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Food Contract Manufacturing Market

Food Contract Manufacturing Market Size, Share & Trends Analysis Report by Service (Food Manufacturing Services, Research and Development, and Food Packaging Services) Forecast Period (2024-2031)

Published: Jul 2024 | Report Code: OMR2026607 | Category : Food & Beverage | Delivery Format: /
Food contract manufacturing market is anticipated to grow at a CAGR of 9.2% during the forecast period (2024-2031). The food contract manufacturing industry includes companies that provide specialized services to food producers, brands, and retailers. These services consist of food processing, packaging, labeling, and occasionally distribution, enabling clients to subcontract these operations instead of handling them internally. The pivotal factors driving market growth include the growing focus of businesses on core activities, the rapid expansion of businesses in diverse geographic areas, regulatory compliances and requirements, and the extension of e-commerce and D2C (direct-to-consumer) model-based food brands.

global food contract manufacturing market dynamics
 
Market Dynamics  

Shifting Trend Towards Food Production Outsourcing

Contract food manufacturing and packaging is becoming increasingly popular globally owing to the improved cost management of production processes by outsourcing companies, the shifting focus of businesses on core competencies, and the expansion of operations in various geographic locations. These factors have significantly contributed to the outsourcing of production processes, as contract manufacturers can comprehend and meet regulatory requirements in specific regions, utilize their expertise to optimize resources for production and development, and enable businesses to concentrate on crucial decision-making, planning, and other operational aspects. For instance, Annapurna Swadisht, a rapidly growing food company in Eastern India, recently formed an exclusive contract manufacturing partnership with Gopal Food Product. The manufacturing plant, situated at UPSIDC in the Kotwan Industrial Area of Mathura, Uttar Pradesh, can produce 1000 MT of biscuits, 60 MT of namkeen, and 150 MT of snacks each month. With its enhanced capabilities, the new facility is strategically positioned to cater to the East and North Rajasthan regions, as well as the entirety of Haryana, West, and Central Uttar Pradesh, the Delhi National Capital Region (NCR), North Madhya Pradesh, South and West Uttarakhand, and beyond.

Increase in D2C & E-Commerce Food Brands

The food and beverage industry is witnessing a rise in the presence of direct-to-consumer (D2C) food brands that are using contract manufacturing services extensively for food production, packaging, and innovation. This growth can be attributed to the cost-effective nature of the D2C business model, which is further enhanced by the support of contract manufacturers and the rapid expansion of e-commerce food sales. This partnership enables D2C brands to streamline costs, expand their market reach, and operate without the need for extensive industry knowledge. For instance, Rakuten, the biggest online marketplace in Japan, announced a 45.2% increase in its gross merchandise sales ("GMS") in 2020. Rakuten achieved revenues of 5 trillion yen, or around $45.5 billion, in domestic eCommerce GMS by the conclusion of 2021, showing 11.7% year-on-year growth. Additionally, there was a 37.7% rise in GMS for food and beverage products.

Segmental Outlook 

  • Based on service, the market is segmented into food manufacturing services, research and development, and food packaging services.
  • The food manufacturing services is further segmented into convenience foods, bakery products, dietary supplements, confectionery products, dairy products, and others (savory & snacks).
Food Manufacturing Services is the Most Prominent Food Contract Manufacturing Service
 
Food manufacturing services are the most sought-after service in the food contract manufacturing market, attributed to the complex nature of manufacturing in the overall food business supply chain, and cost- and resource-based benefits to food brands through outsourcing of manufacturing processes. The extensions in manufacturing service offerings by contract manufacturers such as customized and trunky manufacturing options, and the growth of D2C-based food brands further create demand for these services.
   
Regional Outlook 

The global food contract manufacturing market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).  

Global Food Contract Manufacturing Market Growth by Region 2024-2031

global food contract manufacturing market growth, by region

Asia-Pacific Holds Significant Market in Global Food Contract Manufacturing Market

Asia-Pacific is predicted to demonstrate the highest growth rate in the future, attributed to the ongoing increase in e-commerce food product sales in the region, the increasing presence of small to medium-sized food manufacturers, the rapid expansion of international food brands in the region, the prominent position of regional countries in global contract food manufacturing, i.e., China, India, and Vietnam, and supportive policies to support food manufacturing businesses in the region. For instance, the Production-Linked Incentive (PLI) Scheme in Food Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports Under the scheme, a total of 158 applications have been approved under the PLI Scheme for the Food Processing Industry, with 22 MSMEs selected to participate under the PLI Scheme for millet-based products. The implementation of the PLI scheme is expected to boost food processing capacity by nearly $3.5 billion and create around 2.5 lakh direct and indirect job opportunities by 2026.

