Market Trends of United States Contract Manufacturing Services Industry
Growth of Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs
- Manufacturing regulations, particularly in the case of beverage products in the United States, are rapidly evolving. Companies opt for outsourcing bottling and filling activities to meet such strict regulations, and the stressful task of meeting such regulations is passed on to the contracting agency. Admiral Beverage Corp., for example, is a supplier of carbonated soft drinks (CSD) in the western United States. It has expanded to three large facilities that supply carbonated and fountain mixes to numerous distributors throughout the mountain and western states, as well as Alaska. Admiral Beverage simplified deaeration, optimized blending, and sped up filling and changeovers by implementing Bevcorp's MicrO2 system.
- Due to offerings, key players in the personal care industry, such as Unilever and P&G, have begun in-house production of innovative products to protect their intellectual property and are outsourcing mass production to contract manufacturers.
- Further, the increasing investment in the capacity of the pharmaceutical segment can lead to expansion and significantly assists the market growth. For instance, In April 2021, Lonza announced its expansion their sold from selection services at the US site. This helps the company to meet its capabilities in meeting its accelerated timelines.
- The United States government's increasing investment in the manufacturing sector of emerging economies is expected to attract major market contributors such as McBride and Formula Corp. These businesses work hard to expand into new markets while keeping current contracts. These businesses position their services in the emerging need to secure long-term contracts.
Understand The Key Trends Shaping This Market
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Beverages sector to witness the growth
- The expansion of beverage contract bottling and filling in the United States as it reduces manufacturers' operational costs. In many cases, it is estimated that operating costs can be significantly reduced by outsourcing bottling and filling activities to contract companies and lowering machine and labor costs.
- Brewers can buy their filling machines when they first start up, rent filling lines, or contract filling solutions as their operations expand. It was difficult to find the right filling machinery, which could cause significant problems for beer companies. For these reasons, many businesses in the United States are turning to contract bottling and filling, which allows them to maximize efficiency in bottling and packing.
- Because most people are concerned about the impact of the COVID-19 outbreak, the demand for bottled water has increased significantly, and the Federal Emergency Management Agency (FEMA) recommends keeping at least one gallon of water per person per day on hand in case of an emergency. Purchasing and storing bottled water is a safe and convenient way to ensure an adequate supply is available when needed. This is expected to drive up demand for bottled water, which will benefit the contract bottling and filling market in the United States.
