Global Food Contract Manufacturing Market Insights Forecasts to 2033

• The Global Food Contract Manufacturing Market Size was Valued at USD 143.9 Billion in 2023
• The Market Size is Growing at a CAGR of 9.41% from 2023 to 2033
• The Worldwide Food Contract Manufacturing Market Size is Expected to Reach USD 353.7 Billion by 2033
• Asia Pacific Market is expected to grow the fastest during the forecast period

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The Global Food Contract Manufacturing Market Size is Anticipated to Exceed USD 353.7 Billion by 2033, Growing at a CAGR of 9.41% from 2023 to 2033.

 

Market Overview

Food contract manufacturing is a form of outsourcing where once a company hires another company for the manufacturing of food products to customer business focuses more on branding and marketing. A lot of companies lack the funding or resources required to develop and produce high-quality products on time. If so, contract with a company that produces foods, drinks, and dietary supplements for that specific industry to handle the production. With the increasing focus on a variety of dietary choices, such as plant-based, gluten-free, and allergen-free diets, contract manufacturers are developing products that adhere to these particular specifications. In the food contract manufacturing market, three main service categories are manufacturing and services, packaging services, and research & development. These services are utilized to minimize costs associated with purchasing food production equipment, packaging materials, resources, and highly skilled employment. They offer a range of services including recipe formulation, ingredient sourcing, product development, packaging, labeling, and quality control. The global food contract manufacturing is boosted by factors such as increasing consumer demand for convenience food and innovation of new products launching with cost-effectiveness. The intake of nutritious foods and drinks with vegetables, fruits, legumes, and extra virgin olive oil continuously increases the market, so increasing the demand for food is expected to grow the global food contract manufacturing market.

 

Report Coverage

This research report categorizes the market for the global food contract manufacturing market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global food contract manufacturing market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global food contract manufacturing market.

 

Driving Factors

Demand for outsourced manufacturing is rising as a result of lower operating costs, more production capacity, and easier access to specialized expertise, which is encouraging more food businesses to choose contract manufacturing. The food contract manufacturing markets require product uniqueness, which presents opportunities for developing and innovating unique recipes, creative packaging, and customized product solutions for establishing brand differentiations. The lack of OEM (original equipment manufacturer) manufacturing production capabilities and rising demand for convenience meals as a result of changing lifestyles are driving the industry's development. The expansion of new markets with help from partnering and manufacturers in different regions food companies can take advantage of local expertise, access to raw materials, and regulatory knowledge. The need for more value-added services, a refreshed supply chain strategy, and the growing demand for manufacturing capabilities are main drivers of the food contract manufacturing market during the forecast period. Also, businesses have been offering services including storage, R&D support, and packaging, which has spurred industry expansion.

 

Restraining Factors

Maintaining consistent product quality and safety can be challenging when outsourcing food production to a contract manufacturer. More stringent regulations for food product approval and increasing product quality risk have an impact on the market. Evaluating the potential partners are financially strong for reduced risk of unexpected disruption of the product manufacturing process. The lack of manufacturing production capabilities of original equipment manufacturers (OEMs) is a factor driving the demand for food contract manufacturing.

 

Market Segmentation

The global food contract manufacturing market share is classified into service, products, and application.

• The manufacturing segment is expected to hold the largest share of the global food contract manufacturing market during the forecast period.

Based on the service, the global food contract manufacturing market is divided into manufacturing, packaging, custom formulation, and R&D. Among these, the manufacturing segment is expected to hold the largest share of the global food contract manufacturing market during the forecast period. The segmental growth can be attributed to increasing the demand for manufacturing capabilities, food companies are looking to enhance the value & efficiency, product quality, and safety. The increasing private equity investment has enabled the contract manufacturing companies for their capacity expansion of important services.

 

• The dairy products segment is expected to hold the largest share of the global food contract manufacturing market during the forecast period.   

