Wrapped up: Increasing manufacturing activity has supported industry growth

Operators in this industry provide a plethora of packaging and labelling services to a wide array of manufacturing and wholesaling industries. The industry is fragmented, with firms generally specialising in providing a range of services to specific markets. Revenue is expected to grow at a compound annual rate of 3.9% over the five years through 2019-20 to £5.6 billion, supported by businesses operating in key downstream industries choosing to outsource packaging and labelling tasks to industry operators in order to improve cost efficiencies and the appearance and marketability of products. Slow growth in manufacturing activity also increased demand, as manufacturing firms are the industry's largest market...read more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Rising manufacturing activity has supported revenue growth over the past five years
  • Increased outsourcing by downstream firms has propelled demand over the past five years
  • More manufacturers are expected to make use of packaging services as a marketing tool
  • Industry Report - Industry Key Buyers Chapter

    The industry exhibits a low level of market share concentration. In 2019-20, the top four players operating in the industry are expected to have a combined market share of less than 5%. The industry is fragmented, with players specialising in providing packaging and labelling services to particular niche market segments.Approximately 92.1% of the players operating in the industry employed fewer than 20 staff members in 2018. This suggests that the industry is comprised of a large number of small players that have low market shares. However, it is pertinent to note that market share concentration can vary significantly between product and market segments...purchase to read more.

    Additional Insights for the Packaging Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Packaging Services Industry are

  • Access to the latest available and most efficient technology and techniques
  • Having a loyal customer base
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Downstream demand from manufacturing and Demand from perfume and cosmetics wholesaling in the Packaging Services industry impact industry performance..

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    What's in this report

    What is the Packaging Services Industry?

    Companies in this industry primarily package client-owned material on a fee or contractual basis. The industry also provides labelling and stamping services. The manufacture of packaging or labelling products is excluded from the industry.

    Industry Products
  • Pharmaceutical goods packaging
  • Food and beverage packaging
  • Chemical goods packaging
  • Packaging of other goods
  • Parcel packing and gift-wrapping
  • Industry Activities
  • Bottling liquids, including beverages and food
  • Packaging solids
  • Secure packaging pharmaceutical preparations
  • Labelling, stamping and imprinting
  • Parcel packing and gift-wrapping
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Downstream demand from manufacturing
  • Demand from perfume and cosmetics wholesaling
  • Demand from pharmaceutical preparations manufacturing
  • World price of aluminum
  • Demand from juice production

  • Current Performance
  • Supporting growth
  • Demand drivers
  • Packaging advances
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand improves
  • Potential problems
  • Margins widen
  • Table: Packaging Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Packaging Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Juice Production
  • Pharmaceutical Preparations Manufacturing
  • Perfume & Cosmetics Wholesaling
  • Postal & Courier Activities

  • Key Selling Industries
  • Cardboard Packaging & Paper Bag Manufacturing
  • Glue & Adhesives Manufacturing
  • Plastic Packing Goods Manufacturing

  • Products & Services
  • Packaging of other goods
  • Pharmaceutical goods packaging
  • Food and beverage packaging
  • Chemical goods packaging
  • Parcel packing and gift-wrapping
  • Chart: Packaging Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturers
  • Wholesalers
  • Other
  • Chart: Major Market Segmentation for the Packaging Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Packaging Services

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Packaging Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Packaging Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Packaging Services Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Contract Packing
  • The packaging and labelling of goods supplied by manufacturers or wholesalers. Also known as co-packing.
  • Re-Palletisation
  • The process of repackaging a stack of goods on a pallet or pallets.
  • Soda Ash
  • A chemical compound also known as sodium carbonate. It is frequently used in glass production.
  • Wholesale Bypass
  • The trend of manufacturers and retailers avoiding wholesalers and dealing directly with each other in order to reduce costs and improve profit margins.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Packaging Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Packaging Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Packaging Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Packaging Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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