Contract Packaging Market Companies | Size | Share | Growth

Contract Packaging Market Size Anticipated to Attain USD 168.22 Billion by 2032

The report covers Contract Packaging Market Segments and Companies like Aaron Thomas Company, Unicep Packaging, Green Packaging Asia, Multi-Pack Solutions LLC, Reed Lane, CCL Industries, Stamar Packaging Inc, Sharp Corporation, DHL, Wepackit Inc., Kelly Products, Sonic Packaging, Genco, Budelpack Poortvliet BV, Driessen United Blender, Cygnia Logistics Ltd, Complete Co-Packaging Services Ltd., Harke Packserve GMBH.

Contract Packaging Market Size and Industry Analysis (2023 - 2032)

The global contract packaging market size is estimated to grow from USD 76.84 billion in 2022 to reach an estimated USD 168.22 billion by 2032, growing at a 8.2% CAGR between 2023 and 2032.

Contract Packaging Market Size 2023 - 2032

Unlock Infinite Advantages: Subscribe to Annual Membership

Report Highlights: Important Revelations

  • Global contract packaging sector is poised for growth, starting at a value of USD 76.84 billion in 2022.
  • The market is expected to grow, reaching an estimated value of USD 168.22 billion by 2032.
  • This expansion is at a consistent CAGR of 8.2% over the period from 2023 to 2032.
  • Continued expansion in the North American contract packaging sector.
  • Harnessing industry 4.0 innovations within the European contract packaging industry.
  • Exploring the potential of plastic contract manufacturing.
  • Significance of primary packaging in the contract packaging sector.
  • Strategies for thriving in the competitive pharmaceutical contract manufacturing arena.
  • Utilizing contract packaging services for bottling and filling requirements.

The contract packaging market, which may be conducted through contract packing companies or co-packers, is a means of outsourcing packaging needs, thus allowing the business to save on resources and the time needed to maximize the activity. Co-packers, as their name suggests, are primary in the field of packaging and labeling for different stuff from the food and beverages to clothes, cosmetics, and other products as well.

Businesses can assign all packaging tasks such as supplies management and shipping to third-party co-packers, who will help in this process. It means that clients can put their efforts on their strong spots in marketing, branding and sales, while outsourcing packaging matters to us. Co-packers can handle various necessities in packings area be it the simple tasks of barcode stickers or the more when it comes to custom packaging designs and productions.

In general, the co-packers supply additional services such as for instance, preparation of ingredients and use of machinery to make the final product available for packaging. Consequently, the clients get a comprehensive solution from manufacturing to packaging. Being able to deal with things in this way allows businesses to fulfill tasks and packaging operations both quickly and efficiently.

The co-packing packaging alternatives are diverse ranging from bottles, jars and bags to boxes and cans which in turn make it possible for the customers to select packaging which is in line with the product and branding strategy. This means that packaging is adapted for products so that they are totally market-oriented and the consumers can accept them.

Co-packing outsourcing of packaging tasks for the businesses not only exempts business owners from load but also makes the business efficient and scalable. When employees who have packaging experience assume the rooftop, companies could be allowed to concentrate on innovation, market expansion, and growth. That is why co-packers are a key player in the business figure as they provide packaging solutions in client's specific needs and in a more reliable and efficient way.

For Instance,

  • In October 2023, Ryder System, Inc., a leader in supply chain, dedicated transportation, and fleet management solutions, announces it entered into a definitive agreement in the third quarter to acquire all of the outstanding equity of IFS Holdings, LLC, also known as Impact Fulfillment Services (IFS).
  • E-commerce development requires higher volumes of contract packaged services. Contract packagers are transforming their systems to be able to pack for online orders, including kitting, bundling, and package customization for direct-to-consumer shipment.
  • Sustainability has become a vital element of the contract packager's scope as the brands and consumers alike give importance to environment friendly packaging solutions. Packaging contractors are introducing sustainable packaging practices, as in adopting recyclable materials, decreasing packaging wastes, and optimizing packaging designs to avoid environmental impacts.
  • The contract packaging is being used by the brands to create attractive customized and personalized packaging solutions that will blend in with the needs of their target market.
  • Contract packagers are integrating the technology to create the more efficient mechanisms, increase the quality of packaging control and to be less vulnerable to production challenges.

Continued Growth of the North American Contract Packaging Market

Contract Packaging Market NA, EU, APAC, LAMEA Share

The North American contract packaging market has been accumulating a substantial growth in the previous years due to some pivotal reasons Yet another factor towards this aspect is the incremental demand for the outsourcing packaging service by companies who are eager to minimize their operations and focus the major roles within the firm. The reason for North America's boom is that it has the largest s and industrialization. Moreover, North America, with its already mature manufacturing platforms and logistics infrastructure, represents a perfect setting for contact packaging businesses to maintain their leading positions. Herein lies the bedrock of the logistics operations since it provides for rapid material acquisition, manufacturing processes and processes, and speedy delivery of products to the market.