Based on the products, the global food contract manufacturing market is divided into convenience foods, bakery products, dairy products, dietary supplements, and confectionery products. Among these, the dairy products segment is expected to hold the largest share of the global food contract manufacturing market during the forecast period. In the product segment food contract manufacturers work closely on dairy products to produce different recipes and formulations to customer satisfaction. Dairy products are manmade to specific flavor profiles, nutritional requirements, and the consumer’s preference. It includes technologies like ultra-high temperature processing, pasteurization, and homogenization to improve the quality and safety of dairy products.

 

• The food & beverage manufacturers segment is expected to hold the largest share of the global food contract manufacturing market during the forecast period.

Based on the application, the global food contract manufacturing market is divided into food & beverage manufacturers, import & export company. Among these, the food & beverage manufacturers segment is expected to hold the largest share of the global food contract manufacturing market during the forecast period. The segmental growth can be attributed to the increasing demand for packaged food and beverages, customized food, and dietary supplements, as well as an expanding number of food and beverage producers worldwide.

 

Regional Segment Analysis of the Global Food Contract Manufacturing Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• Latin America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

 

North America is anticipated to hold the largest share of the global food contract manufacturing market over the predicted timeframe.

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North America is projected to hold the largest share of the global food contract manufacturing market over the predicted timeframe. With the growing demand for packaging in categories such as food and beverages, the food contract packaging market in North America is rapidly expanding. The high demand of consumers towards the food and beverages. In addition, food processing and manufacturing are increasing food contract manufacturers provide services at a low cost. Food companies are depending more and more on contract manufacturers to help with product development, quality assurance, and production.

 

Asia Pacific is expected to grow at the fastest pace in the global food contract manufacturing market during the forecast period. With industrialization, increased household incomes, and population growth, the food industry has expanded rapidly. Asia Pacific region is rapidly developing in the forecast period due to an increase in food product manufacturers.

 

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global food contract manufacturing market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

 

List of Key Companies

• Fibro Foods
• Hindustan Foods Limited
• Kilfera Food Manufacturers Ltd
• Nutrascience Labs, Inc
• Thrive Foods LLC.
• Omni blend
• Orion Food Co., Ltd
• Christy Quality Foods (CQF)
• Nikken Foods
• SK Food Group
• De Banketgroep B.V.
• HACO AG
• Hearthside Food Solutions LLC
• Pacmoore Products Inc.
• Cremica
• Others

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 

Recent Developments

• In July 2023, Annapurna Swadisht entered a manufacturing contract with gopal food products. The facility has a production capacity of 1000 MT of biscuits, 150 MT of snacks, and 60 MT of namkeen per month. The manufacture unit can cater to North West and Central India.

 

• In January 2023, SK Food Group, a custom food manufacturer, announced its fourth production facility in the U.S. The construction is expected to be completed by 2025, including a special partnership with the PIE center to deliver specific worker training.

 

• In June 2023, Thrive Foods, a global producer of dried freeze products, declared the achievement of Groneweg Group also known as Freeze-Dry Foods. Groneweg Group is a supplier and manufacturer of air-dried and frozen constituents. The acquisition is anticipated to close in 2023.

 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global food contract manufacturing market based on the below-mentioned segments: 

 

Global Food Contract Manufacturing Market, By Service

• Manufacturing
• Packaging
• Custom Formulation
• R&D

 

Global Food Contract Manufacturing Market, By Products

• Convenience Foods
• Bakery Products
• Dairy Products
• Dietary Supplements
• Confectionery Products

 

Global Food Contract Manufacturing Market, By Application

• Food & Beverage Manufacturers
• Import & Export Company

 

Global Food Contract Manufacturing Market, By Region

• North America
• US
• Canada
• Mexico
• Europe
• Germany
• Uk
• France
• Italy
• Spain
• Russia
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Rest of Asia Pacific
• South America
• Brazil
• Argentina
• Rest of South America
• Middle East & Africa
• UAE
• Saudi Arabia
• Qatar
• South Africa
• Rest of the Middle East & Africa