Market Players Outlook 

global food contract manufacturing market players outlook
 
*Note: Major Players Sorted in No Particular Order.” 

The major companies serving the global food contract manufacturing market include Hindustan Foods, PacMoore, SAJ Food Products, Makson Group of Companies, Access Business Group, Lake City Foods, and Hugli Holdings AG among others. The market players are focusing on capitalizing on growth by adopting strategies such as collaboration, partnerships, and market expansion among others. For instance, in May 2024, TruFood Manufacturing, a major US contract manufacturer of better-for-you nutrition bars, chocolate, and baked granola, announced the successful completion of its merger with Bar Bakers, LLC, a prominent player in the nutritional snacks manufacturing industry. The combination of these two companies is expected to create a significant industry player with a strong presence in various product categories and regions.

The Report Covers 

  • Market value data analysis of 2023 and forecast to 2031. 
  • Annualized market revenues ($ million) for each market segment. 
  • Country-wise analysis of major geographical regions. 
  • Key companies operating in the global food contract manufacturing market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report. 
  • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future. 
  • Analysis of market-entry and market expansion strategies. 
  • Competitive strategies by identifying ‘who-stands-where’ in the market. 

1. Report Summary

• Current Industry Analysis and Growth Potential Outlook

1.1. Research Methods and Tools

1.2. Market Breakdown

1.2.1. By Segments

1.2.2. By Region

2. Market Overview and Insights

2.1. Scope of the Report

2.2. Analyst Insight & Current Market Trends

2.2.1. Key Industry Trends

2.2.2. Recommendations

2.2.3. Conclusion

3. Competitive Landscape

3.1. Key Company Analysis 

3.2. Hindustan Foods

3.2.1. Overview

3.2.2. Financial Analysis 

3.2.3. SWOT Analysis

3.2.4. Recent Developments

3.3. PacMoore Product, Inc.

3.3.1. Overview

3.3.2. Financial Analysis 

3.3.3. SWOT Analysis

3.3.4. Recent Developments

3.4. SAJ Food Products

3.4.1. Overview

3.4.2. Financial Analysis 

3.4.3. SWOT Analysis

3.4.4. Recent Developments

3.5. Makson Group of Companies

3.5.1. Overview

3.5.2. Financial Analysis 

3.5.3. SWOT Analysis

3.5.4. Recent Developments

3.6. Key Strategy Analysis

4. Market Segmentation

4.1. Global Food Contract Manufacturing Market by Services

4.1.1.1. Food Manufacturing Services

4.1.1.2. Convenience Foods

4.1.1.3. Bakery Products

4.1.1.4. Dietary Supplement

4.1.1.5. Confectionery Products

4.1.1.6. Dairy Products

4.1.1.7. Others (Savory & Snacks)

4.1.2. Research and Development

4.1.3. Food Packaging Services

5. Regional Analysis

5.1. North America

5.1.1. United States

5.1.2. Canada

5.2. Europe

5.2.1. UK

5.2.2. Germany

5.2.3. Italy

5.2.4. Spain

5.2.5. France

5.2.6. Rest of Europe 

5.3. Asia-Pacific

5.3.1. China

5.3.2. India

5.3.3. Japan

5.3.4. South Korea

5.3.5. Rest of Asia-Pacific 

5.4. Rest of the World

5.4.1. Latin America

5.4.2. Middle East and Africa

6. Company Profiles

6.1. Access Business Group LLC

6.2. Adirondack Beverages Inc. (Polar Corp.)

6.3. AFP Advanced Food Products LLC.

6.4. American Custom Drying

6.5. American Soy Products, Inc.

6.6. Amerilab Technologies, Inc.

6.7. AmeriQual Foods

6.8. Arizona Nutritional Supplements, LLC.

6.9. Berner Food & Beverage, Inc.

6.10. Big Brands, LLC

6.11. Blue Chip Group

6.12. Brady Enterprises, Inc.

6.13. Case Mason Filling, Inc.

6.14. Christy Foods 

6.15. Claremont Foods

6.16. Combined Technologies, Inc.

6.17. Compact Industries Inc.

6.18. Continuum Packing Solutions LLC

6.19. Corim Industries

6.20. Create-A-Pack, Inc.

6.21. Creekside Springs, LLC

6.22. Crosby Foods Ltd.

6.23. Delmaine Fine Foods 

