Contract packaging refers to outsourcing the packaging operations of pharmaceutical, food and other products to third-party packaging companies. These companies provide customized packaging solutions as per client requirements which help reduce costs and improve productivity. The global Contract Packaging Market is estimated to be valued at US$ 66.37 Billion in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The pharmaceutical industry has been witnessing significant growth over the past few years leading to increased demand for contract packaging from pharma manufacturers. Contract packaging helps pharmaceutical companies focus on their core business activities such as research and development while outsourcing packaging operations to specialized packaging companies. This allows pharma companies to avoid significant capital investments in packaging infrastructure and ensures compliance with stringent regulations. The trend of growth in the pharmaceutical sector is expected to drive increased adoption of contract packaging globally during the forecast period.
SWOT Analysis
Strength: The contract packaging market offers several advantages like reduced investment and overheads. Companies can focus on their core competencies rather than investing in packaging facilities.
Weakness: Dependence on third party contract packagers poses risks related to quality control and compliance. Sudden capacity constraints or unexpected cost increases by contract packagers can disrupt operations.
Opportunity: Emerging industries like pharmaceuticals, personal care and food & beverages require specialized packaging and present opportunities for contract packagers. Growing e-commerce is also driving the need for innovative packaging solutions.
Threats: Intense competition among contract packagers can lead to pricing pressures. Stringent regulatory norms related to labelling, storage and material usage also need to be complied with tightly.
Key Takeaways
The global Contract Packaging Market is expected to witness high growth on account of benefits like low costs and ability to meet fluctuating demand efficiently. Regionally, North America currently dominates due to presence of major pharmaceutical companies. Europe and Asia Pacific are other major regions driven by demand from food & beverages sector.
Key players operating in the contract packaging market are Aaron Thomas Company, Multipack Solutions, Pharma Tech Industries, Reed-Lane Inc., Sharp Packaging Services, UNICEP Packaging, Green Packaging Asia, Jones Packaging Inc., Stamar Packaging, Budelpack Poortvliet BV, and Complete Co-Packing Services Ltd. Market leader Aaron Thomas Company provides integrated solutions across diverse industries while REED-LANE focuses on pharmaceutical products.
Specialization, innovation and adherence to quality standards are key for leadership in this dynamic industry. Contract packaging services need to evolve continuously to address changing consumer preferences and industries like e-commerce. Partnerships along the supply chain will be important to optimize efficiencies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
