Bakery Contract Manufacturing Market Size By Service (Manufacturing, Packaging, and Custom Formulation and R&D), End-User (Bakery Products, Confectionery Products, Convenience Foods, Dairy Products, and Dietary Supplement), Regions, Segmentation, and Projection till 2029
CAGR: 10.3%Current Market Size: USD 10.57 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
Global Bakery Contract Manufacturing Market- Market Overview:
The Global Bakery contract manufacturing market is expected to grow from USD 10.57 billion in 2021 to USD 39.5 billion by 2029, at a CAGR of 10.3% during the Projection period 2022-2029. The rising concerns about the increasing carbon emissions, coupled with growing government initiatives toward accepting Bakery contract manufacturing, will boost the market growth.
Bakery contract manufacturing is a process of outsourcing baked products from other manufacturers or distributors. This helps small companies or new entrants to run their businesses without investing huge capital. To fulfill this requirement, companies’ partners with some prominent bakery products manufacturers and outsource readymade bakery products from them. However, the small manufacturers cannot fulfill the high demand for food production due to which they outsource the manufactured food from prominent manufacturers and supply them to consumers. Apart from the bakery contract, manufacturing is also done for the packaging products of the bakery products as well.
The increasing demand for fast food and processed is encouraging manufacturers to increase their production capacities, consequently increasing the demand for baked goods throughout the projected period. Furthermore, the availability of a wide range of baked foods products coupled with the rising involvement of commercials with appealing images is expected to provide an opportunity for the market’s growth during the Projection period.
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Market Dynamics:
Drivers:
- Increasing preference for packaged food
The increasing demand for packaged food encourages manufacturers to increase their production capacity. However, due to a lack of investment, most of the small manufacturers cannot meet consumers' rising demand for baked food products such as pizza bases, cookies, pastries, etc. This drives the growth of the bakery contract manufacturing as most of the small manufacturers purchase the baked and packed bakery products from prominent manufacturers and provide them to the consumers. Apart from this, the busy schedule of people also encourages them to use packed bakery products for their daily consumption, driving the market's growth.
Restraints:
- High cost of raw materials
The growing process of raw materials required for manufacturing baked products is restraining the market’s growth. The cost of machines used in the baking process is also high, which adds to the overall cost of the product manufactured, hampering the market’s growth. The high manufacturing cost reduces the profit margin for manufacturers and small bakeries. This affects the overall growth of the bakery contract manufacturing market.
Opportunities:
- Technological advancement
Digitalization and technological advancement are expected to provide lucrative growth opportunities for the Bakery contract manufacturing market. The use of robotics and artificial intelligence enhances the whole process of bakery manufacturing. Rapid technological development also helps reduce the whole Bakery contract manufacturing cost and increases their efficiency. The intervention of automation technologies and robotics also reduces the chances of food contamination, and developing high-quality baked products provides lucrative growth opportunities for the market during the Projection period.
Challenges
- Impact of COVID-19 pandemic
The COVID-19 pandemic has posed significant challenges in the global Bakery contract manufacturing industry. Several manufacturing units were temporarily closed to stop the spread of the disease. The entire food supply chain, from the farm to consumers, was affected during the imposed lockdown restrictions. The food supply chain is one of the most important aspects of any economy, which was badly affected during the Covid-19 pandemic. Consumer demand, labor movement, and bakery production facilities were also affected during the pandemic challenging the growth of the market.
Segmentation Analysis:
The global Bakery contract manufacturing market has been segmented based on service, end-user, and region.
By Service
The service segment includes manufacturing, packaging, custom formulation, and R&D. The manufacturing segment led the Bakery contract manufacturing market with a market share of around 48.7% in 2021. The rising adoption of robotics and automation technologies in the bakery industry helps enhance the quality of baked food products and the productivity and efficiency of contract bakers. Automation and robotics technologies also help reduce human intervention in the baking process, decreasing the chances of food contamination and helping develop high-quality baked food products, driving the segment’s growth.
By End-User
The end-user segment includes bakery products, confectionery products, convenience foods, dairy products, and dietary supplements. The bakery products segment led the Bakery contract manufacturing market with a market share of around 25.8% in 2021. The increasing demand for bakery products and better and improved packaging for bakery products drives the segment’s growth. Furthermore, the increasing demand for baked food, such as high fiber food products, gluten-free food products, and Trans fat products, propel the segment’s growth.
By Regional Analysis:
The regions analyzed for the Bakery contract manufacturing market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the Bakery contract manufacturing market and held a 33.6% share of the market revenue in 2021.
