Global Bakery Contract Manufacturing Market

Bakery Contract Manufacturing Market Size, Share, Growth Analysis, By Service(Manufacturing, Packaging and Custom Formulation And R&D), By Region - Industry Forecast 2024-2031


Report ID: SQMIG30I2156 | Region: Global | Published Date: April, 2024
Pages: 198 |Tables: 35 |Figures: 74

Bakery Contract Manufacturing Market Insights

Global Bakery Contract Manufacturing Market size was valued at USD 19.30 billion in 2022 and is poised to grow from USD 21.13 billion in 2023 to USD 43.68 billion by 2031, growing at a CAGR of 9.5% during the forecast period (2024-2031).

The demand for baked products is likely to be driven by changing lifestyles, a growing middle-class population, and rising disposable incomes, which will complement the market for bakery contract manufacturing. The complete food supply system, one of the most crucial components of any economy, from the farm to the consumer, was impacted by the COVID crisis. The pandemic had an effect on bakery production infrastructure, consumer demand, and the labor movement. Additionally, it had an impact on laws restricting food commerce, which led to financial constraints in the food supply chain.

The Food and Drug Administration (FDA), which oversees the production and distribution of food in the United States, has released new recommendations regarding the manufacturing of food and beverages. Automation is being used by businesses in the bakery contract manufacturing sector to guarantee uniformity while also boosting productivity and efficiency. Small-scale, regional industrial food producers have demonstrated their ability to carve out a niche alongside ongoing growth, leading to large-scale manufacturing, and this is made possible by technology.

It is anticipated that rising fast food and packaged food demand will encourage manufacturers to expand their production capabilities, driving up demand for baked products over the course of the forecasted period. Additionally, it is anticipated that the popularity of commercials displaying appealing imagery and the accessibility of baked goods in a wide range of flavors are going to boost the demand for processed food and, consequently, bakery contract manufacturing.

The entire scenario in Ukraine is having devastating effects on developing countries and a world economy that is already suffering from COVID-19 and climate change. The world economy is greatly influenced by Russia and Ukraine. They are important suppliers of goods on the global market, which explains this. Rising input raw material costs for baked products are predicted to lower profit margins, limiting market growth.

US Bakery Contract Manufacturing Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Market Size

USD 19.30 billion

Largest Segment

Manufacturing

Fastest Growth

Custom Formulation and R&D

Growth Rate

9.5% CAGR

Global Bakery Contract Manufacturing Market, 2022-2030 ($ Bn)
Country Share for Europe Region- 2022 (%)

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Bakery Contract Manufacturing Market Segmental Analysis

The global bakery contract manufacturing market is segmented based on service, and region. In terms of service, the Bakery Contract Manufacturing Market is categorized into manufacturing, packaging, and custom formulation and R&D. With respect to segmentation by region, the global Bakery Contract Manufacturing Market is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.

Bakery Contract Manufacturing Market Analysis by Service

The manufacturing industry dominated the market for the contract manufacturing of bakeries in 2022, accounting for 67.5% of total income. Robotics and automation technologies are being used more frequently in the bakery industry, which raises the caliber of baked products while also increasing contract bakers' efficiency and output. Automation technologies support the production of baked products of a high caliber by minimizing human participation in the baking process, lowering the risk of food contamination, and reducing the possibility of food contamination. Due to rising labor and energy costs everywhere, bakeries will likely opt to use advanced baking techniques or outsource their baking processes in order to increase the efficiency of their total production.

A growing awareness among consumers of the advantages of a healthy diet, which primarily consists of natural foods and gluten-free products, has increased demand for bakery contract manufacturing. This is due to the increasing frequency of lifestyle-related diseases worldwide. The custom formulation and R&D category industry is anticipated to experience the fastest growing rate of 10.8% over the duration of the forecast period. It is expected that the current trend towards creating clean label products with distinctive flavors and improved texture and taste will lead to improvements in the technologies used in the production of bakery goods. It is anticipated that the growing demand for healthy baked goods will raise research and development efforts and custom formulation of new and healthy baked goods. This is then anticipated to have a favorable effect on the market for contract baking manufacturing over the course of the forecast term.

