This State of the Contract Packaging Industry research program has been continually updated since its inception in 2007. The research conducted was 100% primary research conducted through electronic surveys. Here are some of the highlights:
• The industry grew in 2013, led by contract packagers in the South and West with annual growth of 24% and 14%, respectively. The Midwest and Northeast also showed growth, but at slower rates, 10% and 4% respectively.
• Contract packagers with fewer than $11 million in annual sales make up approximately 60% of contract packaging companies but only generate 15% of annual industry revenue.
• Contract packagers with sales between $11 million and $50 million in annual sales make up approximately 30% of contract packaging companies and generate 31% of the industry’s associated revenue.
• Contract packagers with annual sales in excess of $50 million make up about 10% of contract packaging companies but generate about 54% of the industry’s annual revenue base.
• Overall, the larger a company’s annual revenue, the more likely it is that the company is registred with important regulatory agencies such as the FDA or USDA.
• 55% of respondents said they have an internal HACCP (Hazards and Critical Control Points) program in place. The likelihood of companies having such a program increases as annual revenues increase.
• 67% of respondents said they have an internal sustainability program. Again, the likelihood of having such a program increases as annual revenues increase.
• When it came to product form offerings, the product form most heavily supported was assembly/kitting/fulfillment, with 59% of respondents saying they participate in producing this form. Respondents predict a 12% compounded annual growth rate in this form.
• 66% of respondents indicated they serve the food and beverage segment. Respondents predicted a 17% compounded annual growth rate in this segment.
• Since 2008 there has been a definitive move toward more respondents believing that the decision to either outsource packaging or package internally is a complex issue to address. Leading drivers behind the decision include project cost economics (22%), need for specialty equipment (19%), turnaround time (16%), and run size (14%).
• In calculating the average annual revenue of survey respondents, all segments have realized movement from local and regional sales to more national accounts compared to previously reported figures. For companies over $50 million, multinational and national sales make up 85% of total revenues.
• For the smallest segment of companies under $11 million, multinational and national sales make up 53% of total revenues with local sales at just under 30% of their total.
The complete survey is available for purchase at www.contractpackaging.org/IndustryReport.
