United States Contract Packaging Market Growth Analysis - Forecast Trends and Outlook (2026-2035)

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

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.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

United States Contract Packaging Industry Segmentation

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

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.