Market Research Report
North America Contract Packaging Market - By Services (Primary Packaging, Secondary Packaging, Tertiary packaging), Vertical (Beverages, Food, Pharmaceuticals, Home and Fabric Care, beauty care and Others), Country, Trends, Forecasts - (2017 - 2022)
|Published by||Mordor Intelligence LLP||Product code||394176|
|Published||Content info||87 Pages
Delivery time: 2-3 business days
|North America Contract Packaging Market - By Services (Primary Packaging, Secondary Packaging, Tertiary packaging), Vertical (Beverages, Food, Pharmaceuticals, Home and Fabric Care, beauty care and Others), Country, Trends, Forecasts - (2017 - 2022)|
|Published: January 11, 2017||Content info: 87 Pages||
Contract packaging refers to the outsourcing of packaging activities to third-party vendors. In the recent years, manufacturing companies tend to subcontract these non-core services in which they don't have the expertise, to third-party vendors. However, over the past decade, the market have been witnessing a high growth owing to the increasing focus on R & D among the pharmaceutical companies across North America.
The North America contract packaging market is projected to reach USD 16.35 billion by the end of 2022, at a CAGR of 12.17% over the five-year forecasted period 2017 - 2022. Rapid advancement in the technologies, developments of the retail chains, increasing investments in the R & D and growing usage in end-user industries are some of the factors augmenting the growth of the market. However, some of the key impediments hindering the growth of the market are the in-house packaging along with the increasing lead time & logistics costs.
The market for North America contract packaging has been broadly segmented by services and verticals. As per services, the market has been segmented into primary packaging, secondary packaging and tertiary packaging. Whereas, by verticals, the market has been segmented into beverages, food, pharmaceuticals, home and fabric care, beauty care and others.
In 2016, F & B industry leads the market while the pharmaceutical industry is estimated to drive the market during the forecast period. For FMCG products, for the same brand name, the sales are highly dependent on the impact created by packaging on the customer during the point of purchase, and thus, contract packagers work along with the product manufacturing companies and are regarded as an extension of their arm. On the other hand, for pharmaceutical products, stringent regulations posed by the government requires them to perform the activities in class X clean rooms and as such, these activities are outsourced to contract packaging companies who have all the relevant infrastructure and expertise to perform these activities.
The market has also been segmented by countries into the United States and Canada. In 2014, the U.S. was the major market for contract packaging, while Canada is estimated to be the fastest growing market owing to its cost-competitiveness and quality packaging capabilities compared to North America. Today, companies are opting for less number of vendors to take volume advantage and at the same time, reduce logistics costs.
Contract packaging industry is estimated to have a huge potential and as such, third-party logistics providers like DHL are entering into this segment by providing secondary packaging services. With the arrival of 3PL providers, the industry dynamics is changing, since companies are preferring 3PL providers for contract packaging as well over traditional co-packers since it reduces costs and lead time.
Some of the companies mentioned in the report are DHL, Berkeley Contract Packaging, Unicep, MJS Packaging, Stamar Packaging and Sharp Packaging Services.