Contract Packaging Market Trends

Growth Drivers

• Higher Utilization of Contract Packaging in the Pharmaceutical Industry- The pharmaceutical industry across the globe was projected to generate total revenue of USD 1.5 trillion in 2021.
• There are multiple sorts of compounds and chemicals used in making medicines or developing drugs. Many of them can decay if they are left open without proper packaging. Medicine is supplied globally and it must contain the optimum pharmaceutical effects. Hence, many contract packaging firms are currently working to offer the labeling and packaging of drugs.
• Growing Demand for Paper & Paperboard Owing to Rising Use- As of 2020, the total production of paper and paperboard was projected to be about 250,000 metric tons which was an increase from nearly 200,000 metric tons in 2018.
• Rising Sales of Household Products with the Increasing Exports- For instance, it was observed that an average consumer spends approximately 750 U.S. dollars on household supplies annually.
• Increasing Inclination of the Global Population Toward Skin & Hair Care- In 2022, the skin care segment was valued at approximately USD 150 billion.
• Skyrocketing Online Purchases to Boost the Market Growth- It was noticed that more than 28% people of the global population purchased goods online in 2020.

Challenges

• Lack of Required Workforce and Awareness
• Need for Higher Initial Investment
• Disrupted Supply-Chain due to COVID-19
• The shortage of supply and disruption of production, the reduced workforce also have a negative impact on the market. A growing number of restrictions and social distancing regulations are estimated to hamper the market growth.