Market Update: Consumer Goods & Contract Manufacturing – Q3 2021
The consumer goods industry heavily relies on the economy and consumers’ willingness to purchase goods. The Market update combines consumer goods into two categories: durables (longer lifespan) vs. non-durables (shorter lifespan). Consumer goods activity has been slowly declining since the start of the year. This could be the result of the consumer confidence levels at seven months lows likely resulting from COVID concerns.
COVID-19 has had a beneficial effect on the global contract manufacturing services overall. The demand for personal care D2C (e-commerce) brands accelerated during the pandemic due to consumers’ increased consciousness of health, wellness, and sustainability. Contract manufacturers were able to keep up with the high demand and benefited from the continuing industry change. On the Food & Beverage side, contract manufacturers benefited from a significant increase in demand for consumer-packaged foods – particularly products that are staple and comfort foods, add flavor and variety or offer convenience. Additionally, the medical device contract manufacturing market has experienced large growth due to the sheer necessity of ventilators and respirators. Likewise, the complexity of innovation in class three medical devices such as pacemakers and implantable medical devices has resulted in OEMs leveraging the expertise of electronic manufacturing services. Please contact Mark Landry, Ilia Ulianchuk, or Tanner Lange if you would like to hear more about Consumer Goods and Contract Manufacturing.