LONDON--(BUSINESS WIRE)--According to the latest research study released by Technavio, the global contract packaging market is expected to record a CAGR of over 10% until 2020.
This research report titled ‘Global Contract Packaging Market 2016-2020’, provides an in-depth analysis of market growth in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various end-user segments, including F&B, consumer goods, personal care, pharma, and others.
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“Rising Internet penetration and the increasing trend of online buying will boost the global contract packaging market during the forecast period. Over 40% of the global population has the Internet access, and the percentage is increasing rapidly. This will give access to more population to online buying,” said Sharan Raj, one of Technavio’s lead analysts for packaging.
The e-commerce industry has reached saturation in Europe and Norther America. In the UK, 70% of its overall population prefer online shopping. APAC is growing rapidly in terms of online buying, with almost 48% of the global e-commerce industry. This is because of the world's largest population in the region; the region has around 60% of world's population. Vendors selling products through e-commerce platform include small vendors. Those vendors lack in-house packaging facilities; Therefore, they are bound to go with third-party packaging.
The following are the major end-users of contract packaging:
- Food and beverage sector
- Consumer goods sector
- Personal care sector
- Pharmaceutical sector
- Other sectors
Global contract packaging market by food and beverage sector
In 2015, the food and beverage sector was the major end-user of contract packaging, and the sector accounted for the highest market share of 42.12%. This is mainly because of the growing demand for packaged food products globally. The global food packaging market will be valued more than USD 3 trillion by 2020. The growing urban population and the resultant increase in the demand for processed and prepared food have a significant impact on the growth of the global food packaging market. We expect that, globally, over 2.5 billion people will move to urban areas by 2050. Of these, around 28% of them will be from India and China. The number of cities with more than 10 million people has increased by 180% since 1990. In 1990, there were only 10 cities with populations of more than 10 million. In 2014, there were 28 cities with populations more than 10 million. This will boost the market for contract packaging globally during the forecast period.
Global contract packaging market by consumer goods sector
The consumer goods sector accounted for the second highest market share of 21.3% in 2015. Some of the major factors in determining the type of packaging used for consumer goods are customer convenience, aesthetic appeal, product features, and material compatibility. Rigid plastics, papers and paperboards, flexible plastics, metals, and glass are some of the most commonly used packaging material for consumer goods by contract packagers.
The global contract packaging market by the consumer goods sector will post a CAGR of 7.95% during the forecast period, which is much lower than the overall market CAGR of more than 10%. The main reason for the comparatively low CAGR is the reduced spending power of consumers post the economic downturn of 2008-2009, especially in developed economies such as the US and some European countries. On the other hand, the market will witness demand from developing countries such as China and India due to urbanization and increased spending power of people in these countries. Developing economies are currently experiencing rapid growth.
Global contract packaging market by personal care sector
In the personal care sector, manufacturers offer products such as toiletries, cosmetics, moisturizers, creams, and oral care products. This market will post a CAGR of 6.42% during the forecast period. The major growth of this market is expected from developing regions such as APAC. In developing countries such as India and China, due to the increased purchasing power of people and growing product awareness, vendors are experiencing a growing demand for packaging cartons from this sector.
Browse related reports:
- Logistics Market in Europe 2016-2020
- Contract Logistics Market in South America 2015-2019
- Contract Logistics Market in the APAC Region 2015-2019
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