The North America Food Contract Manufacturing Market would witness market growth of 8.7% CAGR during the forecast period (2023-2030).
Food contract manufacturing, also known as co-packing or private label manufacturing, refers to outsourcing the production and packaging of food products to third-party manufacturers. These manufacturers, equipped with specialized facilities and expertise, collaborate with brands to bring their food products to market. This outsourcing model allows food companies to focus on brand development, marketing, and sales while leveraging the capabilities of contract manufacturers for the efficient and cost-effective production of goods.
Increasing demand for food manufacturing outsourcing is expected to affect the industry's expansion positively. Increasing R&D expenditure on food processing technologies will impact on the market over the forecast period. Market expansion is fueled by implementing AI and IoT technologies for robotics in manufacturing facilities. Furthermore, increasing private equity investment in contract manufacturing and panic purchasing for comfort foods during the pandemic are anticipated to stimulate market expansion.
North America's food contract manufacturing market has witnessed continuous growth, driven by the increasing demand for processed and packaged food products. The market's expansion is also fueled by the desire of food companies to optimize production processes and focus on core competencies. Companies in this sector often focus on core competencies such as product development, marketing, and distribution while outsourcing production to specialized contract manufacturers. These aspects will boost market growth in the coming years.
The US market dominated the North America Food Contract Manufacturing Market by Country in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $44,021.2 million by 2030. The Canada market is experiencing a CAGR of 11.2% during (2023 - 2030). Additionally, The Mexico market would exhibit a CAGR of 10.2% during (2023 - 2030).
Based on Service, the market is segmented into Manufacturing, Packaging and Custom Formulation & R&D. Based on End-Use, the market is segmented into Dietary Supplement, Dairy Products, Convenience Foods, Bakery Products, Confectionery and Others. Based on countries, the market is segmented into U.S., Mexico, Canada, and Rest of North America.
Free Valuable Insights: The Food Contract Manufacturing Market is Predict to reach $261.2 Billion by 2030, at a CAGR of 9.5%
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Hearthside Food Solutions LLC, Nikken Foods Co., Ltd., Haco Holding AG, SK Food Group (Premium Brands Holdings Corporation), Pacmoore Products Inc. (Glanbia PLC), Cremica Food Industries Limited, Kilfera Food Manufacturers Ltd, Nutrascience Labs, Inc (Twinlab Consolidation Corporation (TCC)) (Twinlab Consolidated Holdings Inc.), Thrive Foods, and Orion Corporation.
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