Processed Meat Market Expected to Reach $497.1 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research, titled, “Processed Meat Market by Meat Type, Product Type, Application, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global processed meat market size is expected to reach $497.1 billion by 2030 at a CAGR of 4.8% from 2021 to 2030.

Processed meat is prepared by converting the meat or its byproducts such as blood through fermentation, salting, smoking, curing, and other processes to enhance the taste and increase the shelf life of the meat. Red and white meat are both processed and various processed meat products include ham, bacon, sausages, hot dogs, and pepperoni. Red meat includes pork, beef, and lamb while white meat includes poultry such as chicken, turkey, and duck. Different preservatives and additives such as sodium nitrite, sodium nitrate, spices, and sodium phosphate are used in the processing of meat that adds flavor and reduces the growth of microorganisms which prevents the spoilage of food.

The processed meat market is gaining momentum in the global markets due to the growing preference for convenience foods among the population. Rising disposable income, consumers changing lifestyle, and rapid growth in the urban population are expected to foster the global processed meat market growth throughout the forecast period. The hectic lifestyle of the working professionals, especially the working youth population, wants to spend less time cooking. Hence, they prefer ready-to-cook and ready-to-eat food products. This demand is met by processed meat, which saves time. This is a significant driver propelling the growth of the global processed meat market.

The increase in popularity of quick-service restaurants chains, hotels, fast-casual restaurants, cloud kitchens, and cafes has led to the growth of the processed meat market in North America and Europe. According to Centers for Disease Control and Prevention (CDC), around 36.6% of adults in the U.S. consume fast -food on regular basis. Hence, the fast-food chains such as KFC, Subway, McDonalds, and Burger King have significantly contributed towards the growth in the consumption of processed meat in the developed markets like North America and Europe. The rapid rise and popularity of these fast-food chains in Asia-Pacific and LAMEA is expected to boost the demand for processed meat in the forthcoming years and hence provide lucrative growth opportunities to the players operating in the global processed meat market.

The use of blockchain technology in the animal meat industry is a trending topic. JBS S.A. has announced the use of blockchain technology to achieve sustainability and conservation of Amazon rainforests in Brazil. The use of this technology improves meat quality, traceability, transparency, and sustainability along the value chain. Therefore, blockchain technology is expected to improve efficiency in animal farming, hence contributing to the growth of the processed meat industry.

According to the World Health Organization (WHO), the processed meat is carcinogenic to humans. It means consumption of processed meat may cause colorectal cancer. The cancer is caused due to the use of different chemicals used to process and preserve meat. This is a major restraining factor that hinder the demand for the processed meat and hamper the growth of the market globally.

According to the global processed meat market analysis, the market is segmented based on meat type, product type, application, distribution channel, and region. On the basis of the meat type, the market is segregated into poultry, beef, pork, and others. On the basis of product type, it is classified into frozen, chilled, and canned. On the basis of the application, the market is bifurcated into commercial and residential. On the basis of the distribution channel, the processed meat market is segmented into HoReCa (Hotels, Restaurants, and Cafes), supermarkets/hypermarkets, convenience stores, independent retailers, and others.

On the basis of region, the processed meat market is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Russia, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Singapore, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, South Africa, Egypt, and rest of LAMEA).

According to the processed meat market forecast, on the basis of meat type, the pork segment is expected to be the fastest-growing segment owing to its nutritional benefits, pleasing flavor, and growing popularity among global consumers. The poultry segment dominated the market in 2020, accounting for about 43.2% of the processed meat market share owing to its low cost and nutritional benefits over red meat.

 On the basis of the product type, the frozen segment accounted for 67.9% of the overall market share. Factors such as technological advancements pertaining to improving the shelf life of frozen meat products, rising preference for convenience and ready-to-cook foods, and growing demand from household and commercial sectors are driving the frozen segment.

On the basis of the application, the commercial segment dominated the processed meat market in 2020, accounting for 85.0%. The commercial segment has grown significantly growth in the past few decades due to the increased popularity of fast-food chains, restaurants, and cafes such as KFC, McDonalds, Dominos, Burger King, and Yum Brands. Moreover, hotels, restaurants, and cafes at local level plays a significant role in processed meat consumption.

According to the processed meat market trends, based on the distribution channel, the HoReCa (Hotels, restaurants, and cafes) and the supermarkets/hypermarkets collectively accounted for 70.5% in 2020 due to their increasing popularity in the developed markets like North America and Europe.

Players operating in the global processed meat market have used a variety of developmental strategies to expand their market share, focus on processed meat market opportunities, and boost market profitability. The key players profiled in this report include American Foods Group, LLC., Cargill, Incorporated, Hormel Foods Corporation, JBS S.A., Koch Foods, LLC., OSI Group, Perdue Farms, Inc., Smithfield Foods, Inc., Swiss Meat & Sausages Co., and Tyson Foods, Inc.

Key findings of the study 

• The processed meat market was valued at $319.6 billion in 2020, and is estimated to reach $497.1 billion by 2030, growing at a CAGR of 4.8% during the forecast period. 
• By meat type, the pork segment is estimated to witness the fastest growth, registering a CAGR of 5.1% during the forecast period.
• In 2020, depending on product type, the frozen segment was valued at $217.1 billion, accounting for 67.9% of the global processed meat market share. 
• In 2020, the U.S. was the most prominent market in North America, and is projected to reach $54.4 billion by 2030, growing at a CAGR of 3.2% during the forecast period