Soaring Demand Set to Propel Bakery Contract Manufacturing Market to $40.93 Billion by 2029

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What Is the Expected CAGR for the Bakery Contract Manufacturing Market Through 2025?
The market size of contract manufacturing for bakeries has seen a swift escalation in recent times. The market valued at $24.93 billion in 2024, is predicted to reach $27.79 billion in 2025, progressing at a compound annual growth rate (CAGR) of 11.5%. This significant growth during the historic period is typically attributed to factors such as the rising consumer demand for a variety of products, cost-effectiveness, scalability, dedication to core competencies, global expansion of supply chains, an increase in disposable income, and the growing trend of convenience foods.

What's the Projected Size of the Global Bakery Contract Manufacturing Market by 2029?
Expectations for the bakery contract manufacturing market indicate that there will be swift expansion in the upcoming years. The market's prediction is an increase to ""$40.93 billion by 2029, maintaining a compound annual growth rate (CAGR) of 10.2%. The anticipated growth over the forecast period can be credited to an enlarging middle class, advances in e-commerce, increasing interest in health and wellness, stricter regulatory compliance, improved quality assurance, and an older population. Predominant tendencies during the forecast period will involve tailored solutions and innovative practices, emphasizing clean-label and health-focused products, incorporating technology, fortifying supply chain robustness, and international expansion.

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Top Growth Drivers in the Bakery Contract Manufacturing Industry: What's Accelerating the Market?
The growth of the bakery contract manufacturing market is anticipated to be driven by the increasing demand for bakery items. Such items are diverse in range and primarily use wheat flour for their production. Many bakeries are unable to function at maximum capacity to fulfil the escalating demand for these goods, thus often rely on external (contract manufacturing) companies to bridge the production gaps. As a result, the surge in bakery product consumption is predicted to drive the bakery contract manufacturing market. As per a report published by Agriculture and Agri-Food Canada in November 2023, the United Kingdom was recognized as the tenth leading global retail sales market for baked goods in 2022, holding a market share of 2.4% with a value of US$10.6 billion. The market is projected to experience a compound annual growth rate of 5.0%, reaching retail sales totaling US$13.6 billion by 2027. Consequently, the growing consumption of bakery items is propelling the expansion of the bakery contract manufacturing market.

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What Trends Will Shape the Bakery Contract Manufacturing Market Through 2029 and Beyond?
In the bakery contract manufacturing market, primary corporations are leveraging strategic collaborations as a means to foster innovation, broaden their product line, and optimize the efficiency of their supply chains. The concept of strategic alliances involves companies utilizing each other's assets and capabilities to achieve mutual growth and success. In September 2024, a cooperative agreement was formed between EQUII, a US food technology firm, and Bridor, a French bakery company. This partnership was designed to improve the nutritional content of bakeries' products. The arrangement entails EQUII supplying Bridor with its yeast flour rich in protein, thereby enabling Bridor to manufacture high-protein bakery items for the North American food service sector. The ultimate objective of this joint business endeavor is to satisfy the increasing consumer demand for tasty, high-protein, plant-based bakery products.

What Are the Main Segments in the Bakery Contract Manufacturing Market?
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

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Which Top Companies are Driving Growth in the Bakery Contract Manufacturing Market?
Major companies operating in the bakery contract manufacturing market include De Banketgroep B.V., 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, Michel's Bakery Inc., General Mills Inc., Perfection Foods Ltd., Bimbo Bakeries USA, Dawn Foods, Flowers Foods, Grupo Bimbo, Hostess Brands, Kellogg Company, Mondelez International, Nestle SA, PepsiCo Inc., Sara Lee Frozen Bakery, The Hershey Company, Tyson Foods Inc., Unilever plc, Weston Foods Canada, Yamazaki Baking Co Ltd., Aryzta AG, Campbell Soup Company

Which Regions Will Dominate the Bakery Contract Manufacturing Market Through 2029?
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

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