Europe Contract Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 24.90 Billion |
| Market Size (2029) | USD 37.53 Billion |
| CAGR (2024 - 2029) | 8.55 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Contract Packaging Market Analysis
The Europe Contract Packaging Market size is estimated at USD 24.90 billion in 2024, and is expected to reach USD 37.53 billion by 2029, growing at a CAGR of 8.55% during the forecast period (2024-2029).
- Effective product packaging is essential for the secure storage and transportation of tangible goods. However, product packaging involves significant upfront costs and resource allocation. As a result, manufacturers often rely on contract packaging firms, also called third-party packaging companies, to manage their product packaging, ensuring efficiency and cost-effectiveness. These firms provide the necessary expertise and tools for optimal packaging solutions. The increase in small and medium-sized enterprises, coupled with the benefits offered by contract packaging companies, is expected to drive growth in the contract packaging market.
- The expansion of the e-commerce industry has also contributed to an increase in the need for tertiary packaging in the region, which favors the contract packaging business. Additionally, due to increased disposable incomes, population growth, and business-friendly government regulations in many countries, demand for various packaging-intensive industries, including pharmaceutical, consumer goods, food and beverage, and electronics, is rising across Europe. Thus, the growth of the abovementioned industries is projected to impact the contract packaging market favorably.
- Furthermore, associations and organizations are increasingly emerging to enhance awareness in the market studied. The European Co-Packers Association (ECPA) and the Contract Packaging Association are among a few examples. Europe hosts approximately 1,000 active contract packaging vendors, with 40-50% being small companies. According to Pharmapack Europe, the 2024 outlook for pharma services has been promising: 94% of industry players are either 'moderately positive' (37%) or 'highly positive' (37%) about growth in contract packaging.
- The increasing consumer awareness about environmental concerns, along with producers’ demand for economical packaging options, is compelling contract packagers to adopt eco-friendly alternatives and eco-sensitive package designs. Sustainability and customization are likely to continue to positively impact the contract packaging market. These trends are most likely to influence consumer-packaged goods, such as personal care items and food and beverages, over the forecast period.
- Adopting innovations for the first time becomes challenging, particularly due to the significant capital expenditure required for equipment acquisition and installation. To address these challenges, an increasing number of pharmaceutical companies are forming strategic partnerships with expert contract packaging organizations (CPOs). By doing so, these companies are leveraging the latest packaging innovations without substantial individual investments. These strategic alliances are transforming the industry’s trajectory, enhancing efficiency, and delivering improved patient experiences.
- However, stringent regulatory compliance requirements, particularly in the pharmaceutical and food industries, are impeding market growth. These industries are subjected to rigorous regulations governing packaging materials, labeling, and hygiene standards, requiring companies to invest heavily in quality control systems, certifications, and resources to meet these stringent requirements.
Europe Contract Packaging Market Trends
Pharmaceutical Industry to Propel Market Growth
- In Europe, increased pharmaceutical spending on research and development (R&D) is driving significant growth in new medicine development. This surge is increasingly relying on support from contract packagers across various European nations. According to data from the European Federation of Pharmaceutical Industries and Associations (EFPIA) and the Pharmaceutical Research and Manufacturers of America (PhRMA), from 2014 to 2018, pharmaceutical R&D in Europe grew at a rate of 3.7%. However, between 2019 and 2023, this annual growth rate surged to 6.7%.
- Pharmaceutical industries in the region are accelerating their adoption of technological advancements. Increasing awareness of smart packaging, which monitors storage and temperature conditions, is driving innovation in contract packaging services. Additionally, advancements in sensor technologies and the development of the Internet of Things (IoT) are enhancing smart packaging through cloud platforms.
- In 2023, Pharmapack Europe announced plans to launch two new zones at its 2024 event. This initiative is aimed at meeting the increasing demand for biologics, mRNA therapeutics, and contract packaging. Additionally, to help the industry find ideal partners and sustain demand growth, Pharmapack is introducing dedicated zones for exhibitors specializing in these solutions.
