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Tue Dec 19, 2017

2017 packaging trendsAs 2017 ends and we look onward to 2018, packaging trends over the past year provide key insight into what the industry can expect more of and where companies should place their focus for long-term growth and success.


2017 confirmed that the trend among consumer packaged goods (CPG) companies towards turnkey packaging solutions will continue to increase. Turnkey solutions are created when a services supplier (such as a contract packager) is responsible for handling operational components such as packaging sourcing, filling, inventory management, 3PL, etc., needed to produce a finished good. The October 2017 Mordor Industry Intelligence Report reported that the global Contract Packaging market was worth $26.54 billion in 2016 and is projected to reach $47.28 billion in 2022, at a compound annual growth rate of 10.1%.

Number three in  Packaging World’s December 7, 2017 article 5 Trends Unfolding In The Pharmaceutical Supply Chain notes: “We’re likely to see a demand for complete turnkey or bundled solutions that allow them to eliminate the upfront costs and account management that come with working with multiple vendors for each point of the supply chain. Logistics companies, forwarders, and airlines will most likely begin to develop turnkey solutions for these manufacturing demands that bundle packaging, pack/ship services, and all transport requirements into a single offering.”

AN INVESTMENT-WORTHY TREND. Industry leaders are proving that the shift towards turnkey solutions is not only trend-worthy but investment-worthy:

December 12, 2017: Knowlton Development Corporation Acquires Northern Labs - Knowlton Development Corporation (“KDC”), a contract manufacturer of health and beauty care products, announced its acquisition of Wisconsin-based Northern Labs, a full-service liquid product contract manufacturer.

December 11, 2017: WestRock Announces Agreements to Acquire Plymouth Packaging - WestRock Company announces its acquisition of Plymouth Packaging, holding true to the company mission that “Real value doesn't come from a supplier. It comes from a partner.”

November 14, 2017: Comar Acquires Shore Plastic Technologies - Comar, LLC acquires Shore Plastic Technologies, Inc., to enhance the company's capabilities to serve customers in the medical device, diagnostic, pharmaceutical, and CPG market segments.

October 2, 2017: PCI Pharma Services Acquires Millmount Healthcare - PCI Pharma Services (PCI), an outsourcing services provider, announces the acquisition of Millmount Healthcare, a pharmaceutical and healthcare contract packaging services provider.

August 4, 2017: Lonza Acquires Micro-Macinazione to Create the Global Leader in Micronization Capacity and Capabilities - Lonza acquires Swiss-based contract manufacturer, Micro-Macinazione.

UNWRAPPING TURNKEY BENEFITS. Profitability and market viability are driving the shift towards turnkey solutions. Both are vital to maintaining quality and efficiency, and directly impact the success of any business. Turnkey solutions provide a multitude of benefits, including cost reduction, scalability, reduced lead times, quality assurance, supply chain control, reduced environmental impact, and regulation compliance.

Why reinvent the wheel when a team of experts can do it for you? A contract packaging relationship is similar to having an extended family with homes across the country, each with their own strengths to allow you the peace of mind to focus on your home front while they do the same on your behalf. A turnkey operation provides fully integrated strategies, from concept to delivery, maximizing value for both parties. The result is a win-win for everyone.

The “turnkey trend” is still in its infancy phase; therefore, choosing the right contract packaging company to partner with is critical. Look for companies that have a proven track record in quality assurance, production management, and global sourcing, as well as access to the internal and external resources needed to implement a seamless program. Contact Sonic today to find the packaging solution that works best for you. 

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