Contract Packaging Market Forecasts to 2028 – Global Analysis By Packaging Type (Primary, Secondary and Other Packaging Types), Material (Plastic, Metal and Other Materials), Service (Bagging/Pouching, Wrapping & Bundling and Other Services), End User and

Contract Packaging Market Forecasts to 2028 – Global Analysis By Packaging Type (Primary, Secondary and Other Packaging Types), Material (Plastic, Metal and Other Materials), Service (Bagging/Pouching, Wrapping & Bundling and Other Services), End User and By Geography

According to Stratistics MRC, the Global Contract Packaging Market is accounted for $56.73 billion in 2022 and is expected to reach $94.63 billion by 2028 growing at a CAGR of 8.9% during the forecast period. Contract packaging describes a method whereby one company enters into a legal agreement with another (the contract packager) to produce the packaging, assemble, kit, store, and distribute the products. The majority of the time, businesses needs a contract packaging company to handle their packaging supply chain since they don't have the money, time, or resources to build their own production and packaging facilities or buy pricey technology.

According to the Association for Packaging and Processing Technologies (PMMI) survey, around 67% of CPG companies have put automation plans on hold than win comparison to 23% of SMEs.

Market Dynamics:

Driver:

Government initiative for standard and efficient packaging

Governments in developing nations are expanding import and export of packaging products and setting up significant industrial hubs. Guidelines for the common packaging of goods have been published by public agencies in several nations. The packaging sector is expanding rapidly on a global scale and has a considerable economic impact in both developed and developing nations. Governments in various nations have upgraded packaging standards to match the industry norm, which has made it necessary to develop packaging techniques such blow moulding, injection moulding, roto moulding, thermoforming, extrusion, etc.

Restraint:

Strict Government Regulations

The primary end markets for contract packaging are the pharmaceutical, cosmetic, and food & beverage sectors. Usually, these products come wrapped in a variety of materials, such as paper, metal, and plastic. These materials' incorrect concentrations or quality deterioration could harm the packaged goods, which would have an effect on the finished product. And, numerous governmental entities, notably the EU food, have implemented restrictions for the importation, exportation, and production of food packaging materials. As a result, severe government regulations cause the contract packing sector to stagnate.

Opportunity:

Technological advancements and growing demand for lean operation

Contract packagers have several prospects for expansion as a result of the packaging market's growing innovations. Market innovation generates new demand from end-use sectors including food and beverage, medicines, personal care, consumer products, spare parts, e-commerce, and other sectors as well as development potential. To provide consumer-friendly packaging that is simple to handle, discard of, and store, packaging items may now be made re-sealable, reusable, and moldable into desired shapes, flexible & stiff packs, and unique designs. The market will see growth opportunities from new packaging items such date-coding labels, clamshells, boxes & cartons, blister packs, wrappers, and other packaging products.

Threat:

High recycling costs

Due to the high cost of procurement, energy use, and scrap value of packaging materials such plastic containers, bottles, jars, cartons, cans, bags, and pouches, recycling them requires a significant investment. In order to recycle plastic products like bottles and jars, clamshells, and other items, there are a number of processes that must be taken, including collecting the package after use, paying the client for the scrap, transporting the item to the recycling plant, and cleaning and crushing the item. Recycling is no longer more cost-effective for the majority of small and medium-sized contract packaging companies than the production of new packaging products.

Covid-19 Impact

The COVID-19 epidemic caused some end-user companies involved in contract packaging to reduce or completely stop their output, which considerably slowed the growth of the worldwide contract packaging market. However, the spread and number of cases of the COVID-19 have considerably decreased as a result of increased lockdowns and immunisation. Major end-use industries and contract packaging firms have been revamped as a result. The worldwide contract packaging market is anticipated to have considerable growth throughout the forecast period as a result of these factories starting production at full capacity after the first quarter.

The primary packaging segment is expected to be the largest during the forecast period

The primary packaging segment is estimated to have a lucrative growth. Using primary packaging, which comes into contact with the product or is the first layer of packaging in which the product is wrapped, the user can protect and maintain the product from external contamination, damage, and decomposition. Many industries, notably the food and beverage industry depend on primary packaging to keep products fresh. For the industry to concentrate on creating the highest-quality product that satisfies consumer expectations, primary contract packaging is used.

The food and beverage segment is expected to have the highest CAGR during the forecast period

The food and beverage segment is anticipated to witness the fastest CAGR growth during the forecast period, as more consumers begin reading the labels on food and beverage goods, the food sector is developing into a profitable market for labelling and other contract packaging services. However, it is projected that the present rise in online cosmetics sales would offer the labelling sector opportunities for long-term growth. The largest end-use market for contract packaging worldwide is the food and beverage industry. The brand reputation of the companies that create commodities like groceries and beverages is entirely dependent on the product packaging that is available at the time of purchase. This might play a big role in how well the product sells.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to the
increased demand has a favourable effect on the region's need for contract packagers, manufacturing companies' shifting preferences for them, and the US government's implementation of different rules and regulations governing the labelling and packaging of foods, beverages, and pharmaceutical pharmaceuticals. The promise of the cannabis industry is also shown by its anticipated expansion in the food and beverage, health and wellness, cosmetics, skincare and topical, pet supplements, and pharmaceutical sectors.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period. The nation currently commands the greatest market share in the region for goods used in home care and healthcare. Businesses in Germany are putting new packaging techniques into practise to enhance aesthetics and guarantee sustainability. The packaging of healthcare devices is expanding in Germany as hospitals place more emphasis on sterile and disinfected packing of medical devices as a result of a rise in viral infections and several stringent regulatory safety criteria.

Key players in the market

Some of the key players profiled in the Contract Packaging Market include FM Logistics, Sonoco, GXO, WestRock, DSV, CEVA Logistics, Deufol, DB Schenker, UPS, Menasha, Kuehne + Nagel Logistics, Geodis, IPS, FedEx, Truvant and Solistica.

Key Developments:

In July 2022, GEODIS has completed the acquisition of Keppel Logistics. This transaction will consolidate GEODIS contract logistics footprint and e-commerce fulfilment services in Asia-Pacific, particularly Singapore.

In March 2021, DB Schenker completed the full acquisition of SIGNON Deutschland GMBH on March 31, 2021. This will help the company to secure expertise for projects such as the construction of digital interlocking and track equipment with the European Train Control System.

In June 2021, FM Logistic developed its operations by another 30 lakh sq ft by the end of 2022-23. It will establish its own warehouses in the country's major consumption areas, such as Mumbai, Bangalore, Hyderabad, Chennai, and Delhi.

In August 2022, CEVA Logistics is connecting commerce in Bahrain and across the Middle East through its new direct facility present in Manama. The new office will offer a full range of air, ocean, ground, and contract logistics services.

Packaging Types Covered:
• Primary
• Secondary
• Tertiary
• Other Packaging Types

Materials Covered:
• Plastic
• Metal
• Glass
• Paper and Paperboard
• Other Materials

Services Covered:
• Bagging/Pouching
• Wrapping & Bundling
• Boxing & Cartooning
• Lot/Batch & Date Coding
• Labelling
• Other Services

End Users Covered:
• Pharmaceutical
• Food & Beverage
• Electronics
• Personal Care
• E-Commerce
• Consumer Goods
• Spare Parts
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements