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North America Contract Packaging Market Size (2024 - 2029)

The North American contract packaging market is experiencing significant growth, driven by the increasing demand from e-commerce and the outsourcing of packaging services. The market size is positively influenced by the shift in manufacturing preferences towards contract packagers, spurred by stringent government regulations on packaging and labeling, particularly in the food, beverage, and pharmaceutical sectors. The pandemic has further accelerated demand in the household and personal care industries, as companies adapt to produce essential products. Despite challenges posed by regulatory requirements and rising raw material costs, innovations in packaging solutions are mitigating these impacts, supporting the market's expansion.

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Market Size of North America Contract Packaging Industry

North America Contract Packaging Market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 9.70 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

North America Contract Packaging Market Analysis

The North American contract packaging market is expected to register a CAGR of 9.7% over the forecast period (2021 - 2026). With the outbreak of COVID-19, the contract packaging market has witnessed tremendous growth as the e-commerce market has taken a boom owing to lockdown and social distancing norms where the majority of the consumer prefer online channels for shopping, and companies are outsourcing their packaging end to end or standalone services to meet the growing demand.

  • Increasing demand and the changing preference of manufacturing firms toward contract packagers, along with the U.S. government imposing various laws and regulations on the labeling and packaging of food, beverages, and pharmaceutical drugs, there is a positive impact on the demand for contract packaging in the region.
  • Contract packaging for household and personal care industry has seen an increasing demand in the region with the pandemic, as there was a shortage in supply of hand sanitizers, disinfectant liquids, etc., which has compelled the U.S. cosmetics manufacturing industry to retrofit their facilities to produce these necessities which, while providing opportunities, may have also slowed production of the usual range of products.
  • Many governments are also mandating stringent laws and regulations on the labeling and packaging of drugs and food products, further expanding the scope of contract packaging. For instance, in the United States, due to similar laws, the companies have preferred to outsource their manufacturing and packaging due to capital and others.
  • The aforementioned factors might act as a challenge for contract packaging companies, owing to the requirement of using high-quality plastics, which might ultimately lead to increasing prices in raw materials and packaging. Such regulations highly challenge the growth of a specific type of packaging materials and, in turn, challenge the market growth. However, this threat is now minimal due to innovations by companies.

North America Contract Packaging Industry Segmentation

Contract packaging is the process of assembling a product or good into its final finished packaging. Depending on the product, the final packaging constitutes a variety of forms, such as thermoformed/ plastic clamshell or blister packaging, a plastic bag, a standing corrugated retail point-of-sale display, or a transport tray. Sometimes, contract packagers are tasked with something as simple as adding a bar code sticker to a product or as complex as planning, designing, producing, and fulfilling the entire package. The North America Contract Packaging market is segmented by Service ( Primary Packaging, Secondary Packaging, Tertiary packaging), By End-User Vertical ( Beverages, Pharmaceuticals, Food).

By Packaging
Primary Packaging
Secondary Packaging
Tertiary Packaging
By End-User Vertical
Beverages
Pharmaceuticals
Food
Other End-Users Industries
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North America Contract Packaging Market Size Summary

The North American contract packaging market is experiencing significant growth, driven by the surge in e-commerce and the need for efficient packaging solutions during the COVID-19 pandemic. As consumers increasingly turned to online shopping, companies began outsourcing their packaging needs to meet the rising demand. This trend is further supported by the U.S. government's stringent regulations on labeling and packaging, particularly in the food, beverage, and pharmaceutical sectors, which has encouraged manufacturing firms to rely more on contract packagers. The household and personal care industries have also seen a rise in demand for contract packaging, as the pandemic highlighted the necessity for products like hand sanitizers and disinfectants, prompting manufacturers to adapt their facilities and processes.

The market is characterized by a moderate level of consolidation, with key players focusing on expanding their global presence and enhancing profitability through strategic collaborations. The demand for primary contract packaging is particularly strong in the food, beverage, and pharmaceutical industries, where it plays a crucial role in protecting products from contamination and damage. Innovations in packaging materials and the growing emphasis on eco-friendly solutions are driving the market's expansion. Additionally, the cannabis industry presents new opportunities for contract packaging, as companies seek to capitalize on the growing demand for packaged cannabis products. Overall, the North American contract packaging market is poised for continued growth, supported by evolving consumer preferences and regulatory requirements.

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North America Contract Packaging Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Steady rise in demand from the food industry

      2. 1.2.2 Recent trend of outsourcing non-core operations

      3. 1.2.3 Ongoing efforts towards serialization in the pharmaceutical sector

    3. 1.3 Market Challenges

      1. 1.3.1 Dynamic nature of regulatory standards

    4. 1.4 Industry Value Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Consumers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of Impact of COVID-19 on the Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Packaging

      1. 2.1.1 Primary Packaging

      2. 2.1.2 Secondary Packaging

      3. 2.1.3 Tertiary Packaging

    2. 2.2 By End-User Vertical

      1. 2.2.1 Beverages

      2. 2.2.2 Pharmaceuticals

      3. 2.2.3 Food

      4. 2.2.4 Other End-Users Industries

North America Contract Packaging Market Size FAQs

The North America Contract Packaging Market is projected to register a CAGR of 9.70% during the forecast period (2024-2029)

Aaron Thomas Company, Multipack Solutions LLC, Pharma Tech Industries Inc., Sharp Corporation (UDG) and UNICEP Packaging LLC are the major companies operating in the North America Contract Packaging Market.

North America Contract Packaging Report Snapshots

North America Contract Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)