- Several vendors operating in the market are engaging in strategic partnerships. For instance, in January 2024, SteriPack, a contract packing organization serving the pharmaceutical industry, strategically partnered with SHL Medical, a provider of advanced drug delivery systems. This collaboration establishes a pre-validated, highly flexible final assembly and secondary packing service at SteriPack's facility in Poland. This service will support SHL's second-generation Molly 1.0 ml autoinjector platform, enhancing SteriPack's small to mid-volume offerings in Europe.
The United Kingdom Expected to Witness Significant Growth
- The packaging industry in the United Kingdom has been experiencing significant growth due to increased manufacturing activities. Additionally, rising e-commerce sales, higher demand from food and beverage producers for eco-friendly and recyclable packaging, a growing interest in product personalization, and an expanding industrial packaging sector are driving the country's contract packaging market forward.
- According to the Office of National Statistics (United Kingdom), in November 2023, internet sales as a percentage of total retail sales in Great Britain stood at 30.7%, indicating a significant increase compared with the previous month when online retail sales accounted for 26.30% of total retail sales. The rise further boosts the demand for contract packaging in the region.
- To establish themselves as comprehensive contract solution providers, vendors of consumer-packaged goods (CPG) in the country are increasingly pursuing vertical integration. This strategy includes offering packaging solutions, acquiring raw materials, and managing logistics. Due to constraints in OEMs' manufacturing capacities and the rise in food producers, manufacturers are turning to outsourcing. This shift enables food enterprises to expand rapidly, leveraging the value-added services provided by food contract manufacturers, such as packaging, research, consulting, and warehousing.
- In the United Kingdom, pharmaceutical contract packaging is rapidly embracing diverse methods to meet shifting consumer preferences. Growing environmental concerns are prompting the pharmaceutical industry to adopt sustainable contract packaging solutions. Additionally, the increasing use of automation in pharmaceutical contract packaging is reducing human errors, thereby driving market growth in the country.
- The United Kingdom is also now committed to environmental conservation and sustainable development at the highest levels of government. Contract packaging is a good combination of efficiency and effectiveness for CPG companies aiming to avoid significant capital expenditure and instead focus on innovation, sustainable practices, customer experience, and speed-to-market. Supply chain efficiencies contribute to material and structural improvements such as cost reduction, waste reduction, and production cycle optimization. According to a report by Sustainable Plastics in September 2023, online shoppers across the United Kingdom showed a clear preference for high-quality packaging that is recyclable or reusable while also minimizing unnecessary waste.
Europe Contract Packaging Industry Overview
The contract packaging market in Europe is fragmented due to the presence of many vendors. The report offers information about the competitive environment among players in this market. Major players include Budelpack Poortvliet BV, Cygnia Logistics (Dalepak Ltd), and Complete Co-Packing Services Ltd.
- In February 2024, WePack, a UK-based contract packaging provider, announced a new partnership with software provider Nulogy at Packaging Innovations & Empack 2024 to enhance its agility and responsiveness. WePack opted for Nulogy’s Shop Floor Solution. WePack works with brands across the food, cosmetics, high-end consumer goods, and agriculture industries. The firm offers various services, including bottling, sachet and pouch filling, hand assembly projects, rework, and rectification.
- In August 2023, Minor, Weir & Willis (MWW) Ltd announced the renewal of its collaboration with Conti-Frucht in Germany for Aldi Salad contract packaging. This partnership highlighted MWW's industry expertise, unwavering commitment, and superior quality standards. The company initiated this collaboration to offer better quality in all aspects of operations and set new standards for quality and efficiency in the industry.
Europe Contract Packaging Market Leaders
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Budelpack Poortvliet BV
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Complete Co-Packaging Services Ltd.
