Contract Packaging and Fulfillment Service Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Service Type (Packaging Design & Prototyping, Contract Packing, Package Testing, Warehousing and Fulfilment, Others), By End User (Food & Beverage, Pharmaceutical, Household & Personal Care, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 103.89 Billion
CAGR (2026-2031)	11.42%
Fastest Growing Segment	Food & Beverage
Largest Market	North America
Market Size (2031)	USD 198.77 Billion

Market Overview

The Global Contract Packaging and Fulfillment Service Market will grow from USD 103.89 Billion in 2025 to USD 198.77 Billion by 2031 at a 11.42% CAGR. Global Contract Packaging and Fulfillment Services involve outsourcing packaging and logistics to specialized third-party providers for activities ranging from assembly and wrapping to warehousing and distribution. The market is primarily driven by the escalating demand for operational efficiency and the strategic necessity for brands to focus on core competencies rather than capital-intensive facilities. Furthermore, the rapid expansion of the e-commerce sector requires flexible fulfillment solutions that can accommodate fluctuating consumer demand and complex inventory management. These drivers are distinct from temporary trends as they represent fundamental shifts in how manufacturers approach supply chain agility and cost management.

According to the Contract Packaging Association's '2025 State of the Industry Report', five key market sectors are projected to maintain a compound annual growth rate of more than 10% through 2030. This robust forecast underscores the sector's resilience and increasing importance in modern production strategies. However, market expansion faces a significant challenge regarding labor availability which hampers the ability of providers to maintain high throughput and meet tight turnaround times. Securing skilled personnel to operate increasingly technical machinery remains a critical obstacle that could impede the industry's ability to scale effectively.

Key Market Drivers

The Rapid Expansion of Global E-commerce and Direct-to-Consumer Sales is fundamentally reshaping the contract packaging landscape, as brands increasingly require sophisticated fulfillment networks to handle surging transaction volumes and heightened consumer expectations. This driver is evidenced by the massive scale of digital commerce platforms; according to Chargeflow, February 2025, in the 'Shopify Statistics: Facts and Figures About the eCommerce Behemoth' article, over 875 million people transacted with Shopify merchants in 2024 alone. This volume places immense pressure on fulfillment providers to deliver seamless post-purchase experiences, a factor that has become critical for customer retention. Indeed, the cost of failure in this area is high; according to FedEx, February 2025, in the '2025 E-Commerce Trends to Watch Report', 97% of shoppers have abandoned a purchase due to an inconvenient shopping experience, underscoring the vital role of specialized fulfillment services in preventing revenue loss and ensuring brand loyalty.

The Integration of Advanced Automation, AI, and IoT Technologies in Logistics serves as the second primary driver, acting as a necessary response to labor constraints and the need for operational speed. As fulfillment centers face increasing complexity, the adoption of automated machinery and smart packaging systems has accelerated to maintain throughput and reduce errors. This trend toward capitalization is reflected in recent equipment investments; according to PMMI, September 2025, in the '2025 Packaging State of the Industry' report, the U.S. packaging machinery market reached $11.3 billion in sales in 2024. This significant investment in hardware indicates a broader industry pivot toward technology-driven solutions, allowing contract packagers to offer the scalability and precision required by modern manufacturers while mitigating the risks associated with manual labor reliance.

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Key Market Challenges

The scarcity of skilled labor presents a critical bottleneck limiting the expansion of the Global Contract Packaging and Fulfillment Service Market. As the sector increasingly adopts advanced automation to handle complex e-commerce demands and rapid changeovers, the requirement for a workforce with specialized technical proficiency has intensified. However, a deficiency in available personnel capable of operating and maintaining this sophisticated machinery prevents service providers from fully utilizing their facility capacity or expanding shift patterns. This inability to scale operations in response to fluctuating volume directly undermines the industry's growth potential, forcing companies to cap production levels and turn away business despite rising market demand.

This operational constraint is substantiated by recent industrial findings. According to the Association for Packaging and Processing Technologies (PMMI), in 2025, 95% of end users reported significant difficulty in finding skilled operators and technicians. This statistic highlights a pervasive structural weakness; without qualified staff to ensure the continuous operation of technical lines, the industry cannot realize the efficiency gains promised by modern equipment. This talent gap acts as a hard ceiling on market performance, restricting the total addressable volume the sector can fulfill and stalling the revenue trajectory for contract providers globally.

Key Market Trends

The Transition to Circular Economy and Sustainable Material Sourcing is reshaping service offerings as contract packagers increasingly substitute single-use plastics with biodegradable alternatives and post-consumer recycled (PCR) content. This trend is not merely regulatory but is fundamentally propelled by shifting purchasing behaviors, compelling providers to overhaul their sourcing protocols to retain brand partnerships. Evidence of this consumer-led pressure is distinct; according to Shorr Packaging, January 2025, in the '2025 Sustainable Packaging Consumer Report', 54% of consumers reported consciously purchasing products with sustainable packaging in the last six months. Consequently, service providers are prioritizing the integration of material-agnostic machinery capable of handling diverse eco-friendly substrates without compromising line speed or seal integrity.

