United States Contract Packaging Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2024-2032)

United States Contract Packaging Market Growth

According to 2024 data, the United States boasts 13,106 electronics and electrical equipment facilities in operation with an annual average sales of USD 1.8 trillion. Among these manufacturers, 56% of companies are major exporters, especially for the international markets, and 29% of the companies produce for the U.S. market only.

California has the largest number of semiconductor manufacturers with 34 facilities, followed by Arizona with 28 facilities, and Texas with 17 facilities. In July 2022, the U.S. government passed the CHIPS Act of 2022 to strengthen domestic semiconductor manufacturing, design, and research.

Figure: Electronic Manufacturing by Region in the U.S., 2024

Food and beverage companies are increasingly demanding biodegradable packaging to enhance sustainability, which is further increasing the United States contract packaging market value.

In 2022, the expenditure on food accounted for 12.8% of U.S. households’ spending, an increase from 12.4% compared to 2021.

The U.S. frozen food market is expanding due to the popularity of online grocery sites such as Walmart.com, Amazon Fresh, Instacart, and others. By 2024, the U.S. grocery eCommerce market is predicted to reach USD 76.2 billion.

In May 2023, Amcor and Tyson Foods teamed up to create sustainable packaging for consumer products to reduce pollution. The new packaging is made of Amcor‘s AmPrima recycle ready forming/non-forming flexible film and offers up to a 70% reduction in carbon footprint over conventional packaging.

Figure: Components of food and beverage manufacturing: sales, value of shipments, or revenue by industry, 2021 (USD Billion)

Key Trends and Developments

Rising pharmaceutical production, demand for electronics, and advancement in contract packaging technology are the key trends impacting the United States contract packaging market demand positively

May 2024

Sharp, a global leader in contract packaging, clinical supply services, and small-scale sterile manufacturing, announced its plans to expand its Macungie, PA site in North America to enhance its production capacity for sterile injectables secondary packaging.

May 2024

Tide Rock, an unlevered buyout firm with a portfolio of economically resilient B2B businesses, acquired Premier Packaging Inc., a contract packaging company based in Memphis, Tennessee.

Apr 2024

Veritiv Corporation, a leading speciality distributor of value-added packaging, facility solutions, and print products, announced that it had acquired substantially all assets of Ameripac, LLC, and Ameripac Pennsylvania, LLC ("AmeriPac"), a prominent provider of turnkey contract packaging and fulfilment services with annual revenues of approximately USD 60 million.

Oct 2023

Ryder System, Inc., a leader in supply chain, dedicated transportation, and fleet management solutions, announced that it had entered into a definitive agreement to acquire all outstanding equity of IFS Holdings, LLC, known as Impact Fulfillment Services (IFS). IFS specialises in contract packaging, contract manufacturing, and warehousing for major consumer brands in the United States.

US pharma sector’s dependence on efficient packaging solutions aids the United States contract packaging market growth

In the pharmaceutical sector, contract packaging companies provide a variety of services specifically designed to meet packaging requirements, including high-volume commercial solutions for both primary and secondary packaging. In 2022, the USA accounted for around 45% of the global pharmaceutical market and 22% of global production.

Contract packaging is essential in the electronic industry

Electronic devices feature intricate designs and delicate components, necessitating specialised packaging for protection and efficiency. The USA’s semiconductor manufacturing is driven by the CHIPS and Science Act of 2022, which provides USD 52.7 billion for American semiconductor research, development, manufacturing, and workforce development. Currently, the USA hosts around 13,106 electronics and electrical equipment facilities. Around 56% of the electronics manufacturers export their products.

Biodegradable or recyclable contract packaging can help improve sustainability score of the packaging sector

Owing to rising sustainability concerns, contract packagers can strengthen their market position by selecting biodegradable, recyclable, or materials made from sustainable sources. By adopting a minimalist approach to packaging in the United States contract packaging market, businesses can create packaging that is tailored to the exact dimensions of the product, eliminating excess space and materials and lowering transportation costs.

Advancements in automation and integration of AI enhance the efficiency of contract packaging

The integration of AI into contract packaging systems enables predictive maintenance. AI models analyse data from machinery to forecast potential failures and maintenance needs. This allows companies to perform maintenance before issues arise, avoiding unexpected downtime.

United States Contract Packaging Market Trends

Contract packaging is gaining importance in food and beverage and supplement/ pharmaceutical sectors in the United States, due to the improved efficiency, consistency, and innovation provided by them. The expansion of the food and beverage sector in the US is supporting the United States contract packaging market growth. In 2023, more than 1,000 new food and beverage products were launched in the United States through contract manufacturing. This makes up over 10% of all new products in the CPG category.

Pharmaceutical companies are actively moving away from in-house packaging to contract packaging, as it is a cost-effective method to launch drugs without sacrificing packaging quality. Furthermore, the presence of stringent regulations such as the Drug Supply Chain Security Act (DSCSA) for drug serialisation is pushing companies to adopt contract packaging to meet the quality requirements. On an average, the FDA approves an average of 20 to 30 new drugs every year, representing a strong pharmaceutical sector in the United States.

