In modeling systems of interacting particles, many-body terms beyond pairwise interactions are often overlooked. Nevertheless, in certain scenarios, even small contributions from three-body or higher-order terms can disrupt significant changes in their collective behavior. Here we investigate the effects of three-body interactions on the structure and stability of 2D, harmonically confined clusters. We consider clusters with three distinct pairwise interactions:logr,1/r, ande-κr/r, thus covering a wide range of condensed and soft matter systems, such as vortices in mesoscopic superconductors, charged colloids, and dusty plasma. In each case, we evaluate the energetics and normal mode spectra of equilibrium and metastable configurations as the intensity of an attractive, Gaussian three-body potential is varied. We demonstrate that, above a threshold value of the three-body energy strength, the cluster shrinks and eventually becomes self-sustained, that is, it remains cohesive after the confinement potential is shut down. Depending on the strengths of the two-body and three-body interaction terms, this compaction can be continuous or abrupt. The latter case is characterized by a discontinuous jump in the particle density and coexsitence of the compact and non-compact phases as metastable states, as in a first-order phase transition. For some values of the particle number, the compaction is preceded by one or more structural changes, resulting in configurations not usually seen in purely pairwise-additive clusters.