| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 104.49 Billion |
| Market Size (2030) | USD 167.52 Billion |
| CAGR (2025 - 2030) | 9.90 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Food Contract Manufacturing & Packaging Market Analysis
The Europe Food Contract Manufacturing & Packaging Market size is worth USD 104.49 Billion in 2025, growing at an 9.90% CAGR and is forecast to hit USD 167.52 Billion by 2030.
- Europe's food contract manufacturing and packaging industry is undergoing notable changes spurred by evolving consumer preferences, technological innovations, and a push for sustainability. A prominent trend is the surging appetite for private-label products. Retailers and supermarkets are gravitating towards these cost-effective alternatives to branded items, paving the way for contract manufacturers to deliver high-quality food at competitive rates. Alongside this, there's a notable uptick in vegan, gluten-free, and allergen-free niche offerings as health-conscious consumers pursue tailored dietary choices.
- Sustainability stands out as a pivotal force in Europe's food manufacturing landscape. Consumers prioritize eco-friendly packaging, showing a marked preference for recyclable, biodegradable, and compostable materials. This shift is nudging food manufacturers to partner with contract manufacturers adept at crafting innovative, environmentally-conscious packaging solutions. Furthermore, there's an intensified focus on circular economy principles, with manufacturers striving to curtail food waste and incorporate recycled materials in production and packaging.
- Technological advancements are revolutionizing the sector, with automation and artificial intelligence (AI) taking center stage in food production. These innovations bolster efficiency, cut costs, and ensure product consistency. AI applications span predictive maintenance, quality control, and inventory oversight, while automation champions speed and flexibility in production. Innovative solutions are emerging in packaging, offering real-time insights into product freshness, temperature, and expiration features that resonate with today's consumers' desires for convenience and transparency.
- Health and wellness trends are increasingly influencing product development. There's a burgeoning demand for functional foods, those boasting added health perks like immune-boosting properties, probiotics, and heightened protein content. Moreover, consumers gravitate towards "clean label" foods, characterized by straightforward, recognizable ingredients devoid of additives or preservatives. In response, food manufacturers seek contract manufacturers to craft these clean-label products, aligning with consumer demands for transparency and health benefits.
- Regulatory compliance remains paramount in Europe's food manufacturing arena. The EU's stringent food safety and labeling mandates compel manufacturers to uphold high standards, especially concerning ingredient transparency, allergen details, and nutritional labeling. Coupled with this, consumers are clamoring for enhanced traceability within the food supply chain. This demand drives manufacturers to harness technologies like blockchain, ensuring comprehensive product traceability. As these dynamics shift, contract manufacturers are challenged to be nimble, champion sustainable practices, and navigate the intricate web of regulatory demands to maintain their competitive edge in Europe.
- In Europe, contract manufacturers and packagers grapple with tightening price margins. This strain is attributed to surging raw material costs, labor shortages, escalating transportation expenses, and the demands for stricter regulatory compliance. Ingredient cost fluctuations, disruptions in the supply chain, and the imperative investments in automation and technology for efficiency further challenge profitability. Rising labor and transportation costs and the financial weight of stringent EU food safety and sustainability regulations curtail manufacturers' pricing competitiveness. In response, many manufacturers are honing in on operational efficiency, harnessing automation, and delving into niche markets or specialized services. Yet, the relentless margin pressures necessitate continuous innovation and astute cost management to maintain a competitive edge.
Europe Food Contract Manufacturing & Packaging Market Trends
Processing & Manufacturing to Hold Significant Market Share
- The demand for contract food processing and manufacturing services in Europe is surging, mainly due to a rising preference for private-label products. Supermarkets and retail chains are turning to contract manufacturers for food production, allowing them to present cost-effective, high-quality items under their brands. This shift gains prominence as consumers increasingly gravitate towards private-label goods, drawn by their competitive pricing and quality akin to branded counterparts. Consequently, food manufacturers are stepping up to meet the expansive production demands of these retailers, all while ensuring consistent quality and strict adherence to food safety standards.
- Health and wellness trends fuel this demand, with consumers actively seeking healthier, functional food choices. Preferences are shifting towards plant-based, gluten-free, low-sugar, and high-protein options. This evolution is pushing food manufacturers to adjust their production capabilities. Contract manufacturers, especially those offering flexibility in small-batch runs, specialized formulations, and swift production turnarounds, are becoming indispensable as brands venture into the health-centric food arena. The knack for producing niche-specific products is emerging as a pivotal determinant of success for food brands, amplifying the demand for contract manufacturing services.
