Food Contract Manufacturing Market by Service (Custom Formulation & R&D, Manufacturing, Packaging), Application (Bakery Products, Confectionery Products, Convenience Foods) - Global Forecast 2024-2030

Food Contract Manufacturing Market by Service (Custom Formulation & R&D, Manufacturing, Packaging), Application (Bakery Products, Confectionery Products, Convenience Foods) - Global Forecast 2024-2030

The Food Contract Manufacturing Market size was estimated at USD 158.01 billion in 2023 and expected to reach USD 170.90 billion in 2024, at a CAGR 8.67% to reach USD 282.83 billion by 2030.

Food contract manufacturing is a business arrangement where a company outsources the production of its food products to a third-party manufacturer. This third party has the necessary facilities, expertise, and certifications to produce food items according to the hiring company's specifications and quality standards. In the food industry, contract manufacturing involves a wide range of products including beverages, snacks, frozen meals, condiments, and many others. The client provides the recipe and packaging design, and the manufacturer produces the product to meet the established criteria and regulatory requirements for food safety and quality. Increasing demand for packaged and convenience foods, driven by changing consumer lifestyles that favor quick and easy meal solutions is driving the demand for food contract manufacturing. Additionally, the global growth in the number of restaurants and hotels is expanding the market, as these businesses often rely on contract manufacturers to handle food production, which allows them to focus more on customer service and experience. Moreover, many food companies are turning to contract manufacturing services to better focus on their core competencies such as branding and selling, rather than the intricacies of production. Issues related to quality control and a lack of direct oversight over the manufacturing process hampers the market growth. The rising shift towards innovation in food products among contract manufacturers, aiming to cater to evolving consumer tastes and dietary needs is expected to create opportunities for market growth.

Regional Insights



The food contract manufacturing market in the Americas is highly developed with a robust infrastructure for food production and packaging. The region benefits from advanced technology in food processing and a high demand for various food products, which drives the growth of contract manufacturing. Additionally, a growing trend toward organic and healthy foods pushes companies to collaborate with contract manufacturers who can provide these specialized services. The APAC region is witnessing rapid growth in the food contract manufacturing market, driven by increasing economic development and urbanization, particularly in countries such as China, India, and Southeast Asia. A rising middle class with disposable income to spend on processed foods fuels the demand for contract manufactured goods. In EMEA, Europe is the most prominent player in the food contract manufacturing market, which benefits from stringent food safety regulations ensuring high-quality products. The market is mature, with a strong focus on innovation and sustainability in food production. The Middle East and Africa are emerging regions in this sector, gradually adopting more advanced manufacturing techniques and increasing their capacity. The demand in these areas is spurred by urban growth and a younger population looking for convenient food options.

Market Insights



Market Dynamics



The market dynamics represent an ever-changing landscape of the Food Contract Manufacturing Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers


Increasing demand for packaged and convenience foods
Rise in the number of restaurants and hotels across the globe
Significant adoption of contract manufacturing services to concentrate on selling activities

Market Restraints


Concerns associated with quality issues and limited control

Market Opportunities


Shifting focus towards the innovation and manufacturing of food products
Ongoing trend of multiple cuisines by one provider

Market Challenges


Issues related to low-profit margins and hidden identity associated with food contract

Market Segmentation Analysis


Service: Growing usage of custom formulation & R&D to ensure the product is feasible for large-scale production
Application: High potential of food contract manufacturing for bakery products to handle large-scale production and packaging for brands

Market Disruption Analysis


Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix



The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Food Contract Manufacturing Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis



The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Food Contract Manufacturing Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments




Craft Cannery's Strategic Expansion in Bergen, Fueling Local and Regional Food Markets

Craft Cannery initiated a USD 1.5 million facility expansion to significantly augment its current 5,000-square-foot operation with an additional 7,000 square feet. This development is aimed at enhancing their production capabilities, particularly by introducing a full-time food service packaging line and a new glass bottling line designed to cater efficiently to restaurants and regional grocery chains. The growth facilitates the simultaneous operation of both lines, thereby optimizing production output.


Strategic Expansion and Diversification at Annapurna Swadisht Through Contract Manufacturing and Product Portfolio Enhancement

Annapurna Swadisht has enhanced its production capabilities through a new contract manufacturing agreement with Gopal Food Product, situated in UPSIDC Kotwan Industrial Area, Mathura. This facility is equipped to produce significant quantities of biscuits, namkeen, and snacks, thereby targeting markets across multiple regions. In addition, the company has broadened its product range to over 72 SKUs, marking a strategic move with the acquisition of exclusive selling rights for My Noodles from Millenium Exim Private Limited.


Revolutionizing Food and Beverage Contract Manufacturing: The Launch of PartnerMatch Marketplace

PartnerSlate has introduced a groundbreaking service called PartnerMatch, a marketplace designed to significantly expedite the process of connecting food and beverage brands with appropriate contract manufacturers (co-mans). Furthermore, the platform provides an efficient system for technical reviews and discussions, enhancing the negotiation phase. For contract manufacturers, PartnerMatch offers a valuable tool to attract pertinent leads, thus accelerating the sales process and optimizing capacity utilization.

Strategy Analysis & Recommendation



The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Food Contract Manufacturing Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles



The report delves into recent significant developments in the Food Contract Manufacturing Market, highlighting leading vendors and their innovative profiles. These include Action Pak, Inc., Baldwin Richardson Foods Co., Brady Enterprises, Inc., Century Foods International LLC, Christy Quality Foods Pvt. Ltd., Craft Cannery, ETA Lumis Foods, Fibro Foods Pvt. Ltd., Gopal Food Product, HACO AG, Hearthside Food Solutions LLC, Heartland Food Products Group, Helander, Hindustan Foods Limited, Nikken Foods Co., Ltd., Nutrascience Labs, Inc., Omniblend Pty Ltd., PacMoore Products, Inc., Subco Foods, Inc., and Thrive Foods LLC.

Market Segmentation & Coverage



This research report categorizes the Food Contract Manufacturing Market to forecast the revenues and analyze trends in each of the following sub-markets:

Service
Custom Formulation & R&D
Manufacturing
Packaging
Application
Bakery Products
Confectionery Products
Convenience Foods
Dairy Products
Dietary Supplement
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year