Contract Packaging Market Analysis

Contract Packaging Market Analysis

Based on end use, the contract packaging market is segmented into food & beverage, pharmaceutical, electronics, personal care, and others. The pharmaceutical segment held a market share of over 20% in 2022 and is expected to grow with the fastest growth rate during forecast period. This is due to the increasing demand for specialized packaging & labeling compliant with stringent regulations. Also, outsourcing of non-core activities allows pharma companies to focus on research & development, which is growing need for efficient & secure packaging solutions for pharmaceutical products.
 

Based on packaging type, the contract packaging market is divided into primary, secondary, and tertiary. The primary segment held over 45% market share in 2022 and is anticipated to grow at a CAGR of over 6% between 2023 to 2032. The increasing demand for customized & visually appealing packaging, the rise of e-commerce & direct-to-consumer channels, and the need for specialized packaging formats for specific products contribute to the growth of primary packaging services. Primary packaging providers design & produce packaging that ensures product safety, brand differentiation, and consumer satisfaction.
 

North America contract packaging industry with over 35% share in 2022. Market growth can be attributed to the presence of strong manufacturing and retail industries, high demand for efficient & customized packaging solutions, increasing outsourcing trends, and a focus on sustainability. North America has a well-established regulatory framework that requires compliance with packaging standards, which is propelling the demand for contract packaging services.