- Sustainability is emerging as a pivotal driver for the uptick in contract manufacturing demand across Europe. With consumers and regulatory entities urging food companies to curtail their environmental footprint, manufacturers championing eco-friendly packaging, sustainable sourcing, and waste minimization are witnessing heightened demand.
- Moreover, the e-commerce boom and the surge in direct-to-consumer food sales are prompting contract manufacturers to devise innovative packaging solutions and navigate the intricacies of online food retail logistics. This evolution underscores the growing need for food manufacturers adept at delivering sustainable, scalable production solutions while aligning with consumer expectations for quality and environmental stewardship.
- Germany's Convenience Food Manufacturing Sector has seen its revenue climb steadily from 2021 to 2023, underscoring a burgeoning appetite for convenient food products. Starting at USD 4.40 billion in 2021, the sector's revenue jumped to USD 5.56 billion in 2022, and further ascended to USD 6.35 billion in 2023.
- This upward trajectory signals that Germany's convenience food manufacturing is riding the wave of robust consumer demand. Factors such as increasingly hectic lifestyles, urbanization, and shifting eating habits have fueled the appetite for ready-to-eat meals, quick snacks, and frozen foods. Additionally, the industry's growth is buoyed by trends emphasizing health-conscious choices, sustainable packaging, and the surging popularity of online grocery shopping.
- The revenue surge in Germany's convenience food sector highlights its responsiveness to consumer needs and evolving dietary trends. These trends increasingly favor healthier, plant-based, and allergen-free options. This growth trajectory remains strong, with manufacturers prioritizing innovation and attuning to the European market's changing demands.
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Germany to Show Significant Growth
- Germany's Food Contract Manufacturing & Packaging Market is on an upward trajectory, fueled by several pivotal factors. As consumers juggle busier lifestyles, there's a pronounced surge in demand for convenience and ready-to-eat products. This shift compels companies to turn to contract manufacturers and packaging experts adept at delivering high-quality, ready-to-consume food items. Furthermore, an increasing emphasis on health-conscious, organic, and functional foods is paving the way for specialized manufacturing services.
- The escalating demand for food processing and manufacturing is another driving force behind the market's expansion. With food preferences diversifying, especially toward plant-based, organic, and functional foods—manufacturers are leaning more toward contract services for processing, packaging, and delivering premium products. This reliance on contract manufacturing enables companies to cater to the rising demand for niche products without the hefty investment in production facilities. This trend is evident in sectors like alternative protein sources, dietary supplements, and ready-made meals.
- The booming e-commerce landscape and the surge in direct-to-consumer food sales have amplified the need for specialized packaging that safeguards product integrity during transit. As online food purchases soar, there's a heightened demand for packaging solutions that are both protective and visually appealing. Services like meal kit deliveries and online grocery shopping underscore the necessity for efficient, high-quality packaging tailored for long-distance shipping.
- Technological advancements are revolutionizing the food manufacturing and packaging sectors. Techniques like modified atmosphere packaging (MAP), vacuum sealing, and innovative packaging are becoming popular for their prowess in extending shelf life and maintaining food quality. Moreover, infusing automation and digitalization into production boosts efficiency and customization. This evolution empowers manufacturers to cater to various food categories, from established ones to emerging trends like plant-based and functional foods. Such innovations amplify the demand for contract manufacturing services that promise creativity and scalability.
- Germany's food industry is witnessing robust revenues across its processing segments, significantly influencing the Food Contract Manufacturing & Packaging market. Leading sectors, such as slaughter and meat processing (USD 54.12 billion) and milk processing, including ice cream (USD 41.54 billion), are turning to advanced contract manufacturing and packaging solutions. These solutions cater to the soaring demand for traditional and processed food items. For instance, meat processors depend on contract manufacturers for specialized packaging that ensures safety, prolongs shelf life, and adheres to strict food safety standards. Likewise, as the appetite for premium, ready-to-consume dairy products surges, dairy producers are increasingly collaborating with contract manufacturers to produce and pack milk, cheese, and ice cream.
- Baked goods and pasta production (USD 28.27 billion) also leans heavily on contract manufacturing and packaging. These services ensure efficient output and innovative packaging that preserves freshness and visual appeal. With a rising consumer appetite for ready-made meals (USD 6.35 billion), contract manufacturers are pivotal, delivering swift, top-notch meal production and specialized packaging that safeguards products during transit and storage. Furthermore, fish processing (USD 2.42 billion) reaps the benefits of contract manufacturers, overseeing everything from production to packaging, especially for frozen, canned, or ready-to-eat offerings. In summary, Germany's food industry's expansion and variety underscore a growing demand for contract manufacturing and packaging services. Companies are increasingly pursuing these specialized, cost-effective solutions to boost production, enhance efficiency, and align with consumer expectations.
