Contract packaging: Key market research findings
- The Americas dominate the market geographically
- The food and beverages segment accounts for a majority of the market’s revenue
- Key vendors – Deufol, GENCO, Sharp Packaging, Stamar Packaging, Summit Container, and Unicep Packaging
Technavio’s market research analysts predict the global contract packaging market to grow at a CAGR of almost 11% between 2016 and 2020. The demand for contract packaging is augmented by the growing need to reduce operational costs. Machines used for packaging are costly, and in the long run, the operational and maintenance costs for these machines are very high. Outsourcing the packaging process enables manufacturers to minimize operational costs related to manufacturing, such as warehouse, labor, technology, and transportation costs. During 2015, the Americas lead the global contract packaging market with a market share of more than 44%. The flexible labor market and solid infrastructure in the region is expected to boost growth in the contract packaging market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the contract packaging segments based on the end-user.
“Recently, consumers and manufacturers have started focusing greatly on sustainable packaging because of it is recyclable, sustainable, and environmentally-friendly nature. The growing environmental concern is spurring a rise in the demand for bio-based raw materials for manufacturing packaging products. However, manufacturers find it difficult to focus on packaging in addition to their core business areas. As a result, these manufacturers are choosing contract packagers to assist them in packaging by using sustainable packaging solutions,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
The food and beverages segment accounted for the majority of the market’s revenue by occupying around 42% of the overall market space. The growth of this segment can be accredited primarily to the growing global population and the resultant rise in the demand for packaged food products and beverages. Food product manufacturers use contract packaging mainly to package snacks, confectionary, and whole food items such as grains, vegetables, and meat and meat products.
The key vendors in the market include Deufol, GENCO, Sharp Packaging, Stamar Packaging, Summit Container, and Unicep Packaging. Since this market is in its nascent stage, most of the key vendors are limited to particular geographies and sectors such as food and beverage and personal care. Several vendors are increasingly investing and increasing their operations in this growing market, which will enhance the inventory, production, and shipping capabilities of the market. It is expected that the large players will grow inorganically during the forecast period by acquiring regional or local players.
A more detailed analysis is available in the Technavio report, Global Contract Packaging Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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