Contract Packaging Market Outlook: Sustainability, Cost Efficiency & Industry Forecast to 2033

Businesses are increasingly outsourcing packaging to focus on core strengths while tapping into specialized expertise and cutting-edge technology. The rise of e-commerce, demand for sustainable solutions, and growing need for customization are reshaping how products get to market. According to IMARC Group's latest data, the global contract packaging market size was valued at USD 72.98 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 140.18 Billion by 2033, exhibiting a CAGR of 6.75% from 2025-2033.

Contract packaging has evolved into a vital part of global supply chains, now representing a multi-billion-dollar industry. Companies across food and beverage, pharmaceuticals, electronics, and personal care are turning to specialized packagers to handle everything from primary packaging to final labeling. The shift is driven by the need for flexibility, cost efficiency, and access to advanced packaging technologies that many businesses can't justify building in-house. With around 65 percent of firms reporting productivity gains from outsourcing non-core functions, the appeal is clear. Contract packagers bring specialized equipment, regulatory know-how, and the ability to scale production up or down based on demand, whether it's seasonal spikes or new product launches.

Contract Packaging Market Growth Drivers:

• Outsourcing for Operational Efficiency and Cost Reduction

Outsourcing packaging operations lets businesses zero in on what they do best while improving productivity and efficiency. By handing off packaging to specialized providers, companies can redirect resources toward research and development, marketing, and customer service. This focus often translates to better overall performance and stronger competitive positioning. Around 65 percent of organizations have seen productivity improvements by outsourcing non-core activities like packaging. Beyond internal efficiency, outsourcing gives companies access to specialized expertise and technology. Contract packagers work with cutting-edge equipment and materials, which helps reduce errors, improve product safety, and ensure compliance with industry standards.

• Rising E-commerce and Direct-to-Consumer Distribution

The boom in e-commerce brands selling products online and delivering them directly to consumers is creating massive opportunities for contract packaging. Global eCommerce sales in the retail sector hit approximately USD 6,500 billion in 2023, with forecasts showing a jump to USD 9,600 billion by 2027. This expansion is fueling demand for scalable, streamlined packaging solutions. Widespread smartphone adoption has made online shopping easier than ever, expanding the customer base to urban and remote areas alike. Improved secure payment systems and better online security are also giving consumers more confidence to shop and transact digitally, further accelerating the e-commerce industry and the packaging needs that come with it.

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• Growing Demand for Sustainable Packaging Solutions

As consumers become more environmentally aware, the push for sustainable and eco-friendly packaging is intensifying. In a notable example, Berry Global Group agreed to be acquired by Amcor for approximately USD 8.4 billion, a move aimed at strengthening research and development capabilities and accelerating sustainable solutions. The merger supports both innovative and generic drug sectors, aligning with industry demand for sustainability and efficiency. Many brands now actively seek contract packaging partners that offer sustainable options to align with their environmental commitments. This demand creates new opportunities for contract packagers to broaden their service offerings and appeal to a wider client base while helping brands differentiate themselves and build stronger customer loyalty.

Contract Packaging Market Trends:

• Automation and Smart Packaging Technologies

Contract packagers are increasingly adopting automation, robotics, artificial intelligence, and Internet of Things technologies to streamline operations and boost efficiency. These technologies improve accuracy, speed, and flexibility in packaging processes, helping packagers meet tight deadlines while maintaining high quality standards. Smart packaging features like QR codes for traceability and anti-counterfeiting measures are also gaining traction across industries. The pharmaceutical contract packaging market, for instance, reached USD 17.06 billion in 2024 and is expected to hit USD 43.46 billion by 2034. Advanced automation helps pharmaceutical packagers meet stringent regulatory requirements while handling complex serialization and tamper-evident packaging needs.

• Expansion Through Mergers and Strategic Acquisitions

The contract packaging industry is seeing significant consolidation as major players acquire specialized providers to expand capabilities and geographic reach. In December 2025, ProAmpac announced plans to acquire TC Transcontinental Packaging for approximately USD 1.51 billion, a deal expected to close in the first quarter of 2026. The acquisition will strengthen ProAmpac's position in dairy, meat, medical, and pharmaceutical markets while advancing development of barrier films and fiber-based solutions. This follows ProAmpac's earlier acquisition of International Paper's bag converting operations in October 2025. These strategic moves reflect how contract packagers are building comprehensive service portfolios to meet diverse client needs across multiple industries.

• Customization and Personalized Packaging Solutions

The growing demand for customization and personalization is pushing contract packagers to diversify their offerings substantially. Packagers now handle a wide range of product variations, packaging designs, and labeling requirements, allowing brands to offer personalized options without investing heavily in in-house facilities. Companies that incorporate personalization into their strategies often see a 10 to 15 percent revenue increase due to higher customer engagement. Customized packaging helps brands stand out in crowded markets and creates more engaging, memorable experiences for consumers. When products are tailored to individual preferences or occasions, customers feel a stronger emotional connection to the brand, leading to increased satisfaction and repeat purchases.

Recent News and Developments in Contract Packaging Market

• December 2025: Sonoco will showcase its versatile packaging and contract manufacturing capabilities at Pharmapack 2025, highlighting innovations across its TEQ, Plastics, and Consumer divisions. The display will focus on pharmaceutical, medical device, consumer packaging, and contract manufacturing solutions, offering valuable insights into component assembly.
• December 2025: ProAmpac agreed to acquire TC Transcontinental Packaging from parent company TC Transcontinental for approximately USD 1.51 billion. The acquisition is expected to help ProAmpac grow in dairy, meat, medical, and pharmaceutical end markets while advancing development of barrier films, monomaterial structures, and fiber-based solutions.
• December 2025: Nexgen Packaging and Seaman Paper partnered to expand sustainable packaging solutions globally, focusing on reducing the fashion and footwear industries' reliance on single-use plastics. Their Vela product, an eco-friendly alternative to polybags, is paired with a fiberboard hanger from Ditto Hanging Solutions, promoting recycling and sustainability.

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