What Fueled Food Contract Manufacturing Market?
The food contract manufacturing market has seen considerable growth due to a variety of factors.
• The dimension of the food contract manufacturing market has considerably expanded in the recent past. The market size is predicted to rise from $168.54 billion in 2024 to $185.03 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 9.8%.
The surge experienced in the historical timeline can be traced back to factors such as the quest for cost effectiveness, a concentration on essential skills, market growth and geographical reach, variances in seasonal demand, adherence to regulations, and certainty of quality, as well as adaptability in production capabilities.
What are the Market Size and Expected Growth Rates for the Food Contract Manufacturing Market?
The food contract manufacturing market is expected to maintain its strong growth trajectory in upcoming years.
• In the ensuing years, a swift expansion is anticipated in the food contract manufacturing industry, with its market size projected to reach $311.85 billion in 2029, boasting a compound annual growth rate (CAGR) of 13.9%.
The projected growth during this period can be ascribed to an upsurge in health and wellness products, e-commerce, direct-to-consumer tendencies, clean labeling, sustainable practices, worldwide market penetration, and the rise of plant-based and alternative foods. The forecast period is set to witness significant trends such as integration of technology and industry 4.0, emphasis on sustainability, rising demand for customization, and optimization of global supply chain.
What Are the Critical Driver Fuelling the Food Contract Manufacturing Market's Growth?
The upward trend in the consumption of plant-based and organic foods is projected to drive the expansion of the food contract manufacturing market. The current consumer focus on health, eco-friendliness, and ethics has heightened the demand for natural products without artificial additives and sourced from plants. As a result, food companies are extending their range to include vegan, organic, and clean-label items. Contract manufacturers serve a central function by offering specific production skills to meet the demands of these specific markets, thus allowing brands to optimize production and respond to escalating consumer needs without the requirement for expensive infrastructure. As per Plantbasedfoods.org, a nonprofit entity promoting plant-based foods, the monetary sales of plant-based foods in the US experienced a 6.6% increase, reaching $8 billion in 2022. Consequently, the pressing need for plant-based and organic food is steering the advancement of the food contract manufacturing market.
How Is The Globa Food Contract Manufacturing Market Divided Into Key Segments?
The food contract manufacturing market covered in this report is segmented –
1) By Services: Manufacturing Services, Packaging Services, Research And Development Services
2) By Manufacturing Process: Dry Blending, Spray Drying, Extrusion
Subsegments:
1) By Manufacturing Services: Private Label Manufacturing, Co-Packing Services, Bulk Manufacturing
2) By Packaging Services: Custom Packaging Solutions, Labeling Services, Secondary Packaging
3) By Research And Development Services: Product Development, Formulation Services, Quality Assurance And Testing
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What Trends Are Reshaping The Food Contract Manufacturing Market?
The primary trend gaining traction in the food contract manufacturing market is the emergence of novel product innovations. Businesses in this industry are concentrating on creating new, inventive products to expand their market footprint. For example, in March 2022, Canada-based EnWave Corporation, a leading technology firm, unveiled its cutting-edge vacuum-microwave toll drying service, REVworx. This provides flexible contract manufacturing options for the creation of superior vacuum-microwave dried snacks and ingredient applications for all food companies, irrespective of their size. REVworx utilises REV technology, reducing the initial capital outlay and accelerating the time to market.
Who Are the Key Players in the Food Contract Manufacturing Market?
Major companies operating in the food contract manufacturing market include:
• Christy Friedgram Industry
• Hearthside Food Solutions LLC
• Haco AG
• Nikken Foods Co. Ltd.
• The C.F. Sauer Company
• Tree Top Inc.
• Nu-World Foods Inc.
• SK Food Group Inc.
• De Banketgroep B.V.
• The Eli’s Cheesecake Co. LLC
• Pacmoore Products Inc.
• The Fremont Company LLC
• Action Pak Inc.
• Van Law Food Products Inc.
• The Sausage Maker Inc.
• Fibro Foods LLP
• Thrive Foods LLC
• SternMaid America LLC
• ETA Lumis Foods Ltd.
• Samma Service S.r.l.
• Hindustan Foods Limited
• Cremica Agro Foods Ltd.
• Helander Company Inc.
• The French’s Food Company LLC
What are the Regional Insights into the Food Contract Manufacturing Market?
North America was the largest region in the food contract manufacturing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the food contract manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
