Processed Meat Market

Overview of Global Processed Meat Market:

Global Processed Meat Market is valued at USD 357 Billion in 2023 and it is expected to reach USD 473.2 Billion by 2029 with a CAGR of 4.8% over the forecast period. The processed meat market is sizzling with opportunities as consumer tastes shift towards healthier, plant-based, and global flavors. Convenience, sustainability, and ethics are key drivers, creating a robust ascent for the industry.

Scope of Global Processed Meat Market Report:

The global processed meat market refers to the industry involved in the production, processing, and distribution of meat products that have undergone various treatments, such as curing, smoking, seasoning, or cooking, to enhance flavor, texture, and shelf life. Processed meat encompasses a wide range of products, including sausages, deli meats, bacon, ham, and more. The processing of meat dates back thousands of years, with methods like salting and smoking used for preservation. In the modern era, technological advancements and changing consumer preferences have driven the evolution of the processed meat industry, resulting in a wide array of products catering to diverse tastes and dietary requirements.

Similarly, processed meat finds applications in various culinary contexts. It serves as a convenient source of protein, ideal for sandwiches, toppings for pizzas, and ingredients in dishes such as pasta, stews, and soups. Processed meat products also include snack items like jerky and dried sausages, making them a popular choice for on-the-go and casual consumption.

Besides, the end users of the global processed meat market are diverse and include consumers, restaurants, fast-food chains, hotels, and the foodservice industry. Additionally, food manufacturers incorporate processed meat into a wide range of products, from frozen meals to canned goods, to meet the demands of modern consumers for quick, easy, and flavorful meal options.

Market Revenue generation model:

The revenue generation model of the global processed meat market relies on product diversification, distribution channels like supermarkets and online retail, strong brand recognition, technological advancements, and effective marketing and promotion strategies. Additionally, expanding into new geographic regions, introducing innovative products, and optimizing the supply chain contribute to revenue growth. Adapting to consumer trends, forming partnerships, ensuring regulatory compliance, and exploring export opportunities are also key factors in driving revenue within the processed meat industry.

Supply Chain Analysis:

Supply chains in the global processed meat market encompass raw material procurement, processing, distribution, retail, and regulatory compliance. Technology integration, sustainability, and market dynamics influence efficiency and effectiveness. Stakeholders optimize processes, ensuring safe and sustainable product delivery while adhering to regulations and addressing environmental concerns.

Value Chain Analysis:

In the global processed meat market's value chain analysis, primary activities include inbound logistics (raw material sourcing), processing, outbound logistics (distribution), marketing and sales, and post-sales service. Supporting activities encompass infrastructure, human resources, technology development, and procurement. Key linkages involve sustainability practices, regulatory compliance, and responsiveness to consumer trends, collectively shaping the industry's competitiveness and sustainability.

COVID-19 Impact on the Processed Meat Market:

The COVID-19 pandemic had a profound impact on the processed meat market, largely stemming from severe supply chain disruptions. The industry grappled with considerable challenges due to lockdowns, restrictions, and labor shortages. Meat processing plants were vulnerable to COVID-19 outbreaks, leading to temporary closures and reduced production capacity. These disruptions not only affected the timely processing and distribution of meat products but also caused significant economic strains on the industry. The pandemic exemplified the critical importance of a resilient and adaptable supply chain system in maintaining the flow of essential goods, and the processed meat market was no exception to the global supply chain disruption phenomenon.

As of April 2022, the COVID-19 pandemic triggered significant challenges in supply chains worldwide, with approximately 16% of businesses reporting global supply chain disruptions. This global impact underscored the interconnected nature of supply chains, where challenges at one link of the chain can have a ripple effect on multiple industries and regions. As the pandemic unfolded, supply chain disruptions became a central theme affecting various sectors and industries, including the processed meat market. The ability of companies in this market to navigate and adapt to these disruptions played a pivotal role in their resilience and ability to meet consumer demands during a time of unprecedented challenges.

