Room for expansion for contract packagers

ALBANY, New York – The rise of e-commerce, and growing international trade promise to boost the contract packaging market over the next 10 years.

Growth will average seven percent a year says a new study from Transparency Market Research (TMR). Revenue from bottling services will likely remain the major highlight in the market with a share of 32 percent.

The demand for labelling is expected to result in higher growth in near future, as demand for labelling for marketing continues to go up. Demand for brand differentiation also continues to rise.”

According to the study, increased complexity in packaging is expected to emerge as a key driver for growth in the contract packaging market.

These additional requirements, and innovation in equipment driving sales  will help the market reach US$56 billion by end of 2027.

The pharmaceutical market will drive demand with new regulations that mandate serialization. Companies trying to keep up with regulations will support the market with capital equipment expenditures, the report notes.

E-commerce has boosted the trend towards postponement packaging, making way for late-stage customization, and leaving scope for innovation to suit a wide range of distribution models. The packaging also is ideal for small volume products, which provide high margins, and require high-level of expertise.

The contract packaging market will register significant growth in Asia Pacific, thanks to rising disposable income, and the region’s large population. Changing lifestyles and growing access to healthcare will also drive growth for the cosmetic, and pharmaceutical industry in near future.

The contract packaging market will register more than average growth in North America, and Europe, despite growing regulatory challenges. The rising demand for food and beverages, and promising economic growth in North America will drive major gains for players in the contract packaging market. Rising demand for wearable gadget technology will also be a major driver in the region.

Competition in the contract packaging market globally remains robust, and scaling up promises the biggest opportunity for players during 2019-2029. This is expected to result in major acquisitions, and expansion in new regions during the forecast period.

Key players in the contract packaging market include AmeriPac, Aaron Thomas Company, UniCep Packaging, Reed-Lane, Inc., Jones Packaging, Stamar Packaging Inc., Multi-Pack Solutions LLC., Pharma tech industries, and Sonoco Products Company.