Contract Manufacturing Grows in Food and Beverage Industry
A recent Rabobank report details the growth of contract manufacturing in the Food and Beverage industry. Currently, 10 – 20 percent of total food production is via contract manufacturing, but this share is rapidly expanding. The primary trends driving growth are: time constraints, the need for greater variety of products, startups lacking their own production capabilities and desire to improve return on investment.
Rabobank’s Senior Analyst for Consumer Foods, Paula Savanti, explains that food companies, “Need manufacturing partners with a certain scale and sophistication. This is where we see growth and consolidation opportunities.”
For more details and to obtain a full copy of the May, 2016 report, please visit Rabobank.com