GLOBAL CONTRACT PACKAGING MARKET
Contract Packaging, also known as Co-Packing, is the overall process of assembling a product or goods into its final finished packaging. Contract Packaging can be a simple or complex process as it is customized according to the specific scope of the product packaging, which varies greatly across the retail, commercial or trade industries.
Contract Packaging and Co-packaging companies provide contract packaging services to product manufacturers and often act as an extension of the company. Contract packagers can be tasked with something as simple as adding a barcode sticker to a product or as complex as planning, designing, producing, and fulfilling the entire package.
Contract packagers often have capacities for structural design and testing, print and graphic services, production labour, and in some cases even full-service fulfilment. Many contract packagers specialize in a specific type of packaging, like corrugated (cardboard), shrink wrapping, or bottling for example.
Sometimes manufacturers perform the end-of-line services of packaging a product internally due to line set-ups, government regulations, strict manufacturing requirements, environmental factors, the level of difficulty of moving it to the outside, and more. But for most retail products that are manufactured companies lean on outside Contract Packaging Companies do this final packaging work.
In these cases, care must be taken to put quality and inventory control procedures into place in order to operate at the standards those manufacturers specify when they enlist contract packaging services.
GLOBAL CONTRACT PACKAGING MARKET DYNAMICS
Contract Packaging and Co-packaging companies provide packaging services – ranging from simple to complex to product manufacturers, often acting as an extension of the company. A simple service may be applying a promotional label or coupon to a product that is already packaged. A more complex service may include everything from start to finish i.e. planning, designing, producing, and fulfilling the entire package.
There are varying degrees of contract packaging services, which can be utilized independently or bundled according to the product’s overall scope and product development. Contract packaging companies work with product managers and manufacturers to consult, plan, customize and execute the process according to the timeline, pre-produced or need-to-be produced packaging components and industry requirements.
Co-packers may be focused on niche markets. Markets such as food production, consumer electronics, medical devices, and OTC pharmaceutical drugs. They optimize the machinery, materials, and labour force to continually improve upon producing quality final products and bringing them to market in the required time frame. Furthermore, they work hard to make sure your products are aesthetically pleasing and appealing to your customers.
The most obvious short-term challenge for contract packagers at the moment is ensuring they can meet customers’ serialization requirements. Implementing serialization across packaging med vault lines is a complex process and an expensive one. Smaller CPOs in particular are struggling with the upfront investment required to implement a solution, meaning many specialist providers will need to withdraw from certain markets temporarily or even permanently.
In addition, there is the added concern surrounding how to build the cost of serialization into existing supply agreements and data without losing customers. These cost concerns are also leading a lot of manufacturers to consider consolidating their supply chains and use fewer supply chain partners. This kind of consolidation. faced by has been an industry-wide trend for a wide. CPOs are now facing more competition than ever before and need to invest in upgrading their service level to face off their competitors.
GLOBAL CONTRACT PACKAGING MARKET SEGMENTATION
The Global Contract Packaging Market can be segmented into following categories for further analysis.
By Packaging Product
- Plastic Production Based
- Paper Production Based
- Corrugated Board Based
- Reinforced material based
- Composite material Based
- Other Materials
By In Product Usage Type
- Foods and Beverages
- High Value Objects / items
- FMCG Products
- Electronic Products
- Fashion Products
- Low Value Software Products
- Hardware Products
- Electrical and Hazardous Products
- Mechanical Products
By Client Production Categorization Type
- Large Scale Packaging Provisioners
- Small Scale Packaging Provisioners
- Omni Business Packaging Provisioners
- Medium Scale Packaging Provisioners
By Packaging Integration Type
- Primary Packaging
- Secondary Packaging
- Tertiary Packaging
By Regional Classification
- Asia Pacific Region – APAC
- Middle East and Gulf Region
- Africa Region
- North America Region
- Europe Region
- Latin America and Caribbean Region
RECENT MARKET TECHNOLOGICAL TRENDS IN GLOBAL CONTRACT PACKAGING MARKET
The introduction of new technologies and innovations will be the key factors in market growth. Brands are striving to provide product differentiation at the point of purchase. Innovative new designs, package shapes and decorative techniques can therefore be created as added value features. As a result, materials and technologies will drive demand for luxury packaging and enable companies offering these services to succeed.
New drug delivery technologies are driving demand for unique packaging solutions. Among the latest innovations is monitored medication adherence solutions. Also, as serialization expands, companies are increasingly leveraging information technology for greater connectivity and more efficient supply chains.
With demand increasing for a broader range of services, contract packagers are expanding capabilities and infrastructure. Contract packagers are well-prepared for serialization requirements. With at least 80 serialization lines across its global network of facilities, PCI Pharma Services delivers serialized medicines with integrated overt and covert anticounterfeiting protection features and can meet current and upcoming requirements internationally.
With heightened consumer awareness in the importance of “green” packaging and lowering the impact of packaging production and use on the environment Contract Packaging has started to encourage sustainability in packaging production through Ongoing efforts to achieve significant source reduction, Recognizing supply chain impact on space utilization, storage, transportation, and distribution and Assuring consumer ability to recycle most, if not all, packaging components.
The growth also stems from business incorporating new technologies, as previously discussed. Artificial intelligence (AI) and machine learning (ML) will enable businesses to detect patterns they did not even know existed. AI in the supply chain is still in its early stages, but when trained, AI can help businesses to mine data lakes to answer questions, solve problems and chart the course for future success.
In the recent years of the Global Contract Packaging Market, there has been an extensive competition being noticed in the research and development of the required packaging improvisation to comply with the environmental standards and basic SOP of Packaging the commodity as required by categorizations.
Export Corporation has been one of the major stakeholders in the Contract packaging Market within the Global Scenario of Analysis. Some of the industrial packaging services provided include custom crates, custom pallets, military packaging, aerospace packaging, and more. We provide expert packaging services to automotive, aerospace, commercial, Government, military & defense customers.
Hollingsworth has been involved in implementing new best-in-class warehouse management technology, we proudly offer complete, real-time visibility of your supply chain. From complex order fulfilment strategies to detailed assembly and kitting operations. It also has inbound distribution as well as flexible warehousing to support our customers with fulfilment, distribution, packaging, assembly, and just-in-time (JIT) delivery, vendor-managed inventory (VMI), and freight management. Our best-in-class SAP technologies help to streamline operations and reduce costs.