Contract Packaging Market Size, Share, Growth and Industry Analysis, By Type (Primary Packaging, Secondary packaging, Tertiary packaging), By End User Industry (Food and Beverage, Pharmaceuticals, Cosmetics and Personal Care, Other and Regional Forecast to 2035

CONTRACT PACKAGING MARKET OVERVIEW

The global Contract Packaging Market size estimated at USD 55934.6 million in 2026 and is projected to reach USD 80493.79 million by 2035, growing at a CAGR of 12.9% from 2026 to 2035.

Demand for specialty packaging solutions in the growing end-use sectors has fueled the growth of the contract packaging industry. Brands and manufacturers are now outsourcing their requirements of packaging with the contract packaging providers in order to optimize cost and improve efficiency and tap into specialized expertise. Multiple packaging levels, including primary, secondary, and tertiary are provided by the contract packaging market for various industry-specific needs of food and beverage products, pharmaceuticals, personal care and cosmetics, etc. Manufacturers and brands believe in contract packagers being their partners to leverage these skillful abilities, high-technology, and economies of scale to help them stand apart, speed up market introduction, and compete against rivals.

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KEY FINDINGS

• Market Size and Growth: The Contract Packaging Market size was USD 43882.63 Million in 2024, is projected to grow to USD 46844.88 Million by 2025 and exceed USD 63150.16 Million by 2033, with a CAGR of 12.9%

• Key Market Driver: Outsourcing in the food and beverage sector is on the rise—over 58% of mid-sized FMCG companies in North America relied on external packaging partners in 2023 to scale faster and reduce overhead costs.

• Major Market Restraint: Supply chain disruptions have impacted packaging timelines—about 34% of companies in Europe reported delayed contract fulfillment due to material shortages and freight inconsistencies in the past year.

• Emerging Trends: Demand for sustainable packaging services is accelerating—biodegradable contract packaging saw a 27% uptick in demand globally in 2023, especially from eco-conscious D2C brands.

• Regional Leadership: North America leads the pack, with the U.S. accounting for more than 45% of total global outsourced packaging deals signed in 2023, driven by rising e-commerce logistics complexity.

• Competitive Landscape: The market is moderately fragmented—over 300 contract packaging organizations are actively operating in the U.S. alone, with the top 10 players accounting for just under 30% market share.

• Market Segmentation: Primary packaging services continue to dominate, representing nearly 52% of total demand in 2023 due to their critical role in product protection and compliance requirements.

• Recent Development: In late 2023, DHL Supply Chain announced the expansion of its contract packaging operations in Indiana, adding 1.1 million square feet of fulfillment and automated packing infrastructure.

COVID - 19 IMPACT

"Mixed Consequences of Global COVID-19 Pandemic on the Contract Packaging Market"

End use sectors that comprise pharmaceuticals and personal care industries have the increasing demands for contract packaging. For the food and beverage end use, however, a chain of supplies in it were cut due to decreased expenditure among the consumers, followed by partial closure of its facilities with logistical problems along with patterned changes of customers. However, as the economy is slowly regaining back, and businesses are changing according to the new trend, there is a slow rebound of demand for contract packaging services; however, this demand is highly backed by the industry due to the need of achieving fast and flexible supply chains.

RECENT TRENDS

"Sustainability and Eco-Friendly Packaging Solutions"

The mainstream trend for the contract packaging industry is sustainability and eco-friendly packaging solutions. Consumers prefer more environmentally friendly packaging. Brands are responding in this light by partnering with contract packagers who innovate and provide sustainable alternatives through biodegradable, recyclable, and compostable materials as well as effective production processes that help minimize waste and carbon footprint. The contract packaging market growth providers are investing in research and development to develop sustainable packaging technologies and offerings that will suit the evolving needs of the clients and end-consumers.

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CONTRACT PACKAGING MARKET SEGMENTATION

By Type

• Primary Packaging: This is the innermost package that has direct contact with the product. Solutions included in this segment are bottles, jars, pouches, among others which protect the product and maintain its integrity.

• Secondary packaging: It is the outer packaging, mostly applied on cartons and boxes, shrink wraps among others, mainly to protect the primary packaging so that it may be safely transported and stored.

• Tertiary packaging: transport packaging refers to large-scale packaging solutions, including bundling and protection of several units of secondary packaging for efficient distribution and logistics which may include pallets, crates, and stretch/shrink wrap.

By End-Use Industry

• Food and Beverage: The largest driver in the contract packaging market. Manufacturers are increasingly attracted toward demand for cost-effective, more efficient, and consumer and regulatory compliance-friendly packaging solutions.

• Pharmaceuticals: With regard to the pharmaceuticals, it has to depend on the contract packaging services if the drug products manufactured and sold are safe, sound, and comply with any regulation during the manufacturing and distribution of the drug products.

