Processed Meat Market Size (2024 – 2030)

The Processed Meat Market was valued at USD 163.49 billion in 2023. Over the forecast period of 2024-2030 it is projected to reach USD 190.78 billion by 2030, growing at a CAGR of 2.23%.

Processed meat is classified as meat that undergoes preservation methods such as curing through smoking, salting, fermenting, or the addition of chemicals. This is done to prolong its shelf life and enhance its flavor. Common types of meat utilized in processed meat production encompass beef, pork, turkey, chicken, and lamb. Examples of processed meat products comprise pepperoni, jerky, hot dogs, and sausages. Preservation additives are incorporated into the meat to safeguard it against spoilage caused by bacteria and similar microorganisms.

Key Market Insights:

The HoReCa (Hotels, restaurants, and cafes) and the supermarkets/hypermarkets collectively accounted for 70.5% in 2020 due to their increased popularity in the developed markets like North America and Europe. The Beef segment is expected to grow at a CAGR of 4.1% through the forecast period. Beef jerky, like bacon, sausage, and hot dogs, is a type of processed red meat. According to experts, eating too much bacon, sausages, hot dogs, canned meat, or lunch meat anything that has been processed in some way to preserve or flavour it is harmful to health.

 Processed Meat Market Drivers:

Increasing Fast-Food Chains in Developed Regions Fuel Processed Meat Market Growth.

The notable proliferation of fast-food franchises including Subway, KFC, McDonald’s, Burger King, and Taco Bell has significantly impacted the escalating consumption of processed meat. Moreover, the availability of discounts and cost-effective meal bundles offered by these chains has notably bolstered the expansion of the global processed meat market.

The increasing disposable income among urban dwellers has further propelled the demand for processed meat in the global market. Additionally, the bustling urban lifestyle has led consumers to favor convenient food options that require minimal time for cooking or preparation.

Processed Meat Market Restraints and Challenges:

Rise in Obesity Levels & Unhealthy Lifestyle may hinder the Market Expansion

The increasing preference for ready-to-eat meat stands as the primary driver fueling the expansion of the global processed meat market. Nonetheless, several factors act as impediments to its growth. One such factor is the health concerns associated with consuming processed food products, which often lead to elevated levels of cholesterol and fat in the body, prompting individuals to adopt unhealthy lifestyles. The growing awareness of the adverse effects of processed food consumption, particularly on obesity rates, is dampening the demand for processed meat.

The surge in the number of meat-consuming consumers has raised concerns among processed meat manufacturers. Meeting the escalating demand often compromises the preservation of meat freshness, consequently impacting the forthcoming demand.

Processed Meat Market Opportunities:

Shifting towards Protein-enriched Food is Likely to Put Europe at the Forefront of Processed Meat Market

The increasing demographic of millennials as consumers, coupled with a heightened awareness of protein-rich diets among the populace, is anticipated to propel demand in the country in the coming period.

PROCESSED MEAT MARKET REPORT COVERAGE:

Processed Meat Market Segmentation: By Meat Type

• Beef

• Mutton

• Pork

• Poultry

The poultry segment has secured the largest share in the market, attributed to its cost-effectiveness and the growing preference among consumers for white meat over red meat. This segment is projected to maintain its dominance throughout the forecast period.

Conversely, the growth of the pork and beef processed meat market may face challenges due to research findings from the International Agency for Research on Cancer (IARC). The agency has indicated a potential link between red meat consumption and cancer in humans, supported by substantial mechanistic evidence.

On the other hand, the mutton meat category is poised to emerge as the fastest-growing segment in the processed meat market, with a projected Compound Annual Growth Rate (CAGR) of 2.74% during the forecast period. The mutton processed meat sector is responding to consumer demand for healthier processed meats through various strategies. These approaches involve reducing the presence of unhealthy ingredients such as sodium chloride, nitrite, and nitrate, or increasing the use of ingredients with positive health effects, such as substituting nitrate with alternative curing agents like celery powder.

Processed Meat Market Segmentation: By Type

• Hamburgers

• Fried Sausages

• Kebab

• Chicken Nuggets

Hamburgers hold the leading position as the dominant segment in the market. Meanwhile, Chicken Nuggets and Kebab are identified as the fastest-growing segments. The rising popularity of hamburgers within the global food industry presents abundant growth prospects for processed meat.