Top Contract Packaging Companies, USA, 2023 (USD Million)

More sophisticated and a more various package design, which has been fueling businesses which provide respective packaging services, have been produced by an increased number of products for consumers. Top companies are growing the sales of contract packaging for their suppliers. Through that contract packing companies in North America became diversified by having an ability to offer a selection of packaging services which cover custom packaging design, labeling and meet of regulatory requirements. This can is a great facility to offer individualized packaging to a wide range of industries, hence, spinning the market.

Packing for North American consumers gives the chance for contact packers to seize upon their lucrative market. Consumers' tastes and value for their purchases change, as well as the trend of convenience and sustainability, subsequently, businesses aim to offer packaging’s which are unusual to grab customers’ attention. In terms of contract packers, North America has got several firms that offer up-to-date packaging packages and utilize innovative green technologies.

The contract packaging market in North America is thriving due to factors such as strong manufacturing infrastructure, increasing demand for specialized packaging solutions, growing consumer market, and the shift towards e-commerce. As businesses continue to prioritize efficiency and innovation, the demand for contract packaging services is expected to further drive market growth in the region.

For Instance,

  • In April 2024, Veritiv Corporation, a leading specialty distributor of value-added packaging, facility solutions and print products and solutions, announced today that it has acquired substantially all the assets of Ameripac, LLC, and Ameripac Pennsylvania, LLC a leading provider of turnkey contract packaging and fulfillment services with annual revenues of approximately $60 million.

Industry 4.0 Advancements in European Contract Packaging Market

Co-packing market in Europe is enjoying an upward trend. The 81% of co-packing companies are willing to expand operations, 30% are planning to invest in additional packaging lines within the next three years. This was the outcomes of a market study performed by the European Co – Packers Association (ECPA) and conveyed at their third symposium held in Eindhoven, The Netherlands. The majorly factor guiding the growth of the sector in the EU is the use of Industry 4.0 advancements, which raise efficiency, lower operating expenses, and promote sustainability. As co-packers need to fulfil more orders, there is a shift in business strategy now to achieving profitability and decreasing the current acute shortage of skilled employees.

Major brand owners like Mars, Unilever, and Kraft are in the forefront of this transformation in the industry by requesting for ECPA members to broaden their scope beyond contract packaging to also include materials procurement, logistics, and even handling of the basic raw materials. A larger percentage of the co-packers surveyed offer the full-service formulation, which quite simply adds value to their offerings and makes them comprehensive solution providers.

Technical Specifications for Contract Packaging, 2022 (%)

Providing the comprehensive service has its constraints, where one should contemplate the addition storage, the risks and their complexity. Not all co-packers have the capabilities to meet the demands that this compliance may entail. The association recommends that taking this step, co-packers smoothen out manufacturers’ assembly process up to the point where they become one-stop shops that satisfy the continuous needs of manufacturers most efficiently.

There is approximately a thousand active co-packeries in Europe and just 60 of them is a part of ECPA association. On average, about 40% of these specialty co-packers are small-sized companies. Among the primary objectives of the association is to increase the number of participants in the system for sharing knowledge among co-packers, thereby create traffic of contracts in the European contract packaging market.

For Instance,

  • In April 2024, International Paper and DS Smith Plc announced that they have reached agreement on the terms of a recommended all-share combination (the "Combination"), creating a truly global leader in sustainable packaging solutions.

Contract Packaging Market, DRO

Demand:

  • Contract packaging services provide cost-cutting solutions which are beneficial to businesses seeking for efficient packaging operations and lessening fixed expenses. Outsourcing packing ornamentation to third-party packers covers the cost of in-house facilities, procurement of devices and labour expenses, thus instigating massive savings for the clients.

Restraint:

  • Product quality maintenance, product consistency, and rules which must be obeyed, represent a vital problem in contract packaging operations. The clients may be faced with quality control among other issues like traceability and accountability when they outsource the packaging activities to third party providers.

Opportunity:

  • Contract packagers can be competitive in the market by offering placement services for the packaged products in the local stores as well as showroom of big contracts. The services that may be rendered can be packaging design, regulatory compliance assistance, sustainability consultation, and supply chain optimization, which are all directed at the comfort and loyalty of clients.

The Power of Plastic Contract Manufacturing

Plastic contract manufacturing presents a comprehensive solution to end-to-end plasma production, offering bespoke services from contract manufacturers upon request. Oftentimes, product companies require contract manufacturers as these guys handle plastic production tasks. Therefore, it becomes a common thing for these companies to be involved in the projects that may involve multiple stakeholders. According to forecast, the output value of global plastics market will be $457.73 billion in 2022. Approximately 40% of the production of plastics is also required in the production of plastic packaging.

