Global Processed Meat (Part 2): Competitive Landscape, Challenges and Opportunities

Processed meat is one of the least brand-sensitive categories in packaged food

In 2014, 23% of retail sales of processed meat were private label; a share which is superseded only in ready meals, which itself is heavily reliant on processed meat. This reflects the commoditised nature of the market.

Mergers and acquisitions are key to gaining market share

In a category so dominated by private label, it is important to gain scale and have access to reliable supply to remain competitive. Therefore, M&As should thus stay at the forefront of companies’ growth strategies.

Meat scandals, health and environmental concerns are among the main threats to the industry

From horsemeat and the MRSA scandal in Western Europe, to concerns regarding dead pigs in China, the meat industry has been faced with multiple food scares which have led to consumers being increasingly sceptical about meat. An increase in meat-restricted diets and ethical and environmental concerns have also hampered consumption.

Chilled processed meat is in the vanguard of future growth

Processed meat sales are expected to be driven by chilled variants across all regions in the world other than the Middle East and Africa and Australia, where frozen processed meat growth will take the lead, due to its being a more convenient option which is also perceived to be healthier and cheaper.

Contrasting strategies needed at opposite ends of the adoption curve

Strategies in marketing and product development should take into consideration the differing meat consumption rates of different countries. While provenance, convenience, segmentation and brand image might be needed in order to push growth in high meat consumption markets, consumers who have a lower rate of meat adoption might require more tangible benefits, such as health and safety, nutritional benefits, affordability and a long shelf life.