India’s contract packaging market growing – Report

FMI - Transformative trends in contract packaging market

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Packaging Prowess: Transformative Trends in the Contract Packaging Market

The contract packaging market size was projected to be US$ 47.2 billion in 2023. By the end of 2024, the industry is likely to reach a valuation of US$ 49.6 billion. During the forecast period, the global market for contract packaging is expected to garner a 5.10% CAGR and reach a size US$ 81.6 billion by 2034.

The India contract packaging market is poised to expand at a 7.7% CAGR during the forecast period. The expansion of export prospects has led to a boom in contract packaging services in India.

Key Industry trends

Focus on product diversification- Pharmaceuticals, food and beverage and cosmetics industries, among others, are among the many product categories and industries to which contract packagers are progressively providing a wide range of services. They are also providing them with customized packaging solutions made to fit particular requirements. This flexibility and specific knowledge are fueling expansion and offering clients unique services.

Eco friendly packaging options- Sustainability and eco-friendly packaging options are becoming increasingly important in the market. Many contract packaging firms are responding to these demands by providing creative, eco-friendly solutions.

Key drivers

The pharmaceutical industry is putting an increased emphasis on serialization as well as traceability to prevent counterfeiting and maintain patient safety. This creates immense demand for contract packaging manufacturers, having pharmaceutical packaging compliance knowledge.

The expanding e commerce sector creates a demand for specialized packaging, including eco-friendly, protective, and aesthetically beautiful solutions customized for online retail, generating demand for contract packaging services.

A distinct market driver has emerged as a result of growing consumer expectations for sustainable packaging and environmental concerns. By developing innovative eco-friendly solutions, contract packaging businesses are drawing in clients who are dedicated to lowering their carbon impact.

Challenges

Having the capacity to handle the growing complexity of packaging design and materials is a key challenge in the global contract packaging market. Contract packagers are under constant pressure to meet the growing customer preferences for unique and innovative packaging, which can be expensive and technically demanding. They also have to stay up with the consumer demand for innovation by continuously incorporating new materials and techniques.

Keeping up with changing consumer tastes while remaining flexible is another difficulty confronting the global contract packaging business. Contract packagers need to be quick to adjust and provide fresh, creative packaging solutions in response to shifting consumer behaviors and developing trends in order to fulfill changing market demands and stay competitive in a rapidly changing environment.

Country-wise Insights

The table below lists the top five nations expected to forecast prominent growth during the forecast period. India and China are predicted to have the maximum development among these nations.

Booming export market in India to propel demand

The India contract packaging market is poised to expand at a 7.7% CAGR during the forecast period. The expansion of export prospects has led to a boom in contract packaging services in India.

Contract packaging companies are essential in ensuring that Indian products meet international norms and standards when they are sold in foreign markets. This supports the development of contract packaging in India by facilitating easier exports and global market expansion.

India has seen remarkable growth in both the fast moving consumer goods (FMCG) sector and the rising retail business. Contract packaging is essential for firms to effectively manage large production volumes and offer affordable packaging solutions as consumer demand for goods soars.

US

The United States market for contract packaging is likely to garner a 3.3% CAGR during the forecast period. The consumer goods market in the United States is enormous and diverse, covering a wide range of products including food and beverages, prescription drugs, cosmetics, and more.

Due to the wide range of products available, custom packaging solutions-such as distinctive materials, designs, and labeling-are required, which fuels the need for contract packaging services. Contract packagers are capable of managing this variability and offering effective packaging solutions tailored to the unique requirements of certain product categories.

The packaging environment has changed as a result of the robust e commerce industry in the region. As more people buy online, there is a greater demand for specialized, effective, and safe packaging options to guarantee that goods arrive to customers undamaged and look good. Contract packaging companies play a critical role in satisfying these needs by providing specialist packaging services for online retailers.

United Kingdom

The contract packaging market in the United Kingdom is poised to expand at a 4.5% CAGR from 2024 to 2034. The retail sector in the United Kingdom, which includes private label companies, has been steadily growing. Retail brands need high quality, economical, and effective packaging and labeling solutions, which drives up demand for contract packaging services.

Contract packaging manufacturers give a wide range of packaging alternatives, from mass produced to premium, customized packaging for private label businesses, and the flexibility to adjust to the changing needs of the retail sector.

Germany

The market for contract packaging in Germany is poised to develop at a 2.2% CAGR during the forecast period. Germany has a great preference for high quality and gourmet goods. Specialized and superior packaging solutions are in high demand as a result of this preference. In order to satisfy the specific packaging needs of these products, which include premium labeling, superior materials, and customized packaging designs, contract packaging services are crucial.

Germany is renowned for its strict packaging laws and excellent standards. This necessitates a high degree of packaging precision and skill. Contract packaging firms are essential to maintaining adherence to these requirements since they have the skills and expertise to handle the intricate regulatory environment. In the German market, their services support brands in upholding regulatory compliance and quality standards.

China

The China market for contract packaging is likely to expand at a 6.8% CAGR from 2024 to 2034. The growing middle class in China is more concerned with convenience and is turning more and more toward pre-packaged, clearly labeled goods.

The need for contract packaging services to offer specialized and effective packaging solutions is fueled by this trend. Contract packagers provide a variety of packaging alternatives that suit the convenience as well as lifestyle preferences of the growing middle class population in order to meet these changing needs of consumers.

Contract Packaging Market:

  • CAGR from 2024 to 2034 5.10%
  • Market Value in 2024 US$ 49.6 billion
  • Key Trends- End users are adopting contract packaging solutions, which enable product owners to design and operate the packaging line accordingly.
  • Key Opportunities- Through quicker shifting and packing, the outsourced packaging solution speeds up the packaging process and expands the supply chain.

FMCG Packaging Market:

  • CAGR from 2024 to 2034 5.8%
  • Market Value in 2024 US$ 468.80 billion
  • Key Trends- The market is growing due in large part to the prevalence of convenience and low cost stores as well as rising food and beverage industry production.
  • Key Opportunities- Packaging makes up a sizable amount of the materials used in the final product manufacturing expenses in the FMCG industry. In order to cut expenses, manufacturers are coming up with innovative packaging techniques.

Packaging Testing Services Market:

  • CAGR from 2024 to 2034 9.7%
  • Market Value in 2024 US$ 16.35 billion
  • Key Trends- In keeping with the expanding environmental concerns, there is a trend toward a rise in the need for testing services to evaluate the ecological and sustainable use of packaging materials.
  • Key Opportunities- The opportunity is in providing businesses with specialized services that enable them to adhere to quality standards and ensure product safety in the face of constantly changing packaging restrictions.

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