Procurement Market Intelligence Report
Packaging Services
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Packaging Services Global Overview
Definition
Summary
Packaging service suppliers provide both manual and machine-assisted packaging of client-owned materials or products on a contract or outsourced basis. The wide range of items suppliers handle includes food, agricultural products, pharmaceuticals, and other manufactured goods. The key buyers in this market include retailers and manufacturers.
This Report Includes:
- Manual Packaging of Client-Owned Products
- Machine-Assisted Packaging of Client-Owned Products
Not in this Report:
- Industrial Design Services
- Warehousing Services
Global Packaging Services Procurement Trends
Discover the top international trends affecting procurement in the global Packaging Services market.
Warning Trends
United States announces additional tariffs on China
- In February 2025, the United States announced 10.0% tariffs on imports from China. The tariffs took effect on February 4, 2025.
- The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions.
- In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars. The tariff executive orders indicate retaliatory tariffs could lead to further escalation in rates.
- Providers in this market rely on inputs often sourced from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
United States postpones plans for sweeping tariffs on Canada and Mexico
- In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico.
- Though initially set to take effect on February 4, 2025, the implementation of tariffs on Canada and Mexico has been postponed 30 days to allow for further negotiation.
- The tariff plan initially proposed by the US applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place, with limited exceptions.
- Providers in this market rely on input costs often sourced from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
Neutral
Inflation climbs above 3.0% for the first time in seven months
- In January, the Consumer Price Index (CPI) 12-month inflation rate, the most commonly used measure of inflation, rose by 0.1% to 3.0%, the highest it has been since June 2024.
- This uptick in inflation follows cuts to interest rates which may have added to consumer demand, fueling higher consumer prices.
- Additionally, the threat of impending tariff hikes has driven preemptive stockpiling by importers, adding to demand and price growth across a range of industries in the United States.
- While inflation is still low relative to previous years, sustained recent increases in inflation and the potential effects of tariffs, such as the recently implemented 10.0% on all Chinese goods, mean prices are still rising at a faster-than-normal pace.
Global Packaging Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 14,885 |
| #2 Europe | 13,755 |
| #3 Oceania & Southeast Asia | 12,335 |
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2
Geography Drilldown - US & Europe
Average Cost of Packaging Services
United States
2026 Market Pricing$0.02 to $XX.XX
per 500 unitsEurope
Average Price
Prices in the Packaging Services market range from $0.02 to $XX.XX, depending on Order Volume, Type of Packaging Material, Order Complexity and Turnaround Time. For example, lower prices are associated with Fewer than 10,000 units ($500 to $20,000 per unit), whereas higher prices are associated with Greater than 10,000 units ($50,000 to $200,000 per unit).
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Packaging Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Packaging Services market, prices in the US have grown 1.1% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +1.0%.
United States (2022-2025)
Europe (2022-2025)
Compound Annual Growth Rate
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Cost Analysis - Total Cost of Ownership for Packaging Services
Total cost of ownership is Low in the Packaging Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Restocking may raise the total cost of ownership unexpectedly.
Negotiated Before
Transportation
Billed During
Handling
Additional Fees
Handling
Unforeseen
Restocking
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.1 in the United States. Buyer power is most positively impacted by Price Driver Volatility. It is most negatively impacted by Switching Costs. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
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- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Paperboard Mills
- Plastic & Resin Manufacturers
- Glass Product Manufacturers
- Industrial Machinery Wholesalers
2nd
Tier Suppliers
- Wood Pulp Mills
- Gas & Petroleum Wholesalers
- Sand & Gravel Mining
- Industrial Machinery Manufacturers
Biggest Packaging Services Suppliers in the US by Revenue
The largest Packaging Services vendors by revenue in the US are Hearthside Food Solutions, Llc, Aaron Thomas Company Inc. and Algus Packaging Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Packaging Corp Of America | International | LAKE FOREST, IL | >10,000 | 5-10 | ||||
| Sonoco Products Company | Global | HARTSVILLE, SC | >10,000 | 5-10 | ||||
| Xpo Logistics, Inc. | Global | GREENWICH | >10,000 | < 5 | ||||
| Hearthside Food Solutions, Llc | International | Downers Grove, IL | 1,001-10,000 | < 5 | ||||
| PCI Pharma Services | Global | Philadelphia, PA | 1,001-10,000 | < 5 | ||||
| Aaron Thomas Company Inc. | National | Garden Grove, CA | 1,001-10,000 | < 5 | ||||
| Algus Packaging Inc. | Local | Dekalb, IL | 51-100 | < 5 | ||||
| Bentley World Packaging Ltd. | Global | Milwaukee, WI | 251-500 | < 5 | ||||
| Sterling Contract Packaging Inc. | National | Moore, SC | 51-100 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Packaging Services market is 7.6% and rising. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The average vendor's financial risk in the market is considered negligible. Low bankruptcy risk stems largely from the steady stream of downstream demand from key buyers in the apparel, food, and consumer goods industries.
