Meat Products Market

The meat products market is estimated at USD 44.3 billion in 2023 and is projected to reach USD 68.9 billion by 2028, at a CAGR of 9.2% from 2023 to 2028. The global market for meat products is a dynamic and diverse sector within the food industry, covering a range of items such as beef, poultry, pork, lamb, and processed meats. In recent times, there has been a consistent uptrend in the demand for meat products, spurred by various factors, and there are no indications of this trend slowing down.

A primary catalyst for this surge in demand is the continuous growth of the world's population, particularly in emerging markets. The expanding population, coupled with increasing disposable incomes, has led to a rise in the consumption of meat as a primary source of protein. Urbanization is another influential factor, transforming dietary patterns as more individuals migrate to urban areas, resulting in a preference for processed and convenient meat products to align with busy lifestyles.

Global rises in income levels have prompted consumers to seek higher-quality meat products, driving the demand for premium and specialty options, such as organic and grass-fed meat. Shifting consumer preferences towards healthier, protein-rich diets have spurred interest in lean meats and alternatives, including plant-based options such as tofu and plant-based burgers.

Moreover, ethical concerns regarding animal welfare and environmental impact have influenced preferences towards meat products sourced from humanely and sustainably raised animals. A noteworthy example is Cargill, Incorporated (US), which, in collaboration with the China Animal Health and Food Safety Alliance (CAFA), expanded its product range in China by introducing new Sun Valley Raised Without Antibiotics (RWA) chicken products in March 2021. Additionally, the expansion of the foodservice industry, globalization, and advancements in meat processing and packaging have all contributed to the escalating demand for meat products.

The evolving landscape of this market is marked by a broad array of choices, and the industry's future appears promising, with ongoing innovations and increasing consumer awareness of health and environmental concerns expected to play pivotal roles in shaping its trajectory.

The demand for protein, particularly sourced from animals, has consistently been high due to global meat consumption. This demand for protein from animal meat and products is anticipated to persist in the coming years, showing continued growth. According to the OECD FAO Agricultural Outlook 2021-2030, the global consumption of meat proteins is projected to increase by 14% by 2030. Consequently, the demand for meat and meat products is robust and displays no indications of slowing down in the immediate future.

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Market Dynamics

Drivers: Rising Demand for Meat-based Convenience Foods

The trend of urbanization, marked by the increasing migration of individuals from rural to urban areas, has significantly impacted the meat products market. Notably, the convenience associated with processed and pre-packaged meat items plays a crucial role in driving market growth. Urban lifestyles, characterized by fast-paced routines and limited time for traditional food preparation, make these products appealing due to features like pre-cutting, marination, and cooking convenience. Moreover, the compact living spaces and on-the-go lifestyles in urban settings enhance the attractiveness of these products, requiring minimal kitchen equipment and aligning with fast and portable food preferences. The diverse culinary landscape in cities, reflecting various cultures and cuisines, contributes to the demand for processed meats that accommodate multicultural tastes. Additionally, the assurance of food safety and quality addresses concerns of urban consumers who may lack access to fresh and locally sourced meats. In summary, the convenience offered by processed and pre-packaged meat products is a key driver of market growth in urban areas, meeting the diverse needs and preferences of the urban population.

Restraints: Growing Trend of Veganism.

The surging popularity of veganism is exerting a constraining impact on the meat products market, driven by a confluence of factors such as evolving consumer preferences, heightened concerns for health and the environment, and an increasing focus on ethical and animal welfare considerations. Consumers, motivated by the perceived health benefits, environmental sustainability, and ethical apprehensions about animal treatment, are progressively choosing plant-based alternatives over conventional meat products. Government regulations and subsidies that endorse plant-based foods, coupled with advancements in high-quality meat substitutes, further contribute to this transformative trend. Market competition, media influences, and the escalating healthcare costs associated with meat-centric diets also play pivotal roles in steering consumers away from traditional meat consumption. While veganism may not entirely eliminate meat consumption, it is anticipated to result in a substantial decline in the demand for meat products, prompting the meat industry to adapt by offering more sustainable and ethically sourced options.

