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Expanding Processed Meat Market Sees Growing Equipment Sector

05 January 2014

It has become necessary to provide the global population with quality food in right quantity to fulfil the requirement of the growing population worldwide, writes Chris Harris.

For this, processing of food must be done properly and timely.

With the wave of globalisation all over the world, people are becoming more concerned about the safety of the food that they intake.

Consumers are now more inclined towards protein rich food especially with the increasing income in the developing countries.

Hence, the demand for meat is also increasing.

With increasing incomes and busy schedules, convenience food is becoming popular among working people.

Consumers prefer ready-to-eat and ready-to-cook meat products with great quality and taste as their priority.

Hence, processed meat is gaining popularity and its market is also increasing worldwide.

The global market is estimated to grow at a Compound Annual Growth Rate (CAGR) of 14.3 per cent from 2013 to 2018, reaching $799,051.2 million by 2018.

This includes preserving meats through smoking, salting, freezing, canning, or by adding preservative chemicals. But the process of preservation leads to a change in the state of the meat that may lead to loss of nutritional value.

The fresh processed and raw cooked processed meats are the main segments accounting for nearly 50 per cent of the total market share.

The precooked meat market has shown tremendous growth in the last two decades.

Meat Processing Equipment Industry, By Geography, 2013-2018meat processing equipment market chart
Source - MarketsandMarkets Analysis

The global market for meat processing equipment has grown slowly but steadily during the last few years and a similar trend is expected to continue for the coming years, according to a report from the analysts Markets and Markets

The market was worth $7,656.5 million in 2012, and by 2018 it is projected to be $11,495.3 million.

This market is growing with a CAGR of 7.2 per cent from 2013 to 2018.

Leading companies are focusing on launching of new products for expansion of the business in local as well as foreign markets. Acquisition is also the most preferred growth strategy after new products launch.

North America and Europe are the leading consumers of meat processing equipment, together accounting for around 66 per cent of the consumption on a global scale.

Asia-Pacific is estimated to be the fastest growing region in terms of revenue. Growth is particularly high in countries such as China, Japan, India, New Zealand, and Thailand.

The meat processing equipment market consisting mainly of the equipment such as Cutter, Blender, Tenderising Equipment, Filling Machines, Dicing, Grinding Equipment, Smoking Equipment, and Massagers sees Cutter Equipment with the largest share of 18 per cent of the total market in 2012.

The global market is driven by many factors such as growing population and increase in demand and consumption of processed food, new technological innovations, and government support in developing countries.

The main obstacles in their growth are the lack of awareness of meat processing mechanisation among the processed meat producers. Growth is also restricted because in developing countries the sector largely consists of small and medium sized companies.

To capitalise on the growth trend in the global market, several leading meat processing and equipment companies are making efforts towards research and development and manufacturing of such products.

Meat processing companies are also gradually expanding their product offerings within this product line to meet the growing demand of meat products.

Leading players which operate within this industry have been profiled, and an overview of their recent developments and other strategic initiatives has been presented.

Some of these companies include: Cargill, Tyson Foods, Hormel, Kraft and Smithfield Foods in the US, BRF S.A. in Brazil, Vion Group, Nestle, Danish Crown-Tulip and Unilever in Europe and Nippon Meat Packers Inc.

Cargill and BRF are the market leaders with a combined share of around 41 per cent in 2012.

Cargill Inc. was the market leader with 22 per cent share in 2012.

The meat processing equipment market consists of cutter, blender, tenderizers, filling machine, dicing equipment, etc. Cutter and blender are the prominent equipment which accounted for around 30 per cent of the global meat processing equipment market share in 2012.

GEA Food Solutions in Germany and the Netherlands, Marel in Iceland and John Bean Technologies Corporation in the US lead the meat processing equipment companies.

Investment and expansion accounts for 18 per cent share of all developments in the processed meat market - from 2009 to 2013.
The main companies within the industry have focused on setting up new plants to increase their production capacity and widen their product line.

From 2009 to 2013, acquisition is the leading growth strategy for the meat processing equipment market, accounting for 46 per cent share of the total developments.

December 2013

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