6.24. Dominion Liquid Technologies

6.25. Dreampak LLC

6.26. Element Food Solutions, LLC.

6.27. Gehl Foods, LLC

6.28. Giovanni Foods Co., Inc.

6.29. Goerlich Pharma GmbH

6.30. Hearthside Food Solutions LLC

6.31. Heartland Food Products Group.

6.32. Hormel Foods Corp.

6.33. Hügli Holding AG

6.34. Imagine Baking Inc.

6.35. Inter-American Products Group 

6.36. Jakana Foods

6.37. Jel Sert Co.

6.38. Lake City Foods

6.39. Lassonde Pappas & Co., Inc.

6.40. Lidestri Foods

6.41. Maltra Foods

6.42. Natural Development, Inc.

6.43. Particle Control Inc.

6.44. Q & B Foods Inc.

6.45. Sizani Foods Pty Ltd.

6.46. Skjodt-Barrett Foods Inc.

6.47. Subco Foods, Inc.

6.48. Tasman Bay Food Co.

6.49. Thrive Foods.

6.50. Trailblazer Foods 

6.51. TruFoodMfg. 

6.52. Wyandot, Inc. 

1. Global Food Contract Manufacturing Market Research And Analysis By Services, 2023-2031 ($ Million)

2. Global Food Contract Manufacturing Services Market Research And Analysis By Region, 2023-2031 ($ Million)

3. Global Research & Development Services In Food Contract Manufacturing Market Research And Analysis By Region, 2023-2031 ($ Million)

4. Global Food Packaging Services In Food Contract Manufacturing Market Research And Analysis By Region, 2023-2031 ($ Million)

5. Global Food Contract Manufacturing Analysis Market Research And By Region, 2023-2031 ($ Million)

6. North American Food Contract Manufacturing Market Research And Analysis By Country, 2023-2031 ($ Million)

7. North American Food Contract Manufacturing Market Research And Analysis Services, 2023-2031 ($ Million)

8. European Food Contract Manufacturing Market Research And Analysis By Country, 2023-2031 ($ Million)

9. European Food Contract Manufacturing Market Research And Analysis By Material Composition, 2023-2031 ($ Million)

10. European Food Contract Manufacturing Market Research And Analysis By Services, 2023-2031 ($ Million)

11. Asia-Pacific Food Contract Manufacturing Market Research And Analysis By Country, 2023-2031 ($ Million)

12. Asia-Pacific Food Contract Manufacturing Market Research And Analysis By Services, 2023-2031 ($ Million)

13. Rest Of The World Food Contract Manufacturing Market Research And Analysis By Region, 2023-2031 ($ Million)

14. Rest Of The World Food Contract Manufacturing Market Research And Analysis By Services 2023-2031 ($ Million)

1. Global Food Contract Manufacturing Market Share By Services, 2023 Vs 2031 (%)

2. Global Food Contract Manufacturing Services Market Share By Region, 2023 Vs 2031 (%)

3. Global Research & Development In Food Contract Manufacturing Market Share By Region, 2023 Vs 2031 (%)

4. Global Food Packaging Services In Food Contract Manufacturing Market Share By Region, 2023 Vs 2031 (%)

5. Global Food Contract Manufacturing Market Share By Region, 2023 Vs 2031 (%)

6. US Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

7. Canada Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

8. UK Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

9. France Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

10. Germany Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

11. Italy Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

12. Spain Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

13. Rest Of Europe Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

14. India Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

15. China Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

16. Japan Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

17. South Korea Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

18. Rest Of Asia-Pacific Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

19. Latin America Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

20. Middle East And Africa Food Contract Manufacturing Market Size, 2023-2031 ($ Million)

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