What Has Been The Evolution of the Bakery Contract Manufacturing Market in Recent Years?
The bakery contract manufacturing market has seen considerable growth due to a variety of factors.
•In recent times, there has been a swift enlargement in the bakery contract manufacturing market size. Its growth trajectory indicates a leap from $24.93 billion in 2024 to an estimated $27.79 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 11.5%.
Factors driving the growth during the historic period include an increased consumer demand for variety in products, cost-effectiveness, the ability to scale, emphasis on core strengths, globalized supply chains, growth in disposable income, and the rising acclaim of convenience foods.
What Is the Forecasted Market Size and Growth Rate for The Bakery Contract Manufacturing Market?
The bakery contract manufacturing market is expected to maintain its strong growth trajectory in upcoming years.
• Rapid expansion is foreseen for the bakery contract manufacturing market size in the coming years, with predictions estimating a value of "$40.93 billion in 2029 and a compound annual growth rate (CAGR) of 10.2%.
Factors fueling this projected growth during the forecast period include the burgeoning middle class, e-commerce advancement, increasing health and wellness awareness, adherence to regulatory standards and quality assurance, and an aging population. Key trends driving this sector during the forecast period are customization and innovation, emphasis on clean labeling and health, integration of technology, resilience in the supply chain, and worldwide expansion.
What Are The Core Factors Supporting Growth In The Bakery Contract Manufacturing Market?
The growth of the bakery contract manufacturing market is anticipated to be propelled by the increased consumption of bakery items. Bakery products encompass a broad variety of goods that use wheat flour to create assorted end products related to bakery. Given that a lot of bakeries are unable to run at their highest capacity to satisfy the rising demand for bakery goods, they often engage external (contract manufacturing) firms to cover the shortfall in those production lines. Hence, the surge in bakery product consumption is projected to fuel the bakery contract manufacturing market. For instance, a report released by Agriculture and Agri-Food Canada, a Canada-based federal department overseeing agriculture, in November 2023, indicated that in 2022, the United Kingdom was the tenth largest worldwide retail sales market for baked goods, clocking in at US$10.6 billion, corresponding to a 2.4% market share. The market is projected to expand at a compound annual growth rate of 5.0% by 2027, attaining retail sales of US$13.6 billion. Consequently, the increased consumption of bakery products is propelling the bakery contract manufacturing market's growth.
What Are The Major Segments Within The Global Bakery Contract Manufacturing Market?
The bakery contract manufacturing market covered in this report is segmented –
1) By Product: Specialty And Nutritional Bakery Products, Traditional Bakery Products
2) By Service: Manufacturing, Packaging, Custom Formulation And R&D
3) By Application: Small And Medium Enterprises (SMEs), Large Enterprises
Subsegments:
1) By Specialty And Nutritional Bakery Products: Gluten-Free Products, Organic Bakery Products, High-Protein Bakery Products, Low-Carbohydrate Bakery Products
2) By Traditional Bakery Products: Bread, Cakes, Pastries, Cookies, Buns And Rolls
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Which Trends Are Expected To Transform The Bakery Contract Manufacturing Market?
In order to boost innovation, diversify product lines, and streamline supply chain operations, leading businesses in the bakery contract manufacturing market are embracing the strategic partnership model. This involves companies tapping into each other's strengths and resources for shared advantages and success. For instance, in September 2024, EQUII, a food tech company from the US, entered into a collaboration with France-based bakery business, Bridor, to augment the nutritional value of bakery goods. EQUII commits to providing Bridor with its protein-rich yeast flour, facilitating Bridor in the production of a range of highly nutritious baked items targeted toward the food service industry throughout North America. This partnership seeks to meet the surging demand for flavorful, nutritious, and high protein plant-based bakery products.
Who Are the Key Players in the Bakery Contract Manufacturing Market?
Major companies operating in the bakery contract manufacturing market include:
• De Banketgroep B.V.
• HACO Holding AG
• PacMoore Products Inc.
• Blackfriars Bakery
• Southern Bakeries LLC
• Cibus Nexum BV
• Hearthside Food Solutions LLC
• Richmond Baking Company
• Oakhouse Bakery
• Adventure Bakery LLC
• Michel’s Bakery Inc.
• General Mills Inc.
• Perfection Foods Ltd.
• Bimbo Bakeries USA
• Dawn Foods
• Flowers Foods
• Grupo Bimbo
• Hostess Brands
• Kellogg Company
• Mondelez International
• Nestle SA
• PepsiCo Inc.
• Sara Lee Frozen Bakery
• The Hershey Company
• Tyson Foods Inc.
• Unilever plc
• Weston Foods Canada
• Yamazaki Baking Co Ltd.
• Aryzta AG
• Campbell Soup Company
What Is The Most Dominant Region In The Bakery Contract Manufacturing Market?
Europe was the largest region in the bakery contract manufacturing market in 2024. The regions covered in the bakery contract manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
