Modern consumers are characterized by their hectic lifestyle and busy lives. This trend has opened the doors for packaged, ready-to-eat, and convenience food such as processed meat products. Companies in the processed meat market are increasingly on the lookout for new technologies that can improve their offerings and provide customers with the experience and taste of eating fresh meat (Source: Global Processed Meat Procurement Market Intelligence Report). Furthermore, the growth of the food service and retail industry has increased the demand and supply of processed meat products. The growth of fast food giants will further fuel the rise of the processed meat market. However, one of the major factors that will negatively impact the processed meat market is the increasing obesity level globally, which is rising due to the high intake of processed meat products.
Category contribution
Chilled meat will account for the largest contribution to the growth of the global processed meat market. Between 2012 and 2016, the category contributed over 70% to the market’s value growth. The poultry segment accounted for over 42% of the total processed meat market share in 2017. The segment registered significant growth during 2010-2017 due to the introduction of enhanced breeding stocks, availability of feedstocks such as soybean meal and maize, and better marketing infrastructure.
Market growth
The processed meat market is in for a steady growth with a CAGR of 12% between the period 2017-2022. In addition, factors such as increasing trade liberalization policies through multilateral and regional trade agreements have led to rapid growth in food processing, which is expected to augment the growth of the market. Suppliers in the processed meat market are involved in strategic alliances with raw material suppliers and adopting vertical integration practices. This enables them to achieve significant bargaining power and obtain cost savings between 3%- 5 %.
Largest market for processed meat products
Increasing population, demand for animal source food, and growing urbanization are the major factors that are expected to drive the global demand for processed meat by 2022. The APAC region is one of the biggest markets for processed meat products. Regions such as China, Pakistan, and Southeast Asia are expected to observe the highest growth due to the increasing consumer spend on food products. Furthermore, the export of processed meat from suppliers, especially in APAC, is expected to increase due to the growing adoption of standard protocols in production methods.
Pricing model
There are two main types of pricing models for processed meat products – volume-based pricing and market pricing. In volume-based pricing, buyers can be assured of consistent product supply and availability of the product during demand-supply fluctuations. Market pricing is transparent, as it is based on variable costs of production and market prices.
Market innovations
Increasing adoption of technologies in production practices has led to higher outputs and efficiency in operations for companies in the processed meat market. Some of these technological innovations include data collection technologies for analysis of flock, in-shed sensors for monitoring production data, and aero scalding techniques for improving energy efficiency.
Read more about the market outlook of the processed meat products market along with procurement best practices, pricing insights, supply market insights, and market innovations in SpendEdge’s report on the global processed meat market.
