Contract Packaging Market Size (2024 - 2029)

Contract Packaging Market Analysis

The Contract Packaging Market size is estimated at USD 73.32 billion in 2024, and is expected to reach USD 111.22 billion by 2029, growing at a CAGR of 8.69% during the forecast period (2024-2029).

• The contract packaging market is integral to the supply chain, enhancing business productivity. Many manufacturers are increasingly outsourcing their packaging needs, allowing them to concentrate on their core competencies and driving a global surge in demand for contract packaging.
• Contract packaging services offer numerous benefits, ensuring products and their packaging consistently meet industry standards and government regulations. Moreover, these services help manufacturers cut operational costs. With the right equipment, expertise, and materials, contract packaging companies can significantly lower these costs for manufacturers, fueling the market's expansion.
• The growing pharmaceutical and cosmetic industries worldwide are boosting the demand for comprehensive contract packaging services. Adhering to stringent regulations necessitates rigorous inspections and quality checks. By outsourcing these packaging tasks, manufacturers can transfer the responsibility of compliance (often termed mil-spec packaging) to contract packaging agencies, making contract packaging a more attractive option than in-house solutions.
• Heightened consumer awareness regarding environmental issues, coupled with manufacturers' growing demand for cost-effective packaging, is prompting contract packagers to embrace sustainable and eco-friendly packaging designs. Additionally, the trends of sustainability and customization are set to bolster the contract packaging market, especially in consumer-packaged goods like personal care items and food and beverages, throughout the forecast period.
• In April 2024, Orlandi, a contract packer based in the United States, unveiled its latest offering, the EcoPro Paper Wrap. This product addresses the surging demand for eco-conscious packaging. EcoPro is a recyclable, high-barrier, heat-sealable paper wrap, presenting a sustainable alternative to traditional plastic films and foil pouches.
• Major players, as part of their growth strategy, are increasingly turning to acquisitions and expanding their geographical reach. For instance, in April 2024, Veritiv Corporation, a US-based distributor specializing in value-added packaging, announced its acquisition of Ameripac LLC, a contract packaging service provider in the United States. This move is aimed at bolstering Veritiv's market presence and expanding its customer base in contract packaging.
• As the packaging landscape evolves rapidly, many contract packaging providers find it challenging to stay abreast of these shifts, potentially hindering market growth. To maintain competitiveness, these providers must adapt to changing consumer preferences and demands.

Contract Packaging Industry Segmentation

Contract packaging is the process of assembling a product and putting it into its final finished packaging. Depending on the product, the final packaging constitutes a variety of forms, such as thermoformed/plastic clamshell/blister packaging, a plastic bag, a standing corrugated retail point-of-sale display, or a transport tray.

The contract packaging market is segmented by packaging (primary, secondary, and tertiary), end-user industry (food, beverage, pharmaceutical, household and personal care, and other end-user industries), and geography (North America (United States and Canada), Europe (United Kingdom, Germany, France, Netherlands, Italy, Spain, and Rest of Europe), Asia-Pacific (China, India, Japan, and Rest of Asia-Pacific), Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.