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Europe Food Contract Manufacturing & Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

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  • 120 Pages
  • July 2022
  • Region: Europe
  • Mordor Intelligence
  • ID: 5624492
UP TO OFF until Dec 31st 2023
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.

Key Highlights

  • According to Eurostat, almost 289,000 enterprises in the European Union were engaged in the production of 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, which hampered the industry's expansion.

Key Market Trends

Increasing demand of Processed food segment will drive the market

  • Milk and dairy product consumption in Russia has expanded dramatically, providing chances for contract manufacturers to cooperate with important dairy product food product producers in order to boost income.
  • Furthermore, contract bakery product manufacturing is gaining traction in the Netherlands. De Banketgroep B.V. and Hearthside Food Solutions LLC are two companies that are active in the Netherlands market. These companies are always concentrating on expanding their R&D capabilities in order to get a competitive edge in the European FPM contract manufacturing industry.
  • According to Food Drink Europe, Data & Trends 2021, the EU food and drink industry employs 4.5 million people, generates EUR 1.1 trillion in turnover, and generates EUR 222 billion in value-added, making it one of the EU's top industrial industries. The food and beverage business employs the most people in half of the EU's 27 member states. With extra-EU exports totaling EUR 145 billion and a trade surplus of EUR 67 billion, the EU is also the world's top exporter of food and beverage items.
  • Under the EU Pact for Skills, the agriculture and food industry presents a skills partnership with the support of the European Commission. The partnership's purpose is to upskill and reskill people in the agri-food sector, Europe's largest producing and manufacturing industry. This will make the agri-food ecosystem more appealing to young people while providing opportunities for employers and employees to learn throughout their lives.
  • When demand for ready-to-eat food products skyrocketed during COVID-19 early waves, food processors couldn't keep up, so they turned to contract producers. Due to the limited manufacturing capacity of OEMs and rising food producers, outsourced manufacturing is on the rise. Food contract manufacturers have started offering various value-added services like packaging, research, consulting, and warehousing, allowing food companies to expand swiftly.

Secondary Packaging to Show Significant Growth

  • Secondary packaging has become more popular as the demand for physical and barrier protection, secondary containment, adherence to standards, and safety has grown in the Food and Beverage industry. Secondary packaging includes cardboard cartons, boxes, and cardboard/plastic crates, as well as film wraps, miniature inflatable air pillows, loose-fill, and labels.
  • According to Flexible Packaging Europe (FPE), healthy growth in most end-user categories, including pet food, coffee, and fresh goods, has pushed production higher. The general shift from rigid to flexible packaging, which offers greater convenience and fits better into today's lifestyle needs, is being fueled by customer demand for more product variety.
  • As paper board packaging keeps moisture away from products and withstands long shipping times, it is increasingly being adopted by brands to offer better outcomes to their customers, especially as a means of secondary or tertiary packaging. Processed foods, such as bread, cakes, and other perishable items, need these packaging materials to be used for just one time, thereby driving the demand.​​
  • Also, as the box consists of over 97% paper, it is, therefore, an environmental alternative to insulation packaging made from polystyrene. The customer can easily dispose of the environmental insulating box with waste paper and is expected to attract other industries due to growing awareness of environmental-friendly products.
  • According to Amcor's research, 80 percent of European consumers have changed how they consume meat or meat alternatives after the Covid-19 epidemic, with 50 percent eating more meat alternatives. Consumers of meat substitutes are more inclined than before to pay attention to food packaging. More specific information on food packaging is desired by 20% of respondents, and 95% want to be able to grasp the finer nuances of what they're eating. Meanwhile, 89 percent want the goods to be visible.

Competitive Landscape

The food Contract Manufacturing & Packaging Market in Europe appears to be fragmented due to a large number of vendors. The companies are involved in various strategies such as mergers and acquisitions and product innovation, among others, to have a competitive edge over others.
  • Food processing in a Box is a project with more than 25 European partners to transform large-scale fruit and vegetable processing technologies into tiny, adaptable, and mobile units in the neighborhood. As a result, the new processing solutions are adaptable, resource-efficient, and demand-driven. It addresses farmer and small food business expectations, examines technical and economic viability, and considers the demands of the food chain and customers.
  • In March 2022 - A coalition in the United Kingdom has asked for a post-Brexit food pact with Europe. According to the Sanitary and Phytosanitary (SPS) Certification Working Group, which includes food, pet food, and feed sector organizations, a veterinary agreement with the EU is needed to reduce administrative complexity and certification costs. Organizations also advised digitizing paper systems and ensuring that receiving border control stations in EU member states and Northern Ireland would accept them.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definitions
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Food Contract Manufacturing Industry
5.1 Market Drivers
5.1.1 Steady growth in demand from processed food segment
5.1.2 Companies are increasingly focusing on outsourcing of manufacturing and packaging to integrated solution providers
5.2 Market Challenges
5.2.1 Contract manufacturers & packagers are increasingly faced with price margins
6 Current share of outsourcing in contract food manufacturing
7.1 by Service Type
7.1.1 Processing & Manufacturing
7.1.2 Packaging
7.1.3 Warehousing & Fulfilment
7.2 by Country
7.2.1 United Kingdom
7.2.2 Germany
7.2.3 France
7.2.4 Italy
7.2.5 Spain
7.2.6 Rest of Europe
8.1 Romix Foods Limited
8.2 Aimia Foods Ltd
8.3 Norvik Foods
8.4 A & S Packing
8.5 Alexir Co-Packers Ltd
8.6 Alphapak International Ltd
8.7 Agilery
8.8 SternMaid GmbH & Co. KG
8.9 Hearthside Europe
8.10 STOCKMEIER Food GmbH & Co. KG
8.11 Budelpack Poortvliet BV
8.12 Complete Co-Packing Services Ltd
8.13 Marvinpac SA

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Romix Foods Limited
  • Aimia Foods Ltd
  • Norvik Foods
  • A & S Packing
  • Alexir Co-Packers Ltd
  • Alphapak International Ltd
  • Agilery
  • SternMaid GmbH & Co. KG
  • Hearthside Europe
  • STOCKMEIER Food GmbH & Co. KG
  • Budelpack Poortvliet BV
  • Complete Co-Packing Services Ltd
  • Marvinpac SA