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Contract Packaging Market

Contract Packaging Market - Global Opportunity Analysis and Industry Forecast, 2020-2030

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Contract packaging is incorporated by many companies for the packaging of their products. Contract packaging is also referredas co-packaging in which the goods or products are assembled into the final finished packaging. Contract packaging companies provide the service of packaging to different product manufacturers. Manufacturers hire contract packaging services for the packaging of their products. Contract or co-packaging method is used in different industries such as e-commerce, food &beverage, agriculture, cosmetics, and pharmaceuticals. Contract packaging companies act as an extension to the product manufacturer.


Market scope and structure:

Report Metric


  Market size available for years


  Base year considered


  Forecast period


  Forecast unit

  Value (USD)

  Segments covered

  Packaging Type, Service, End-User Industry

  Companies covered

Sharp Packaging Systems, QAS COPAK Ltd., Summit Packaging Solutions, Unicep, GENCO SOLUTIONS, Stamar Packaging, GPA Global, AmeriPac, Nulogy Corporation, Aaron Thomas Company, CCL Industries Inc, Kelly Products Incorporated, Deufol, PHARMA TECH INDUSTRIES, Jones Packaging, Reed-Lane, Sonoco Products Company,and FedEx

  Regions covered

North America (the U.S. and Canada), Europe (Germany, the UK, France, and rest of Europe), Asia-Pacific (China, Japan, India, and rest of Asia-Pacific), Latin America (Brazil, Mexico, and rest of LATAM), and the Middle East and Africa


COVID-19 scenario analysis:

  • The demand for contract packaging is expected to decrease in 2020 due to low demand from different industries, such as manufacturing and food,owing to the lockdown imposed by governments of many countries.
  • COVID-19 crisis is estimated to affect the contract packaging industry negatively owing to halted manufacturing and massive reduction in demand for luxury and non-essential services globally.
  • COVID-19 crisis had a mixed impact on the packaging industry due to closure of physical retail stores globally. However, the availability of online retailing has absorbed the high impact of this shutdown.
  • The requirement of e-commerce-specific packaging is estimated to remain strong; although, e-commerce companies would have to focus on protection of goods and sanitization of packages.
  • In addition, the food packaging industry is on the frontline of the global packaging market, owing to the demand for essential products such as groceries and fresh food from local e-retail sites.
  • Industrial, transportation, and bulk packaging have faced a sharp decline, owing to decreased demand for non-essential goods during the first two quarters of 2020.
  • Low disposable income of maximum population and weak demand for packaging from industrial goodsled the packaging industry to face significant pressure of reduction in both wholesale as well as retail costs.
  • Consumers are estimated to remain hesitant toward luxury products, travel, and hospitality services.This is expected to hinder the packaging industry growth in the future after the COVID-19 crisis.


Top impacting factors:Market scenario analysis, trends, drivers, and impact analysis

Companiesare expected to be engaged in contract packaging when they hire other company or contract packager for packaging of the product, to assemble the packaging, and distribute the products. When the company or the manufacturer of the product is short of resources, time or money to invest in the packaging system or to produce itsown packaging unit, then it hiresacontract packager who has the capabilities and an expert in managing the packaging system throughout the supply chain. It proves to be more beneficial for the company, which is not equipped with proper packaging systemto help save the money whilethe packaging is done in more effective manner.

Contract packaging or co-packaging companies possess the capabilities of performing all the tasks included in the supply chain of the product. They are capable of testing the product, printing of the labels, and packaging of manufactured products. Many contract packaging company use specific type of product packaging method such as bottling, shrink wrapping, and cardboard packaging. Some contract packagers are expert in packaging the products of specific industry only.In addition, a contract packaging company must be certified with all the requirements for approval. The contract packaging company provides the location, required equipment, and labor for packaging of the products in an effective and efficient manner.

Contract packaging services arewidely used in the Fast Moving Consumer Goods (FMCG) industry. FMCG goods often hire the contract packaging company to handle whole packaging system for the products of the company as most of the companies in consumer packaged products do not have their own packaging facility.

Different manufacturing companies are estimatedto decrease the lead time of their product to achieve the desired efficiency and productivity. Contract packaging helps manufacturing companies to reduce the lead time as packaging system is managed by contract packager,which is one of the key driving factors for the growth of the contract packaging market.There is a rise in demand for contract packaging owing to factors such as reduced cost and increased efficiency of the companies from different sectors.

Key restraining factors for the growth of the contract packaging market

Most of the contract packagers use limited types of packaging material. Most of the time, plastic packaging products are used. However, as many governments have banned the use of plastics,it is estimated to hamper the growth of the contract packaging market.


Key segments covered:



Packaging Type


  • Primary
  • Secondary
  • Tertiary



  • Bottling &Filling
  • Cartooning
  • Labeling
  • Others

End-User Industry


  • Food &Beverages
  • Pharmaceuticals
  • Personal Care
  • Others


Key benefits of the report:

  • This study presents the analytical depiction of the contract packaging market along with current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the contract packaging market share.
  • The current market is quantitatively analyzed from 2020 to 2027 to highlight the contract packaging market growth scenario.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
  • The report provides a detailed contract packaging market analysis based on competitive intensity and how the competition will take shape in coming years.
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