The global processed meat market size is anticipated to reach USD 862.97 billion by 2027. The size was USD 519.41 billion in 2019 and is also likely to display a decent CAGR of 6.24% during the forecast period. As per our analysts, the growth of the market is on account of the rapid-paced lifestyle and rising population of salary workers, the consumption percentage of pre-packed cooked food products has augmented, which further contributes as a growth factor. This information is provided by Fortune Business Insights™, in its report, titled, “Processed Meat Market, 2020-2027.”
COVID-19 Pandemic to Surge Sales of Pre-Cooked Foods and Processed Meat
The coronavirus disease has adversely affected all industries worldwide. Due to the imposition of sudden stringent laws by the government regarding ban on transportation, the demand and supply chain cycle collapsed majorly disrupting the economy of all sectors dependent on it.
However, the food & beverages industry was the least damaged one as people continued to purchase groceries and food items amid the COVID-19 pandemic. For instance, according to a statement by the chief executive of ITC Ltd., the demand for ready-to-eat food items fuelled and sales increased by 20-30% in the market. Another example of progress observed is a statement by Grofers which is an online grocery delivery service that saw a surge in its sales of about 170% in the ready-to-eat segment, around 31% in the pre-cooked meals and mixes category, and about 41% in the frozen food attribute. This is estimated to boost growth for the processed meat market amid pandemics.
The report offers a holistic evaluation based on thorough research of the market. It further provides an in-depth analysis of the current market trends and future opportunities. The report sheds light on the market drivers and restraints. Moreover, key players and their novel strategies to prosper in the market and dominate as prominent players are shared in the report. A detailed study of the regional dynamics and how they shape the market is observed in the report
Based on animal type, the global processed meat market is divided into poultry, beef and pig. On the basis of distribution channel, it is further segregated into hypermarkets or supermarkets, specialty stores, convenience stores and online retail. In terms of region, the market is classified into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
By type, the market is categorized into frozen, canned and chilled. Among these, the frozen segment held the highest share of 70.77% in 2019. This is owing to the factor that frozen meat has an advantage over fresh meat of having a longer shelf life and being accessible to all under the same roof as other groceries.
Drivers and Restraints
Rising Awareness of Consuming Organic Meat to Boost Demand for Organic Processed Meat
A major number of meat consumers are only aware of the traditionally raised poultry, farm animals and cattle for procuring meat. The awareness regarding consumption of chemical or preservative-free meat is high among people, hence they opt for organic processed meat. This factor drives the demand for the application of organic or natural animal agriculture. This has compelled the producers to obtain their meat from certified and organically reared animals or poultry birds. The utilization of organic meat aids in maintaining the legitimacy of food items. The growing consumer base for organic and conventionally procured meat has resulted in the expansion of organic farms and suppliers. This is anticipated to fuel the processed meat market growth in the foreseeable future.
North America to Dominate the Market Backed by Growing Popularity of Meat Products
North America stood at USD 212.05 billion in 2019 and is estimated to continue dominating the global processed meat market share in the near future. The surging demand for pre-packed and ready-to-cook food along with protein-rich animal meat products has fuelled the regional market growth. Additionally, North America is a developed region and there are many working adults present in this region. This results in the consumption of pre-packed food or frozen processed meat. The popularity of beef, veal, pork, hot dog or even steak is major in the countries of this region and is expected to lead to high sales of processed meat in the upcoming years.
Europe is expected to hold the second-largest market share in the market. The growth is attributed to the existing of countries that are chief consumers of processed food items such as Germany, France, and Italy. The processed pork meat and minced beef are broadly adopted in this region on account of being cost-effective and has an upgraded taste.
Asia Pacific holds a substantial market share due to the vast population in the region. Due to rapid urbanization and extended provision of disposable income in developing nations such as China, India, South Korea, among others, residents of these countries are switching to usage of processed meat.
Acquisitions and Mergers to Help Key Players Prosper in the Market
Key players in the market form effective strategies along with the help from their expertise to conquer maximum shares in the market and establish a brand name for their brand. One such strategy to extent their brand name is to acquire other companies to earn extra monetary gains. For instance, in April 2019, JBS S.A. announced the acquisition of Adelle Indústria de Alimentos, a native pork processor for reinforcing its position in the processed meat market in Brazil.
Browse Detailed Summary of Research Report with TOC: