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Meat, Beef & Poultry Processing in the US - Industry Market Research Report

United States meat processing market: $234.0 billion industry by 2018

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2014-03-31 01:17:01 - Meat, Beef & Poultry Processing in the US - Industry Market Research Report - a new market research report on

During the five years to 2013, revenue in the United States meat processing market, including beef and poultry processing is expected to grow at an annualized rate of 4.0%. While per capita meat consumption is expected to fall only marginally during the five years to 2013, the recession has exacerbated consumption declines, with consumers scaling back the quality and quantity of meat purchased due to reduced disposable incomes and low sentiment toward the economy in general. Also, reportedly adverse health effects associated with red meat consumption have driven some consumers toward alternative protein sources.

In addition to broad trends related to consumer preferences and disposable income, disease outbreaks have limited industry growth in specific years. In 2009, swine flu briefly put



the domestic pork market on ice despite the fact that the disease only affected human immune systems and cooked pork products were deemed safe to eat. The scare added to already low consumer sentiment and pushed pork volumes down that year.

Despite these detriments, meat remains a staple product, so overall meat sales are largely resistant to greater economic issues.

Key downstream markets in wholesaling, frozen foods and animal food production have exhibited growth during the past five years. Meanwhile, competition from substitute seafood products has been minimal thanks to seafood´s high price growth and consumers´ reluctance to spend on relatively extravagant meals.

Returning purchasing power is expected to bolster industry revenue further through 2013, with an expected 4.0% increase bringing total sales to an estimated $221.8 billion.

Recovering consumer sentiment, population growth and strong export demand are forecast to continue growing meat processing revenue an average of 1.1% annually during the five years to 2018, eventually reaching an estimated $234.0 billion. Despite the stable nature of consumer demand for meat-based products, unpredictable weather conditions and disease outbreaks can cause volatility from year-to-year. For example, a sudden drought in the Midwest, Plains or Rocky Mountains could reduce livestock numbers, lower meat supplies and increase food prices. Also, a single case of livestock infection could result in substantial short-term losses and international trade bans for the affected meat. To combat such volatility, the industry has developed technologies intended to reduce disease outbreaks.

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