The shift towards veganism reflects a broader societal consciousness about the impact of dietary choices on personal health, the environment, and animal welfare. This trend is not only driven by individual choices but also by systemic changes, including government policies and advancements in food technology. As consumers become more informed and conscientious, the meat industry is compelled to reevaluate its practices and offerings to align with the growing demand for sustainable and ethical food options. This shift underscores a significant transformation in the way we perceive and consume food, emphasizing a more holistic and mindful approach to our dietary habits.

Opportunities: Technological Advancement in Meat Processing Industry

Technological progress is playing a pivotal role in transforming and advancing the meat industry, driving its growth and evolution. These innovations are significantly improving product quality, extending shelf life, and minimizing waste. The use of modern meat processing equipment allows for precise and controlled methods, ensuring consistent cuts that meet high standards of taste and quality. This not only reflects the industry's commitment to safety and regulatory standards but also contributes to consumer satisfaction.

In terms of packaging, advancements such as Modified Atmosphere Packaging and vacuum sealing create controlled environments that enhance the shelf life of meat products, addressing concerns about food waste and promoting sustainability. Additionally, waste reduction efforts are being supported by advanced processing equipment, which maximizes meat utilization and minimizes trimmings and byproducts that would otherwise be discarded. Innovations in packaging materials also contribute to eco-friendly practices by minimizing excessive packaging.

Operational efficiency is a notable outcome of integrating technology into the meat industry. Automation and robotics are becoming increasingly prevalent in meat processing facilities, streamlining operations, increasing productivity, and reducing labor costs. Automated systems for cutting, trimming, and portioning not only improve efficiency but also ensure product consistency and reduce the risk of human error. Moreover, technological innovations enable traceability and quality control through the use of data, barcoding, and RFID systems, allowing real-time monitoring and tracking of products throughout the supply chain, thereby enhancing safety measures and regulatory compliance. Sustainability is a central focus in the integration of technological advancements within the meat industry. The emphasis on waste reduction, quality improvement, and the adoption of energy-efficient equipment contributes to minimizing the industry's environmental footprint. In conclusion, the meat industry's embrace of new technologies positions it well to meet changing consumer demands, reduce environmental impact, and maintain a competitive edge in the market.

Challenges: Fluctuation in Feed Prices and Labour Costs  

Volatility in feed prices and labor costs presents substantial challenges to the meat products market, as evidenced by recent developments in Kazakhstan's poultry industry. The escalation of feed costs, influenced by global dynamics in the grain market, has had a profound effect on domestic poultry and egg production. Nearly 70% of the production costs for poultry and eggs are attributed to feed expenses, and these costs have surged significantly over time. For instance, data from Poultry World in 2019 indicated that the price of wheat was USD 109 per tonne, whereas the current price has surged to USD 237 per tonne. Similarly, corn prices have increased by 50%, and soybean meal has experienced a threefold price hike, rising from USD 213 to USD 639 per tonne in Kazakhstan.

These fluctuations have created difficulties for poultry farmers in maintaining reasonable price levels for national consumption. The industry's heavy dependence on imports for various resources, including live birds, veterinary drugs, and production equipment, exacerbates the challenge. The weakened exchange rate of the Kazakh tenge has further increased the cost of these imports. Consequently, poultry farmers are grappling with heightened production costs, necessitating government consideration of state support and subsidies to alleviate the impact of expensive feed on the industry's sustainability. This situation underscores the meat products market's susceptibility to feed price fluctuations and emphasizes the importance of implementing strategic measures to stabilize the sector and ensure the affordability of meat products for consumers.

Market Ecosystem

Processed is one of the types that Accounted for the Highest Market Share in 2022.

The surging demand for processed meat products, encompassing cured, dried, roasted, smoked, and fermented varieties, can be attributed to a confluence of factors reshaping consumer behavior. In today's fast-paced lifestyles, characterized by time constraints and hectic schedules, the convenience offered by processed meats has become increasingly appealing. These products require minimal preparation, aligning seamlessly with the preferences of busy individuals and professionals seeking quick and easy meal solutions. Moreover, the diverse flavors and textures achieved through curing, smoking, and fermentation processes cater to the evolving culinary tastes of a more adventurous and discerning consumer base.