Due to the large number of suppliers, the packaging services market is highly fragmented and competitive. Buyers benefit from the low market share concentration and can easily secure lower prices.
Upstream suppliers of paperboard and plastic products present the most risk to the supply chain. Although the risk of supply disruptions is generally negligible in this market, prices for these inputs are highly volatile due to wide year-on-year fluctuations in raw material inputs such as crude oil and wood pulp.
The United States is a net exporter of cardboard boxes, which signifies that it exports more than it imports. This situation reduces foreign competition within the domestic market, suggesting buyers have more homegrown choices, potentially leading to shorter delivery times and lower logistical costs.
Supplier Information
Packaging Corp Of America
Packaging Corp. of America is a producer and marketer of specialty paper products, primarily containerboard products and uncoated freesheet (UFS) paper. It organizes its business into three segments: the Packaging segment, which manufactures linerboard and corrugating medium, including conventional shipping... Subscribe to learn more
Sonoco Products Company
Sonoco Products Company is a public company operating globally in the manufacturing, manufacturing, manufacturing and administration, business support and waste management services sectors. The company's offerings include polystyrene foam, paperboard & packaging papers, flexible intermediate bulk containers,... Subscribe to learn more
Aaron Thomas Company Inc.
Aaron Thomas Company Inc. is a private company operating nationally in the administration, business support and waste management services sector. The company's offerings include packaging services. Founded in 1973, the company is currently headquartered in Garden Grove, California, United States of America... Subscribe to learn more
Algus Packaging Inc.
Algus Packaging Inc. is a private company operating locally in the administration, business support and waste management services sector. The company's offerings include packaging services. Founded in 1995, the company is currently headquartered in Dekalb, Illinois, United States of America with an estimated... Subscribe to learn more
Bentley World Packaging Ltd.
Bentley World Packaging Ltd. is a private company operating globally in the administration, business support and waste management services sector. The company's offerings include packaging services. Founded in 1848, the company is currently headquartered in Milwaukee, Wisconsin, United States of America with... Subscribe to learn more
Hearthside Food Solutions, Llc
Hearthside Food Solutions, Llc is a private company operating internationally in the administration, business support and waste management services sector. The company's offerings include packaging services. Founded in 2009, the company is currently headquartered in Downers Grove, Illinois, United States Subscribe to learn more
PCI Pharma Services
PCI Pharma Services is a private company operating globally in the administration, business support and waste management services sector. The company's offerings include packaging services. Founded in 2012, the company is currently headquartered in Philadelphia, Pennsylvania, United States of America with... Subscribe to learn more
Sterling Contract Packaging Inc.
Sterling Contract Packaging Inc. is a private company operating nationally in the administration, business support and waste management services sector. The company's offerings include packaging services. Founded in 1996, the company is currently headquartered in Moore, South Carolina, United States of America... Subscribe to learn more
Summit Container Corporation
Summit Container Corporation is a private company operating nationally in the administration, business support and waste management services sector. The company's offerings include packaging services. Founded in 1984, the company is currently headquartered in Alpharetta, Georgia, United States of America Subscribe to learn more
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Procurement Management KPIs for the Packaging Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Defect Density and Delivery In Full On Time Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Supply Turnaround and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Defect Density |
|
Number of Units Sold Number of Defective Units |
The defect density represents the share of defective products a company produces. Packaging delivered while damaged may need to be replaced, decreasing overall efficiency and driving up the time and labor required to replace the packaging. In addition, packaging that is worn but is still used for the buyer's activities may negatively impact the customer's perception of the product due to the packaging's unprofessional appearance. |
| Delivery In Full On Time Rate |
|
Inventory in Stock Incomplete Deliveries Number of Items Out of Stock |
Suppliers must provide buyers with the accurate number of packages in a given order. Incomplete or unfulfilled orders increase wasted efficiency and product delays. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Cost Containment
Do supply agreements have a cap for potential fluctuations in packaging material prices?
How does your company account for sudden price spikes in wood pulp or plastic when sourcing your packaging materials?
Timeliness
What strategies do you use to reduce lead times?
Do you hold any partnerships with local distribution centers to minimize the time to market?
Regulation
What strategies do you implement to eliminate the threat of cross-contamination?
Do you package food products in separate rooms?
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Packaging Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should give an overview of their organization.
Buyers should specify the cities and states where they require packaging services.
Statement Of Need
Buyers should specify the types of products to be packaged and their storage requirements.
Buyers should specify the types of containers and packaging material to be used.
Project Budget
Buyers should specify the total budget for the packaging services.
Buyers should suggest the best method of billing.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
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- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
