United States Contract Packaging Market Size (2024 - 2029)

The United States contract packaging market is anticipated to experience steady growth due to the increasing demand and shifting preferences of manufacturing firms towards outsourcing packaging needs. This trend is driven by the desire to focus on core business activities and reduce operational costs. Regulatory requirements, particularly in the pharmaceutical and food sectors, are further boosting the market's expansion, as companies seek contract packaging solutions to comply with stringent labeling and packaging laws. Technological advancements and a focus on sustainability and customization are expected to enhance market dynamics, while challenges such as high recycling costs and regulatory constraints on packaging materials may impede growth. Despite setbacks from the COVID-19 pandemic and geopolitical tensions, the market outlook remains positive, supported by the reopening of industries and rising demand across various sectors.

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Market Size of United States Contract Packaging Industry

United States Contract Packaging Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 9.42 %
Market Concentration Low

Major Players

United States Contract Packaging Market Major Players

*Disclaimer: Major Players sorted in no particular order

US Contract Packaging Market Analysis

The United States contract packaging market is expected to register a CAGR of 9.42% over the forecast period. Owing to the stability, rising demand, and changing preference of manufacturing firms toward contract packagers, the United States contract packaging market is expected to witness steady growth over the forecast period. To concentrate on their core businesses and decrease operational costs, companies in the country outsource packaging requirements to contract packaging companies, thus driving the market's growth.

  • The United States government has placed various laws and regulations on labeling and packaging, especially for drugs. This could lead to an increase in the demand for contract packaging, owing to the inability of an in-house packaging facility for a few pharmaceutical companies in this country.
  • Technology is expected to play a vital role in the future, with the emergence of serialization, digital printing, and advanced robotics, thereby helping the companies. Sustainability and customization are expected to positively impact the contract packaging market, leading to growth in consumer-packaged goods, like personal care and food & beverages.
  • Also, many governments are mandating stringent laws and regulations on the labeling and packaging of drugs and food products, further expanding the scope of the contract packaging market. For instance, the United States witnessed an increase in demand for contract packaging in the food industries, owing to the inability of an in-house packaging facility for a few companies in the country.
  • Various contract packaging companies in the country are adapting to challenging business conditions. The companies are also getting awareness regarding the cost pressures, intense competition, and highly variable demand from OEMs. This environment is further supporting in the growth of contract packaging market in the country. Many European companies, such as Persson Innovation and Langen Group, have also invested in the United States.
  • The presence of multiple logistics companies brings out a high demand for secondary and tertiary packaging, owing to their prominence in transportation, thus paving the way for the growth of the contract packaging market. However, the high recycling cost and singringent government regulations related to packaging materials are restarining market growth.
  • The COVID-19 pandemic has hampered the growth of the United States Contract Packaging Market due to restrictions on manufacturing activities and limited workforce availability in the production line. However, post-pandemic, the reopening of manufacturing industries at their maximum capacities and growing market demand for food and beverage, pharmaceuticals, personal care, consumer goods, and other industry reflect a positive market outlook. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.

US Contract Packaging Industry Segmentation

The market is defined based on the revenues generated from various packaging types used across different end-user industries such as Food, Beverage, Pharmaceuticals, Household and Personal Care, Automotive, and others. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the growth of the contract packaging industry in terms of drivers and restraints. The study further analyzes the overall impact of COVID-19 on the ecosystem.

The United States Contract Packaging Market is segmented by Packaging Type (Primary, Secondary, and Tertiary) and End-user Industry (Food, Beverage, Pharmaceuticals, Home Care and Personal Care, and Automotive). The market sizes and values are provided in terms of value (USD million) for all the above segments.

By Packaging Type
Primary
Secondary
Tertiary
By End-user Industry
Food
Beverage
Pharmaceutical
Home Care and Personal Care
Automotive
Other End-user Industry
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United States Contract Packaging Market Size Summary

The United States contract packaging market is poised for significant growth, driven by the increasing tendency of manufacturing firms to outsource packaging needs to focus on core business activities and reduce operational costs. This trend is further bolstered by the stringent regulatory environment governing labeling and packaging, particularly in the pharmaceutical and food sectors, which necessitates the use of contract packaging services. Technological advancements such as serialization, digital printing, and advanced robotics are expected to enhance the efficiency and effectiveness of packaging solutions, while sustainability and customization trends are likely to spur demand in consumer-packaged goods sectors like personal care and food and beverages. The market's expansion is also supported by the presence of numerous logistics companies requiring secondary and tertiary packaging solutions, although challenges such as high recycling costs and stringent regulations on packaging materials persist.

The pharmaceutical industry, a major driver of the contract packaging market in the United States, is witnessing increased adoption of innovative packaging methods and automation, which are reducing human handling errors and meeting evolving consumer preferences and environmental concerns. The market is characterized by a fragmented landscape with numerous small and large vendors, including key players like Aaron Thomas Company, Multipack Solutions, and Pharma Tech Industries. Investments in new facilities and technologies are on the rise, as evidenced by significant capital injections from private equity firms and expansions by companies like GreenSeed Contract Packaging. The COVID-19 pandemic initially hampered market growth but has since led to a resurgence in demand for packaged foods, further encouraging outsourcing of packaging services. The market's outlook remains positive, supported by ongoing investments and the strategic focus of companies on expanding their market presence across various end-user sectors.

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United States Contract Packaging Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment of Impact of COVID-19 on the Market

    5. 1.5 Overview of the Global Contract Packaging Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Packaging Type

      1. 2.1.1 Primary

      2. 2.1.2 Secondary

      3. 2.1.3 Tertiary

    2. 2.2 By End-user Industry

      1. 2.2.1 Food

      2. 2.2.2 Beverage

      3. 2.2.3 Pharmaceutical

      4. 2.2.4 Home Care and Personal Care

      5. 2.2.5 Automotive

      6. 2.2.6 Other End-user Industry

United States Contract Packaging Market Size FAQs

The United States Contract Packaging Market is projected to register a CAGR of 9.42% during the forecast period (2024-2029)

Aaron Thomas Company, Multipack Solutions LLC, Pharma Tech Industries​, Reed-Lane Inc.​ and Sharp Packaging Services​ are the major companies operating in the United States Contract Packaging Market.

United States Contract Packaging Report Snapshots

United States Contract Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)