The globalization of food culture has also played a pivotal role, exposing consumers to a broader array of culinary traditions and fostering a demand for unique and exotic flavors. As disposable incomes rise globally, consumers are more inclined to opt for convenience foods, with processed meats fitting the bill as a ready-to-eat or easy-to-prepare option. Despite health considerations, the indulgent and savory qualities of processed meats continue to attract consumers, prompting manufacturers to adapt by introducing healthier formulations. In essence, the burgeoning demand for processed meat products reflects a dynamic interplay of convenience, culinary diversity, economic trends, and evolving consumer preferences in the contemporary food landscape.

Europe is the Fastest-Growing Market for Meat Products Among the Regions.

The European market offers significant business prospects for meat product manufacturers, driven by the increasing emphasis on health awareness in the region. This heightened awareness has led to a surge in demand for meat products, supported by a growing number of manufacturers entering the market and introducing new products. Factors such as sustainability concerns and a heightened focus on health practices are key drivers of this shift.

The rising trend of embracing new dietary preferences and health-conscious choices is propelling the meat products market in Europe. The region hosts a substantial number of major players in the meat industry, and these companies are actively seeking opportunities to strengthen their market positions. Strategies employed by these manufacturers include product launches, expanding production capacities, and engaging in partnerships and acquisitions with other industry players to enhance their geographical presence and establish dominance in the European meat products sector. For example, in August 2022, Vion Group from the Netherlands is making significant investments to expand its operations in eastern Germany, specifically in Thuringia and Brandenburg. The company is committed to fostering regionalism in food retail by focusing on delivering fresh beef and pork products to meet the growing demand for local and regional options, including organic choices. This approach aims to minimize carbon footprint and enhance animal welfare by reducing transport times.

Key Market Players

The key players in this market include Cargill, Incorporated (US), JBS SA (Brazil), Tyson Foods, Inc. (Arkansans), Hormel Foods Corporation (US), Vion Group (Netherlands).

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Scope of the Report

This research report categorizes the meat products market, based on animal type, type, distribution channel, nature, packaging, end user, and region.

Meat Products Market Segmentation:

By Animal Type

• Beef
• Pork
• Poultry
• Other Animal Type

By Type

• Processed
  • Cured
  • Dried
  • Fermented
  • Other Processed Type
• Frozen
• Canned/preserved
• Chilled
• Fresh

By Distribution Channel

• Retail
  • Supermarkets/Hypermarkets
  • Convenience stores
  • Other retail channels
• Food Services
• E-Commerce

By Nature

• Conventional
• Organic

By Packaging (qualitative)

• Fresh Meat Packaging
• Vaccum Packaging
• Modified Atmosphere packaging

By End Use (qualitative)

• Commercial/Institutional
• Household/Consumers

By Region:

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Target Audience

• Processed food products manufacturers
• Restaurants, Food services
• Meat Products Consumers
• Meat products traders

Meat Products Market Recent Developments

• In September 2023, Minerva Foods SA (Brazil) has completed its acquisition of Breeders and Packers Uruguay SA (BPU Meat), a subsidiary of NH Foods, with a total investment of USD 40 million. With this acquisition, Minerva Foods significantly enhanced its total slaughter capacity, which now reaches 3,700 heads per day, distributed across four refrigeration units, including the newly acquired BPU Meat.
• In August 2023, Minerva Foods SA (Brazil) has acquired the majority of Marfrig's cattle and sheep slaughtering and deboning operations in South America. The deal cost USD 1.45 billion. The transaction is expected to deepen Minerva's geographical diversification
• In July 2023, Vion Zucht- und Nutzvieh (Netherlands) and Danish Crown have entered a contract for cattle slaughtering services in Schleswig-Holstein. Commencing from August 1, 2023, Danish Crown will undertake the slaughter of up to 1,000 young bulls, cows, and heifers per week on behalf of Vion Food Group. This helps them to produce a large quantity of meat to meet the demand of consumers.
• In May 2023, The Danish Crown (Denmark) acquired the SELO Verpakking and SELO Belgium, (Benlux). With the acquisition of the majority stake in the SELO companies gives them a perfect platform to grow their business in Benelux.
• In March 2023, Hormel Foods (US), the maker of HORMEL BLACK LABEL Bacon, has introduced a unique product called "Hardcourt Smoked HORMEL BLACK LABEL Bacon." This bacon is smoked using actual northern cherry maple wood that is used to make the basketball courts for the 2023 college basketball tournament.

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