- The Asia Pacific region has registered the highest value for the year 2021. The increasing growth in the middle-class population, coupled with growing spending power, drives the market's growth in the region. Furthermore, the changing preference of the millennial population regarding processed food and food products also propels the market's growth. The busy lifestyle of people in the region also adds to the market’s growth.
- Europe is expected to witness a considerable growth rate during the Projection period. The ongoing political, social, and economic significance of Europe’s Bakery contract manufacturing industry has mainly boosted demand for Bakery contract manufacturing in the region. Increasing demand for baked products such as high fiber food, gluten-free food, and Trans fat products, which are staple foods of the region, supplement the region's growth.
Global Bakery contract manufacturing Market- Country Analysis
- Germany
Germany's Bakery contract manufacturing market size was valued at USD 0.8 billion in 2021 and is expected to reach USD 1.69 billion by 2029, at a CAGR of 9.8% from 2022 to 2029. Germany's bakery contract manufacturing market will increase owing to the increased food consumption in the country and the shifting focus of bakery product manufacturers in reducing their operating costs in order to increase their profit margins in the coming years. According to Eurostat, nearly 289,000 companies exist in the European region which engage in the manufacturing of food products; among them almost half of the companies are in Germany.
- China
China's Bakery contract manufacturing market was valued at USD 1.13 billion in 2021 and is expected to reach USD 2.64 billion by 2029, at a CAGR of 11.2% from 2022 to 2029. China is one of the largest Bakery contract manufacturing markets. The increasing production of bakery products and processed food products, coupled with rising consumer consumption, drives the market’s growth in the region. Food packaging is also gaining traction in the region. Ecolean packaging, an innovation in plastic pouches, is also gaining popularity in China. Eco-friendly, lightweight, and convenient packaging for portability has been adopted for the region's fresh milk and chilled drinking yogurt products.
- India
India's Bakery contract manufacturing market size was valued at USD 65.4 billion in 2021 and is expected to reach USD 91.48 billion by 2029, at a CAGR of 3.8% from 2022 to 2029. India is one of the strongest growing economies in Asia. There is an increasing demand for food supplements in the region as people are dealing with a lifestyle where anxiety and stress overpower human life. During the pandemic, people realized the importance of building a strong immunity system than building muscles which propels the market’s growth in the region.
Key Industry Players Analysis:
To increase their market position in the global Bakery contract manufacturing business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
- De Banketgroep B.V.
- HACO Holding AG
- PacMoore Products, Inc.
- Blackfriars Bakery
- Southern Bakeries, LLC
- Cibus Nexum
- Hearthside Food Solutions LLC
- Perfection Foods
- Oakhouse Bakery
- Adventure Bakery LLC
Latest Development:
- In December 2021, Weston Foods Ambient Division assets were acquired by Hearthside Foods Solutions, LLC. The acquisition aims at expanding Hearthside’s linkage to 43 facilities in Canada, Europe, and the U.S.
- In April 2022, The Kraft Heinz Company acquired Companhia Hemmer Indústria e Comércio, also known as ‘Hemmer’, a food company located in Santa Catarina, Brazil. The acquisition aims at developing both the companies.
Report Metrics
|
Report Attribute |
Details |
|
Study Period |
2021-2029 |
|
Base year |
2021 |
|
CAGR (%) |
10.3% |
|
Market Size |
10.57 billion in 2021 |
|
Forecast period |
2022-2029 |
|
Forecast unit |
Value (USD) |
|
Segments covered |
Service, End-User, and Regions |
|
Report Scope |
Revenue forecast, competitive landscape, company ranking, growth factors, and trends |
|
Companies covered |
De Banketgroep B.V., HACO Holding AG, PacMoore Products, Inc., Blackfriars Bakery, Southern Bakeries, LLC, Cibus Nexum, Hearthside Food Solutions LLC, Perfection Foods, Oakhouse Bakery, Adventure Bakery LLC, among others |
|
By Service |
? Manufacturing ? Packaging ? Custom Formulation And R&D |
|
By End-User |
? Bakery Products ? Confectionery Products ? Convenience Foods ? Dairy Products ? Dietary Supplement |
|
Regional scope |
? North America ? Europe ? Asia-Pacific ? South America ? Middle East and Africa |
Scope of the Report
Global Bakery contract manufacturing Market by Service:
- Manufacturing
- Packaging
- Custom Formulation And R&D
Global Bakery contract manufacturing Market by End-User:
- Bakery Products
- Confectionery Products
- Convenience Foods
- Dairy Products
- Dietary Supplement
Global Bakery contract manufacturing Market by Region:
- North America
- USA
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Russia
- Asia-Pacific
- Japan
- China
- India
- Korea
- Southeast Asia
- South America
- Brazil
- Peru
- Middle East and Africa
- UAE
- South Africa
- Saudi Arabia
Frequently Asked Questions
What is the total market size of Global Bakery contract manufacturing market?