• Cosmetics and Personal Care: With the emerging markets of personal care and cosmetics, now it is gaining its ground to be considered the largest portion in the arena of contract packaging as an innovation of new brand comes about with attractive packaging that could possibly distinguish itself from the rest with a good user experience.

• Other: Other industries are also outsourcing packaging tasks by contracting packaging companies; this is to the electronic, home appliances, industrial items, and many more.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Increased Demand for Specialized Packaging Solutions"

The increase in demand of the contract packaging market will be promoted by the search for specific packaging capabilities that manufacturers and brands have; this may either be a technology or expert solution to low-cost ones. Contract packaging market share activities in the last few years, companies have been contracting packaging activities to the contract packagers mainly to focus on their core competencies to reduce capital expenditure and available scale economies and expertise by the contract packaging firms

"Increased need for flexible packaging"

Increased need for flexible formats such as pouches and sachets creates a need for contract packaging services since these formats are mostly niche and require specific equipment and expertise.

Restraining Factor

"Compliance with regulation"

Contract packaging is highly regulatory compliant, especially in regards to regulatory compliance in pharmaceutical as well as food and beverage industries that make packaging service provision complex and costly.

Opportunity

"Industrializing And Urbanizing Can Be The Great Opportunity"

Asia-Pacific and Latin America are big growth opportunities as these emerging regions are industrializing, urbanizing, and are raising consumer expenditure.

Challenge

"High Competition and Price Competition"

The contract packaging industry is highly competitive with big players as well as regional providers. This drives constant pressure on price and forces contract packagers to continually invest in innovation and operational efficiency to maintain the competitive edge.

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CONTRACT PACKAGING MARKET REGIONAL INSIGHTS

North America

North America, with the USA, is another important area for the global contract packaging market. Growth in the region was driven by a mature pharmaceutical and personal care industry and major companies trading in contract packaging. Increasing demands for customized as well as efficient packing solutions and a worry for sustainability would be the principal drivers for the North American market for contract packaging. The United States contract packaging market is highly grown in this market.

Europe

The European region has been the second strongest global market for Contract Packaging. A number of very strong manufacturing bases, especially in the countries of Germany, United Kingdom, and France amongst others, find their origin in this continent. Their growth, thus, alongside some rigidly structured regulations, gives an upward spurt to the level of demand for contract packaging in regions of Europe. Brands and companies in this region are searching for a packaging partner to help them navigate the wayward route, innovation, and a more green-friendly solution.

Asia

One region in the Asian and Pacific area, one is looking for significant expansion in the scope of the covered period of the contract packaging market from expansion for the food and beverage industry, increases for the pharmaceutical segment, and penetration from multi-nationals within that geographic area. The countries driving the growth are China, India, and Japan. The contract packagers are likely to look forward to a massive market of consumers and growing needs for cheaper and more cost-effective packaging solutions.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Important industry players now direct the contract packaging market through strategic investments and mergers and acquisitions and also through developing innovative solutions in packaging. The service providers look for geographic improvement in the quality of services offered and exploit competency in responding to changes in the demands of customers in each of the end-use industries.

List of Top Contract Packaging Companies

• Catalent, Inc. (U.S)
• Coghlan Group (U.S)
• DHL Supply Chain Germany
• Fareva France
• Genco (U.S)
• Glenroy, Inc., (U.S)
• Jones Packaging Inc. Canada
• Multivac GmbH Germany
• Pharma Tech Industries Inc. (U.S)
• Sharp Packaging Services (U.S)

KEY INDUSTRY DEVELOPMENT

MAY 2023: Catalent, Inc., the leading global company for drug development, delivery, and manufacturing solutions, acquired Bettera Holdings, LLC, a large gummy and soft chew contract manufacturer in the contract packaging market. As per the company, this acquisition will make Catalent better positioned in the growing nutraceuticals and OTC categories in terms of providing a broader series of packaging solutions to their clients.

REPORT COVERAGE

The report deals with the worldwide agreement packaging market and further elaborates on providing an in-depth view of trends as well as key drivers and restrains impacting it. This market report also offers information and elaboration of competition available in the market by making all information regarding leading manufacture and developments available. On the other hand, two kinds of agreements and two end-use industries have been presented in order to give comprehensive view of the market. Demand growth for specialized packaging solutions and increasing flexible packaging formats is expected to grow the market of contract packaging steadily in the future. Though restrains such as regulatory compliance challenges and intense competition are prevailing, huge opportunities are the expansion of emerging markets and adoption of innovative packaging technologies available for the contract packaging providers to capitalize. As the industry key players work with the changing needs of their clients, they are positioning themselves in the market to continue with their lead over others with the help of expertise and technological capabilities.