The rise in veganism was initially feared to be a great threat to meat and other animal-based products. Despite this, according to records, six million calves are killed for food every year in Europe. Veal meat is produced by slaughtering calves when they are 18-25 weeks old. Often, dairy cows are repeatedly impregnated to produce milk. This is done by artificially inseminating them throughout their lives. The calves are then removed so that the milk can be collected and sold. The meat of younger animals is more tender and softer than older animals, which is emerging as a major factor driving the market’s growth. Moreover, the meat obtained from grass-fed calves that are raised under proper conditions and fed with natural milk is denser in nutrients. In terms of trade, the exports of veal meat and beef from Mexico, Japan, China (Taiwan), South Korea, and Hong Kong have increased over the past couple of years and are expected to increase further by 2022. (Source: Global Veal Meat Procurement Market Intelligence).
Market insightsÂ
Increased consumption of meat-based products such as burgers and hot dogs in developing economies mainly by fast food or dine outs has spiked up the demand for veal meat. The major reason for the increasing number of fast food outlets
in APAC is the changing consumer spending patterns in countries such as India and China. However, dwindling supplies of calves in India, one of the leading exporters of veal meat, due to religious sentiments of Hindus associated with cows have affected the growth of the market. Europe is another leading market with France and the Netherlands being the largest producers of veal in the region. Major end-users of veal meat in the region include supermarkets, traditional butcher shops, and hotel and catering industries.
Pricing modelÂ
Over the past few years, this market experienced a significant increase in prices owing to the rise in costs of key input elements such as manure management, animal feed costs, grain, milk, and milk replacers. The increase in prices of such inputs has affected the breeding activities; thereby, driving the prices of veal meat. Veal meat has a higher retail price compared with beef due to higher protein content and nutrition value, and finer texture than beef. The price of veal meat fluctuates based on seasonal demand due to its dependence on biological and market fundamentals and climatic conditions. Suppliers of veal meat are focusing on reducing labor costs through automation. These costs are expected to decrease up to 6% by 2022.
Market innovationsÂ
Over the years, several players in this market have been experimenting with market innovations to reduce costs without compromising on the quality. For instance, in the Netherlands, a prominent integrator has developed a new type of fattened calves. These calves are fed with grains rather than milk replacers, thus resulting in low processing cost of veal meat. Suppliers are also trying to incorporate innovative methods to obtain meat by avoiding slaughtering and packaging technology for increasing shelf life and preserving the quality of the veal meat.
SpendEdges’s latest report on the global veal meat market provides in-depth insights on the procurement best practices, pricing insights, supply market insights, and market innovations.
