Bakery Contract Manufacturing Market Report 2026

The bakery contract manufacturing market size has grown strongly in recent years. It will grow from $27.58 billion in 2025 to $30.27 billion in 2026 at a compound annual growth rate (CAGR) of 9.7%. The growth in the historic period can be attributed to growth of packaged bakery consumption, expansion of retail bakery brands, rising demand for cost-efficient production, availability of contract manufacturing infrastructure, increasing product diversification.

The bakery contract manufacturing market size is expected to see rapid growth in the next few years. It will grow to $45.15 billion in 2030 at a compound annual growth rate (CAGR) of 10.5%. The growth in the forecast period can be attributed to increasing demand for functional bakery products, rising investments in automated baking facilities, expansion of clean-label bakery offerings, growing focus on rapid product launches, increasing reliance on third-party manufacturing partnerships. Major trends in the forecast period include increasing outsourcing of bakery production, rising demand for specialized bakery formulations, growing focus on scalable manufacturing capabilities, expansion of private label bakery products, enhanced emphasis on quality consistency.

The increasing consumption of bakery products is anticipated to support the growth of the bakery contract manufacturing market in the coming years. Bakery products encompass a broad range of items produced using wheat flour to create various baked goods. As many bakeries are unable to operate at full capacity to satisfy rising consumer demand, they often rely on external contract manufacturing partners to supplement production. Consequently, higher consumption of bakery products is expected to drive demand for bakery contract manufacturing services. For example, in November 2023, according to a report published by Agriculture and Agri-Food Canada, a Canada-based federal department responsible for agricultural regulation, the United Kingdom ranked as the tenth-largest global retail market for baked goods in 2022, with sales valued at US$10.6 billion and a 2.4% market share. The market is projected to grow at a compound annual growth rate of 5%, reaching retail sales of US$13.6 billion by 2027. Therefore, rising bakery product consumption is contributing to the expansion of the bakery contract manufacturing market.

Companies operating in the bakery contract manufacturing market are increasingly pursuing strategic partnerships to strengthen innovation, broaden product portfolios, and enhance supply chain efficiency. Strategic partnerships involve companies collaborating by leveraging complementary strengths and resources to achieve shared objectives. For instance, in September 2024, EQUII, a US-based food technology company, partnered with Bridor, a France-based baking company, to improve the nutritional profile of bakery products. Under this partnership, EQUII supplies Bridor with its protein-enriched yeast flour, enabling Bridor to manufacture a range of high-protein baked goods for the food service sector across North America. This collaboration is designed to address growing consumer demand for nutritious, high-protein, plant-based bakery products without compromising on taste.

In August 2024, QualiTech, a US-based producer of plant nutrition and food ingredient products, acquired Ellison Bakery for an undisclosed amount. This acquisition is intended to strengthen QualiTech’s product portfolio and expand its footprint in the bakery segment by leveraging Ellison Bakery’s expertise and innovative capabilities. Ellison Bakery is a US-based manufacturer of baked goods and inclusion ingredients.

Major companies operating in the bakery contract manufacturing market are De Banketgroep BV, 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, Michels Bakery Inc, Perfection Foods Ltd, Finsbury Food Group PLC, Signature Flatbreads Ltd, Bakkavor Group PLC, Lantmannen Unibake, Europastry SA, Bridor SAS, Vandemoortele Bakery Products, Speciality Breads Ltd.

Europe was the largest region in the bakery contract manufacturing market in 2025. The regions covered in the bakery 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 bakery contract manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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.

This product will be delivered within 1-3 business days.