A new research report from Mordor Intelligence looks at growth, trends, and forecasts for the global contract packaging market.
A new research report from Mordor Intelligence looks at growth, trends, and forecasts for the global contract packaging market. Among the report’s key insights:
- In 2017, the global contract packaging market was valued at $40.65 billion and is expected to reach a value of $78.14 billion by 2023, representing a CAGR of 11.51% over the forecast period of 2018-2023.
- Brand owners, increasingly focusing on cost optimization and their core business, are finding that by using contract packaging services, they can reduce operational costs by 7% to 9%, due to reduced machinery maintenance and labor costs.
- The entry of third-party logistics companies in the contract packaging market is helping to reduce the total delivery-cycle time and also the combined cost of packaging, transportation, and distribution.
- Globally, there is an increase in the number of e-commerce companies, and contract packagers are experiencing growing demand from these companies.
- Recent improvements in medical sciences and additions to medicines already available for numerous diseases and deficiencies are indirectly driving the contract packaging market, as the necessity of packaging the medicines has multiplied rapidly.
- The need to create specialized packaging for pharmaceuticals—including packaging that addresses the needs of elderly patients, meets stringent government regulations, and serves consumers’ desire for innovation—has boosted contract manufacturing and packaging.
- Food products continue to furnish a large share of contract packagers’ business—a trend that will continue in the coming years.
- To meet the consumer trend toward convenient foods that are healthier than traditional processed products, major food brands are depending on contract packagers to package their products while they focus on providing more high-quality food.
- North America, and the U.S. in particular, holds the majority share of the global contract packaging market.
Source: Packaging World - Packaging news, trends & innovations