Contract Manufacturing Market in Europe to Double to €15 Billion by 2020
The European contract manufacturing market in food and beverages is expected to roughly double in size by 2020, driven by underlying demand growth, market share gains of ‘A-brands’ and increased levels of outsourcing activity, according to a new report by Rabobank Food & Agribusiness Research and Advisory. An anticipated compound annual growth rate (CAGR) of more than 8% will see contract manufacturing reach a size of at least Eur14 billion to Eur16 billion in the coming eight years.
Despite the buoyant growth outlook, contract manufacturing will still be a modest niche even in 2020, by then representing only 6 percent of the European processed food and beverages market. However, in terms of the implied shift in the supply structure and the headache reduction for brand manufacturers, contract manufacturing is unmatched in its impact on the food and beverage market, points out Rabobank.