Key Players of Global Processed Meat Market Report:

Some of the prominent players in the processed meat market include Hormel Foods Corporation, JBS S.A., Koch Foods, Marfrig Global Foods, National Beef Packing Company, NH Foods Ltd., OSI Group LLC., OSI International, Inc., Perdue Farms, Pilgrim's Pride Corporation, Sadia S.A., Sanderson Farms, Smithfield Foods, Tallevast Beef, Tyson Foods, WH Group Limited, Allana Sons Pvt. Ltd., Bidfood, BRF S.A., Cargill Incorporated, Cherkizovo Group, Conagra Brands Inc., Foster Farms, Cranswick plc, Danish Crown, Fleury Michon, Groupe Bigard, Hygrade, Kerry Group plc, Pilgrim Food Group and others.

Market Drivers:

Ease of Availability and Higher Meat Consumption Leading to Increased Demand for Processed Meat Products:

The driving factors behind the processed meat market are underscored by higher global meat consumption, notably exemplified by China's surge in meat consumption. As of February 10, 2023, China has cemented its status as the world's largest consumer meat market. The remarkable increase in meat consumption within China, where the populace consumed nearly 100 million tons of meat in 2021, accounting for 27 percent of the world's total meat consumption and surpassing that of the United States, serves as a powerful catalyst propelling the demand for processed meat products. This surge in meat consumption, particularly in regions such as China, substantiates the escalating need for convenient and value-added processed meat options.

The processed meat market thrives due to a multitude of driving factors. Accessibility for consumers has significantly expanded, with processed meat products readily available through diverse retail channels such as supermarkets, convenience stores, and online platforms. This increased accessibility is indicative of a market catering to evolving consumer preferences for convenient food options.

Moreover, as of March 9, 2023, the U.S. Department of Agriculture (USDA) has made a substantial investment of over US$43 million in research, innovation, and expansion in the meat and poultry processing sector. This initiative aligns with the broader transformation of the food system at every stage of the supply chain, emphasizing the government's commitment to supporting and fostering growth within the processed meat market.

Market Restraints:

Rising Health Concerns Among the Global Population Pool Limits the Market Growth:

As of January 2023, the processed meat market faces restraining factors stemming from growing health concerns. Increasing awareness of health issues linked to excessive processed meat consumption, such as heart disease, cancer, and obesity, is prompting consumers to pivot towards healthier dietary choices. Notably, the American Cancer Society (ACS) underscores one of these concerns, highlighting that high consumption of red and processed meats is identified as a risk factor for colorectal cancer (CRC). This heightened awareness of health-related risks is influencing consumer behaviour and preferences, posing a significant restraint on the market as consumers seek alternatives to processed meats in favour of healthier food options.

Price Fluctuations Restricts the Adoption of Processed Meat Globally:

The processed meat market encounters several restraining factors, including price fluctuations that can significantly impact the industry's profitability. These fluctuations, often triggered by variables such as disease outbreaks among livestock, can disrupt the supply chain and drive-up costs, subsequently affecting the market. Notably, as of July 2023, even with rising meat prices in China, the consumption of processed meat continues to grow. Statistical models affirm that consumption in this context displays a relative insensitivity to price changes, which highlights a unique market dynamic where price fluctuations may have a limited restraining effect on consumer behaviour.

Opportunity Factors:

The processed meat market continues to present a range of opportunities driven by evolving consumer preferences and market dynamics. One prominent opportunity lies in the growing demand for healthier processed meat options. Consumers are increasingly seeking products with reduced sodium, lower fat content, and clean-label ingredients. This opens doors for innovation in product formulations and healthier processing methods.

The convenience and ready-to-eat nature of processed meats make them well-suited for busy lifestyles, offering a chance for expanding product lines, such as pre-packaged protein snacks or meal solutions. The global market presents export opportunities, particularly for traditional and specialty processed meats, as different regions have a taste for unique flavors and preparations. Finally, sustainability and ethical considerations are shaping consumer choices, making eco-friendly and ethically sourced processed meat products a promising niche. These opportunities highlight the potential for growth and innovation in the processed meat market, where companies can adapt to changing consumer demands and develop products that align with health, environmental, and ethical concerns.

Market Trends:

Product and Technology Development:

• Clean Label Products: A shift toward cleaner ingredient lists, with reduced additives, preservatives, and artificial ingredients in processed meat products.
• Health and Wellness: Development of processed meat products with improved nutritional profiles, reduced sodium content, and functional additives like vitamins and minerals.

