DUBLIN--(BUSINESS WIRE)--The "United States Contract Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The United States contract packaging market is expected to register a CAGR of 9.79% over the forecast period, 2021-2026.
Growth in the United States contract packaging market is mainly determined by the changing preference of manufacturing firms toward contract packagers, as they are increasingly focusing on cost optimization, to focus more on their core business. The operational costs can be reduced by 7% to 9% through such strategy, due to the reduced maintenance costs of machines and labor costs.
Owing to the stability, rising demand, and changing the preference of manufacturing firms toward contract packagers, the United States contract packaging market is expected to witness steady growth.
The companies are also becoming aware of the intense global competition, cost pressures, and highly variable demand from OEMs. This environment is rapidly boosting the contract packaging market in the United States. Many European companies, like the Langen Group and Persson Innovation, are investing in the United States segment.
The contract packaging sector in the United States is rapidly growing due to the increasing demand for packaging in segments, like food and beverages, pharmaceuticals, beauty care, and other segments. Contract packaging companies in the United States have learned to adapt to challenging business conditions.
Also, the US government has placed various laws and regulations on the labeling and packaging of the drugs. This could lead to an increase in the demand for contract packaging, owing to the inability of an in-house packaging facility for few pharmaceutical companies in this region.
Coronavirus outbreak is expected to have a positive impact on the contract packaging industry in the United States over the coming year. The demand for packaging, which limits the risk of contamination by reducing the exposure, is expected to be favored. Also, the packaged products can be easily cleaned with the packaging on in case of any surface contact.
However, the industry is currently facing a considerable impact on its supply chain system and production facilities due to the unfavorable conditions. Stringent isolation rules across the world have resulted in short supply of raw materials and workforce.
Key Market Trends
Growing Consumption of Pharmaceuticals is Driving the Market Growth
- The United States has emerged as the largest market for drugs and accounts for almost half of the R&D spending in pharmaceutical and biotechnology markets. Hence, contract packaging organizations play a critical role in this market and have invested in new facilities and technologies to cater to a wide range of outsourcers.
- The escalating adoption of innovative packaging methods to satisfy rapidly changing consumer preferences and rising environmental concerns have stimulated the demand for contract packaging in the pharmaceutical industry in the region. In addition, the increasing penetration of automation in pharmaceutical contract packaging has minimized risks of human handling errors, thereby catalyzing market growth in the region.
- The United States also dominates the pharmaceutical market, both in consumption and development. According to STAT, prescription drug spending in the nation is considered to add up to USD 600 billion by 2023, up from an estimated USD 500 billion in 2019, which is further expected to drive the United States contract packaging market.
- As of 2019, there are more than 800 active Investigational New Drug (IND) waiting for approval with the FDA. These burgeoning approvals and drug-developing pipelines are expected to promise more opportunities to this market in the future. Nevertheless, many of the drugs approved had an orphan designation, which suggests that they are targeted for people with rare diseases.
The United States contract packaging market is highly fragmented, with the presence of many small and large vendors. Some of the key players include Aaron Thomas Company, Multipack Solutions, Pharma Tech Industries, Reed-Lane Inc., and Sharp Packaging Services. Companies are increasing their market presence by expanding their business footprint across various end-user markets.
Key Topics Covered:
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Rapid Technological Advancements
4.2.2 Development in the Retail Chain
4.3 Market Restraints
4.3.1 In-house Packaging
4.3.2 Increasing Lead Time and Logistics Cost
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of Impact of COVID-19 on the United States Contract Packaging Market
5 MARKET SEGMENTATION
5.1 Packaging Type
5.2 End User
5.2.4 Home Care and Personal Care
5.2.6 Other End Users
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Aaron Thomas Company
6.1.2 Multipack Solutions
6.1.3 Pharma Tech Industries
6.1.4 Reed-Lane Inc.
6.1.5 Sharp Packaging Services
6.1.6 UNICEP Packaging
6.1.7 Bell-Carter Packaging
6.1.8 Jones Packaging Inc.
6.1.9 Stamar Packaging
6.1.10 Genco (FedEx Supply Chain)
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/dgqej2