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Rapid technological advances, the development of retail chains, and increasing R & D investment are among the factors driving the growth of contract packaging. On the other side of the coin, the internal packaging, as well as increased delivery time and logistics costs, hindered the growth of the market.
Contract packaging, the outsourcing of packaging activities to third-party vendors, reached a market value of $22 billion in 2016, and is projected to reach $39 billion by the end of 2021, demonstrating a CAGR of 10% over the next five years, according to new research from Mordor Intelligence.
The report says, “In the recent years, manufacturing companies tend to subcontract non-core services in which they don't have expertise to third-party vendors. However, over the past decade, the market has been witnessing a high growth owing to increasing focus on R&D among the pharmaceutical companies across the globe.”
Mordor says the global contract packaging market has been segmented into primary, secondary and tertiary packaging services, as well as by vertical markets including beverages, food, pharmaceuticals, home and fabric care, beauty care and others.
Food and beverage led the market in 2014, but the study said: "The pharmaceutical industry is expected to drive the market for the forecast period." Morder said: "Contract packers working with product manufacturing companies are seen as expanding their pharmaceutical products and receiving government Strict supervision requires them to be active in Class X clean rooms, so these activities are outsourced to contract packaging companies, with the associated infrastructure and expertise to accomplish these activities.
Article from:
https://www.packworld.com/
