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What is the Predicted CAGR for the Bakery Contract Manufacturing Market Over the Forecast Period of 2025 to 2034?

In recent times, the bakery contract manufacturing market has experienced significant expansion. Its projected growth is from $24.93 billion in 2024 to $27.79 billion in 2025, with a compound annual growth rate (CAGR) of 11.5%. This expansion during the historical period can be credited to factors such as the increasing consumer desire for a variety of products, cost-effectiveness, scalability, emphasis on core strengths, the globalization of supply chains, rising disposable income levels, and an increasing preference for convenience foods.

In the coming years, the size of the bakery contract manufacturing market is foreseen to increase rapidly, reaching “$40.93 billion by 2029 with a compound annual growth rate (CAGR) of 10.2%. The remarkable growth projected within the forecast timeline can be linked to several factors such as the burgeoning middle class, the surge in e-commerce, heightened concerns about health and wellness, strict regulatory compliance and quality assurance, and the aging population. Key emerging trends during this forecast period encompass customization and innovation, focus on clean labels and health, the incorporation of technology, supply chain fortitude, and global expansion.

Which Macro and Microeconomic Factors Are Accelerating the Growth of the bakery contract manufacturing Market?

Increased use of bakery goods is projected to spur the expansion of the bakery contract manufacturing sector in the future. Bakery products, which are made primarily from wheat flour, encompass a broad spectrum of end products linked to the bakery industry. Owing to the inability of most bakeries to operate at their full potential to cater to the rising demand for baked goods, they often rely on contract manufacturing firms to address the gaps in production. As such, the growing demand for bakery items is set to propel the bakery contract manufacturing industry. For instance, data from a November 2023 report by the Canada-based Agriculture and Agri-Food Canada, a federal department regulating agriculture, the UK held the tenth position in 2022 globally for retail sales of baked goods, registering a value of US$10.6 billion, which corresponds to a 2.4% market share. By 2027, the market is predicted to record a compound annual growth rate of 5.0%, with retail sales anticipated to hit US$13.6 billion. Consequently, increased bakery product consumption is fueling the growth of the bakery contract manufacturing industry.

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Who Are the Top Companies Driving Innovation and Growth in the Bakery Contract Manufacturing Market?

Major companies operating in the bakery contract manufacturing market include:

• De Banketgroep B.V._x000D_

• HACO Holding AG_x000D_

• PacMoore Products Inc._x000D_

• Blackfriars Bakery_x000D_

• Southern Bakeries LLC_x000D_

What Key Trends Are Currently Impacting the Bakery Contract Manufacturing Market’s Development?

In an effort to boost innovation, broaden their product line, and optimize supply chain capabilities, leading corporations in the bakery contract production market are opting for strategic alliances. These partnerships enable companies to utilize each other’s expertise and resources for reciprocal benefits and success. EQUII, an American food tech firm, formed a joint venture with Bridor, a French baking company, in September 2024 with a focus on improving bakery product nutrition. The collaboration involves EQUII providing Bridor with its yeast flour enriched with protein, thereby enabling Bridor to manufacture a range of high-protein baked products for North American food service businesses. This cooperative venture is geared towards satisfying the rising consumer appetite for tasty, nutrient-rich, high-protein, and plant-based bakery alternatives.

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What Are the Main Segments of the Bakery Contract Manufacturing Market, and How Are They Evolving?

The bakery contract manufacturing market covered in this report is segmented –

1) By Product: Specialty And Nutritional Bakery Products, Traditional Bakery Products

2) By Service: Manufacturing, Packaging, Custom Formulation And R&D

3) By Application: Small And Medium Enterprises (SMEs), Large Enterprises

Subsegments:

1) By Specialty And Nutritional Bakery Products: Gluten-Free Products, Organic Bakery Products, High-Protein Bakery Products, Low-Carbohydrate Bakery Products

2) By Traditional Bakery Products: Bread, Cakes, Pastries, Cookies, Buns And Rolls

Which Geographical Regions Are Pioneering Growth in the Bakery Contract Manufacturing Market?

Europe was the largest region in the bakery contract manufacturing market in 2024. The regions covered in the bakery contract manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

What Are the Defining Aspects of the Bakery Contract Manufacturing Market Landscape?

Bakery contract manufacturing refers to a business approach where a bakery business enters into a production or service-related agreement with another business. Bakery contract manufacturers assist baking businesses by producing ingredients, packaging, or entire products according to the company’s requirements.

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