The Global Processed Meat Market Anticipated to Generate a Revenue of $4,79,472.50 Million, Growing at a CAGR of 7.20% from 2021 to 2028Download Sample Reports Overview
The global processed meat market is estimated to be valued at $4,79,472.50 million by 2028, surging from $2,77,000.00 million in 2020, at a noteworthy CAGR of 7.20%.
Impact Analysis of COVID-19 on the Processed Meat Market
The global market for processed meat is estimated to experience a low growth amid the COVID-19 pandemic. This low growth is the result of disruptions in supply chain and closing of manufacturing facilities across the globe. In addition to this, pandemic has hit the entire meat supply chain of production and it is impacting the businesses and workers engaged in it. Moreover, spreading of the corona virus at processing plants might have led decrease in the operating capacity, resulting into the decline in the output of processed meat market. Therefore, demand for processed meat is decreasing amid the pandemic.
However, according to a news article, in June 2021, JBS SA, largest meat processing company based in Brazil, announced that they have started their operations via online service as their operational facilities are disrupted due to pandemic. All such factors are predicted to bring new opportunities in the global processed meat market post-pandemic.
Global Processed Meat Market Analysis
The enormous growth of the global processed meat market is mainly attributed to increasing prevalence of flavored and nutritious meat products such as sausages, hot dogs, burgers, and others. Moreover, rising adoption of busy lifestyles and increasing purchasing power of the consumers are some of the factors that are driving the growth of the processed meat market. Furthermore, now-a-days people don’t have much time to prepare food, therefore they have started adopting ready to eat or cook food products that consume very less time for preparation and offer good quality food with great taste. These types of factors are fueling the market growth.
Disadvantages associated with processed meat consumption such as heart related issues and risk of developing cancer may create a negative impact on the market during the forecast period.
The increasing preferences towards the organic product variants such as nitrate free preservatives is one of the trends that may create huge opportunities for the market in the future. Growing awareness regarding the health risk that is associated with the high usage of nitrate as a preservative in processed meat might impel the market players to replace it with healthier preservative. Therefore, manufacturers across the globe are adopting natural preservatives such as cherry celery powder. These are some of the elements that may further lead to lucrative market opportunities in the market in the upcoming years.
Global Processed Meat Market, Segmentation
The global processed meat market is segmented based on meat, product, distribution channel, and region.
The meat type segment is further classified into poultry, beef, pork, and others. Among these, the poultry type sub-segment is anticipated to have the fastest growth as well as dominant share and surpass $1,95,272.50 million by 2028, with an increase from $1,09,489.10 million in 2020.
The market growth can be attributed to increasing demand for poultry meat due to its health benefits such as it contains high nutrients and essential amino acids, creating a positive impact on the sub-segment throughout the forecast period.
The product segment is further divided into frozen, chilled, and canned. The frozen sub-segment is anticipated to be the dominating as well as fastest growing sub-segment in the global market and register a revenue of $2,90,669.30 million during the analysis timeframe.
The growth of frozen sub-segment is attributed to its advantages such as it is safe, has higher shelf life, and chances of microbe’s growth is very less. These aspects may aid in the generation of a lucrative revenue for the market throughout the forecast period.
The distribution channel segment is further divided into supermarkets/hypermarkets, convenience stores independent retailers, and online/others. The supermarkets/hypermarkets sub-segment is anticipated to be the dominating sub-segment in the global market and register a revenue of $2,95,508.80 million during the analysis timeframe.
The growth of supermarkets/hypermarkets sub-segment owes to their growing popularity among people due to availability of diverse range of processed meat in the supermarket, freedom of selection, and other facilities. Moreover, many consumers are preferring to buy groceries in mass for particular time frame due to hectic lifestyles. These aspects may aid in the generation of a lucrative revenue for the market throughout the forecast period.
The processed meat market for the North American region is projected to witness dominant share. This market generated a revenue of $1,06,645.00 million in 2020 and is further projected to reach up to $1,85,076.40 million by 2028.
The demand for processed meat is surging in the North America region specifically because of factors such as increasing advancements in technologies along with increasing prevalence of ready to eat food.
Key Players in the Global Processed Meat Market
Some of the leading global processed meat market players are
- JBS S.A.
- Smithfield Foods, Inc.
- Perdue Farms, Inc.
- Tyson Foods, Inc.
- American Foods Group, LLC.
- Hormel Foods Corporation
- Koch Foods, LLC.
- OSI Group
- Swiss Meat & Sausages Co.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Processed Meat Market
- Bargaining Power of Suppliers: The suppliers involved in the market are extensive in number. Thus, manufacturers and companies have several options and alternatives to handle expensive supplies. Hence, there will be low threat from the supplier side.
Thus, the bargaining power of the suppliers is low.
- Bargaining Power of Buyers: Buyers have high bargaining power, primarily because of high availability different processed meat products.
Hence, the bargaining power of buyers is high.
- Threat of New Entrants: Startups entering this market are providing innovative processed meat to the customers. However, companies that are in the processed meat market are much more globalized.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: There are various substitute available for processed meat such as different types of animal-based proteins, but they don’t have high shelf life as processed meat.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: The ventures operating in the global processed meat are opting for various businesses deployment strategies to hold their position in the market. Several companies are launching their value-added services in the international market and strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.