Global Bakery contract manufacturing market Size is USD 10.57 billion in 2021.
What will be the growth rate of Global Bakery contract manufacturing market?
Global Bakery contract manufacturing market will reach to USD 39.5 billion by 2029 and it will grow at a CAGR of 10.3% from 2022 to 2029.
Which is the leading region for the global Bakery contract manufacturing market?
Asia Pacific is the leading region in the Bakery contract manufacturing market.
Which are the leading market players active in the Bakery contract manufacturing market?
Leading market players active in the global Bakery contract manufacturing market are De Banketgroep B.V., HACO Holding AG, PacMoore Products, Inc., Blackfriars Bakery, Southern Bakeries, LLC, Cibus Nexum, Hearthside Food Solutions LLC, Perfection Foods, Oakhouse Bakery, Adventure Bakery LLC, among others.
What are the driving factors for the market’s growth during the Projection period?
The increasing preference for packaged and processed food is projected to influence the market during the Projection period.
Political Factors- The contract manufacturers in India are allowed 100% foreign direct investment (FDI) in bakery contract manufacturing. Manufacturers can also sell products produced in India after abiding by the 30% local sourcing norm for foreign single-brand retail companies. Bakery contract manufacturing through the automatic route, in a big push to the Make in India initiative when US President Donald Trump is pushing American companies in China to scout for alternative locations. The changes to FDI norms may well reposition India on the global map.
Economical Factors- The growing process of raw materials required for manufacturing baked products is restraining the market’s growth. The cost of machines used in the baking process is also high, which adds to the overall cost of the product manufactured, hampering the market’s growth. The high manufacturing cost reduces the profit margin for manufacturers and small bakeries. This affects the overall growth of the bakery contract manufacturing market.
Social Factor- Companies increasingly initiate activities to conquer foreign markets, many evading less developed countries. This apparent contradiction is a logical step in enlarging business activities because many of these countries are on the threshold of becoming industrialized. Consequently, they reveal the huge potential for unsatisfied demands, which remained unattended until that point. Hence, even small and medium-sized enterprises turn “international,” seeking advantages in distribution and sourcing as well.
Technological Factors- Digitalization and technological advancement are expected to provide lucrative growth opportunities for the Bakery contract manufacturing market. The use of robotics and artificial intelligence enhances the whole process of bakery manufacturing. Rapid technological development also helps reduce the whole Bakery contract manufacturing cost and increases efficiency. The intervention of automation technologies and robotics also reduces the chances of food contamination, and developing high-quality baked products provides lucrative growth opportunities for the market during the Projection period.
Environmental Factors- Most packaging materials used for packing processed food and bakery products are very harmful to the environment. As small manufacturers purchase bakery products from other manufacturers, they often receive them packed in some kind of packing, which harms the environment. Ecolean packaging, an innovation in plastic pouches, is also gaining popularity in China. Eco-friendly, lightweight, and convenient packaging for portability has been adopted for the region's fresh milk and chilled drinking yogurt products.
Legal Factors- The Kraft Heinz Company and TheNotCompany partnered to focus on sustainability in the coming years. This acquisition is intended to drive innovations by utilizing the strengths of both companies. The Kraft Heinz Company acquired Companhia Hemmer Indústria e Comércio, also known as ‘Hemmer’, a food company located in Santa Catarina, Brazil. The acquisition aims at developing both the companies. Hearthside Foods Solutions, LLC, acquired Weston Foods Ambient Division assets. The acquisition aims at expanding Hearthside’s linkage to 43 facilities in Canada, Europe, and the U.S.
