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Food Contract Manufacturing Market: Description
Food contract manufacturing is a type of outsourcing service where a company enters into an agreement with a third-party manufacturer to produce its food products. This means that the food company outsources its production process to another company that specializes in food manufacturing. The third-party manufacturer is responsible for sourcing the raw materials, processing and packaging the food products, and delivering them to the food company for distribution.
The food contract manufacturing market has seen significant growth in recent years, driven by increasing demand for food products, as well as the need for cost-effective production solutions. Food contract manufacturers offer several benefits to food companies, including access to specialized equipment and expertise, reduced capital expenditure, and improved supply chain management. In addition, food contract manufacturers can also help food companies scale up production quickly to meet increased demand, without the need for additional investments in facilities and equipment.
The food contract manufacturing market is highly competitive, with many companies offering a range of services, including product development, packaging design, and quality control. Some of the key players in the food contract manufacturing market include Cargill, Archer Daniels Midland Company, Nestle, ConAgra Foods, and Kerry Group. Food Contract Manufacturing Market is expected to continue to grow in the coming years, driven by increasing demand for convenience foods, functional foods, and healthy food products.
Source: WMR
Global Food Contract Manufacturing Market: Overview
The Global food contract manufacturing market is presently worth USD 120,960 million, and is anticipated to grow to a value of more than USD 272,070 million by 2033, with a growing CAGR (compound annual growth rate) of over 9.5% from 2023 to 2033.
The industry's growth is likely to be aided by rising demand for outsourcing food manufacturing. During the forecast period, the rising frequency of coronavirus together with increased R&D spending are likely to have a beneficial impact on the food contract manufacturing market. Factors such as panic buying of comfort food during the duration of the pandemic and increased private equity investment in contract manufacturing are also projected to support sector growth.
When demand for ready-to-eat food products surged in 2020, food processors couldn't keep up, so they turned to contract producers. Due to the limited manufacturing capacity of OEMs and rising food producers, outsourced manufacturing is on the rise.
Source: WMR
Global food contract manufacturing Market: Key trends
Increasing value added services will drive Food Contract Manufacturing Market expansion
Food contract manufacturers have started to offer a variety of value-added services such as packaging, research, consulting, and warehousing, allowing food companies to expand quickly. Many contract manufacturers were able to gain long-term contracts, allowing them to rise to the top of the industry. Furthermore, private equity investments have enabled contract manufacturers to expand their capacity and offer other services.
Increasing demand for OEM (original equipment manufacturer) will aid Food Contract Manufacturing Market
A quick infusion of new product variations due to increased demand for innovative food items around the world is one of the major reasons driving the global FPM contract manufacturing industry forward. The industry is developing due to a lack of OEM (original equipment manufacturer) manufacturing production capabilities and a growing demand for convenience meals as a result of lifestyle changes
Global food contract manufacturing Market: Segment Assessment
Based on type
Custom formulation
o convenience foods
o bakery products
o dietary supplements
o confectionary
o dairy products
Manufacturing
o convenience foods
o bakery products
o dietary supplements
o confectionary
o dairy products
Packaging
o convenience foods
o bakery products
o dietary supplements
o confectionary
o dairy products
Manufacturing segment has a large share of Food Contract Manufacturing Market since it comprises the production of a variety of items such as convenience meals, bakery goods, dietary supplements, confectionery goods, dairy goods, and so on.
Based on application
Food and beverages manufacturers
Import and export company
Others
Source: WMR
Global food contract manufacturing Market- Geographical Landscape
In term of geographic region, the Global food contract manufacturing market is divided into
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
North America dominates Food Contract Manufacturing Market with the highest market share. Presence of potential market leaders in the locale is one of the main considerations contributing toward the development of the Asia-Pacific market. The North American food contract manufacturing market is one of the largest in the world, driven by increasing demand for convenience foods, functional foods, and dietary supplements. The United States is the largest market in the region, followed by Canada and Mexico.
The European food contract manufacturing market is also significant, with a focus on natural and organic foods. Food Contract Manufacturing Market is dominated by Western Europe, with major players located in countries such as Germany, France, and the United Kingdom.
The Asia-Pacific food contract manufacturing market is rapidly growing, driven by increasing demand for processed foods and the rise of the middle class. China is the largest market in the region, followed by Japan, India, and South Korea.
The Latin American food contract manufacturing market is relatively small compared to other regions, but is growing rapidly, driven by increasing demand for convenience foods and snacks. Mexico is the largest market in the region, followed by Brazil and Argentina.
The Middle East and Africa food contract manufacturing market is also small compared to other regions, but is expected to grow rapidly in the coming years, driven by increasing demand for convenience foods and snacks. South Africa is the largest market in the region, followed by Saudi Arabia and the United Arab Emirates.
Overall, the food contract manufacturing market is expected to continue to grow globally, as consumers demand more convenient, healthy, and innovative food products, and food companies seek cost-effective production solutions.
Global food contract manufacturing Market: Competitive terrain
Major players competing in Global food contract manufacturing market are FibrFoods, Hindustan Foods Limited, Hearthside Food Solutions LLC, Nikken Foods, Christy Quality Foods (CQF), De Banketgroep B.V., HACAG, SK Food Group, Pacmoore Products Inc., Cremica, Kilfera Food Manufacturers Ltd, Nutrascience Labs, Inc, Thrive Foods LLC., Orion Food Co., Ltd, and Omni blend.
Report Scope:
Global food contract manufacturing Market: Historical Years: 2020-2021
Global food contract manufacturing Market: Forecast Years- 2023-2033
Global food contract manufacturing Market 2022: USD 120,960 million
Global food contract manufacturing Market 2033: USD 272,070 million
Global food contract manufacturing Market CAGR: 9.5%
Key Segments covered-
By types (manufacturing- convenience foods, bakery products, dietary supplements, confectionary, and dairy products, packaging- convenience foods, bakery products, dietary supplements, confectionary, and dairy products, and custom formulation and R&D- convenience foods, bakery products, dietary supplements, confectionary, and dairy products).
By application (food and beverages manufactures, import and export company, and others).
Major Regions & Countries covered-
North America (the United States, Canada, and Mexico).
Europe, (Germany, France, UK, Russia, and Italy).
Asia-Pacific (China, Japan, Korea, India, and Southeast Asia).
South America (Brazil, Argentina, Colombia, etc).
The Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, and South Africa).
Prominent Players profiled- FibrFoods, Hindustan Foods Limited, Hearthside Food Solutions LLC, Nikken Foods, Christy Quality Foods (CQF), De Banketgroep B.V., HACAG, SK Food Group, Pacmoore Products Inc., Cremica, Kilfera Food Manufacturers Ltd, Nutrascience Labs, Inc, Thrive Foods LLC., Orion Food Co., Ltd, and Omni blend.
