Packaging Design Services Market Procurement Intelligence, Supplier Intelligence, Supplier Ranking, Pricing & Cost Structure Intelligence, Best Practices, Engagement Model, Low & Best Cost Country, Day One Analysis Report, 2020 - 2025

Procurement Outlook

The packaging design services include the creation of the exterior of a product. This includes designing an exterior that will be capable of storing and protecting a product as well as making it visually appealing to attract customers and perform a top-of-the-mind recall among the consumers. This includes choices in material and form as well as graphics, colors, and fonts that are used on wrapping, a box, a can, a bottle of any kind of container

Operators offering packaging design services operate on a value-based pricing scheme. Based on the design, configuration, product that needs to be packaged, and budget of their clients, the packaging design is finally conducted. Rates of packaging design services vary drastically depending upon the type of value that the operators are expected to offer. On average, packaging concept designs cost range from USD 8,000 to USD 18,000 with artwork varying from USD 500 to USD 2000 per SKU depending on the complexity of packaging. There are additional costs depending upon the type of material that is used for packaging and the type of technique of design that is to be performed of the packaging material.

Demand Outlook

The global Packaging Design Services market is expected to be valued at USD 33.7 billion by 2025 has grown at a CAGR of 9.5% from 2020 to 2025. The marketing and branding cost of products, especially FMCG products which constitute a major part of the packaging design services, is high with companies focusing on lucrative and attractive designs and packaging styles to attract their customers and create a top-of-the-mind recall subliminally.

North America is the largest market for packaging globally and also the largest market for packaging design services. The need for appealing products and packaging in industries like food and beverage, FMCG, and designer gifts along with informative packaging for pharmaceuticals and medicines has helped the growth of packaging design services in North America

Cost Drivers

There has been a rising tendency of using recyclable packaging material. Recycled materials are comparatively difficult to work with for packaging design service providers. Therefore, the bill value for recyclable packaging is higher as compared to the traditional packaging material. In addition to this, the advancements in 3D printing and laser cutting are helping package design services providers provide better designs and therefore gain a higher ticket value. These technological advancements, help in increasing revenue per job. However, the initial cost of setup is high and therefore the return on such investments also needs to be high.

Constraints

One of the major constraints that the market faces is its pricing scheme. Since the prevalent mode of pricing is value-based, a lot of it is based on perception rather than quantification. Hence, there might be a discrepancy between the offered value and the perceived value. There is also a lack of standardization in the pricing in the market. While there is some standardization in the hourly rates charged by the service providers, the perceived complexity of a project makes also needs to be taken into account to arrive at the total cost charged. This makes it difficult to standardize the prices for this market.

Supply Chain

The key packaging design service providers are DEI Creative, La Visual, Dassault Systems, Altair Product Design Inc., ANSYS Inc, NEFAB Group, ESI Group, Bosch Rexroth AG, AVID Technology Inc., Ruckus Marketing, Mucca, Turner Duckworth, etc. The packaging design service market is neither too fragmented nor too consolidated. While the top 7 players occupy approximately 50% of the overall market, there are also regional small players in the market. The market works cohesively with occasions where the larger players outsource projects or a part of them to the smaller package design service providers. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.