Contract packaging market is characterised by a service that is outsourced by product manufacturers from numerous industries in order to preserve, shield, and distribute the product to the retail platform. Contract packaging services are provided in various shapes and sizes for both liquid and rigid products.
Seattle, WA -- (SBWIRE) -- 12/04/2019 -- Growth in the Contract Packaging Market is mainly determined by the changing preference of manufacturing firms toward contract packagers, as they are increasingly focusing on cost optimisation, so as 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 labour costs.
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The entry of third-party logistics companies in the contract packaging market is one of the key trend, which helps in reducing the total delivery cycle time and also the combined cost of packaging, transportation, and distribution. Moreover, the rising environmental concern, preference is given to sustainable packaging. Manufacturers are finding it difficult to focus on packaging, in addition to their core business areas. Therefore, the manufacturers are selecting contract packagers to assist them in packaging by using sustainable packaging solutions. This is also expected to boost the contract packaging market.
However, an increase in the price of elastomer raw materials used for contract packaging components has caused a considerable increase in the expenses of packaging companies. The increasing need for R&D expenditure to develop not just cheaper but also eco-friendly alternatives is taking a considerable toll on the contract packaging companies and is becoming a major challenge to the market.
Contract packaging is the process of assembling a product or good into its final finished packaging. Depending on the product, the final packaging constitutes a variety of forms, such as thermoformed/ plastic clam-shell or blister packaging, a plastic bag, a standing corrugated retail point-of-sale display or a transport tray. Sometimes, contract packagers are tasked with something as simple as adding a bar code sticker to a product or as complex as planning, designing, producing, and fulfilling the entire package.
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.
The contract packaging market is highly fragmented, with the presence of many small and large vendors. Some of the key players include Aaron Thomas Company, CCL Industries, Multipack Solutions, Pharma Tech Industries, Reed Lane, UNICEP Packaging, Sharp Packaging Services, Berkeley Contract Packaging (Summit Container Corporation ), GENCO(FedEx Supply Chain), among others.
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