Global Bakery Contract Manufacturing Market By Service, 2022 (%), 2023 (%)

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Bakery Contract Manufacturing Market Regional Insights

Asia Pacific is expected to register the fastest growing rate, at a CAGR of 10.3% during the forecast period because of the expanding middle class, their rising purchasing power, and millennial consumers' shifting preferences towards processed food items. It is anticipated that this will increase demand for outsourced bakery production. Europe dominated the market for contract baking manufacturing in 2022, accounting for 28.8% of global income, as a result of customer dietary changes and preferences for healthier foods and beverages. These are just a few of the significant trends that have been noticed in the region's food and beverage industry and are anticipated to boost product demand.

The expanding demand for processed foods, rising immigration, and ongoing technological developments in the bakery sector are the primary forces behind the growth of the bakery contract manufacturing market in North America. Demand should rise as a result of the population's growing preference for meatless food. The Central and South American food and beverage industries have seen significant growth as a result of major investments made in the region's manufacturing sector over the past few years. The fast urbanization and rising consumer spending power in countries like Argentina, Brazil, and Chile, between other factors, have resulted in substantial expansion in the food and beverage companies

Global Bakery Contract Manufacturing Market By Geography, 2022-2030, 2024-2031
  • Largest
  • Fastest

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Bakery Contract Manufacturing Market Dynamics

Bakery Contract Manufacturing Market Drivers

Cost Savings Factor to Propel Growth

  • One of the primary drivers of the bakery contract manufacturing market is cost savings. Contract manufacturers can offer economies of scale that enable them to produce bakery products at a lower cost than the original equipment manufacturers (OEMs), which allows the OEM to save on production costs.

Bakery Contract Manufacturing Market Restraints

Intellectual Property Protection may Cause Hindrance to Market Growth

  • Outsourcing production to contract manufacturers may expose the OEM's proprietary technology and processes to the third-party manufacturer, which can pose a risk to intellectual property protection.

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Bakery Contract Manufacturing Market Competitive Landscape

The value system has grown stronger, which is affecting major manufacturers. Many market vendors have started to provide additional value-added services like packaging, R&D assistance, and warehousing, which has sparked industry growth. A rise in capacity is expected as a result of the pandemic's attention to the issues with the supply chain. The potential for co-development has been generated by the innovative strategies used by contract bakeries. In order to gain a competitive edge, bakery companies are beginning to adopt a modernized supply chain strategy that puts production at the center. In turn, this lowers cross-border risks and boosts revenue.

Bakery Contract Manufacturing Market Top Player’s Company Profiles

  • Dawn Food Products, Inc.
  • CSM Bakery Solutions
  • Aryzta AG
  • Rich Products Corporation
  • TreeHouse Foods, Inc.
  • Conagra Brands, Inc.
  • Flowers Foods, Inc.
  • Bimbo Bakeries USA
  • Finsbury Food Group plc
  • Grupo Bimbo S.A.B. de C.V.
  • Bridgford Foods Corporation
  • McKee Foods Corporation
  • Weston Foods Inc.
  • Lantmännen Unibake International
  • Custom Foods, Inc.
  • H&S Bakery, Inc.
  • Baker & Baker Canada
  • American Blue Ribbon Holdings, LLC
  • Schwebel's Bakery
  • Dofreeze LLC

Bakery Contract Manufacturing Market Recent Developments

  • In January 2022, Bimbo Bakeries USA announced the acquisition of the cookie and cracker business of Hearthside Food Solutions, a contract manufacturer of baked goods. This acquisition will enable Bimbo Bakeries USA to expand its product offerings and strengthen its position in the bakery contract manufacturing market.
  • In November 2021, CSM Bakery Solutions announced the acquisition of Dan Cake Portugal, a manufacturer of premium bakery products. This acquisition will expand CSM's footprint in Europe and enable it to offer a wider range of products to its customers in the bakery contract manufacturing market.

Bakery Contract Manufacturing Key Market Trends

Health and Wellness

  • Consumers are becoming increasingly health-conscious, and this trend is influencing the bakery contract manufacturing market. Contract manufacturers are offering a range of healthier baked goods, such as whole-grain bread, gluten-free products, and low-sugar options, to meet the demand for healthier choices.

Customization

  • Customization is becoming increasingly important in the bakery contract manufacturing market. Contract manufacturers are offering a wide range of products that can be tailored to meet the specific needs of their customers, such as flavor, texture, and packaging.

Sustainable and Ethical Practices

  • Consumers are increasingly concerned about the environmental impact of the products they consume. As a result, bakery contract manufacturers are adopting sustainable and ethical practices, such as sourcing local and organic ingredients, reducing waste, and implementing energy-efficient processes.

