The global bakery contract manufacturing market size is expected to reach USD 42.57 billion by 2030, according to a new study by Polaris Market Research. The report “Bakery Contract Manufacturing Market Share, Size, Trends, Industry Analysis Report, By Service (Manufacturing, Packaging, Custom Formulation, R&D); By Region; Segment Forecast, 2022 – 2030” gives a detailed insight into current market dynamics and provides analysis on future market growth.
The key advantages of bakery contract manufacturing include eliminating brand-building expenses, stable revenue, minimal investment risk, eliminating the need for a large sales team, and eliminating a procurement department. Changes in lifestyle, a growing middle-class population, and rising disposable incomes are expected to drive demand for baked goods, supporting market growth.
The rapid growth of this market can be attributed primarily to the global shift of manufacturing from the North American region, as well as an increase in the use of equipment in the manufacturing of bakery products; a thriving confectionery industry; rising industrialization; and government initiatives to support the food processing sector.
Outsourcing manufacturing is increasing due to OEMs’ limited manufacturing capacity and expanding food producers. The bakery industry is one of the world’s largest food industries, with a wide range of production scales and processes. Following the economic downturn, the global market recovered quickly and has experienced substantial growth in recent years. Convenience, affordability, health benefits, and growing demand for healthier bakery products that are low in fat, low in sugar, and low in calories are all related to the expansion of the market.
Furthermore, bakery products are increasingly available to people of all ages and are sold ready to eat. Thus, rising bakery product consumption aids in developing the confectionery processing industry, increasing demand for bakery processing equipment.
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Food companies can now quickly expand because food contract manufacturers have begun to provide value-added services such as packaging, research, consulting, and warehousing. Many contract manufacturers could secure long-term contracts that propelled them to the top.
Furthermore, private equity investments have enabled contract manufacturers to expand their capacity and provide additional critical services. Bakeries have become more adept at using contract manufacturers to avoid the extra costs associated with manufacturing. Food companies can also free up cash flow, which is critical during a pandemic, and create a conducive environment for manufacturers to thrive.
In addition, it is expected that the popularity of commercials with appealing images and the availability of baked goods in various flavors will positively impact the processed food market and, by extension, bakery contract manufacturing.
Robotics and automation technology are increasingly being used in the confectionery sector to improve both the effectiveness and output of contract bakers as well as the quality of baked goods. Automation technologies help reduce human involvement in the baking process, reduce the risk of food contamination, and promote producing high-quality baked goods. Due to rising labor and energy costs, bakeries may adopt modern baking techniques or outsource their baking operations to achieve more efficient overall bakery production.
Bakery Contract Manufacturing Market Report Highlights
- The manufacturing segment dominated the service segment due to the rising use of automation and robotics in the bakery industry.
- North America dominated the region segment due to rising demand for processed foods, which eventually became an essential aspect of a hectic lifestyle shared by a major chunk of the region, along with significant technological advancements in the confectionery industry.
- Major players operating in global market include De Banketgroep B.V., HACO Holding AG, PacMoore Products, Inc., Blackfriars Bakery, Southern Bakeries, LLC, Cibus Nexum, Hearthside Food Solutions LLC, Perfection Foods, Richmond Baking, Oakhouse Bakery, Adventure Bakery LLC, Michel’s Bakery, Inc., Bake Works, Inc., Stephano Group Ltd., Tradition Fine Foods Ltd.
Polaris Market Research has segmented the bakery contract manufacturing market report based on service and region:
Bakery Contract Manufacturing, Service Outlook (Revenue – USD Billion, 2022 – 2030)
- Custom Formulation
Bakery Contract Manufacturing, Regional Outlook (Revenue – USD Billion, 2022 – 2030)
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia