October 06, 2010 07:00 ET

F4SS Announces Results of Groundbreaking Market Study on CPG Contract Manufacturing and Packaging

OAKLAND, NJ--(Marketwire - October 6, 2010) -  The F4SS (Foundation for Strategic Sourcing), a non-profit organization serving the upstream Consumer Packaged Goods (CPG) supply chain, has released findings from a Market Study on Contract Manufacturing and Packaging (CM&P). The report, funded by F4SS for the benefit of its members, provides market intelligence and an in-depth analysis of the CPG industry.

The report confirmed the foundation's belief that the global CM&P industry is growing, specifically, at a CAGR of 12% by service revenue to reach approximately 56.3 billion USD in 2012. The drivers leading to this growth are increased capability, reduced lead time and better economies of scale. 

The study provides an in-depth industry segment analysis, broken out by category. Food as a separate sub-segment is the single largest end-user market holding 38% of the market, followed by the beverage industry at approximately 18%. 

CM&P revenue growth for the Home Care segment is growing at a CAGR of 8% between 2008-2012. Laundry Care tops demand for the segment at 47%, followed by dishwashing products at 15%. CM&P revenue growth for the Personal Care segment will grow at CAGR of 9.8% between 2008-2012, while CM&P service revenue for the Healthcare segment will grow at CAGR 11.74% during the same period. Skincare is expected to be the fastest growing category for CM&P service providers, while baby care has seen the highest growth in the U.S. market. In the overall CM&P market, Personal Care contributes to approximately 11% of the market. 

CM&P CAGR revenue growth for the Food segment is expected to be 8.73% between 2008-2012, while CM&P revenue growth for the Beverage segment is projected to grow at a CAGR of 8.15% (2008-2012). Organic food will lead the Food segment in terms of growth rate at approximately 12% CAGR. Packaged water will drive the CM&P growth above Beverage category rate at CAGR 9%.

In all, the major drivers for outsourcing manufacturing and packaging for consumer goods companies are cost reduction, flexible processes, speed to market. Consumer Goods companies are faced with massive revenue and cost pressure. When outsourcing, the CPG can enjoy spend reduction, strategic sourcing, internal process engineering while focusing on their core competencies; R&D, marketing & sales and customer relations.

"We're very pleased to share the results of the Market Study with our members; especially to have confirmation that the industry is vital and growing at a steady rate. F4SS was founded to enhance the supply chain between customers and suppliers by working together in a more innovative, productive manner. F4SS is an organization that strives to deliver value to its members, and the data provided in this study shows that we are clearly on track to deliver long-term value by significantly improving business process," stated Lisa Shambro, Executive Director, F4SS.

For more information please visit the organization's website at or call 201-677-1254.

Contact Information

  • Contact:

    Lisa Shambro
    F4SS Executive Director
    Phone: 201 677 1254
    Email Contact