PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627746
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627746
The global contract packaging market is estimated to grow at a CAGR of 9.18% to reach a market size of US$149.588 billion in 2030 from US$96.444 billion in 2025.
Contract packaging is referred to as the packaging solution provider (which is outsourced) from the beginning to the end of the product packaging (from design to storage or distribution). Contract packaging manufacturers collaborate with the product managers and manufacturers for consulting, planning, customizing, and executing the packaging process as per the timeline, pre-produced or required packaging components, and industry requirements. The contract packaging market's growth is determined based on the changing manufacturing industry preferences, where product manufacturers are moving to these solution providers due to their growing focus on cost optimization with more focus on their core businesses.
The market is propelled to grow significantly with the rising pharma industry delivering several drugs and drug delivery systems. The prevalence of diseases and the elderly population are contributing to industrial growth, fueling the market expansion in the forecast period. The increasing popularity of consumer electronics and rising disposable incomes in emerging economies are creating opportunities for the contract packaging market expansion, driven by the demand for consumer electronic goods. With the shifting trend of dietary consumption patterns, there is a high need for packaged food and beverages, further boosting the market growth in the forecast period. The growing retail industry, with rising online retail sales, is further propelling the market sustainably in the forecast period. Geographically, North America is projected to hold a significant market share, followed by the European region. Asia Pacific is projected to be the fastest-growing region in the forecast period.
Global contract packaging market drivers
The agricultural packaging industry is estimated to grow in the forecast period with the rising population and demand for food. Hence, this has created a need for agricultural packaging solutions where consumers demand effective packaging solutions where the food is free from contamination and thus prevents spoilage, further boosting the market expansion in the forecast period. As a result, fresh food producers seek contract packaging solution providers who have continuous technological advancements in packaging, driving the market during the forecast period. With the growing retail packaging, fresh farm produce needs efficient packaging to be easily transported from one destination to the other. Hence, the growing retail packaging trends are allowing the market to grow significantly in the upcoming years.
By geography, the global contract packaging market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries.
The Asia Pacific region is expected to see notable growth due to the growing industrialization and e-commerce market. This regional market is propelling with increasing disposable and family income, where customers are preferring freshly packaged fruits and vegetables. Hence, their willingness to spend on packaged fresh fruits and vegetables has also increased. A large consumer base with an expanding middle-class population is fuelling the regional market, promoting high consumption of fresh agricultural produce.
The market is segmented by end-user industry into food, beverage, cosmetic, pharmaceutical, consumer electronics, and others.
The market for hair care cosmetic applications is projected to gain traction in the forecast period owing to the increasing interest among people in achieving a better quality of hair. Hence, hair care cosmetic products are gaining traction among a wide range of consumers, men and women, worldwide. Additionally, with the growing demand for professional hair services, the market's growth is expected to accelerate in the coming years with the burgeoning demand for hair creams, lotions, and hair color cosmetics, among other products.
Other factors driving the market growth for hair cosmetic products include a growing middle-class population with increased purchasing capacity and disposable income. Hence, the hair care industry is uniquely positioned in the cosmetic industry. Furthermore, growing sales alternatives in the form of online sales apart from offline sales channels are also contributing to the growing purchase of hair care cosmetic products, further boosting the market during the forecast period.
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