Processed Meat Market Size, Share & Industry Analysis, By Type (Frozen, Canned, and Chilled), Animal Type (Poultry, Beef, Pork, and Others), Distribution Channel (Hypermarket/Supermarket, Convenience Stores, Specialty Stores, and Others), and Regional Forecast, 2020-2032

The global processed meat market size was USD 519.41 billion in 2019 and is projected to reach USD 1101.94 billion by 2032, exhibiting a CAGR of 6.06% during the forecast period based on our analysis in the existing report. North America dominated the processed meat market with a market share of 40.83% in 2019. The processed meat market in the U.S. is projected to grow significantly, reaching an estimated value of USD 398 million by 2032, driven by the growing demand for convenient protein rich and ready to eat or ready to cook meat products among consumers.

The market is fueled by the increasing consumption of various packaged food products and beverages. Processes such as salting, curing, and smoking are used to improve the taste and retain the qualities of these meat products. Owing to the fast-paced lifestyle and increasing salaried workers’ population, the consumption rate of ready-to-eat food products has increased, which is expected to aid market growth.

However, the current market for processed meat is expected to see a sudden increase in sales. This is owing to the change in the purchasing pattern of the consumers. Owing to the pandemic situation, most of the countries are in a state of lockdown and the respective government bodies have imposed various rules regarding the purchase of essentials. Besides, these rules and regulations have impacted the purchasing pattern of consumers. People prefer eating processed food, as it requires less time for cooking, which aids the processed meat market growth for the next two years.

PROCESSED MEAT MARKET TRENDS

Increasing Consumer Demand for Ready-to-Eat and Ready-to-Cook Food Products

The increasing demand of consumers for ready-to-eat and ready-to-cook foods in both developed and developing economies aids in the growth of the market. The fast-paced lifestyle of the consumers and the less time spent on cooking is a major factor that is driving the market. The growing consumption and the wide acceptance of ready-to-eat and ready-to-cook products by millennials will drive the market. Further, this type of meat manufacturers introducing several innovative ready-to-cook food premixes to shorten the food preparation time helps in creating product demand.

DRIVING FACTORS

Consumer Inclination towards Flavored Meat Products

The rising consumer demand for flavored and nutritious meat products has driven the packaged meat market. Various herbs, marinades, seasonings, and spices are applied to the packaged meat products that give it an umami taste and flavored texture. The meat flavors trend is expanding and further incorporating meat processing methods such as glazing and braising owing to the consumers evolving taste preferences. Consumers prefer taste but not the time commitment of such intricate meat preparations, which has contributed in the growing popularity of the packaged meat products. Few examples of this type of meat products are salami, ham, sausages, bacon, and others. The adoption of cross-country food culture and various techniques to process and preserve the meat is majorly contributing to the market growth.

For instance, In July 2019,  John Bean Technologies launched a new technology HPP (high-pressure processing), that not only kills microbes but also extends the shelf life of the meat by a factor of two to four times.

Rising Consumer Awareness For Organic Processed Meat Products

A significant number of consumers are aware of the conventionally reared poultry and cattle for producing meat. There is a rise in awareness among them about eating healthy, safe, free from antibiotics and chemical residue foods, which has nudged them to shift towards organic meat products. This factor propels the demand for adopting organic animal husbandry. The manufacturers coping with the growing trend and are producing meat products that are obtained from organic certified farms. The usage of organic meat helps in retaining the authenticity of food products. In recent years, synthetic curing agents such as nitrites and nitrates have harmful effects on the body and may increase the risk of cancer. These synthetic preservatives are now replaced by celery powder for preserving the meat.

The United States Department of Agriculture approves that the usage of celery powder and cherry powder is safe as a replacement of nitrates and nitrites for preserving the meat products.

RESTRAINING FACTORS

Carcinogenic Effects of Processed Meat Constraints the Market Growth

The World Health Organization (WHO) classifies red meat and processed meats under group 1 carcinogen, which indicates that the consumption of these meat products can cause cancer. Red meat and processed meat are high in dietary cholesterol that is associated with abnormal glucose metabolism in the body. Furthermore, the wide utilization of synthetic preservatives has proven to show a negative impact on the body. These perceived negative health effects will constraint the market growth as consumers are inclining towards plant-based meat products.

According to a study conducted by the National Center for Biotechnology Information, the high consumption of red meat and processed meat can lead to colorectal cancer.

PROCESSED MEAT MARKET SEGMENTATION ANALYSIS

By Type Analysis

Frozen Meat to Hold Largest Market Share Owing to the Ease of Transportation

Frozen meat is accounted for holding the largest share for the market. This is ascribable to factors such as the ease of storage and transportation. Frozen meat offers an advantage over fresh meat such as longer shelf life and lesser chances of microbial contamination. Various food chains are widely utilizing frozen meat for their food preparations due to their easy availability and convenience of cooking. Along with this factor, the younger population prefers using frozen packaged meat due to its easy availability and is directly used for food preparations without any further processing. The increasing consumption of salami, sausages, and nuggets among the consumers, especially in America has fuelled the growth of the segment. The International trade of frozen meat products has gained prominence owing to the increase in demand. The manufacturers are investing in innovative technologies and cold chain infrastructure for storing large quantities of meat products that will favor the market growth.

On the other hand, the usage of canned meat grows at a moderate CAGR owing to the perceived less nutritional content as compared to frozen and fresh meat. The production of canned meat is cost-effective and, hence are affordable and convenient. Whereas, the chilled meat is stored at minimum temperatures without freezing the muscle tissues of the meat. However, when exposed to the aerobic atmosphere it will lead to product discoloration and microbial contamination. Thus, new techniques are being devised to overcome such quality defects.

