However, demand is likely to witness moderate growth, as growing vegan trend and growing colorectal cancer concerns stall consumption.
According to Fact.MR, the processes meat market will experience a moderate 2.2% volume year-on-year growth in 2018 over 2017. The study finds that steadily growing meat industry and increasing growth of the food processing industry is the majorly contributing to the growth of the processed food market.
The study finds that, poultry and pork are the top-selling processed meat products globally. Sufficient poultry supplies at relatively low prices and a significant rise in per-capita pork consumption in emerging nations, especially in China, is fuelling demand for processed pork and poultry, which is influencing processed meat manufacturers’ leading strategies.
According to a report published by the United States Department of Agriculture (USDA), pork and chicken exports are likely to increase by 3% and 4% respectively in 2019, buoyed by bolstering demand in emerging nations. Robust demand for pork and chicken is expected to drive their production across the globe to reach 114.6 million tonnes and 97.8 million tonnes by 2019, according to the USDA report.
Processed meat manufacturers are modifying their business strategies to leverage approximately 75% market share of processed poultry meat and pork in envisage incremental growth in the processed meat market in the upcoming years.
Contrary to the popular belief that organic food products are healthier than their conventional variants, conventionally processed meat products are witnessing higher demand than that for organic processed meat products.
• Organic meat tends to be more expensive than conventional meat
• Nearly similar number of contaminants found in organic and conventional processed meat drives consumers to choose an economical option
• Conventionally processed meat is readily available in a majority of local grocery or retail store
• Consumers are becoming aware of the fact that organic does not mean cruelty-free
• Growing consumer awareness about the relatively higher carbon footprint of organic processed meat
A majority of consumer are health-as well as label-conscious. As consumers are becoming highly conscious while purchasing food products, including processed meat, the safety and affordability of conventionally processed meat is influencing recent trends in the processed meat market.
According to a report published by the Food and Agriculture Organisation of the United Nations (FAO), China is one of the world’s largest meat producer and per capita meat consumption rate has increased in key developing Asian countries.
Increasing meat import demand in Asean countries, which is attributed to the increased domestic demand for processed meat, is expected to generate numerous lucrative opportunities for processed meat market players across the world.
• Tyson Food Inc. recently acquired Keystone Foods, an American food service company to expand its sales and distribution networks in high-growth Asian processed meat markets.
• BRF S.A recently partnered with COFCO meats, a Chinese food company, to leveraging growing demand for animal protein in China by improving quality and food safety in the country.
• WH Group Limited – announced that its subsidiary Smithfield Foods, Inc., with Henan Shuanghui Investment and Development Co., Ltd. and JD.com, China’s largest retailer, jointly launched a Tripartite Strategic Partnership Agreement boost online sales of Smithfield’s processed meat products, including pork products, in Chinese processed meat market.
The Fact.MR report tracks the processed meat market for the period 2018-2028 to find that it is likely to grow at over 2.6% volume CAGR through 2028.
