North America Contract Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
North America Contract Packaging Market Analysis
The North American contract packaging market is expected to register a CAGR of 9.7% over the forecast period (2021 - 2026). With the outbreak of COVID-19, the contract packaging market has witnessed tremendous growth as the e-commerce market has taken a boom owing to lockdown and social distancing norms where the majority of the consumer prefer online channels for shopping, and companies are outsourcing their packaging end to end or standalone services to meet the growing demand.
- Increasing demand and the changing preference of manufacturing firms toward contract packagers, along with the U.S. government imposing various laws and regulations on the labeling and packaging of food, beverages, and pharmaceutical drugs, there is a positive impact on the demand for contract packaging in the region.
- Contract packaging for household and personal care industry has seen an increasing demand in the region with the pandemic, as there was a shortage in supply of hand sanitizers, disinfectant liquids, etc., which has compelled the U.S. cosmetics manufacturing industry to retrofit their facilities to produce these necessities which, while providing opportunities, may have also slowed production of the usual range of products.
- Many governments are also mandating stringent laws and regulations on the labeling and packaging of drugs and food products, further expanding the scope of contract packaging. For instance, in the United States, due to similar laws, the companies have preferred to outsource their manufacturing and packaging due to capital and others.
- The aforementioned factors might act as a challenge for contract packaging companies, owing to the requirement of using high-quality plastics, which might ultimately lead to increasing prices in raw materials and packaging. Such regulations highly challenge the growth of a specific type of packaging materials and, in turn, challenge the market growth. However, this threat is now minimal due to innovations by companies.
North America Contract Packaging Market Trends
This section covers the major market trends shaping the North America Contract Packaging Market according to our research experts:
Food and Beverage Industry is one of the Significant Factor for Growth of Market
- With the rising demand and changing preference of food production firms toward contract packagers, and the food companies increasingly focusing on cost optimization and their core business, most of them have been outsourcing their packaging services activities to third party contract food packagers, owing to the demand in the market studied.
- Also, many governments are also mandating stringent laws and regulations on the labeling and packaging of drugs and food products, which is further expanding the scope of the contract packaging market. For instance, the United States witnessed an increase in the demand for contract packaging in the food industries, owing to the inability of an in-house packaging facility for a few companies in this region.
- Rising demand for online shopping, and added layers for packaging protection for online purchases, along with the increasing demand for packaging in food and beverage, pharmaceutical needs, household, and personal items, majorly during the covid-19 pandemic, has increased the demand for contract packaging in the region. With the pandemic, CPG companies in the region have pushed their supply chains for even faster turnarounds and flexibility to adjust to sudden shifts in demand. Many of them have supplemented their manufacturing capabilities through contract packagers, which allowed them also to expand and innovate their products or to focus on their core products.
- Contract beverage packaging ensures the reliable distribution of beverages in the value chain and reduces post-production damage. Contract packaging is aimed to protect the product from external and environmental damage. One of the main factors driving the growth of the contract beverage packaging market is the changing consumption patterns of the consumer with an increasing preference for RTD beverages.
- The cannabis industry is anticipating growth in food and beverage, health and wellness, cosmetics, skincare & topicals, pet supplements, and pharmaceuticals, which shows the potential of contract packaging in the cannabis industry. As the industry continues to grow, cannabis companies are gaining the capacity and knowledge to offer contract packaging services. Some of the companies with experience and expertise have contracted out labeling services and other secondary packaging services. However, Under section 244 of the Cannabis Regulations, licensed processors must notify Health Canada of their intent to sell a cannabis product they have not previously sold in Canada.
Primary Packaging Holds a Significant Share
- Primary packaging involves direct contact with the product or is the first packaging layer in which the product is enclosed, which enables the user to protect and preserve the product from external contamination, damage, and spoiling.
- Primary contract packaging provides 'mission-critical' capabilities that may be inaccessible to manufacturers, especially when it comes to projects that require short runs or frequent changeovers, such as new or niche products, or seasonal demand, that are usually outside of primary manufacturing economies.
- Industries such as the food and beverage and pharmaceutical industry are one of the biggest adopters of primary packaging; therefore, the growth in the overall production capacity of these industries is expected to drive the adoption of primary contract packaging services across the globe.
- The primary packaging products have gained significant importance in the pharmaceutical sector during the last few years as they are being used for protecting medicines and drugs against any unfavorable external elements such as biocontamination, physical damage, degradation, and counterfeiting. The contract packaging market expansion is primarily being driven by increased research and development activities, newer innovations in packaging materials, growth in the global generics market, to name a few, as well as the rapidly rising demand for reusable and eco-friendly packaging products.
- The rising demand from end-user industries, such as household and personal care, for the primary packaging, has left the players to increase the production of their end products, thereby making it essential for them to reduce the time to markets by outsourcing the packaging activities. This is expected to boost the primary contract packaging over the forecast period.
North America Contract Packaging Industry Overview
The North America Contract Packaging market is Moderately consolidated. The North America Contract Packaging Market is competitive and consists of some influential players. In terms of market share, some of these important actors currently manage the market. These influential players with a noticeable share in the market are concentrating on expanding their customer base across foreign countries. These businesses are leveraging strategic collaborative actions to improve their market percentage and enhance their profitability.
- Feb 2021- The Association for Contract Packagers and Manufacturers (CPA) partnered with Nulogy. The partnership will grant CPA members complimentary access to Nulogy University, a proprietary online training platform for contract packaging and contract manufacturing (CP/CM) businesses.
- March 2021- ActionPak Inc. has announced that it completed the 196-kW rooftop solar installation on its new 175,000 sq ft packaging facility located in Camden, New Jersey, to do both primary and secondary packaging of food and OTC products under strict SQF and FDA guidelines. The 491 solar panels are said to offset 20% of the electric usage at the newly constructed building.
North America Contract Packaging Market Leaders
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Aaron Thomas Company
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Multipack Solutions LLC
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Pharma Tech Industries Inc.
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Sharp Corporation (UDG)
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UNICEP Packaging LLC
*Disclaimer: Major Players sorted in no particular order
North America Contract Packaging Market News
- May 2021 - Sharp, a subsidiary of UDG Healthcare plc, a global leader in contract packaging and clinical supply services, has invested USD17 million in its Conshohocken, PA location. The new 4-acre plot is directly adjacent to Sharp's two enduring commercial pharmaceutical packaging buildings, which collectively form the organization's Blistering Centre of Excellence and is the most developed addition to an ongoing capacity development project at the Conshohocken campus.
- December 2020: Complete Co-Packing Services Limited has announced a partnership to be working with Brewdog, a dynamic, fast-growing, and carbon-negative company, to fill, pack and distribute their 2020 Craft Beer Advent Calendars and 12 LoneWolf Gins of Christmas.
North America Contract Packaging Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Steady rise in demand from the food industry
- 4.2.2 Recent trend of outsourcing non-core operations
- 4.2.3 Ongoing efforts towards serialization in the pharmaceutical sector
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4.3 Market Challenges
- 4.3.1 Dynamic nature of regulatory standards
- 4.4 Industry Value Chain Analysis
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4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Bargaining Power of Suppliers
- 4.5.2 Bargaining Power of Consumers
- 4.5.3 Threat of New Entrants
- 4.5.4 Threat of Substitutes
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assessment of Impact of COVID-19 on the Industry
5. MARKET SEGMENTATION
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5.1 By Packaging
- 5.1.1 Primary Packaging
- 5.1.2 Secondary Packaging
- 5.1.3 Tertiary Packaging
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5.2 By End-User Vertical
- 5.2.1 Beverages
- 5.2.2 Pharmaceuticals
- 5.2.3 Food
- 5.2.4 Other End-Users Industries
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Aaron Thomas Company
- 6.1.2 Multipack Solutions LLC
- 6.1.3 Pharma Tech Industries Inc.
- 6.1.4 Reed Lane Inc.
- 6.1.5 Sharp Corporation (UDG)
- 6.1.6 UNICEP Packaging LLC
- 6.1.7 Green Packaging Asia
- 6.1.8 Jones Healthcare Group
- 6.1.9 Stamar Packaging Inc.
- 6.1.10 Genco (FedEx Supply Chain)
- 6.1.11 Complete Co-Packing Services Ltd
- 6.1.12 MJS Packaging
- 6.1.13 Anderson Packaging LLC
- 6.1.14 AmeriPac
- 6.1.15 Co-Pak Packaging Group
- 6.1.16 WG-Pro Manufacturing Inc
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. FUTURE OUTLOOK OF THE MARKET
** Subject To AvailablityNorth America Contract Packaging Industry Segmentation
Contract packaging is the process of assembling a product or good into its final finished packaging. Depending on the product, the final packaging constitutes a variety of forms, such as thermoformed/ plastic clamshell or blister packaging, a plastic bag, a standing corrugated retail point-of-sale display, or a transport tray. Sometimes, contract packagers are tasked with something as simple as adding a bar code sticker to a product or as complex as planning, designing, producing, and fulfilling the entire package. The North America Contract Packaging market is segmented by Service ( Primary Packaging, Secondary Packaging, Tertiary packaging), By End-User Vertical ( Beverages, Pharmaceuticals, Food).
| By Packaging | Primary Packaging |
| Secondary Packaging | |
| Tertiary Packaging | |
| By End-User Vertical | Beverages |
| Pharmaceuticals | |
| Food | |
| Other End-Users Industries |
North America Contract Packaging Market Research FAQs
What is the current North America Contract Packaging Market size?
The North America Contract Packaging Market is projected to register a CAGR of 9.70% during the forecast period (2024-2029)
Who are the key players in North America Contract Packaging Market?
Aaron Thomas Company, Multipack Solutions LLC, Pharma Tech Industries Inc., Sharp Corporation (UDG) and UNICEP Packaging LLC are the major companies operating in the North America Contract Packaging Market.
What years does this North America Contract Packaging Market cover?
The report covers the North America Contract Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Contract Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Contract Packaging Industry Report
Statistics for the 2024 North America Contract Packaging market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. North America Contract Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
