Food Contract Manufacturing Market Report 2026

The food contract manufacturing market size has grown rapidly in recent years. It will grow from $184.33 billion in 2025 to $209.56 billion in 2026 at a compound annual growth rate (CAGR) of 13.7%. The growth in the historic period can be attributed to increasing brand focus on marketing and distribution, growth of private label food brands, expansion of ready-to-eat food demand, rising capital costs of in-house manufacturing, improved contract manufacturing capabilities.

The food contract manufacturing market size is expected to see rapid growth in the next few years. It will grow to $351.72 billion in 2030 at a compound annual growth rate (CAGR) of 13.8%. The growth in the forecast period can be attributed to increasing demand for scalable food production, rising focus on clean-label compliance, expansion of customized food formulations, growing investments in automation-ready facilities, increasing demand from emerging food brands. Major trends in the forecast period include increasing outsourcing of food manufacturing operations, rising demand for private label production, growing adoption of flexible manufacturing lines, expansion of co-packing and packaging services, enhanced focus on quality assurance and compliance.

The growing consumer preference for convenience foods is driving growth in the food contract manufacturing market. Convenience foods are processed products that require minimal preparation before consumption, including ready-to-eat, packaged, and preserved items. Food contract manufacturing supports the production of these foods by improving production efficiency, offering flexibility in product formats, and providing expertise in packaging design and materials. For example, in April 2024, the National Association of Convenience Stores, a US-based trade association, reported that in 2023, foodservice sales - including prepared foods, commissary items, and dispensed beverages - accounted for 26.9% of in-store sales, up from 25.6% in 2022. Additionally, prepared food sales per store per month rose by 12.2% in 2023 compared to 2022. Therefore, the rising demand for convenience foods is expected to boost the food contract manufacturing market.

Leading companies in the food contract manufacturing market are focusing on strategic outsourcing partnerships, such as long-term food-grade manufacturing contracts, to gain a competitive advantage. For instance, in January 2025, Flexible Solutions International (FSI), a Canada-based manufacturer, signed a five-year contract with a U.S. food company to produce food-grade products on a non-exclusive basis, with projected revenues of USD 15-30 million per year once its clean room expansion is completed. In August 2025, FSI secured a second significant contract for its Illinois plant, estimated to generate USD 6.5-13 million annually, with potential scaling above USD 25 million accounting for growth and inflation. Such partnerships allow brand owners to outsource production, reduce capital expenditure, scale quickly, and focus on product development and marketing, although they increase reliance on third-party quality control and expose companies to operational or counterparty risks.

In March 2025, Nonantum Capital Partners, a US-based private equity firm, acquired MSI Express for an undisclosed amount. This acquisition strengthens Nonantum’s presence in the food and beverage manufacturing sector by supporting a scalable co-manufacturing platform with broad production capabilities and strong customer relationships. MSI Express, based in the US, specializes in dry food blending, liquid packaging, bottle filling, dry pet food packaging, and the production of vitamins and supplements across multiple facilities in six states.

Major companies operating in the food contract manufacturing market are Hearthside Food Solutions LLC, Pacmoore Products Inc., Action Pak Inc., Van Law Food Products Inc., SK Food Group Inc., Nu-World Foods Inc., The Fremont Company LLC, Thrive Foods LLC, SternMaid America LLC, ETA Lumis Foods Ltd., Samma Service Srl, Hindustan Foods Limited, Cremica Agro Foods Ltd, Helander Company Inc., PacMoore Contract Foods, YouBar Inc., NutraScience Labs, Vantage Food Products, SmithFoods Contract Manufacturing, Sarjesa Group.

North America was the largest region in the food contract manufacturing market in 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the food contract manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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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