Single-Use Plastic Eliminated, 2023 (In Million 500ml Bottles)

Contract manufacturers hold in their arm a variety of industries and product type expertise that is vast. They hire professionals with the areas of materials, tooling and processes as well as equipment, which allows them to solve the specific tasks that arise in the course of the plastic production process. Through its expertise and experience, an OEM thus allows businesses to benefit greatly in terms of the quality and cost effectiveness of post plastic processing.

Single-use plastics are more popularly used because of the convenience they provide, their portability feature and also because of the durability of the product. Such features therefore make them a good match for packaging applications which is turning contract packaging into an increasingly popular and convenient way to package various products. Hence, the plastic sector in contract packaging continues its record-breaking progress, since more and more companies turn their attention to contracting plastic production and leave them to specialties contract manufacturers.

Contract manufacturing of plastic offers the most effective and comprehensive strategy for the production of the plastic items using the services of the contract manufacturers in order to fulfill the vast range of requirements of the clients, especially in the area of contract packaging where single-use plastic objects play a key role in propelling market expiration.

For Instance,

  • In January 2024, Plastic blow moulder Container Services Inc (CSI) has acquired US-based manufacturer Apex Plastics for an undisclosed amount.

Role of Primary Packaging in Contract Packaging Market

Primary packaging is the first layer of packaging that touches the products. The focus of primary packaging is containment, protection, and preservation of the products. The goal of primary packaging is a defence against contamination and defects. Blister packaging for over-the-counter pharmaceuticals would be a good example of primary packaging. These materials protect the product. They also alert consumers to contamination if it has occurred. Primary packaging will often be the last material removed by the consumer.

Primary packaging offers both protective and branding capabilities, which enhances product appeal. Blister packaging is a term for several types of pre-formed plastic packaging used for small consumer goods, foods and pharmaceuticals. Clamshell Packaging is similar to a blister pack in that it is made of a shaped plastic material. Clamshells, however, consist of two (usually) plastic halves connected by a hinged area. Skin packaging, like blister packaging, involves the product being backed by a paperboard backing. Poly Bagging is a simple form of primary packaging in which the product is deposited into a polythene bag and heat sealed to protect from dust and damage during transit and storage.

For Instance,

  • In February 2024, SGD Pharma launches new range of Type I injectable vials in tubular glass Pharmaceutical molded glass primary packaging provider SGD Pharma has launched a new range of Type I injectable vials in tubular glass.

The pharmaceutical firms are uncovering the fact that they can succeed in reducing their research and manufacturing spending by outsourcing. This phenomenon is derived from several aspects such as patent lapses, generics impact on market competition and the efficiency aspect of the research and development operations. Therefore, outsourcing the pharma manufacturing to the contract manufacturing organizations (CMOs) is becoming very profitable. Bio-pharmaceutical industry is witnessing a dramatic growth, largely enjoyed by an increasing number of Food and Drug Administration (FDA) approval and clinical trials. This growth has also reinforced the need for the contract pharmaceutical manufacturing services increasing the demands of the same even more.

It has grown more competitive, giving a particular place to generic pharmaceuticals. The more and more opened access to developed markets such as the US, Germany, France, as well as the UK for enterprises, especially in the Asia-Pacific region, is a prime setting where companies possibly expect to find new opportunities. The upcoming generic drug manufacturers will be on the backside of several patents in the imminent future, which will create another window of opportunity for the industry to prosper. Patent expiry rates are then followed by generic alternatives to the drug competing in the marketplace, which in turn may drive reduction of cost for the consumer.

The pharmaceutical industry observes a transfer of operations to contract manufacturing along with higher competition, with this form of production being crucial in the market and in providing innovation as well as cost efficiency.

For Instance,

  • In October 2022, German packaging supplier Gerresheimer and pharmaceutical company Merck have jointly created a digital twin solution to ‘transform’ the pharmaceutical supply chain.

Leveraging Contract Packaging for Bottling and Filling Needs

A contract packaging bottling and filling service refers to that segment of contract packaging industry in which the bottling and filling products in bottles, containers or other packaging formats for clients. These services are the pillar of everyday mechanisms used be it in beverages ingestion or in making cosmetics, pharmaceuticals and for household goods.

Bottlers and filling contractors rare cover specific settings like liquid filling, powder filling and filling of semi-solid goodies. They are using the most advanced shields, sensors and equipment and technologies to guarantee proper fill amount and continuous quality and fast production cycle.

It is generally the case that these services being from hand are very useful for those companies that do not have the resources or infrastructure to do bottling and filling jobs by hand. The business hourly logistics such as the product packing can be handled by the contract packagers which in return save the business time, reduce costs, and let entrepreneurs to channel their focus into functionally related core processes like product development, marketing, and distribution.