Processed Meat Market Segmentation: By Packaging

• Chilled

• Frozen

• Canned

Frozen processed meat emerges as both the dominant and fastest-growing segment in the market. It is widely acknowledged as an ideal fast-food choice, particularly favored among the working demographic. Consequently, the global processed forzen meat market is anticipated to experience an upsurge, driven by the prevailing dominance of fast-food practices.

Processed Meat Market Segmentation: By Distribution Channel

• Off-Trade

• On-Trade

Regarding off-trade channels, processed meat products have predominantly been retailed through outlets such as supermarkets. In 2023, off trade sales accounted for 63.96% of the total value of meat sold, while on-trade contributed 21.31%. This trend can be attributed to ongoing global innovations in meat products.

Notably, there has been a significant surge in commercial meat snacking in recent years. Popular examples of meat-snacking products include My Protein’s beef biltong, Vital Proteins’ beef liver, Jim’s Jerky, The Stock Merchant’s Grass Fed Beef Stock, and Protein Kick’s Peperami Beef Bars.

Processed Meat Market Segmentation- by region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

Europe secured the second-highest share in the market, driven by growing consumer awareness regarding the hazards associated with nitrate use as a curing agent in processed meat. This awareness has spurred demand for nitrite-free processed meat products such as bacon in European nations, resulting in a sales increase of 6.12% between 2022 and 2023. The processed meat market is characterized by stiff competition and features numerous regional and international players, with dominant entities including Hormel Foods Corporation, Conagra Brands Inc., and WH Group Limited.

Africa is forecasted to be the fastest-growing region in terms of value, with a projected Compound Annual Growth Rate (CAGR) of 4.88% during the forecast period. This growth is attributed to rising consumer demand, evidenced by the increased domestic poultry meat supply in South Africa, which rose from 1,707 thousand tons in 2022 to 1,947 thousand tons in 2023, growing at an average annual rate of 2.80% due to investments in production facilities and poultry farms. Overall, domestic production in Africa increased by 13.8% from 2022 to 2023, fueled by investments in production facilities and poultry farms. Poultry ranks as the second most consumed meat in Africa, with a per capita consumption of 34.79 kg/capita.

In North America, beef production was significantly impacted by heightened production costs and increased feed expenses resulting from dry conditions. The drought adversely affected various locations in western North America.

COVID-19 Pandemic: Impact Analysis

The COVID-19 pandemic had a detrimental impact on meat production and supply chains. Distribution channels for the processed meat market heavily rely on hotels, restaurants, and cafes. Notably, quick-service restaurant chains like McDonald's, KFC, Subway, and Burger King faced temporary or permanent closures during the pandemic. Dine-in services were limited for customers at these establishments, while cafes remained completely closed, and hotels shuttered due to travel restrictions. Consequently, the non-operation of these vital distribution channels led to revenue losses for the global processed meat market during the lockdown period.

Latest Trends/ Developments:

• In May 2023, Tyson Foods Claryville revealed its expanded manufacturing capacity for cocktail sausages, a move designed to address the increased customer demand for its Hillshire Farm brand products. This USD 83 million expansion project will augment the facility by 15,000 square feet, enhancing its total footprint to 342,000 square feet. Equipped with state-of-the-art machinery, the expansion is set to increase production by 50%, ensuring improved service for customers.

• April 2023: The creators of the HERDEZ® brand introduced the HERDEZ™ Mexican Refrigerated Entrées line, featuring two enticing varieties: HERDEZ™ Chicken Shredded in Mild Chipotle Sauce and HERDEZ™ Carnitas Slow Cooked Pork.

• April 2023: Swift Prepared Foods, a subsidiary of JBS USA, inaugurated Principe Foods, specializing in the production of premium Italian meats and charcuterie.

• May 2022: JBS SA acquired Spain's largest cultivated-meat company and identified a location for a new biotech R&D center. Holding a 51% stake in BioTech Foods, a Spanish cultivated-meat enterprise, JBS's acquisition, originally announced in November, positions it to establish a production facility for cultivated meat in San Sebastián, situated on Spain's northern coast near the French border. With an estimated investment of US$ 40 million, the plant is anticipated to commence operations in mid-2024, boasting an annual capacity of 1,000 tons.

Key Players:

These are top 10 players in the Processed Meat Market: -

1. The Kraft Heinz Company

2. COFCO Corporation

3. BRF S.A.

4. Conagra Brands Inc.

5. Cargill Inc.

6. Itoham Yonekyu Holdings, Inc.,

7. OSI Group

8. JBS SA

9. Wen's Food Group Co. Ltd.

10. Smithfield Foods, Inc.