The global Contract Packaging Market is Estimated to Witness High Growth Owing to Increasing Outsourcing of Packaging Needs
Contract packaging services are provided by third-party companies for pharmaceutical, food and beverage, consumer goods, and other industries. These companies package products into their final marketable forms according to client specifications. Contract packaging provides flexibility, scalability, and efficiency while lowering capital investment and inventory costs. For example, packaging contract manufacturers can quickly scale production up or down based on seasonal demand without the client having to invest in additional packaging lines and facilities.
The global contract packaging market is estimated to be valued at US$ 66.37 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing outsourcing of packaging needs is a key driver boosting growth of the global contract packaging market. Many companies focus on their core competencies and outsource non-core operations like packaging to specialized packaging service providers. This allows companies to reduce costs and improve operational efficiency. Additionally, contract packagers provide value-added packaging services like serializing, kitting, and line integration services required for seamless execution across the packaging line. High production flexibility through contract packaging also helps companies adjust packaging volumes according to seasonal demand fluctuations without requiring investments in additional equipment and facilities of their own. Short product lifecycles further encourage companies to rely on contract packagers for nimble packaging solutions.
SWOT Analysis
Strength: The contract packaging market offers packaging services to various industries on contractual basis. It reduces capital investment and operational costs for companies. Contract packaging companies have advanced packaging machinery and trained labor which ensures high quality packaging. They provide customized packaging solutions as per clients' product and brand requirements.
Weakness: Contract packagers have low bargaining power with packaging raw material suppliers. Frequent changes in clients' packaging and labeling requirements increase operational challenges. Dependency on a few large customers poses concentration risks.
Opportunity: Rising demand for contract packaging from food and beverage, pharmaceutical, personal care and other industries present growth opportunities. Advancements in digital printing, coding and tracking technologies allow for enhanced package customization. Emerging markets offer scope to expand geographical footprint.
Threats: Stiff competition among contract packagers pressures margins. Stricter regulatory norms and compliance issues pertaining to food safety and product quality increase operating costs. Economic slowdowns and client industry downturns impact contract packagers' revenue growth.
Key Takeaways
The Global contract packaging market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by rising outsourcing trend among consumer goods companies. The market size in 2023 is projected to reach US$ 66.37 billion.
Regional analysis: North America dominates the global contract packaging market currently owing to strong presence of pharmaceutical and consumer goods companies. Asia Pacific is anticipated to grow at the fastest pace during the forecast period on back of expanding contract packaging capacities and outsourcing activities in industries like food and beverages.
Key players: Key players operating in the contract packaging market are Hindalco Industries Ltd., Arconic Corp., Norsk Hydro ASA, Constellium N.V., Kaiser Aluminum, Alupco, Gulf Extrusions Co. LLC, Balexo Bahrain Aluminium Extrusion Company, QALEX. These companies are focusing on capacity expansions and new service offerings to leverage growth opportunities.
Get More Insights On This Topic: https://www.trendingwebwire.com/contract-packaging-market-analysis-growth-forecast-outlook-2023-2030/
- Art
- Causes
- Crafts
- Dance
- Drinks
- Film
- Fitness
- Food
- Jogos
- Gardening
- Health
- Início
- Literature
- Music
- Networking
- Outro
- Party
- Religion
- Shopping
- Sports
- Theater
- Wellness
- IT, Cloud, Software and Technology
English
Arabic
Français
Español
Deutsch
Türkçe
Dutch
Italiano
Russian
Romaian