Global Food Contract Manufacturing Market Size, Share, Growth Analysis, By Product(Frozen Food, Canned Food), By Service Outlook(Manufacturing, Packaging) - Industry Forecast 2024-2031

Global Food Contract Manufacturing Market size was valued at USD 132.45 billion in 2022 and is poised to grow from USD 145.03 billion in 2023 to USD 299.767 billion by 2031, growing at a CAGR of 9.50% during the forecast period (2024-2031).

Contract manufacturing for food involves outsourcing production to another company, allowing the client organization to focus on marketing and branding. For example, Oxford Press reported a 76% increase in fresh bread demand and a 52% increase in frozen vegetable demand across Europe. Additionally, there has been a surge in the consumption of nutritious foods and beverages, including a 33% increase in vegetable intake, 29% in fruit, 26.5% in legumes, and 21.5% in extra virgin olive oil. This heightened demand due to the pandemic is driving the market forward, especially as original equipment manufacturers (OEMs) and emerging food producers face limitations in production capacity. Consequently, contract manufacturing is on the rise, with food manufacturers offering value-added services such as packaging, research, consulting, and warehousing, facilitating rapid expansion in the food industry.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Food Contract Manufacturing Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Food Contract Manufacturing Market Segmental Analysis

Global Food Contract Manufacturing Market is segmented on the basis of Product, Service Outlook, and region. By Product, the market is segmented into Frozen Food, Canned Food, Bakery Product, Beverages, Dairy Products, Meat, Poultry & Seafood Product. By Service Outlook, Food Contract Manufacturing Market is segmented into Manufacturing, Packaging, Custom Formulation and R&D. By region, the global market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Food Contract Manufacturing Market

Contract manufacturing offers food companies the opportunity to broaden their product range and enter new markets without hefty investments in production facilities and equipment. By collaborating with contract manufacturers across various regions, food companies can tap into local expertise, raw materials, and regulatory knowledge. This enables them to meet the unique demands of local markets, such as labeling regulations and cultural preferences, potentially leading to increased sales and market share. The flexibility and customization inherent in contract manufacturing drive growth in the global food market, allowing companies to tailor products to their specifications in terms of formulation, packaging, and labeling, thereby expediting product development and time-to-market.

Restraints in the Global Food Contract Manufacturing Market

Ensuring consistent product quality poses a challenge when outsourcing food production to contract manufacturers, as food companies must guarantee strict adherence to quality control standards and uphold rigorous levels of hygiene and safety within the manufacturing facilities.

Market Trends of the Global Food Contract Manufacturing Market

Food contract manufacturers are now providing a range of additional services such as packaging, research, advisory, and warehousing, facilitating rapid growth within the food industry.