PUBLISHER: The Business Research Company | PRODUCT CODE: 1414038
PUBLISHER: The Business Research Company | PRODUCT CODE: 1414038
“Bakery Contract Manufacturing Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on bakery contract manufacturing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for bakery contract manufacturing? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The bakery contract manufacturing market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Bakery contract manufacturing involves a collaborative arrangement where a bakery business engages another entity to produce specific ingredients, packaging, or entire products as per the bakery's specifications.
The primary products within bakery contract manufacturing encompass specialty and nutritional bakery items along with traditional bakery products. Specialty and nutritional bakeries focus on producing a limited range of baked goods, and they often rely on bakery contract manufacturers for safe and efficient production and packaging solutions. These manufacturers offer a range of services including manufacturing, packaging, custom formulation, and research and development (R&D), catering to the needs of both small and medium-sized enterprises (SMEs) and larger corporations within the baking industry.
The bakery contract manufacturing market research report is one of a series of new reports from The Business Research Company that provides bakery contract manufacturing market statistics, including the bakery contract manufacturing industry's global market size, regional shares, competitors with a bakery contract manufacturing market share, detailed bakery contract manufacturing market segments, market trends, and opportunities, and any further data you may need to thrive in the bakery contract manufacturing industry. This bakery contract manufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The bakery contract manufacturing market size has grown rapidly in recent years. It will grow from $22.3 billion in 2023 to $24.93 billion in 2024 at a compound annual growth rate (CAGR) of 11.8%. The growth observed in the historical period can be attributed to several factors, including increasing consumer demand for a variety of products, the pursuit of cost efficiency and scalability, businesses focusing on their core strengths, the globalization of supply chains, a rise in disposable income among consumers, and the growing popularity of convenience foods. These factors collectively contributed to the expansion of bakery contract manufacturing during that time.
The bakery contract manufacturing market size is expected to see rapid growth in the next few years. It will grow to $36.93 billion in 2028 at a compound annual growth rate (CAGR) of 10.3%. The anticipated expansion during the forecasted period is driven by the burgeoning middle-class segment, the upsurge in e-commerce, increasing emphasis on health and wellness, adherence to regulatory standards, and addressing the needs of an aging population. Key trends expected during this period encompass personalized and innovative solutions, prioritization of clean labels and health-centric products, seamless integration of technology, bolstering supply chain robustness, and pursuing global market expansion.
The bakery contract manufacturing market anticipates significant growth owing to increased consumption of bakery products. Bakeries, unable to meet the soaring demand, often seek external manufacturing services to bridge production gaps. This upsurge in bakery consumption is projected to propel the bakery contract manufacturing industry. A report by the American Bakers Association in 2021 noted an 18.7% increase in sales of baking ingredients and a 16.3% rise in supplies, indicating the escalating demand. Similarly, data from Euromonitor International sourced from the Government of Canada's official website indicated a surge in US retail sales of baked goods, reaching $67.9 billion in 2021 and an expected $75.8 billion by 2026, further corroborating this trend.
The bakery contract manufacturing sector is poised for growth, driven by the escalating demand for convenience food. These food items, designed for swift and effortless consumption, cater to the needs of time-strapped consumers. Contract manufacturers offer a diverse range of convenience food products, allowing food companies to outsource production cost-effectively. A survey conducted by Itochu Corporation in August 2023 revealed that 45% of respondents purchased ready-to-eat (RTE) lunch boxes, with over 10% consuming them weekly, especially prevalent among men and younger demographics. This consumer behavior signals a rising inclination towards convenience foods, bolstering the bakery contract manufacturing market.
Technological advancements emerge as a prominent trend shaping the bakery contract manufacturing landscape. Major market players focus on innovation, evident in KPM Analytics' launch of the Sightline TheiaVu Compact Vision Inspection Series in September 2021. This system offers comprehensive analysis capabilities for bakeries, delivering precise measurements of size, shape, color, and internal crumb structure in bread items. The tool streamlines quality assurance processes, enhancing production efficiency and final product quality for manufacturers.
Strategic collaborations drive competitive advantages in the bakery contract manufacturing industry. Major companies forge partnerships to tap into new markets and leverage expertise and production capabilities. In October 2023, Happy Belly Food Group Inc.'s Next Level Partners division announced collaboration with a rapidly growing bakery cafe in Canada. This collaboration aims at an accelerated growth strategy, benefiting from mutual synergies and business objectives between the parties involved.
In June 2021, Crown Bakeries, a prominent U.S. producer specializing in fresh and frozen bread, baked goods, and dough items, completed the acquisition of Michel's Bakery Inc. for an undisclosed sum. This strategic move to acquire Michel's, known for its sweet baked offerings, strongly aligns with Crown's vision to establish itself as the premier supplier of personalized baked goods and a leading employer within the industry. Michel's Bakery Inc. primarily focuses on providing contract-manufacturing services in the United States.
Major companies operating in the bakery contract manufacturing market report are De Banketgroep B.V., HACO Holding AG, PacMoore Products Inc., Blackfriars Bakery, Southern Bakeries LLC, Cibus Nexum BV, Hearthside Food Solutions LLC, Richmond Baking Company, Oakhouse Bakery, Adventure Bakery LLC, Michel's Bakery Inc., General Mills Inc., Perfection Foods Ltd., Bimbo Bakeries USA, Dawn Foods, Flowers Foods, Grupo Bimbo, Hostess Brands, Kellogg Company, Mondelez International, Nestle SA, PepsiCo Inc., Sara Lee Frozen Bakery, The Hershey Company, Tyson Foods Inc., Unilever plc, Weston Foods Canada, Yamazaki Baking Co Ltd., Aryzta AG, Campbell Soup Company
Europe was the largest region in the bakery contract manufacturing market in 2023. The regions covered in the bakery contract manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the bakery contract manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The bakery contract manufacturing market consists of revenues earned by entities by providing services such as label manufacturing, contract packaging (plastic, flow wrap, cartons), lab testing, and other related services. The market value includes the value of related goods sold by the service provider or included within the service offering. The bakery contract manufacturing market also includes sales of cookie dough, muffins, flatbreads and more baked goods. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.