Technology

  • Technology is transforming the bakery contract manufacturing market. Contract manufacturers are using advanced technologies, such as automation, robotics, and artificial intelligence, to increase efficiency, reduce costs, and improve product quality.

Bakery Contract Manufacturing Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, we found that the Bakery Contract Manufacturing market is the demand for baked products is likely to be driven by changing lifestyles, a growing middle-class population, and rising disposable incomes, which will complement the market for bakery contract manufacturing. The complete food supply system, one of the most crucial components of any economy, from the farm to the consumer, was impacted by the COVID crisis. The pandemic had an effect on bakery production infrastructure, consumer demand, and the labor movement. Additionally, it had an impact on laws restricting food commerce, which led to financial constraints in the food supply chain.

Report Metric Details
Market size value in 2023 USD 19.30 billion
Market size value in 2031 USD 43.68 billion
Growth Rate 9.5%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Service
    • Manufacturing, Packaging and Custom Formulation And R&D
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Dawn Food Products, Inc.
  • CSM Bakery Solutions
  • Aryzta AG
  • Rich Products Corporation
  • TreeHouse Foods, Inc.
  • Conagra Brands, Inc.
  • Flowers Foods, Inc.
  • Bimbo Bakeries USA
  • Finsbury Food Group plc
  • Grupo Bimbo S.A.B. de C.V.
  • Bridgford Foods Corporation
  • McKee Foods Corporation
  • Weston Foods Inc.
  • Lantmännen Unibake International
  • Custom Foods, Inc.
  • H&S Bakery, Inc.
  • Baker & Baker Canada
  • American Blue Ribbon Holdings, LLC
  • Schwebel's Bakery
  • Dofreeze LLC
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Bakery Contract Manufacturing Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Bakery Contract Manufacturing Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Bakery Contract Manufacturing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Bakery Contract Manufacturing Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Bakery Contract Manufacturing Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Bakery Contract Manufacturing Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Bakery Contract Manufacturing Market size was valued at USD 19.30 billion in 2022 and is poised to grow from USD 21.13 billion in 2023 to USD 43.68 billion by 2031, growing at a CAGR of 9.5% during the forecast period (2024-2031).

The value system has grown stronger, which is affecting major manufacturers. Many market vendors have started to provide additional value-added services like packaging, R&D assistance, and warehousing, which has sparked industry growth. A rise in capacity is expected as a result of the pandemic's attention to the issues with the supply chain. The potential for co-development has been generated by the innovative strategies used by contract bakeries. In order to gain a competitive edge, bakery companies are beginning to adopt a modernized supply chain strategy that puts production at the center. In turn, this lowers cross-border risks and boosts revenue. 'Dawn Food Products, Inc.', 'CSM Bakery Solutions', 'Aryzta AG', 'Rich Products Corporation', 'TreeHouse Foods, Inc.', 'Conagra Brands, Inc.', 'Flowers Foods, Inc.', 'Bimbo Bakeries USA', 'Finsbury Food Group plc', 'Grupo Bimbo S.A.B. de C.V.', 'Bridgford Foods Corporation', 'McKee Foods Corporation', 'Weston Foods Inc.', 'Lantmännen Unibake International', 'Custom Foods, Inc.', 'H&S Bakery, Inc.', 'Baker & Baker Canada', 'American Blue Ribbon Holdings, LLC', 'Schwebel's Bakery', 'Dofreeze LLC'

One of the primary drivers of the bakery contract manufacturing market is cost savings. Contract manufacturers can offer economies of scale that enable them to produce bakery products at a lower cost than the original equipment manufacturers (OEMs), which allows the OEM to save on production costs.

Consumers are becoming increasingly health-conscious, and this trend is influencing the bakery contract manufacturing market. Contract manufacturers are offering a range of healthier baked goods, such as whole-grain bread, gluten-free products, and low-sugar options, to meet the demand for healthier choices.

Asia Pacific is expected to register the fastest growing rate, at a CAGR of 10.3% during the forecast period because of the expanding middle class, their rising purchasing power, and millennial consumers' shifting preferences towards processed food items. It is anticipated that this will increase demand for outsourced bakery production. Europe dominated the market for contract baking manufacturing in 2022, accounting for 28.8% of income, as a result of customer dietary changes and preferences for healthier foods and beverages. These are just a few of the significant trends that have been noticed in the region's food and beverage industry and are anticipated to boost product demand.

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Global Bakery Contract Manufacturing Market

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