Simultaneously, the Expansion of Specialized Cold-Chain and Temperature-Controlled Fulfillment is becoming a critical revenue stream, driven by the surging transport needs of biologics, pharmaceuticals, and fresh perishables. This sector demands rigorous adherence to thermal limits, necessitating substantial capital investment in climate-controlled infrastructure and real-time monitoring systems that go beyond standard warehousing capabilities. The scale of this infrastructure build-out is significant; according to the Global Cold Chain Alliance (GCCA), April 2025, in the '2025 Global Top 25 List' article, total temperature-controlled capacity across its membership grew to 8.16 billion cubic feet, representing an increase of more than 10% since the previous year. This physical expansion underscores the market's pivot toward high-value, regulated logistics services that offer higher margins than traditional ambient fulfillment.

Segmental Insights

The Food & Beverage segment is currently the fastest-growing sector within the Global Contract Packaging and Fulfillment Service Market, driven by a significant rise in convenience food consumption and e-commerce distribution. Manufacturers are increasingly outsourcing to address complex requirements for sustainable materials and innovative packaging formats. Additionally, strict compliance with safety standards set by regulatory institutions such as the FDA and EFSA compels brands to rely on specialized fulfillment partners. This strategic collaboration ensures adherence to rigorous hygiene protocols and labeling laws while allowing companies to maintain operational flexibility and cost efficiency.

Regional Insights

North America maintains the leading position in the Global Contract Packaging and Fulfillment Service Market, driven by a mature retail and e-commerce infrastructure. The region hosts a high concentration of pharmaceutical and consumer packaged goods manufacturers that increasingly outsource operations to enhance efficiency. Additionally, stringent regulatory mandates from the U.S. Food and Drug Administration (FDA) and Health Canada regarding product serialization and safety compel companies to partner with specialized service providers. This reliance on external expertise for regulatory adherence and operational scalability secures the region's market leadership.

Recent Developments

• In September 2024, PCI Pharma Services announced an investment of more than $365 million in its clinical and commercial manufacturing facilities in the United States and Europe. The expansion included a new Center of Excellence in Rockford, Illinois, and significant upgrades to its campuses in Ireland, aimed at enhancing capabilities for the assembly and packaging of advanced drug-device combination products. The company stated that this infrastructure development was driven by recent new business and the increasing market demand for injectable packaging formats such as vials, prefilled syringes, and autoinjectors. These facilities were expected to bolster the company's position as a leading global contract development and manufacturing organization.
• In August 2024, DHL Supply Chain announced a plan to invest $64 million to build a new logistics and distribution center in North Jacksonville, Florida. The 600,000-square-foot facility was designed to address the growing demand for contract logistics services in the Southeast United States. This expansion aimed to create approximately 100 new full-time jobs and enhance the company's operational capacity to serve customers near major industrial developments and deep-water ports. The new hub was part of the company's broader strategy to proactively invest in real estate solutions that support efficient supply chains and tailored fulfillment operations for its clients.
• In April 2024, GXO Logistics announced the completion of its acquisition of Wincanton plc, a leading supply chain partner for British businesses. This acquisition materially expanded the company’s presence in the United Kingdom and Ireland, adding significant capabilities in industrial, aerospace, and retail logistics. The company stated that the combination of its global technological reach with the acquired firm’s local expertise would allow for a broader range of services for new and existing customers. The deal was expected to accelerate long-term growth and create value for stakeholders by optimizing operations and offering end-to-end fulfillment solutions across key strategic verticals.
• In February 2024, Ryder System, Inc. completed the acquisition of Cardinal Logistics, a provider of dedicated fleets and professional drivers. This strategic transaction significantly expanded the company’s customized dedicated contract carrier operations and strengthened its supply chain and fulfillment capabilities across North America. By integrating the acquired company's network of operating locations and fleet, the logistics provider aimed to generate greater economies of scale and offer increased flexibility to customers in sectors such as consumer packaged goods, omnichannel retail, and groceries. The deal was designed to accelerate profitable growth and deliver enhanced value through complementary contractual services.

Key Market Players

• Aaron Thomas Company, Inc.
• ActionPak Inc.
• Assemblies Unlimited, Inc.
• PAC Worldwide, Inc.
• Warren Industries, Inc.
• Swan Packaging Fulfillment, Inc.
• Multi-Pac Solutions LLC
• Budelpack Poortvliet B.V
• Sonoco Products Company
• Wasdell Packaging Group

By Service Type	By End User	By Region
Packaging Design & Prototyping Contract Packing Package Testing Warehousing and Fulfilment Others	Food & Beverage Pharmaceutical Household & Personal Care Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Contract Packaging and Fulfillment Service Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Contract Packaging and Fulfillment Service Market, By Service Type:

• Packaging Design & Prototyping
• Contract Packing
• Package Testing
• Warehousing and Fulfilment
• Others

• Contract Packaging and Fulfillment Service Market, By End User:

• Food & Beverage
• Pharmaceutical
• Household & Personal Care
• Others

• Contract Packaging and Fulfillment Service Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE