Packaged Meat Market Report

Living in a city often results in hectic schedules that leave little time for traditional cooking. Individuals might find themselves working extended hours or have multiple jobs, resulting in limited time for preparing intricate meals from the beginning. Packaged meats provide a convenient and effortless option. They can be easily found in grocery stores, are already prepared, and usually take a short time to cook. Urbanization leads to a rise in population density, and with a rise in disposable incomes in urban areas, consumers are more likely to afford packaged meats, which can be more expensive than processed meat as it is fresh and minimally processed.

In addition, innovative packaging techniques such as vacuum sealing and modified atmosphere packaging (MAP) help reduce bacterial growth and spoilage by minimizing oxygen exposure. This enables meat products to remain fresh for extended periods of time, minimizing waste and increasing accessibility for consumers. Packaging technologies like portion control packaging and easy-open features make meat preparation and consumption more convenient. This caters to busy lifestyles and encourages consumers to choose meat for their meals. However, the stringent regulations ensure that packaged meat products meet specific safety standards.

For example, H.R.5462 bill introduced by the United States House of Representatives in September 2023 which focuses on meat and poultry packaged labelling that aims to provide the slaughter date, package date, freeze date, and country of origin before exporting to market.

The primary challenge faced by the global packaged meat market is that the presence of alternative options like plant-based meat alternatives is surging. These alternatives offer similar taste and texture to meat products but are perceived as healthier and more sustainable. This trend directly competes with the packaged meat market. Beyond Meat, Inc. is one of the major plant-based meat producers that offers plant-based protein and non-GMO products. Thus, it hampers the global market for packaged meat. The growing awareness of environmental, health, and ethical concerns associated with meat consumption has led to a shift in consumer preferences. Many consumers are opting for plant-based meat products as they perceive them to be healthier and more sustainable.

Moreover, emerging diseases like avian influenza (bird flu) can disrupt supply chains and consumer confidence in packaged meat products. According to the WHO, between 2003 and April 1, 2024, 889 cases and 463 deaths (CFR 52%) resulting from the influenza A (H5N1) virus have been reported across 23 countries globally. Furthermore, the increased prevalence of bird flu can have several potential effects on the packaged meat market. Thus, it can reduce the overall supply of chickens and turkeys available for processing, which can limit the amount of packaged meat that ends up on store shelves.

Key market leaders utilize marketing tactics aimed at launching new products, engaging in strategic mergers, and acquiring additional businesses to expand their consumer reach and diversify company’s product portfolio. In March 2024, the Beef City Feedlot, owned by JBS Australia, is excited to introduce its inaugural school-based traineeship program. This signifies a major achievement in dedication to excellence in the industry and the growth of the workforce. Moreover, in January 2024, Tyson Foods, Inc. recently launched its new US$ 355 million food manufacturing plant in Bowling Green, Kentucky. Constructed to bolster its bacon production capacity, the new facility enables Tyson Foods to take advantage of its dominance in the industry and the growing demand for its offerings. However, in October 2023, the world's biggest pork company, WH Group Limited, revealed that its branch, Smithfield Foods' European operations, had established a strategic partnership with Argal.

Alimentation ("Argal"), a company based in Spain, specializes in producing charcuterie and other packaged meat products. Smithfield Foods will take control of 50.1% of Argal as a part of their partnership. Existing shareholders will hold onto 49.9% of the shares. The agreement is founded on a plan for the midterm within the established framework of collective management. Meanwhile, in September 2023, Minerva Foods SA completed the purchase of Breeders and Packers Uruguay S.A. (BPU Meat), a NH Foods subsidiary, for a total of US$40 million USD. BPU Meat is a state-of-the-art beef slaughterhouse in South America, situated close to Durazno in Uruguay, able to slaughter 1,200 cattle daily.

North America is expected to hold a significant share of the packaged meat market during the forecast period. Beef, especially meat, is a common source of protein in diets in North America. This deeply rooted cultural bias results in a robust and continuously high demand for pre-packaged meat items. On the other hand, North America typically has lower meat prices than other regions. This enables a larger range of consumers to access packaged meats, thereby increasing the market size even more. Additionally, hectic schedules and increasing urbanization drive the need for convenient food choices. Packaged meats are a convenient protein option that is easy to prepare and suitable for busy lifestyles.

As per data presented by the U.S. Department of Agriculture, the overall number of cattle will increase from less than 88 million to approximately 94 million by 2024 as a result of high consumption of meat. The projected increase in production will result in a rise in per capita consumption of red meat and poultry to approximately 215 pounds by 2024. Thus, high meat consumption, affordability, and preference for packaged convenience foods drive the packaged meat market in North America.

Meanwhile, the Asia-Pacific region is expected to grow at the fastest pace in the global packaged meat market during the forecast period. Policies from the government that promote foreign investment in food processing and cold chain infrastructure can strengthen the packaged meat sector. Better infrastructure guarantees effective distribution and upholds product quality, particularly in urban areas with a high level of demand. For example, in 2024, the Ministry of Food Processing Industries, Government of India, made significant efforts to enhance global involvement in the food processing industry.

It allows for full foreign direct investment (FDI) in this field, highlighting a positive acceptance of international involvement. Furthermore, a significant development has occurred with the approval of 100% FDI in the e-commerce trading of food products, contingent upon government authorization, allowing for increased foreign investment in the distribution of Indian-made food products.