Outsourcing tasks has long been seen as a cost-saving measure for companies across various industries. Businesses can focus on core competencies and benefit from time and cost efficiencies by entrusting certain processes to specialized service providers. Contract manufacturing has witnessed significant growth, with service providers evolving into full-service partners, offering end-to-end solutions from product development to packaging and delivery.
Contract manufacturing was initially prominent in the pharmaceutical industry, where complex regulatory requirements and the need for shorter time-to-market necessitated flexible and specialized service providers. However, the trend has now spread to other sectors, including food, feed, plastics, and detergents. Start-ups and established global players outsource production to focus on product development and marketing. Even large industry players increasingly consider contract manufacturing a cost-effective and efficient alternative to in-house production.