According to the Market Statsville Group (MSG), the global contract blending services market size is expected to grow at a CAGR of 8.7% from 2022 to 2030. Toll blending, also referred as contract blending, toll manufacturing, or contract manufacturing, is a service in which the manufacturing of various types of blends is outsourced to a third party. The contract blender gathers the formula, raw ingredients, and wrapping before converting them into a finished piece.

Outsourcing blending at any process stage is an extremely effective and cost-effective technique. With the outsourcing industry rapidly becoming one of the fastest growing markets across various industries, demand for contract blending services is expected to rise in the coming years. Moreover, outsourcing services significantly reduce production time and storage and raw material costs, which bode well for the contract blending services market.

Global Contract Blending Services Market Dynamics

Drivers: Contract Blending Services' Effortless Specialization is Driving Their Demand

The growing outsourcing trend has recently increased the demand for contract blending services. Companies are increasingly outsourcing their blending needs as contact blending service providers offer customized blends with ingredients in desired ratios without the hassle of figuring out processes or equipment. A chemical supply company, for instance, offers expert contract chemical blending services to their clients under customized or restricted conditions, such as controlled temperatures and various distillation techniques. As a result, companies are investing in contract blending services to obtain tailored finished products without investing in in-house blending and mixing facilities to meet the growing and changing customer needs. The growing reliance of businesses on third parties for various services is expected to drive growth in the contract blending services market.

Restraints: Limited Control Over the Final Product

Companies are hesitant to outsource their lending needs due to growing customer concerns about the finished product quality. When relying on contract blending services, the outsourcing company has little control over the final product's quality. Furthermore, growing inconsistencies in blending and manufacturing processes exacerbate companies' insecurities, limiting their ability to outsource their needs. To avoid such issues and conflicts, several companies are focusing on forming solid contracts with contract blending service providers.

Opportunities: Benefits of High Productivity and Optimized Workflow Accelerating Contract Blending Service Adoption

In today's highly competitive world, where time is money, the demand for outsourcing services such as contract blending services is increasing rapidly. Numerous advantages of contract blending services, such as increased workflow efficiency and saved time, bode well for stakeholders. These benefits further encourage businesses to focus on workflow optimization by devoting most of their time to what they do best while outsourcing all blending needs to expert contract blending service providers. Companies that want to stay ahead of the competition are increasing their investment in contract blending services for optimized growth.

Scope of the Global Contract Blending Services Market

The study categorizes the contract blending services market based on service type, end-use and capabilities at the regional and global levels.

By Service Type Outlook (Sales, USD Million, 2017-2030)

• Dry Blending
• Product Blending
• Multiple Component Blending

By End-Use Outlook (Sales, USD Million, 2017-2030)

• Nutritional Supplements
• Specialty Oils and Spreads
• Protein Powders
• Healthy Snack Mixes
• Others

By Capabilities Outlook (Sales, USD Million, 2017-2030)

• Liquids
• Powders
• Pastes
• Reconstruction of Aqueous & Solvent-based Products

By Region Outlook (Sales, USD Million, 2017-2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

North America is projected to account for the largest market share, by Region

Based on the regions, the global Contract Blending Services Market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Over the forecast period, North America is anticipated to show a significant market share in the contract blending services market.  The presence of established market players and the surged adoption of automation in a developed country like US has significantly driven the market’s growth.

Asia Pacific accounts for the highest CAGR during the forecast period

Asia Pacific is estimated to hold the highest CAGR in the global contract blending services market during the forecast period. This can be attributed to the huge population in countries like China and India. Furthermore, rising SMEs and startups will create a lucrative growth opportunity for the market in the region. The rise in disposable income along with the rise in e-commerce in the region will contribute a huge share in augmenting the market’s growth over the forecast period.

Key Market Players in the Global Contract Blending Services Market

The global contract blending services market is highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.

Major players in the global contract blending services market are:

• RSBRUCE Metals and Machinery
• Camco
• UIL Blending Solutions
• SchlötterErelandDAC
• AB Mauri UK
• 2v Industries
• Grosvenor Chemicals
• Econo Pak
• EMCO
• Plantgistix
• PacMoore
• Sabinsa Europe
• Fair Chem Industries
• Thermograde
• CMC Milling
• Haviland USA
• Sigma Services
• Prestige Blending

Recent Developments

•  In April 2019, Multi-Pack Solutions invested around US$ 16.3 million in expanding its Greenville County operations, which are anticipated to be operational by the fourth quarter. Multi-Pack will expand its manufacturing and distribution operations by relocating to the South Carolina Technology and Aviation Center, which has a 125,000-square-foot facility.
• In February 2019, Plantgistix announced that it is establishing a new contract packaging plant in Texas. The new plant, which will focus on export contract packaging services, is expected to be fully operational by June 2019. This has improved Plantgistix's services and supply chain capabilities by increasing the company's inbound hopper car capacity to approximately 300 per month.

Key Issues Addressed

• What is the market size by various segmentation of the contract blending services by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the contract blending services market ?
• What are the key opportunities and trends for manufacturers involved in the contract blending services supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of contract blending services in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market