United States Contract Packaging Industry Segmentation

“United States Contract Packaging Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Packaging Type

• Primary
• Secondary 
• Tertiary 

Market Breakup by Material

• Plastic
• Glass
• Paper and Paperboard
• Metal 

Market Breakup by End Use

• Food and Beverage
• Pharmaceutical
• Electronics
• Personal Care
• Others

Market Breakup by Region

• New England
• Mideast
• Great Lakes
• Plains
• Southeast
• Southwest
• Rocky Mountain
• Far West

United States Contract Packaging Market Share

Based on packaging type, primary packaging accounts for a significant share of the market

Primary packaging materials include flexible pouches, glass bottles, paperboard boxes, and blister packs. The United States food and beverage manufacturing industry is comprised of a large base of 75,000 US-based organisations with 41,000 processing plants that support the market for contract packaging.

Companies offering contract packaging are actively advancing their secondary packaging through smart packaging and augmented reality technologies. It is recorded that smart components in the packaging can raise adherence by 23% through various types of reminders, customised to each user. 

Furthermore, developments are being carried out in secondary packaging sector supporting the market growth. For instance, In May 2024, Sharp, a global leader in contract packaging, clinical supply services and small-scale sterile manufacturing announced its plans to expand its Macungie, PA site to increase its production capacity for sterile injectables secondary packaging.

Based on material, plastic is a major contributor to the United States contract packaging market revenue

Single-use plastic beverage containers are used to sell an increasing variety of drinks from bottled water and juices to sports drinks, and other non-carbonated beverages. The US beverage industry has been performing consistently over the years. In fact, the beverage industry constituted USD 63.2 billion in terms of value added in 2021. Considering the large opportunity in the market, Refresco acquired California based VBC Bottling – a family owned business that provides co-packing services in April 2024.

The combination of consumer demand, regulatory changes, and corporate sustainability goals are pushing companies to adopt paper-based solutions. Paper packaging is increasingly utilised to package fast food, fresh food, and frozen foods. Moreover, based on industry reports, 60 to 70% of the consumers in the USA are willing to pay more for sustainable packaging. Major companies like Amazon, Chick-fil-A, and JDE Peet's are making significant moves towards sustainability by reducing plastic usage and switching to paper packaging.

Leading Players in the United States Contract Packaging Market

Players in the market differentiate themselves through packaging quality, pricing, timely delivery, performance, and providing technical assistance to customers.

Silgan Holdings Inc.

Silgan is a prominent manufacturer specialising in dispensing and speciality closures, as well as steel, aluminum, and custom-designed plastic containers. The company operates in the contract packaging sector through its subsidiary, Silgan Unicep, a speciality contract manufacturer and developer (SCMD) solutions provider. Contract packaging solutions offered by the company include HLX, PreciseDose™ Proprietary Unit-Dose, MicroDose Proprietary Unit-Dose, Twist-Tip™ Proprietary Unit-Dose, Standard Blow-Fill-Seal, Custom Unit-Dose Packaging, Form Fill Seal Pouch, Tube Filling, and Syringe Filling.

Sonic Packaging Industries, Inc.

Sonic Packaging is a dedicated custom contract packaging provider specialising in single-use, metered dose delivery systems. With a comprehensive suite of services, Sonic Packaging designs, qualifies, produces, develops, and fills both primary and secondary packaging solutions tailored to meet the specific needs of its clients while adhering to regulatory standards. Contract packaging solutions offered by the company include applicators, blister packaging and filling, bottle filling, and pouches.

Mattpak Inc.

MattPak is a contract packaging company that manufactures water-soluble liquid and powder pods, along with single-use sachets for granular flowing powders. The company emphasises product safety and quality, maintaining strict process controls to ensure that its finished goods consistently meet or exceed customer standards. The company’s contract packaging solutions include sachets/ single packs, water soluble packaging, and display packaging.

Bell-Carter Packaging, LLC

Bell-Carter Packaging offers a wide range of solutions for primary and secondary food handling, supporting various packaging and re-packaging projects that cater to seasonal, short-term, and long-term production needs. Bell-Carter Packaging operates across three strategic locations in the United States: Modesto, Phoenix, and Portland. The company’s contract packaging solutions include Ingredient Blending, Bulk Bag Filling, and Flexible Pouch Filling, among others.

Other notable players operating in the United States contract packaging market are Reed-Lane, Inc., Multi-Pack Solutions LLC, Aaron Thomas Company, Inc., Sharp Services, LLC, Pharma Tech Industries, and Summit Packaging Solutions, among others.

United States Contract Packaging Market Analysis by Region

Far West is expected to hold a significant share of the market owing to an expanding manufacturing sector. Washington state has over 6,400 manufacturing companies including 577 in Spokane County in 2023. Colorado is home to 29 semiconductor establishments. A significant manufacturing sector provides opportunities for contract packaging by allowing companies to reduce costs and access advanced technologies. Some of the key contract packaging companies are States Logistics Services Inc and Brown Packaging etc.

In the Southeast region, Georgia has 80 establishments producing pharmaceuticals, while Florida has 574. Pharmaceutical manufacturing in the region offers opportunities for contract packaging as it allows companies to focus on core activities. In March 2024, SMC Ltd, acquired end-to-end fill/finish facility in Charlotte. This enabled SMC to provide a wider portfolio of services including secondary packaging.

The expansion of the personal care and cosmetic sector in the Mideast region is supporting the market growth. In July 2023, JP Packaging, LLC, a contract packaging company, acquired Toll Pack in Lehighton and enhanced its capabilities in catering to the personal care, cosmetic, household and nutritional sectors.