Food Contract Manufacturing Market Report 2025

The food contract manufacturing market size has grown strongly in recent years. It will grow from $168.54 billion in 2024 to $185.03 billion in 2025 at a compound annual growth rate (CAGR) of 9.8%. The growth in the historic period can be attributed to demand for cost efficiency, focus on core competencies, market expansion and geographic reach, seasonal demand fluctuations, regulatory compliance and quality assurance, flexibility in production capacities.

The food contract manufacturing market size is expected to see rapid growth in the next few years. It will grow to $311.85 billion in 2029 at a compound annual growth rate (CAGR) of 13.9%. The growth in the forecast period can be attributed to rise in health and wellness products, e-commerce and direct-to-consumer trends, clean label and sustainable practices, global market penetration, plant-based and alternative foods. Major trends in the forecast period include technological integration and industry 4.0, technology integration, sustainability focus, customization demand, global supply chain optimization.

The growing demand for plant-based and organic foods is anticipated to drive the expansion of the food contract manufacturing market in the future. Consumers are increasingly focusing on health, sustainability, and ethical considerations, resulting in a surge in demand for products that are natural, free from artificial additives, and sourced from plant-based ingredients. This trend has encouraged food brands to broaden their product lines to include vegan, organic, and clean-label options. Contract manufacturers are essential in this landscape, offering specialized production capabilities that cater to these niche markets, allowing brands to scale production effectively and meet rising consumer demands without the need for costly infrastructure investments. For instance, according to Plantbasedfoods.org, a nonprofit organization dedicated to promoting plant-based foods, the dollar sales of plant-based products in the US increased by 6.6%, reaching $8 billion in 2022. Thus, the increasing demand for plant-based and organic food is propelling the growth of the food contract manufacturing market moving forward.

The rising consumer preference for convenience foods is driving the food contract manufacturing market. Convenience foods are processed food products that require minimal preparation time before consumption, including ready-to-eat items, packaged foods, and preserved foods. Food contract manufacturing plays a crucial role in producing convenience foods by improving production efficiency, offering flexibility in product formats, and providing expertise in packaging design and materials. For example, a study by Mondelez International, Inc., an American multinational food company, found that in 2023, six out of ten global consumers preferred eating smaller meals or snacks throughout the day rather than a few large meals. Therefore, the growing consumer preference for convenience foods is expected to enhance demand for the food contract manufacturing market.

Product innovation has emerged as a prominent trend gaining traction in the food contract manufacturing market. Leading companies within the sector are dedicated to creating innovative products to enhance their market presence. For instance, in March 2022, EnWave Corporation, a Canada-based advanced technology company, introduced its cutting-edge vacuum-microwave toll drying facility, REVworx. This facility provides on-demand contract manufacturing services for the production of high-quality, vacuum-microwave dried snacks and ingredient applications, catering to food companies of all sizes. REVworx utilizes REV technology, promising reduced upfront capital investment and accelerated speed to market.

Major players in the food contract manufacturing market are actively establishing plant-based manufacturing sites to meet the increasing demand for plant-based food products and maintain their market presence. A plant-based manufacturing site is a facility or location specifically designed and equipped for the production of plant-based products. For example, in November 2022, ETA Lumis Foods, a US-based food contract manufacturing company, announced the inauguration of its flagship facility in New Jersey. This newly constructed, state-of-the-art facility spans 12,000 square feet and is equipped with a cutting-edge GEA processing line, along with an EV88 Clextral Twin Screw machine. ETA Lumis maintains affiliations with reputable organizations, including The Good Food Institute, Plant-Based Food Association, and Private Label Manufacturers Association.

In October 2022, Ruiz Food Products, Inc., a manufacturer of frozen Mexican food products based in Dinuba, acquired the assets of Culinary International, LLC for an undisclosed sum. This acquisition is anticipated to enhance Ruiz Foods' flexible manufacturing capabilities on the West Coast. Culinary International, LLC is a contract manufacturer based in the US that specializes in ready-to-eat frozen and refrigerated Mexican foods.

Major companies operating in the food contract manufacturing market include Christy Friedgram Industry, Hearthside Food Solutions LLC, Haco AG, Nikken Foods Co. Ltd., The C.F. Sauer Company, Tree Top Inc., Nu-World Foods Inc., SK Food Group Inc., De Banketgroep B.V., The Eli’s Cheesecake Co. LLC, Pacmoore Products Inc., The Fremont Company LLC, Action Pak Inc., Van Law Food Products Inc., The Sausage Maker Inc., Fibro Foods LLP, Thrive Foods LLC, SternMaid America LLC, ETA Lumis Foods Ltd., Samma Service S.r.l., Hindustan Foods Limited, Cremica Agro Foods Ltd., Helander Company Inc., The French’s Food Company LLC.

North America was the largest region in the food contract manufacturing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the food contract manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the food contract manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Food contract manufacturing involves outsourcing the manufacturing of food production activities to other agencies. It includes activities such as school food services or catering meals for events, allowing the customer company to focus on branding and marketing.

The primary services in the food contract manufacturing market encompass manufacturing services, packaging services, and research and development. Manufacturing services are crucial in the food industry, offering the benefit of avoiding investments in food production and packaging machinery, facilities, resources, and highly skilled personnel. Diverse manufacturing processes, such as dry blending, spray drying, and extrusion, are employed to fulfill these services.

The food contract manufacturing market research report is one of a series of new reports that provides food contract manufacturing market statistics, including food contract manufacturing industry global market size, regional shares, competitors with the food contract manufacturing market share, detailed food contract manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the food contract manufacturing industry. This food 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 food contract manufacturing market includes revenues earned by entities by providing food product development, beverage formulation, microbiome solutions, nutraceutical formulations, herbal formulation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.

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