The services of contract packagers are most often characterized by the option of customization which involves labeling, capping, and the choice of a specific packaging scheme so that the client’s products are distinguished and in compliance with the given requirements. Hence, the services provided by contract packagers like bottling and filling stages are instrumental in bringing those products to the market, and such measures facilitate efficient and effective ways of doing business.

Key Players and Competitive Dynamics in the Contract Packaging Market

The competitive landscape of the contract packaging market is dominated by established industry giants such as Aaron Thomas Company, Unicep Packaging, Green Packaging Asia, Multi-Pack Solutions LLC, Reed Lane, CCL Industries, Stamar Packaging inc, Sharp Corporation, DHL, Wepackit Inc., Kelly Products, Sonic Packaging, Genco, Budelpack Poortvliet BV, Driessen United Blender, Cygnia Logistics Ltd, Complete Co-Packaging Services Ltd., and Harke Packserve GMBH. These giants compete with upstart direct-to-consumer firms that use digital platforms to gain market share. Key competitive characteristics include product innovation, sustainable practices, and the ability to respond to changing consumer tastes.

Aaron Thomas Company Takes Pride in its contract packaging services which are rendering solution to clients packaging needs; through its packaging establishment, assembly, labeling and fulfillment services. Customize concepts and produce corresponding products and services to match client's unique needs and demands.

For Instance,

  • January 2024, Ashton Thomas recruits $2bn advisory team and Asher Nachshon parent acquires a $1bn broker dealer ARAX Investment Partners announces the addition of a $2bn wealth team and a broker-dealer that will go by the name of Ashton Thomas Securities.

Green packaging Asia offers different solutions which are considered sustainable in which they wouldn't put at risk the environment through the whole packaging process. Choice of sustainable practices while taking into account clients' satisfaction. WCommunication Task: Humanize the given sentence. mountainous terrain of places like Switzerland or Italy makes up for this gain with its glorious nature.

For Instance,

  • January 2022, SIG declared that it had just sold its Pactiv Evergreen Inc.'s business in the Asia Pacific Area. The chilled operations area was rightly named “Evergreen Asia.” Reform proceed and consolidated.

Contract Packaging Market Player

Contract packaging leading market players are Aaron Thomas Company, Unicep Packaging, Green Packaging Asia, Multi-Pack Solutions LLC, Reed Lane, CCL Industries, Stamar Packaging inc, Sharp Corporation, DHL, Wepackit Inc., Kelly Products, Sonic Packaging, Genco, Budelpack Poortvliet BV, Driessen United Blender, Cygnia Logistics Ltd, Complete Co-Packaging Services Ltd., and Harke Packserve GMBH.

Market Segments

By Material

  • Plastic
  • Paper & Paperboard
  • Metal
  • Glass
  • Aluminium

By Packaging

  • Primary Packaging
  • Secondary Packaging
  • Tertiary Packaging

By End User

  • Food & Beverage
  • Pharmaceutical
  • Cosmetic & Personal Care
  • Household
  • Industrial
  • Chemicals
  • Electronics

By Services

  • Bottling and Filling
  • Bagging/Pouching
  • Lot/Batch and Date Coding
  • Boxing and Cartoning
  • Wrapping and Bundling
  • Labelling
  • Clamshells and Blisters
  • Others

By Region

  • North America
  • Asia Pacific
  • Europe
  • LAMEA
Share With : linkedin twitter facebook
  • Insight Code: 5167
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Published: June 2024
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2022
  • Base Year: 2023
  • Estimated Years: 2024-2033

Meet the Team

Deepa Pandey is a market research expert in packaging with 3+ years of experience, specializing in regulatory compliance, design innovations, sustainable packaging, and delivering insights to enhance safety and efficiency.

Learn more about Deepa Pandey

Aditi Shivarkar, with 14+ years in packaging market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards Packaging 's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

Contract packagers implement robust quality control processes throughout the packaging process, including incoming materials inspection, in-process checks, finished product testing, and adherence to quality management systems. They may also conduct audits, validations, and documentation to ensure consistent quality and regulatory compliance.

Many contract packagers offer environmentally friendly packaging options, such as recyclable materials, biodegradable packaging, compostable films, and sustainable sourcing practices. They may also optimize packaging designs to reduce material waste, energy consumption, and carbon footprint throughout the supply chain.

Yes, contract packagers can accommodate customization and personalization requirements, including unique packaging designs, branding elements, product configurations, and promotional inserts. They work closely with clients to translate their vision into packaging solutions that resonate with target consumers.

EEA, PMMI, Clear Water International, Thomas net, Eco Bliss.