ANALYSIS - The global processed meat sector is expected to be worth nearly $800 billion by 2018 and the meat processing equipment sector will be worth more than $11 billion.
The rise in the value of the processed meat market and the equipment sector that supplies the products has been driven by the increase in demand for meat as the global population becomes wealthier and becomes more urbanised.
The rapid increase in globalisation has also seen the processing of various types of meat to feed the global population gather pace.
Increased urbanisation, busy life styles and more and more two income households have also driven the demand for more convenience foods and ready to eat products, which has also helped the growth of the processed meats sector.
The growing population, rise in the income level of the middle class consumers in developing countries of Asia-Pacific and Latin America, and increase in the need for convenience foods has produced a need for meat products that while they contain the essential ingredients also on the save cooking time of the consumers
However, according to a new report from Markets and Markets, the economic crisis faced by few countries of the world, obesity crisis, and the health risk associated with the consumption of processed meat are the factors that act as constraints for this industry.
The meat processing equipment market is driven by the associated advantages such as increased consumption of processed meat and better quality of meat products.
However, the lack of awareness about the processing equipment and availability of trained manpower in the developing countries are the main obstacles in the growth of the meat processing equipment market.
Growth is particularly high in the Asia-Pacific countries such as China, India, Japan, and New Zealand because of the growing awareness about the processed meat and this will in turn increase the demand for the meat processing equipment, thereby influencing this industry.
The global market for processed meat was estimated to be worth around $361,568.7 million in 2012 and is expected to reach $799,051.2 million by 2018, growing at the compound annual growth rate (CAGR) of 14.3 per cent from 2013 to 2018.
The global market for meat processing equipment was $7,656.5 million in 2012 and by 2018 it is projected to be $11,495.3 million, growing with a CAGR of 7.2 per cent from 2013 to 2018.
According to the report, “Processed Meat and Meat Processing Equipment Market by Types (Beef, Pork, Mutton, Others), by Product Types (Fresh Processed, Raw Cooked, Pre-Cooked, Raw-Fermented, Cured, Dried, Others), by Equipment Types & by Geography - Global trends & Forecasts to 2018” leading manufacturers are focusing on expansion of their respective businesses across regions and setting up new manufacturing plants to ramp up production capacities and broaden overall product line.
Major industry participants are involved in new product launches and acquisitions to penetrate the untapped markets of Asia and Latin America.