Food Contract Manufacturing Industry Overview

The global food contract manufacturing market was valued at USD 120.96 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.5% during the forecast period.

Increasing demand for outsourcing food manufacturing is expected to have a positive impact on the industry growth. The rising prevalence of coronavirus coupled with the increasing RD spending is expected to have a positive impact on the food contract manufacturing market during the forecast period. Furthermore, factors such as panic buying of comfort food for the duration of the pandemic and rising private equity investment in contract manufacturing are expected to boost industry growth.

Gather more insights about the market drivers, restrains and growth of the Global Food Contract Manufacturing Market

The COVID-19 pandemic led to prolonged lockdowns which resulted in a considerable surge in buying convenience foods as consumers were stuck inside their houses. Increasing demand for processed food has resulted in creating opportunities for the new contracts designed for the food contract manufacturers. The pandemic also prompted the restructuring of supply chains, which is expected to augment the industry growth.

OEMs and upcoming food manufacturers have limited manufacturing capabilities due to which contract manufacturing is on the rise. Moreover, food contract manufacturers have started to offer different value-added services such as packaging, research, consulting, and warehousing which has enabled food companies to grow rapidly.

As demand surged in 2020, food-processing companies were unable to produce at such a scale due to which they had to rely on contract manufacturers. Many contract manufacturers have been able to bag long-term contracts bringing them to the forefront. Moreover, private equity investment has enabled contract-manufacturing companies for capacity expansion or provide other vital services.

Over the years, the food companies have become smarter to leverage contract manufacturers in a move to distance themselves from the incremental costs that are attached to the manufacturing. It also allows food companies to free up their cash flows, which played a key role during the pandemic, making it a favorable environment for the manufacturers to succeed.

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• Commercial Food Dehydrators Market: The global commercial food dehydrators market size to be valued at USD 868.4 million by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 7.1% during the forecast period. 
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Key Companies Profile

Some prominent players in the global food contract manufacturing market include:

• Fibro Foods
• Hindustan Foods Limited
• Hearthside Food Solutions LLC
• Nikken Foods 
• Christy Quality Foods (CQF)
• De Banketgroep B.V.
• HACO AG
• SK Food Group
• Pacmoore Products Inc.
• Cremica
• Kilfera Food Manufacturers Ltd
• Nutrascience Labs, Inc

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