Customer Trends:

• Health-Conscious Choices: Consumers are becoming more health-conscious, and this is reflected in their preference for processed meat products with lower fat content, reduced sodium levels, and fewer additives. They are also seeking leaner protein options like turkey and chicken.
• Diverse Dietary Preferences: The market is witnessing a growing diversity in dietary preferences, including vegetarian, vegan, flexitarian, and gluten-free. As a response, processed meat companies are developing plant-based and alternative protein products to cater to these preferences.

Market Competition Nature:

Present Strategies:

Diverse Product Offerings: Key players in the processed meat market are expanding their product portfolios to cater to changing consumer preferences. They offer a wide range of processed meat products, including healthier and organic options to meet evolving consumer demands.

Mergers and Acquisitions: Many companies are engaging in mergers and acquisitions to expand their market presence and gain access to new distribution channels. This strategy allows them to diversify their offerings and strengthen their market position.

Future Strategies:

Innovation in Alternative Proteins: As consumer interest in plant-based and alternative protein sources grows, companies may invest in research and development to create innovative meat alternatives. This could involve lab-grown meat or hybrid meat-plant products.

Digital Transformation: Future strategies may involve harnessing technology for improved supply chain management, real-time consumer insights, and personalized marketing. Artificial intelligence and data analytics could play a significant role in decision-making.

Geography Analysis:

How Changing Consumer Preference Drive the Market Growth in Asia-Pacific?

As of April 3, 2023, the Asia-Pacific region's processed meat market is subject to ongoing dietary shifts and changing consumer preferences. In line with the global trend toward increased fat and protein intake, Japan has seen shifts in its dietary habits. A preliminary assessment of the Japanese population's dietary intake concerning the planetary health diet suggests changes in traditional eating patterns. This shift has led to an increased demand for processed meat products in the region, reflecting evolving dietary choices and an inclination towards protein-rich options.

Furthermore, as of March 23, 2023, the Asia-Pacific processed meat market continues to be influenced by the rapid growth of the foodservice industry, encompassing quick-service restaurants (QSRs) and casual dining establishments. These outlets have capitalized on the demand for convenient dining options, incorporating processed meat products into various menu items, such as burgers, sandwiches, pizzas, and hot dogs. The inclusion of dishes like pancakes in restaurant menus further highlights the adaptability of processed meats in catering to diverse consumer tastes. This alignment with changing consumer preferences and the prominence of QSRs and cafés are instrumental in shaping the trajectory of the processed meat market in the Asia-Pacific region.

Why does North America has High Contribution in Processed Meat Market?

In the North American region, the processed meat market has seen a significant surge in demand, primarily driven by the convenience and on-the-go lifestyles of the population. As of April 2023, the fast-paced lives of many North Americans have propelled the need for convenient and readily consumable processed meat products. Items such as pre-packaged lunch meats, deli slices, and heat-and-eat sausages have gained immense popularity among consumers with busy schedules. The shift towards at-home eating occasions further emphasizes the need for quick and easy food options. Consumers are increasingly turning to processed meats that require minimal preparation, aligning with their desire for convenience in their daily dietary choices.

This trend reflects a broader shift in consumer behavior, with at-home eating occasions associated with the consumption of snacks and convenience foods, like cookies and sweetened baked goods, and a decrease in traditional meal items such as entrées, fruits, and vegetables. It highlights the importance of processed meats as a convenient solution for consumers seeking quick and satisfying meal options, and it's a key factor contributing to the growth of the processed meat market in North America.

Key Benefits of Global Processed Meat Market Report:

• Global Processed Meat Market report covers in-depth historical and forecast analysis.
• Global Processed Meat Market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market Opportunities, Competitive Analysis, and Regional and Country Level.
• Global Processed Meat Market report helps to identify opportunities in the marketplace.
• Global Processed Meat Market report covers extensive analysis of emerging trends and competitive landscape.

Global Processed Meat Market Segmentation:

By Meat Type:

• Poultry
• Beef
• Pork
• Others

by Product Type:

• Canned
• Sausages
• Bacon
• Ham
• Others

By Form

• Fresh
• Frozen

By Distribution Channel:

• Online
  • Company website
  • E-commerce
• Offline
  • Supermarkets/Hypermarkets
  • Convenience Stores
  • Specialty Stores

By Regional & Country Level:

• North America
  • S.
  • Canada
• Europe
  • K.
  • France
  • Germany
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • GCC
  • Africa
  • Rest of Middle East and Africa