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Europe Food Contract Manufacturing & Packaging Market Size (2024 - 2029)

The Europe Food Contract Manufacturing & Packaging Market is experiencing significant growth, driven by European companies outsourcing their manufacturing and packaging needs to focus on core operations and reduce costs. This trend is particularly prominent in countries like Germany, the United Kingdom, and France, which are leading in market share. The market's expansion is further supported by opportunities in processing meat, bakery, and dairy products, as well as the rising demand for food supplements in Switzerland. Additionally, consumer-packaged goods vendors are increasingly integrating vertically to offer comprehensive packaging solutions, responding to changing consumer buying habits. The COVID-19 pandemic has also positively impacted the market due to increased demand for comfort foods, although challenges such as enhanced worker security and adherence to Good Manufacturing Practices have posed obstacles to growth.

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Market Size of Europe Food Contract Manufacturing & Packaging Industry

Europe Food Contract Manufacturing & Packaging Market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 9.90 %
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

Europe Food Contract Manufacturing & Packaging Market Analysis

Europe Food Contract Manufacturing & Packaging Market is expected to grow by 9.9% CAGR in the forecasted period. European enterprises are increasingly outsourcing their Food Manufacturing and Packaging needs to contract companies to focus on their core operations while lowering operational costs and improving market penetration.

  • According to Eurostat, almost 289,000 enterprises in the European Union were producing food items. In terms of income generated from the contract manufacturing service, Germany, the United Kingdom, and France are likely to dominate the European Food contract manufacturing market.
  • Furthermore, processing meat, bakery, and dairy products are likely to provide considerable prospects for the European FPM contract manufacturing market to expand. Aside from that, Switzerland has a plethora of enterprises engaged in producing food supplements, which are seeing a growth in demand as customers place a greater emphasis on health and diet. Disch AG and HACO AG, for example, are some of the companies that exist in Switzerland.
  • To stand out as a one-stop contract packaging solution provider, consumer-packaged goods (CPG) vendors have been aggressively looking ahead to vertically integrate to offer packaging solutions, including purchasing raw materials and logistics. According to Nulogy, a developer of agile supply chain solutions for CPG firms, consumers' evolving buying habits are providing contract packers with additional work.
  • The COVID-19 epidemic has resulted in panic purchases of comfort foods and supply chain reorganization, which have benefited the contract manufacturing business. On the other hand, contract manufacturers had to contend with increased worker security and greater attention to current Good Manufacturing Practices, hampered the industry's expansion.

Europe Food Contract Manufacturing & Packaging Industry Segmentation

Food contract manufacturing is outsourcing in which one company hires another to manufacture food products while the customer firm concentrates on branding and marketing. Many businesses lack the resources or financing necessary to produce and package high-quality products on schedule. Outsourcing production to a company specializing in creating meals, beverages, or nutritional supplements for a certain industry makes sense in these situations. Food manufacturing outsourcing is predicted to expand in popularity, benefiting the business.

Europe Food Contract Manufacturing & Packaging Market is segmented by Service type (Processing & Manufacturing, Packaging, Warehousing & Fulfilment) and by Country (United Kingdom, Germany, France, Italy, Spain, Rest of Europe)

By Service Type
Processing & Manufacturing
Packaging
Warehousing & Fulfilment
By Country
United Kingdom
Germany
France
Italy
Spain
Rest of Europe
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Europe Food Contract Manufacturing & Packaging Market Size Summary

The European Food Contract Manufacturing and Packaging Market is experiencing significant growth, driven by the trend of companies outsourcing their manufacturing and packaging needs to focus on core operations and reduce costs. This market is characterized by a diverse range of activities, including meat, bakery, and dairy product processing, which are expected to offer substantial growth opportunities. Countries like Germany, the United Kingdom, and France are poised to dominate the market, while Switzerland sees a rise in demand for food supplements. The COVID-19 pandemic has further accelerated the demand for contract manufacturing, as food processors struggled to meet the surge in demand for ready-to-eat products, leading to increased reliance on outsourced manufacturing. The industry is also witnessing a shift towards value-added services such as packaging, research, and consulting, which are helping food companies expand rapidly.

The market landscape is fragmented, with numerous vendors employing strategies like mergers, acquisitions, and product innovation to gain a competitive edge. The demand for secondary packaging solutions is on the rise, driven by the need for physical protection and adherence to safety standards in the food and beverage industry. Flexible packaging is gaining popularity due to its convenience and alignment with modern lifestyle needs. Environmental concerns are also influencing packaging choices, with paperboard packaging being favored for its moisture resistance and eco-friendliness. The market is further shaped by consumer preferences, with a notable shift towards meat alternatives and increased interest in food packaging transparency. Collaborative projects and strategic acquisitions are enhancing the market's adaptability and resource efficiency, addressing the evolving demands of the food chain and consumers.

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Europe Food Contract Manufacturing & Packaging Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Impact of COVID-19 on the Food Contract Manufacturing Industry

  2. 2. Market Segmentation

    1. 2.1 By Service Type

      1. 2.1.1 Processing & Manufacturing

      2. 2.1.2 Packaging

      3. 2.1.3 Warehousing & Fulfilment

    2. 2.2 By Country

      1. 2.2.1 United Kingdom

      2. 2.2.2 Germany

      3. 2.2.3 France

      4. 2.2.4 Italy

      5. 2.2.5 Spain

      6. 2.2.6 Rest of Europe

Europe Food Contract Manufacturing & Packaging Market Size FAQs

The Europe Food Contract Manufacturing & Packaging Market is projected to register a CAGR of 9.90% during the forecast period (2024-2029)

Romix Foods Limited, Hearthside Food Solutions, STOCKMEIER Gruppe, SternMaid and Budelpack are the major companies operating in the Europe Food Contract Manufacturing & Packaging Market.

Europe Food Contract Manufacturing & Packaging Market Report Snapshots

Europe Food Contract Manufacturing & Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)