Contract Manufacturing Poised for Growth in the Food and Beverages Industry

Rabobank Report Details Case for Growth in Contract Manufacturing

NEW YORK – May 17, 2016 – Contract manufacturing is a common practice in the food and beverages industry, representing between 10 and 20 percent of total food production. This sector is growing more rapidly than food manufacturing in general, according to a new Rabobank Report.

In Silent Partners: Contract Manufacturing in the U.S., Rabobank’s Food & Agribusiness Research and Advisory team analyzes the reasons for increased outsourcing in food production and opportunities for consolidation in the industry. The report finds three main trends in the current environment that lead to growth in contract manufacturing:

  • Shorter product life cycles and the pressure on food companies to offer greater variety and innovation,
  • The growth of newer, smaller brands that often lack manufacturing facilities of their own, and
  • The need to rationalize costs and improve returns on capital to investors.

“Food companies are having to bring new products to market at a faster pace than ever before,” said Paula Savanti, Rabobank Senior Analyst, Consumer Foods. “For this, they need manufacturing partners with a certain scale and sophistication. This is where we see growth and consolidation opportunities in the industry.”

For a full copy of the report, contact Maggie Kinnealey at mkinnealey@voxglobal.com.

About Rabobank
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, real estate services, and renewable energy project financing. Founded over a century ago, Rabobank is one of the largest banks in the world, with nearly $1 trillion in assets and operations in more than 40 countries. In North America, Rabobank is a premier bank to the food, beverage and agribusiness industry. Rabobank's Food & Agribusiness Research and Advisory team is comprised of more than 80 analysts around the world who provide expert analysis, insight and counsel to Rabobank clients about trends, issues and developments in all sectors of agriculture.

Media Contact
Maggie Kinnealey
mkinnealey@voxglobal.com
202.772.5018