Global Bakery Contract Manufacturing Market Overview
Bakery Contract Manufacturing Market Size was estimated at 20.43 (USD Billion) in 2022. The Bakery Contract Manufacturing Market Industry is expected to grow from 21.56(USD Billion) in 2023 to 34.9 (USD Billion) by 2032. The Bakery Contract Manufacturing Market CAGR (growth rate) is expected to be around 5.5% during the forecast period (2024 - 2032).
Key Bakery Contract Manufacturing Market Trends Highlighted
The bakery contract manufacturing marketโs major drivers include increasing disposal incomes, urbanization, and the demand for convenience foods. People are increasingly valuing convenience and, therefore, want products that can be cooked with ease. This has resulted in an escalation of requests for contract-manufactured bakery products that are usually made in large quantities and cost less to make. Additionally, it is being fueled by increasing incomes and urbanization, particularly in underdeveloped nations.
Exploration opportunities available in the Bakery Contract Manufacturing Market rest on dietary limitations. Heightened consumer awareness about health issues has given rise to gluten-free, less sugar and organic baked goods. These specialized diet requirements may enable contact manufacturers to enlarge their market share and have a competitive edge over other competitors.
Current developments within the Bakery Contract Manufacturing Market embrace the application of modern technologies and amalgamation of blockchain for improved traceability as well as transparency. Contract manufacturers are using automation, AI (Artificial Intelligence), and ML (Machine Learning) to optimize production processes and guarantee consistent product quality. Moreover, this blockchain technology is making sure that there is a secure record that cannot be tampered with concerning ingredients used, manufacturing process, and distribution channels thus giving assurance to consumers as well as other food business stakeholders
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Bakery Contract Manufacturing Market Drivers
Rising Health Consciousness Among Consumers
In recent years, there has been a growing trend toward healthier eating habits among consumers. This is due to a number of factors, including increased awareness of the link between diet and chronic diseases, such as obesity, heart disease, and diabetes. As a result, consumers are increasingly seeking out healthier food options, including baked goods made with whole grains, less sugar, and healthier fats. This trend is expected to continue in the coming years, providing a major growth opportunity for the Bakery Contract Manufacturing Market Industry.
Increasing Demand for Convenience Foods
Another major driver of growth for the Bakery Contract Manufacturing Market Industry is the growing demand for convenience foods. Often, consumers do not have the time to prepare a meal and a convenient meal that can be easily eaten on the go. Bread or rolls are some of the perfect examples of convenient foods in bakery products and can be easily eaten on the move. The demand for such foods is expected to continuously increase in the future.
Expansion of the Food Service Industry
The increasing expansion of the food service industry is also one of the vital sources of the growth of the Bakery Contract Manufacturing Market Industry. A large group of restaurants, cafes, and other eating joints are using several bakery products as the ingredients of their dishes, as bakery products are low in cost, versatile and can be included in any food item. In addition to that, the increasing growth of the food service industry is expected to grow even more over the coming years, which will, in turn, provide ample scope for growth of the Bakery Contract Manufacturing Market Industry.
Bakery Contract Manufacturing Market Segment Insights
Bakery Contract Manufacturing Market Product Type Insights
The Product Type segment is a crucial aspect of the Bakery Contract Manufacturing Market, influencing the overall market dynamics and growth trajectory. In 2023, the Baked Goods segment held a significant market share, valued at approximately USD 10.2 billion. This dominance is attributed to the rising demand for convenience foods and the increasing popularity of on-the-go snacks. The Bread segment is projected to witness steady growth over the forecast period, driven by the growing preference for healthier bread options and the increasing consumption of sandwiches and other bread-based products.The Pastries segment is expected to gain significant traction in the coming years, fueled by the increasing popularity of artisanal pastries and the growing demand for premium bakery products. The Cakes segment is also poised for growth, owing to the increasing popularity of customized cakes for special occasions and the growing demand for premium bakery products. Other bakery contract-manufactured products, such as cookies, biscuits, and pies, are expected to contribute to the overall market growth, driven by the increasing demand for these products in both the retail and food service sectors.Overall, the Product Type segment of the Bakery Contract Manufacturing Market is highly competitive, with a diverse range of products catering to the evolving needs of consumers. The market is expected to witness significant growth in the coming years, driven by the increasing popularity of convenience foods, the growing demand for premium bakery products, and the rising trend of healthy eating.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Bakery Contract Manufacturing Market Customer Type Insights
The customer-type segment of the Bakery Contract Manufacturing Market plays a crucial role in shaping market dynamics. Food and Beverage Retailers emerged as the dominant customer type in 2023, accounting for approximately 35% of the market revenue. Their extensive distribution networks and established relationships with consumers make them key players in the industry. Food Service Providers follow closely, capturing around 28% of the market share. The growing demand for convenience and ready-to-eat food products drives their reliance on contract manufacturers.Convenience Stores, with their strategic locations and focus on quick purchases, contribute approximately 22% to the market revenue. E-commerce Platforms are rapidly gaining traction, accounting for 10% of the market share. Their ability to cater to a wider customer base and offer personalized shopping experiences fuels their growth. The remaining 5% of the market is attributed to other customer types, including industrial bakeries and food manufacturers.
