In addition, this may create a negative image of the supplier in public. Furthermore, 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. Hence, such factors drive the market growth during the forecast period.
Growing demand of in-house packaging is one of the key challenges hindering the contract packaging market growth. The manufacturing companies micromanage the complete production cycle, beginning from production and culminating in the distribution of products. In addition, contract packaging can be time-consuming as products are transported several times among manufacturers and packagers.
Moreover, some other reasons that may encourage the use of in-house packaging are an unwillingness to share information with contract packagers, availability of in-house machinery and staff, and high switching costs in situations when the relation between manufacturer and packager does not go well. Therefore, in-house packaging seems an easy and convenient option for many of the manufacturing companies. Hence, such factors are hindering the market growth during the forecast period.
The food and beverage segment is estimated to witness significant growth during the forecast period. There is an increasing adoption of contract packaging by the food and beverages industry primarily to package snacks, confectionery, and whole foods such as grains, vegetables, and meat products. In addition, there are many factors that influence the demand for flexible packaging solutions for food packaging, such as 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 benefits such as high barrier from microorganisms and peelable features.
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The food and beverage segment was the largest segment and was valued at USD 24.58 billion in 2018. Moreover, the drinking preferences among people are expected to change in the beverage industry as most of the population consists of the youth, and they have different preferences compared to elderly people. Moreover, growth in urbanization and a rise in per capita income enable people to afford packaged food and drinks that were once considered luxury items. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Based on the type, the market has been segmented into primary, secondary, and tertiary. The primary segment will account for the largest share of this segment.?Primary packaging can be referred to as packaging that comes into direct touch with the product. In addition, primary packaging serves to confine, safeguard, and maintain the final product, especially from contamination. Moreover, this is the outermost covering that holds the final product, such as a cardboard box containing the cereal pouch or a plastic pouch containing whole-grain cereal. In addition, bottles, paper envelopes, wraps, drink jars, tins, and rankle packs are instances of primary packaging types. Furthermore, the consumer or end-user is frequently the target market for this kind of packaging. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. There is an increase in customer awareness with the occurrence of events related to contract packaging in this region, which positively impacts the regional contract packaging market. In addition, the US is one of the key players in this region, as the contract packaging market in North America is concerned. Moreover, the contract packaging market in North America will witness growth because of the rapidly growing e-commerce trade in the region. In addition, rising consumer awareness about environmental concerns and the producers' demand for economical packaging options, are encouraging contract packaging vendors in the region to adopt eco-friendly alternatives and eco-sensitive package designs. Hence, such factors are driving the market growth in North America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accu Tec, AmeriPac Inc: The company offers contract packaging solutions such as Bagging, Banding, Blister Packaging, Bundle Wrapping, Cellophane Tuck-Fold Wrapping, Center-Fold and Single-Wound Shrink Film, Club Store Multi-Packs and Displays.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Aaron Thomas Co. Inc, Bernard Laboratories Inc., CCL Industries Inc., Co Pak Packaging Corp., Deufol SE, FedEx Corp., gpa GLOBAL, Hanzo Logistics, Hollingsworth, Inizio, Marsden Packaging Ltd., Multi Pack Solutions LLC, PHARMA TECH INDUSTRIES, Reed Lane Inc., Silgan Holdings Inc., Summit laboratories Inc., Truvant Europe Sp. z o.o., and Verst Logistics Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report encompasses the entire market adoption cycle, ranging from the initial innovator phase to the subsequent laggard stage. It emphasizes adoption rates across various regions, determined by penetration levels. Additionally, the report outlines essential purchasing factors and factors influencing price sensitivity. This aids companies in assessing and formulating effective growth strategies.
Global Contract Packaging Market Customer Landscape
The contract packaging market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Contract Packaging Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.54% |
Market Growth 2024-2028 |
USD 20.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.49 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 37% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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, Inizio, Marsden Packaging Ltd., Multi Pack Solutions LLC, PHARMA TECH INDUSTRIES, Reed Lane Inc., Silgan Holdings Inc., Summit laboratories Inc., Truvant Europe Sp. z o.o., and Verst Logistics Inc. |
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, and Market condition analysis for the forecast period. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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