By Animal Type Analysis

Poultry Sector to hold Largest Share Owing to the Increased Consumption of Packaged Chicken

The poultry sector contributes to a decent share for the market owing to the shifting preferences of consumers from red meat due to its negative health effects. The poultry meat and eggs are a great source of protein, which creates traction among bodybuilders. The relatively low and competitive pricing of poultry as compared to other meat along with its dietary and nutritional properties are the main factors driving the market. The rising physical fitness trend among the millennials has led them to consume poultry products to suffice their daily protein intake. The consumption of processed poultry meat in countries such as the U.S. and Germany is higher compared to whole and raw meat, which positively impacts the market growth.

Pork and beef are as well widely consumed across the world owing to their high protein content and their wide incorporation in convenience foods such as burgers and sandwiches. Pork is the third most profoundly consumed meat in the U.S. as it has the highest protein content among the other red meats. Beef is also consumed widely across the world due to the higher meat yield and flavourful taste.

By Distribution Channel Analysis

Gradual Strengthening of Modern Retails Channels Results in Higher Revenue Generation through Mass Merchandisers

Supermarkets and hypermarkets are the most preferred retail channels by consumers due to the wide range of product availability. These mass merchandisers offer enhanced convenience, different varieties of processed foods, bundling offers, schemes, and convenient shopping experiences to the consumers. The presence of product distinct shelves and the availability of other household products under a single roof has further fuelled its market growth. The marketers are intensively focussing on the development of modern trades and convenient retail points to offer ease of shopping at affordable prices, which has contributed to higher sales of the products in the market. The online retail segment is also gaining traction as it offers a digitalized buying experience. The availability of numerous products at discounted prices along with the doorstep delivery options has played a crucial role in its growing popularity among consumers.

REGIONAL INSIGHTS

North America to Exhibit High Growth Owing to the Emerging Processed Food Industry

The market is propelling owing to the large consumer base for processed food products and beverages. North America is a developed economy that consists of a large population and equally large working professionals. The increasing demand for convenience food and high-protein animal meat products has driven the regional market. The strong distribution channel network offers easy availability of processed meat to the consumers. The manufacturers are focusing on technological innovations and increasing their production capacities to serve a larger consumer base. Consumption of beef, veal, hot dog, and steak has contributed to the regional market growth. A steep increase in the market is observed due to the global COVID-19 pandemic, as all the consumers in the region prefer the processed food products for ready consumption. This involves less cooking time too. The trend is expected to remain the same for the next two years owing to the above factor.

Followed by North America, Europe is expected to hold the second-largest market share in the market. This is attributable to factors such as the presence of major processed products consuming countries such as Germany, France, and Italy. The processed pork and minced beef are widely consumed in the region due to their lower price and improved taste offered by them in the dishes. The presence of a large migrant population in the region has surged the market growth. The cross-culture food trend in the region has led to the utilization of processed meat in various culinary preparations such as sushi. The restaurants and fast-food chains in the region utilize frozen meat products such as salami and pastrami for making sandwiches and burgers. However, the major dip in the market was caused due to COVID-19 and the number of patients affected in Europe. A major number of deaths was from Spain, Italy, and the U.K, which has led the processed meat business to a standstill. This is expected to negatively impact the market.

Asia Pacific holds a significant market share owing to the large population base in the region. The rise in urbanization and disposable income have influenced market growth. The wide acceptance of westernized culture also plays a major role in driving the regional market.

The Middle East and Africa holds the least market share. This is attributable to the wide incorporation of meat in various Mediterranean cuisines such as shawarma and lamb stews. The growing preference towards ready-to-cook meat products is expected to drive the market growth.

KEY INDUSTRY PLAYERS

Industry Manufacturers Focusing on New Acquisitions for Market Expansion

The market structure is fragmented owing to the presence of various local and global players in the market. These manufacturers are focusing on expanding their production capacity by new mergers and acquisitions. This way it helps in new product development and strengthens their supply chain. Furthermore, it helps in providing quality products to consumers. Hormel Foods Corporation, Conagra Brands Inc., Foster Farms, JBS S.A., Tyson Foods Inc., and Smithfield Foods, Inc. are the prominent market players among the others.

LIST OF KEY COMPANIES PROFILED:

• Hormel Foods Corporation (United States)


• Conagra Brands Inc. (United States)


• Foster Farms (United States)


• JBS S.A. (Brazil)


• Tyson Foods Inc. (United States)


• Smithfield Foods, Inc. (United States)


• Cargill Incorporated (United States)


• Pilgrim's Pride Corporation (United States)


• The Kraft Heinz Company (United States)


• China Xiangtai Food Co., Ltd. (China)

KEY INDUSTRY DEVELOPMENTS:

• In February 2020, Cranswick PLC acquired the Buckle Farm’s Limited’s pig farming and rearing operations. This acquisition helps the company expand its pig processing business and increase its self-sufficiency by 30%.


• In April 2019, JBS S.A. acquired a local pork processor Adelle Indústria de Alimentos, for strengthening its position in the pork processing market in Brazil.

REPORT COVERAGE

The frozen meat segment has witnessed significant growth in the overall market globally. The growing world population is inclining towards convenience food due to the fast-paced lifestyles, which is anticipated to contribute to the global market growth in the future years.

The report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of its utility, applications, types of meat, market size, and growth rate for all possible segments in the market.

Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key processed meat industry trends.

Report Scope & Segmentation