Bakery Contract Manufacturing Market Packaging Format Insights
The bakery contract manufacturing market is segmented based on packaging format into fresh bakery products, frozen bakery products, refrigerated bakery products, and other packaging formats. Among these segments, fresh bakery products held the largest market share in 2023, accounting for over 40% of the market. This is due to the increasing demand for fresh and healthy bakery products, as well as the growing popularity of on-the-go snacks. The frozen bakery products segment is expected to witness the highest growth rate during the forecast period, owing to the rising demand for convenience foods and the increasing popularity of frozen bakery products in emerging markets.Refrigerated bakery products are also expected to witness significant growth, driven by the growing demand for healthier and fresher bakery products. The other packaging formats segment includes bakery products that are packaged in various other formats, such as cans, jars, and pouches. This segment is expected to witness moderate growth during the forecast period as consumers become more aware of the environmental impact of packaging.
Bakery Contract Manufacturing Market Distribution Channel Insights
The distribution channel segment plays a crucial role in the Bakery Contract Manufacturing Market, influencing market growth and revenue generation. Offline sales channels, including supermarkets, hypermarkets, and convenience stores, hold a significant share of the market. These channels offer consumers a tangible shopping experience, allowing them to inspect products firsthand. In 2023, offline sales accounted for approximately 65% of the Bakery Contract Manufacturing Market revenue. Online sales channels, such as e-commerce websites and food delivery platforms, are gaining traction rapidly.With the increasing penetration of smartphones and the convenience of online shopping, consumers are shifting towards online platforms for bakery products. Online sales are projected to witness a CAGR of 7.5% during the forecast period, driven by factors such as wider product variety, doorstep delivery, and loyalty programs. The integration of online and offline channels, known as omnichannel retailing, is becoming increasingly popular, providing consumers with a seamless shopping experience
Bakery Contract Manufacturing Market End-Use Application Insights
End-Use Application The end-use application segment plays a vital role in shaping the Bakery Contract Manufacturing Market revenue and segmentation, with each application presenting unique opportunities and challenges. Wholesale distribution held a significant portion of the market share in 2023, valued at approximately USD 12.5 billion. Retail is expected to witness steady growth, reaching a projected valuation of USD 8.5 billion by 2032. The food industry is anticipated to contribute USD 6.5 billion to the market in 2023 and is poised for continued expansion.Other applications, including food service and catering, are also anticipated to contribute to the overall market growth. This in-depth segmentation data empowers stakeholders in the Bakery Contract Manufacturing Market industry to make informed decisions and devise targeted strategies to capitalize on emerging opportunities and address evolving market trends.
Bakery Contract Manufacturing Market Regional Insights
The Bakery Contract Manufacturing Market segmentation by region includes North America, Europe, APAC, South America, and MEA. North America is expected to hold the dominant position in the market owing to the presence of major bakery product manufacturers and a large consumer base. In 2023 the market revenue in North America is valued at USD 7.5 Billion and is projected to reach USD 12.1 Billion by 2032, exhibiting a CAGR of 5.8% during the forecast period. Europe is another key region in the Bakery Contract Manufacturing Market, with a market revenue of USD 5.9 Billion in 2023 and is projected to reach USD 9.3 Billion by 2032.The growth in this region is attributed to the rising demand for convenience foods and the presence of a large number of bakery manufacturers. APAC is also a significant region in the market, with a revenue of USD 4.7 Billion in 2023 and is projected to reach USD 7.6 Billion by 2032. The growth in this region is primarily driven by the increasing disposable income and the growing popularity of Western-style bakery products.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Bakery Contract Manufacturing Market Key Players And Competitive Insights
Major players in the Bakery Contract Manufacturing Market industry are constantly striving to gain a competitive edge through strategic collaborations, acquisitions, and product innovations. Leading Bakery Contract Manufacturing Market players are focusing on expanding their footprint and diversifying their product portfolios to cater to the evolving needs of customers. The Bakery Contract Manufacturing Market development is driven by factors such as increasing demand for convenience foods, rising disposable income, and changing consumer preferences. The Bakery Contract Manufacturing Market Competitive Landscape is characterized by intense competition, with both established and emerging players vying for market share.One of the leading companies in the Bakery Contract Manufacturing Market is Bridgford Foods Corporation. The company offers a wide range of bakery products, including breads, rolls, buns, and tortillas. Bridgford Foods has a strong presence in the United States and is expanding its operations globally. The company commits to innovation and is constantly developing new products to meet the changing needs of its customers.A major competitor in the Bakery Contract Manufacturing Market is CSM Bakery Solutions. The company offers a comprehensive range of bakery products and services, including bread, rolls, pastries, and cakes. CSM Bakery Solutions has a presence and serves a diverse customer base. The company is focused on providing high-quality products and services to its customers and is committed to sustainability.
