Bakery Contract Manufacturing Market Size - By Service - Regional Outlook, Competitive Strategies and Segment Forecasts to 2030

According to SPER Market Research, the Bakery Contract Manufacturing Market is estimated to reach USD 44.46 billion by 2030 with a CAGR of 9.7%.

When a manufacturer contracts with a business to supply components or goods, this is known as bakery contract manufacturing. The demand for baked goods is anticipated to be driven by changing lifestyles, a growing middle-class population, and rising disposable incomes, which will support the market for bakery contract manufacturing. The market is primarily driven by growing consumer demand for healthy food products coupled with a growing younger population. The lack of a need for a significant sales team, the lack of a procurement department, the absence of brand-building costs, predictable revenue and little investment risk are the main advantages of bakery contract manufacturing.

Consumer demand for food and beverages had significant change as a result of the pandemic. Some of the key elements anticipated to support the growth of the bakery business include new product releases, an expansion of the retail network, and rising household consumption of healthy baked goods. Gen Z's purchasing behavior appears to be significantly influenced by social networking, online influencers, and online marketing, which is expected to increase demand for this service. According to the Food and You survey by the FSA, the market is expected to benefit from younger consumers' growing desire for healthy baked goods and their growing adoption of vegan baked goods.

The manufacturing segment dominated the market. The increasing use of robotics and automation technology in the bakery sector improves both the effectiveness and output of contract bakers and the quality of baked goods. Automation technologies help minimize involvement in the baking process, lower the risk of food contamination, and encourage the creation of high-quality baked items. Due to the rise in lifestyle-related illnesses around the world, which is raising demand for contract baking manufacturing, the custom formulation and R&D segment are anticipated to expand over the projection period.

The ability to change course and implement new ideas will probably support industry growth. Manufacturing outsourcing is on the rise as a result of OEMs' constrained manufacturing capacity and burgeoning food producers. Due to the value-added services that food contract manufacturers have begun to offer, such as packaging, research, advising, and warehousing, food companies can now readily expand. Over the years, bakery companies have become smarter about using contract manufacturers to avoid the additional costs associated with manufacturing. Food companies can also release cash flow, which has played an important role during a pandemic and create a favorable environment for manufacturers to thrive. Additionally, it is anticipated that the popularity of commercials featuring appealing images and the accessibility of baked goods in a wide range of flavors will positively impact the market for processed food and, by extension, bakery contract manufacturing. Though sales of baked goods are anticipated to decline due to rising input raw material costs, this will constrain market expansion.

Impact of COVID-19 on the Global Bakery Contract Manufacturing Market

COVID-19 has had a positive impact on the global bakery contract manufacturing market. Due to the prolonged lockdowns, which left people confined in their homes, convenience food consumption surged considerably. Due to the increasing demand for bakery products, contract extension options have become available for bakery contract manufacturers. A supply chain rearrangement brought on by the pandemic contributed to the predicted acceleration of industrial growth. As a result, during the epidemic, bakery contract manufacturing increased market sales.

Scope of the report

Report Metric Details:

• Market size available for years: 2019-2030

• Base year considered: 2021

• Forecast period: 2022-2030

• Segments covered: By Service

• Geographies covered: North America, Europe, Asia Pacific, Latin America, Middle East & Africa

• Companies Covered: Adventure Bakery LLC, Bake Works, Inc., Blackfriars Bakery, Cibus Nexus, De Banketgroep B.V., HACO Holding AG, Hearthside Food Solutions LLC, Michel's Bakery, Inc., Oakhouse Bakery, PacMoore Products, Inc., Perfection Foods, Richmond Baking, Southern Bakeries, LLC, Stephano Group Ltd., Tradition Fine Foods Ltd.

Global Bakery Cotract Manufacturing Market, By Service:

Based on the Service, Global Bakery Contract Manufacturing Market is segmented as; Manufacturing, Packaging, Custom Formulation and R&D

Global Bakery Manufacturing Market, By Region:

Asia Pacific is expected to become the region with the fastest rate of growth over the coming years due to rising middle-class population and rising purchasing power, which are both likely to increase demand for bakery products.