Axiom MRC has updated all it's market research reports with the Economic Impact Analysis of COVID19 Pandemic on the market. Our team of analyst are following Comprehensive Three Dimensional (3D) Research Methodology along with large number primary interviews with key industry participants to bring insightful market reports to meet the current market requirements.
Contract manufacturing, uses a customer's own formula (recipe) and follows processing methods agreed upon between customer and manufacturer. The bakery and its customer generally conclude confidentiality agreements that protect the interests of each. The finished products are delivered to the customer or to the warehouse. Marketing of foods produced under contact manufacturing contracts is generally the sole responsibility of the customer. The value to the customer is that the contract manufacturer has the commercial scale equipment to manufacture and package a food product. Since most bakeries do not fill the capacity of the lines to 100%, they sometimes look for outside activities (contract manufacturing) to fill the free time on those lines. The baked products market is wealthy in terms of the content of sugar, fats, and delivered nuts and fruits. Moreover, the bakery products producers are adopting new means to broaden the increase of worldwide bakery products market. These modern technological means are beneficial to providing the products with a rich nutritive value, good taste, and appearance. Hence, the growing demand for the bakery products market is anticipated to develop the bakery products market for the projection period. The growth in consumer preference for convenient foods due to fast urbanization worldwide is driving the increase of the bakery products market.
Changing lifestyles coupled with a growing middle class and rising disposable incomes are expected to drive the demand for baked food products, thereby, supporting the growth of the Bakery Contract Manufacturing Market. Technology is driving small, localized industrial food manufacturers, proving how they can carve out a niche alongside continued expansion, leading to large-scale production.
The increased demand for fast food and packaged foods is expected to prompt manufacturers to increase their production capacities, which would consequently increase the demand for baked goods throughout the projected period. Additionally, the growing awareness of advertisements with appealing images and the availability of a wide variety of flavours in bakery products are expected to have a positive impact on the demand for processed foods and, consequently, on the manufacturing of different baked food products.
On the other hand, rapid urbanization in developing countries is expected to give the market a rise in growth during the estimated time period.
The market is expected to have new opportunities with the technological advancements and the ongoing innovations involved in bakery contract manufacturing system. It is expected to provide ample new growth opportunities in the market during the forecast period. Also, an emerging trend for developing clean-label products with distinctive flavours and improved texture and taste is expected to lead towards advancements in technologies used in the preparation of baked food products, and this factor is expected to provide rising new growth opportunities for the market over the forecast period.
The market has major restraining factors like higher consumption of healthy and gluten-free foods, which is due to increased emphasis on health consciousness, combating weight-gain and particularly for people who are suffering from celiac disease who are unable to consume gluten-containing food. As bakery products do contain a significantly high amount of sugar and gluten, it’s a concern for manufacturers to provide a healthier version of the bakery products for consumers. This factor is expected to create some hurdles for the market’s growth during the forecast period.
The COVID-19 pandemic has affected the growth of the market to a major extent, which has created a major challenge for the market’s growth. It has also affected food trade legislation that restricts food trade, resulting in financial constraints in the food supply chain. The crisis in Ukraine, in all its aspects, has alarming implications for a global economy already impacted by COVID-19, with negative consequences for developing countries. Both Russia and Ukraine have a substantial influence on the international economy. This is because they are the main suppliers of raw materials in the international market. Rising raw material prices entering baked goods are expected to reduce profit margins, limiting market growth. These factors are expected to pose a big challenge for the growth of the market over the forecast period.
The report provides an in-depth analysis of the global Bakery Contract Manufacturing market, including market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. The increasing demand for Bakery Contract Manufacturing in bakery product applications has led to the increasing demand for the market and is expected to witness growth at a specific CAGR from 2021-2028.
The global Bakery Contract Manufacturing market comprises of different market segments like product, service, distribution channel, end users and geography.
By product, the Bakery Contract Manufacturing market includes the key segments of
The bread segment is likely to have growing demand in the market. Bread consumption is mostly high due to its popularity as a staple food source among all age groups. Also, it has the advantages of reasonable price, easy availability, and nutritional value. It is also available in various healthy forms like gluten-free, high-fiber, and whole grain, which are very demanding in terms of health-conscious consumers. On the other hand, cakes and pastries, followed by biscuits and cookies, are the segments which are anticipated to witness growth at a high pace over the estimated time period.
By service, the Bakery Contract Manufacturing market is segmented into
The manufacturing category is expected to dominate the bakery contract manufacturing market over the forecast period. The growing adoption of automation and robotic technologies in the bakery industry is improving the quality of baked goods, as well as the efficiency and productivity of contract bakers. Automation technologies help reduce human intervention in the cooking process, with minimal potential for food contamination and the development of high-quality baked goods. Rising labour and energy prices around the world, coupled with the rising cost of ingredients used in baked goods, are expected to induce bakeries to adopt advanced cooking techniques or outsource their baking processes to improve their overall production efficiency.
The Custom Formulation and R&D segment is expected to witness high growth over the forecast period due to the increasing frequency of lifestyle-related diseases worldwide, leading to a growing awareness among consumers of the benefits of a healthy diet, consisting mainly of natural foods and gluten-free products, thus increasing the demand for bakery contract manufacturing services.