Key Companies in the Bakery Contract Manufacturing Market Include
- Dawn Foods
- Puratos
- Bakkavor Group
- Flowers Foods
- Orkla
- BakeMark
- Conagra Brands
- Lantmannen Unibake
- CSM Ingredients
- Grupo Bimbo
- Bridgford Foods
- Caravan Ingredients
- Aryzta
- Ingredion Incorporated
Bakery Contract Manufacturing Market Industry Developments
The bakery contract manufacturing market is projected to reach USD 34.9 billion by 2032, exhibiting a CAGR of 5.5% during the forecast period (2024-2032). This growth can be attributed to the rising demand for convenience foods, increasing outsourcing by bakery companies, and the growing popularity of private-label products. Key industry participants include CSM Bakery Solutions, George Weston Foods, and Grupo Bimbo. Recent developments include the acquisition of Aryzta's North American business by Grupo Bimbo in 2021 and the launch of new product lines by CSM Bakery Solutions in 2022.
Bakery Contract Manufacturing Market Segmentation Insights
Bakery Contract Manufacturing Market Product Type Outlook
- Baked Goods
- Bread
- Pastries
- Cakes
- Other bakery contract manufactured products
Bakery Contract Manufacturing Market Customer Type Outlook
- Food and Beverage Retailers
- Food Service Providers
- Convenience Stores
- E-commerce Platforms
- Others
Bakery Contract Manufacturing Market Packaging Format Outlook
- Fresh Bakery Products
- Frozen Bakery Products
- Refrigerated Bakery Products
- Other Packaging Formats
Bakery Contract Manufacturing Market Distribution Channel Outlook
- Offline Sales (Supermarkets, Hypermarkets, Convenience Stores)
- Online Sales (E-commerce Websites, Food Delivery Platforms)
Bakery Contract Manufacturing Market End-Use Application Outlook
- Wholesale Distribution
- Retail
- Food Industry
- Other Applications
Bakery Contract Manufacturing Market Regional Outlook
- North America
- Europe
- South America
- Asia-Pacific
- Middle East and Africa
Bakery Contract Manufacturing Market Report Scope
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Report Attribute/Metric
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Details
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Market Size 2022
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20.43(USD Billion)
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Market Size 2023
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21.56(USD Billion)
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Market Size 2032
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34.9(USD Billion)
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Compound Annual Growth Rate (CAGR)
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5.5% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2022
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Dawn Foods, Puratos, Bakkavor Group, Flowers Foods, Orkla, BakeMark, Conagra Brands, Lantmannen Unibake, CSM Ingredients, Grupo Bimbo, Bridgford Foods, Caravan Ingredients, Aryzta, Ingredion Incorporated
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Segments Covered
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Product Type, Customer Type, Packaging Format, Distribution Channel, End-Use Application, Regional
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Key Market Opportunities
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Increase in demand for private-label bakery products.ย Growing popularity of copacking and white-labelingย Technological advancements in production and packagingย Expansion of retail channelsย Health and wellness trends were driving demand for clean-label and gluten-free products.
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Key Market Dynamics
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Rising demand for convenience and outsourcingย Increasing popularity of ecommerce platformsย Growing focus on health and wellnessย Expansion of private-label brandsย Innovation in baking technology
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The Bakery Contract Manufacturing Market is valued at USD 21.56 billion in 2023. It is projected to reach a valuation of USD 34.9 billion by 2032, with a 5.5% CAGR.
North America dominates the Bakery Contract Manufacturing Market, followed by Europe and Asia-Pacific.
Bakery Contract Manufacturing is widely used in the production of bread, cakes, pastries, and other baked goods.
Key competitors in the Bakery Contract Manufacturing Market include Bimbo Bakeries USA, Flowers Foods, Grupo Bimbo, and Aryzta.
The Bakery Contract Manufacturing Market is projected to register a CAGR of 5.5% from 2024 to 2032.
Growth in the food and beverage industry, increasing demand for convenience food products, and technological advancements in the baking industry are some of the factors driving the growth of the Bakery Contract Manufacturing Market.
Rising costs of raw materials, stringent government regulations, and intense competition are some of the challenges faced by the Bakery Contract Manufacturing Market.
The future outlook of the Bakery Contract Manufacturing Market is positive. Rising disposable income, changing consumer preferences, and increasing demand for baked goods are expected to contribute to the growth of the market.
Key trends in the Bakery Contract Manufacturing Market include an increasing focus on product innovation, sustainability, and automation.
The Bakery Contract Manufacturing Market is segmented by product type (bread, cakes, pastries, and others), by application (food service and retail), and by region (North America, Europe, Asia-Pacific, and others).