- Introduction
- Objectives of the Study
- Market Definition
- Research Scope
- Research Methodology and Assumptions
- Executive Summary
- Premium Insights
- Porter’s Five Forces Analysis
- Value Chain Analysis
- Top Investment Pockets
- Market Attractiveness Analysis By Service
- Market Attractiveness Analysis By End-User
- Market Attractiveness Analysis By Regional Analysis
- Industry Trends
- Market Dynamics
- Market Evaluation
- Drivers
- Increasing preference for packaged food
- Restrains
- High cost of raw materials
- Opportunities
- Technological advancement
- Challenges
- Impact of COVID-19 pandemic
- Global Bakery Contract Manufacturing Market Analysis and Projection, By Service
- Segment Overview
- Manufacturing
- Packaging
- Custom Formulation And R&D
- Global Bakery Contract Manufacturing Market Analysis and Projection, By End-User
- Segment Overview
- Bakery Products
- Confectionery Products
- Convenience Foods
- Dairy Products
- Dietary Supplement
- Global Bakery Contract Manufacturing Market Analysis and Projection, By Regional Analysis
- Segment Overview
- North America
- USA
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Asia-Pacific
- Japan
- China
- India
- South America
- Brazil
- Middle East and Africa
- UAE
- South Africa
- Global Bakery Contract Manufacturing Market-Competitive Landscape
- Overview
- Market Share of Key Players in the Bakery Contract Manufacturing Market
- Global Company Market Share
- North America Company Market Share
- Europe Company Market Share
- APAC Company Market Share
- Competitive Situations and Trends
- Product Launches and Developments
- Partnerships, Collaborations, and Agreements
- Mergers & Acquisitions
- Expansions
- Company Profiles
- De Banketgroep B.V.
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Product Portfolio
- Recent Developments
- SWOT Analysis
- HACO Holding AG
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Product Portfolio
- Recent Developments
- SWOT Analysis
- PacMoore Products, Inc.
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Product Portfolio
- Recent Developments
- SWOT Analysis
- Blackfriars Bakery
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Product Portfolio
- Recent Developments
- SWOT Analysis
- Southern Bakeries, LLC
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Product Portfolio
- Recent Developments
- SWOT Analysis
- Cibus Nexum
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Product Portfolio
- Recent Developments
- SWOT Analysis
- Hearthside Food Solutions LLC
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Product Portfolio
- Recent Developments
- SWOT Analysis
- Perfection Foods
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Product Portfolio
- Recent Developments
- SWOT Analysis
- Oakhouse Bakery
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Product Portfolio
- Recent Developments
- SWOT Analysis
- Adventure Bakery LLC
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Product Portfolio
- Recent Developments
- SWOT Analysis
- De Banketgroep B.V.
List of Table
- Global Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Global Manufacturing Bakery Contract Manufacturing Market, By Region, 2021–2029(USD Billion)
- Global Packaging Bakery Contract Manufacturing Market, By Region, 2021–2029(USD Billion)
- Global Custom Formulation And R&D Bakery Contract Manufacturing Market, By Region, 2021–2029(USD Billion)
- Global Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Global Bakery Products Bakery Contract Manufacturing Market, By Region, 2021–2029(USD Billion)
- Global Confectionery Products Bakery Contract Manufacturing Market, By Region, 2021–2029(USD Billion)
- Global Convenience Foods Bakery Contract Manufacturing Market, By Region, 2021–2029(USD Billion)
- Global Dairy Products Bakery Contract Manufacturing Market, By Region, 2021–2029(USD Billion)
- Global Dietary Supplement Bakery Contract Manufacturing Market, By Region, 2021–2029(USD Billion)
- Global Bakery Contract Manufacturing Market, By Region, 2021–2029(USD Billion)
- North America Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- North America Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- USA Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- USA Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Canada Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Canada Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Mexico Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Mexico Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Europe Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Europe Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Germany Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Germany Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- France Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- France Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- UK Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- UK Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Italy Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Italy Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Spain Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Spain Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Asia Pacific Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Asia Pacific Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Japan Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Japan Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- China Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- China Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- India Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- India Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- South America Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- South America Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Brazil Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Brazil Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- Middle East and Africa Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- Middle East and Africa Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- UAE Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- UAE Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
- South Africa Bakery Contract Manufacturing Market, By Service, 2021–2029(USD Billion)
- South Africa Bakery Contract Manufacturing Market, By End-User, 2021–2029(USD Billion)
List of Figures
- Global Bakery Contract Manufacturing Market Segmentation
- Bakery Contract Manufacturing Market: Research Methodology
- Market Size Estimation Methodology: Bottom-Up Approach
- Market Size Estimation Methodology: Top-Down Approach
- Data Triangulation
- Porter’s Five Forces Analysis
- Value Chain Analysis
- Global Bakery Contract Manufacturing Market Attractiveness Analysis By Service
- Global Bakery Contract Manufacturing Market Attractiveness Analysis By End-User
- Global Bakery Contract Manufacturing Market Attractiveness Analysis By Region
- Global Bakery Contract Manufacturing Market: Dynamics
- Global Bakery Contract Manufacturing Market Share By Service (2021 & 2029)
- Global Bakery Contract Manufacturing Market Share By End-User (2021 & 2029)
- Global Bakery Contract Manufacturing Market Share by Regions (2021 & 2029)
- Global Bakery Contract Manufacturing Market Share by Company (2020)
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