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Driessen United Blenders
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Harke Packserve GMBH
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Cygnia Logistics Ltd
*Disclaimer: Major Players sorted in no particular order
Europe Contract Packaging Market News
- February 2024: WePack, an independent contract packing specialist, partnered with software provider Nulogy at the Packaging Innovations & Empack 2024 Event. This collaboration highlighted WePack's dedication to enhancing the agility and resilience of its operations. Recognizing the need for a digital solution to improve responsiveness, WePack selected Nulogy’s Shop Floor Solution as the optimal choice.
- January 2024: Magnavale, a UK-based cold storage provider, announced the expansion of its contract packing, labeling, and date-coding lines at its Easton facility, allowing for a significant boost in capacity. Capable of adapting between ambient, chilled, and frozen applications, these new highly automated lines enable Magnavale Easton to significantly increase packing, labeling, and date-coding output and flexibly adjust to peak-demand periods.
Europe Contract Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of Microeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand from the E-commerce Industry
5.1.2 Increasing Need for Latest Technologies and Innovative Packaging
5.2 Market Restraints
5.2.1 Stringent Government Regulations
5.2.2 Competition from In-house Packaging
6. MARKET SEGMENTATION
6.1 By Service
6.1.1 Primary Packaging
6.1.2 Secondary Packaging
6.1.3 Tertiary Packaging
6.2 By End-user Industry
6.2.1 Beverages
6.2.2 Food
6.2.3 Pharmaceuticals
6.2.4 Home and Fabric Care
6.2.5 Beauty Care
6.3 By Country
6.3.1 United Kingdom
6.3.2 Germany
6.3.3 France
6.3.4 Italy
6.3.5 Spain
6.3.6 Netherlands
6.3.7 Rest of Europe
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Budelpack Poortvliet BV
7.1.2 Cygnia Logistics Ltd (Dalepak Ltd)
7.1.3 Complete Co-Packing Services Ltd
7.1.4 Driessen United Blenders BV
7.1.5 Harke PackServ GmbH
7.1.6 Kompak Co-Making & Co-Packing
7.1.7 Marvinpac SA
7.1.8 NOMI Co-Packing
7.1.9 Boughey Distribution Ltd
7.1.10 Total Pack BV
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Europe Contract Packaging Industry Segmentation
Contract packaging is a business arrangement where a third-party company manages the packaging of products for another company. This outsourcing model allows businesses to concentrate on their core competencies while leveraging the expertise of specialized packaging providers.
The European contract packaging market is segmented by service (primary packaging, secondary packaging, and tertiary packaging), end-user industry (beverages, food, pharmaceuticals, home and fabric care, and beauty care), and country (United Kingdom, Germany, France, Italy, Spain, the Netherlands, and Rest of Europe). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Service | |
| Primary Packaging | |
| Secondary Packaging | |
| Tertiary Packaging |
| By End-user Industry | |
| Beverages | |
| Food | |
| Pharmaceuticals | |
| Home and Fabric Care | |
| Beauty Care |
| By Country | |
| United Kingdom | |
| Germany | |
| France | |
| Italy | |
| Spain | |
| Netherlands | |
| Rest of Europe |
Europe Contract Packaging Market Research FAQs
How big is the Europe Contract Packaging Market?
The Europe Contract Packaging Market size is expected to reach USD 24.90 billion in 2024 and grow at a CAGR of 8.55% to reach USD 37.53 billion by 2029.
What is the current Europe Contract Packaging Market size?
In 2024, the Europe Contract Packaging Market size is expected to reach USD 24.90 billion.
Who are the key players in Europe Contract Packaging Market?
Budelpack Poortvliet BV, Complete Co-Packaging Services Ltd., Driessen United Blenders, Harke Packserve GMBH and Cygnia Logistics Ltd are the major companies operating in the Europe Contract Packaging Market.
What years does this Europe Contract Packaging Market cover, and what was the market size in 2023?
In 2023, the Europe Contract Packaging Market size was estimated at USD 22.77 billion. The report covers the Europe Contract Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Contract Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Contract Packaging Industry Report
Statistics for the 2024 Europe Contract Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Contract Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