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Europe Food Contract Manufacturing & Packaging Industry Overview
The Europe food contract manufacturing and packaging market operates with numerous vendors, including large multinational corporations and specialized firms serving specific food industry segments. Companies compete through strategic initiatives, including mergers and acquisitions and product innovation. The market includes key players such as Romix Foods Limited, Aimia Foods Ltd, Alphapak International Limited, A & S Packing, and Alexir Co-Packers Ltd. Companies pursue mergers and acquisitions to expand market presence, diversify product portfolios, and achieve operational efficiencies. Additionally, firms focus on product innovation to establish market differentiation by developing new packaging solutions and manufacturing processes that address consumer needs and comply with regulatory standards.
Europe Food Contract Manufacturing & Packaging Market Leaders
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Romix Foods Limited
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Aimia Foods Ltd
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Alphapak International Limited
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A & S Packing
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Alexir Co-Packers Ltd
- *Disclaimer: Major Players sorted in no particular order
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Europe Food Contract Manufacturing & Packaging Market News
- September 2024: Based in the UK, Power Adhesives has unveiled its fully certified biodegradable hot melt adhesive - Tecbond 214B, tailored for carton and corrugated packaging, POS converters, and contract packers. Tecbond 214B, crafted with 44% bio-based materials, meets the stringent ASTM D6400 and EN13432 certifications. These certifications, recognized in the EU, delineate compostable and biodegradable product standards. Notably, Tecbond 214B is designed to decompose entirely in oxygen-rich environments, leaving only harmless residues and zero microplastics.
- March 2024: INEOS Olefins & Polymers Europe, PepsiCo, and Amcor partnered to introduce new film packaging containing 50% recycled plastic for Sunbites, PepsiCo’s snack brand. This packaging, launched in the United Kingdom and Ireland, is created by recycling plastic waste into food-grade packaging material.
Europe Food Contract Manufacturing & Packaging Industry Segmentation
Food brands and companies are increasingly turning to third-party specialists for their production and packaging needs, a practice known as Food Contract Manufacturing & Packaging. This strategy allows these brands to concentrate on core operations such as marketing and distribution. In this setup, contract manufacturers take charge of the entire production journey. They source raw materials, oversee processing, ensure quality control, and manage the packaging of the final products, whether in pouches, cans, or bottles. This approach brings cost efficiency and scalability to food businesses and provides access to specialized expertise. Moreover, it guarantees that products align with regulatory standards and meet consumer expectations. By utilizing these services, companies can speed up their market entry, uphold stringent quality standards, and swiftly respond to market demands without significant investments in production infrastructure.
Europe's food contract manufacturing and packaging market is segmented by service type (processing and manufacturing, packaging, warehousing, and fulfillment) and by country (United Kingdom, Germany, France, Italy, Spain, and the Rest of Europe). The market sizes and forecasts are provided in terms of value in (USD) for all the above segments.
| By Service Type | Processing & Manufacturing |
| Packaging | |
| Warehousing & Fulfilment | |
| By Country*** | United Kingdom |
| Germany | |
| France | |
| Italy | |
| Spain |
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Europe Food Contract Manufacturing & Packaging Market Research FAQs
How big is the Europe Food Contract Manufacturing & Packaging Market?
The Europe Food Contract Manufacturing & Packaging Market size is worth USD 104.49 billion in 2025, growing at an 9.90% CAGR and is forecast to hit USD 167.52 billion by 2030.
What is the current Europe Food Contract Manufacturing & Packaging Market size?
In 2025, the Europe Food Contract Manufacturing & Packaging Market size is expected to reach USD 104.49 billion.
Who are the key players in Europe Food Contract Manufacturing & Packaging Market?
Romix Foods Limited, Aimia Foods Ltd, Alphapak International Limited, A & S Packing and Alexir Co-Packers Ltd are the major companies operating in the Europe Food Contract Manufacturing & Packaging Market.
What years does this Europe Food Contract Manufacturing & Packaging Market cover, and what was the market size in 2024?
In 2024, the Europe Food Contract Manufacturing & Packaging Market size was estimated at USD 94.15 billion. The report covers the Europe Food Contract Manufacturing & Packaging Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Food Contract Manufacturing & Packaging Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Europe Food Contract Manufacturing & Packaging Industry Report
Statistics for the 2025 Europe Food Contract Manufacturing & Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Food Contract Manufacturing & Packaging analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