The Bakery Contract Manufacturing market has distribution channels like
The hypermarkets & supermarkets segment is anticipated to lead in the global Bakery Contract Manufacturing market over the projected time period. The growth of the segment is driven by various factors like accessibility and affordability, along with the presence of supermarket stores in close proximity. With the designated compartments and shelves for various products, hypermarkets and supermarkets act as an effective yet convenient form for different bakery products. Also, convenience stores, specialty stores, and online platforms are expected to have growing demand in the market during the estimated time period.
The global Bakery Contract Manufacturing market is studied for the following region
Asia-Pacific is expected to grow at the highest rate during the forecast period due to a growing middle-class population, increasing purchasing power, and the changing consumer preference of the millennial population for processed foods, which is expected to drive the demand for contract bakery manufacturing. Europe is expected to experience high growth due to a rise in consumer health awareness, dietary changes and evolving lifestyles and preferences for nutritious food, beverage products.
North America is expected to grow at a significantly high rate due to a growing demand for processed foods, increasing immigration and continuing technological advances in the baking industry, which are the main factors responsible for the growth of the contract manufacturing market for baked goods. Increasing vegan food preferences among the population is expected to have a positive effect on demand for bakery contract manufacturing.
Axiom MRC provides a 360 degree analysis of micro and macro-economic factors on the global Bakery Contract Manufacturing market. Also, a complete analysis of changes on the global Bakery Contract Manufacturing market expenditure, economic and international policies on supply and demand side is provided in this exclusive report. The report also studies the impact of pandemic on global economies, international trade, business investments, GDP, and marketing strategies of key players present in the market.
COVID-19 had a widespread negative effect on the overall bakery contract manufacturing market. Many bakers had to shut down their bakeries throughout the height of the pandemic because of inadequate income of the bakery market and a scarcity of workers. Along with this, disruptions in supply of essential goods because of the lockdown affected the delivery chain, mainly to the unavailability of products that were in keeping with consumers’ needs, in the long run affecting the market’s growth. Moreover, this inaccessibility of raw materials hampered the manufacturing process throughout the lockdown process. But, with the end of government-imposed lockdowns, the market is expected to have new growth opportunities in the upcoming years.
The competitive landscape analysis of Bakery Contract Manufacturing market is majorly focused on expanding the global growth of bakery contract manufacturing with new product innovation, business expansion, increasing presence of range of manufacturers operating in bakery contract manufacturing has led the growing demand for the market. Besides, the market offers a range of bakery products in different applications to fulfil the required demand of consumers, which is further contributing to healthy growth in the market.
The key players studied in market are
March 2021: Dawn Foods acquired JABEX, a family-owned manufacturer that specializes in high-quality fruit-based products in the bakery industry.
July 2020: ITC’s Sunfeast brand had expanded its 'cake' category, by launching Sunfeast Caker. Sunfeast Caker, which is available in three formats, namely Trinity, Choco Swiss Roll, and Layer Cake, across India.
By product, the Bakery Contract Manufacturing market includes the key segments of bread, cakes and pastries, biscuits and cookies, tortillas and others. The bread segment is expected to dominate the market over the forecast period. By services, the Bakery Contract Manufacturing market is segmented into manufacturing, packaging, custom formulation, and R&D. The manufacturing category is expected to dominate the bakery contract manufacturing market over the forecast period. The Bakery Contract Manufacturing market has distribution channels like hypermarkets and supermarkets, convenience stores, and specialty stores. The hypermarkets and supermarkets segment is anticipated to lead in the global Bakery Contract Manufacturing market over the projected time period. The global Bakery Contract Manufacturing market is studied for the following regions: North America, Europe, Asia-Pacific, and Rest of the World (RoW). Asia-Pacific is expected to grow at the highest rate during the forecast period due to a growing middle-class population, increasing purchasing power, and the changing consumer preference of the millennial population for processed foods, which is expected to drive the demand for bakery contract manufacturing.
| Market Sizing for Year: | 2019-2028 |
| Base Year: | 2021 |
| Forecast Period: | 2022-2028 |
| Value: | USD
million |
| Market Segment studied: | Product Service Distribution
Channel |
| Market Players and its
Competitors: | HACO
Holding AG PacMoore
Products, Inc. De
Banketgroep B.V Blackfriars
Bakery Southern
Bakeries, LLC Cibus
Nexum Hearthside
Food Solutions LLC Perfection
Foods Richmond
Baking Oakhouse
Bakery Adventure
Bakery LLC Michel’s
Bakery, Inc. Bake
Works, Inc. Stephano
Group Ltd. Tradition
Fine Foods Ltd. |
FREQUENTLY ASKED QUESTIONS
What would be forecast period in the market report?
2022-2088 is the forecast period in the market report.
What are the drivers for Bakery Contract Manufacturing market?
The key driving factors of the market are increasing disposable income, increased demand for fast food and packaged food and rise in demand for healthy baked products.
Which region is gaining majority of market share during the forecast period (2022-2028)?
Asia Pacific is expected to gain major market share during the forecast period (2022-2028).
