MEATing POINT Magazine: #05/ 2015

... CONVENIENCE ...
CAPTURING CONVENIENCE IN MEAT PRODUCTS:
CATERING TO THE PRICE CONSCIOUS CONSUMER
By Steve Mott
Although the global meat
market has been faced with a
number of challenges in recent
months, the outlook remains positive.
Meat products enjoy continued
popularity – especially in developing
economies – and also help processors
to capitalise on wider consumer
trends, such as the surge in demand
for protein products. The world’s top
20 meat and poultry markets are now
worth an estimated US$209.3 billion
per annum, and it is predicted that
Asia will continue to drive processed
meat and poultry segment growth
through to 2018 1 . There is also rising
demand for meat products in regions
such as Eastern Europe and Africa,
creating a wealth of opportunities for
meat processors based in the EU and
South America, who often supply into
such markets.
On-the-go opportunities
Convenience continues to drive
global innovation, with two-thirds
of consumers in countries such as
Germany, Italy, France and Spain
now looking for products that are
easy to prepare 2 . People are looking
for quick, ready-to-go foods that
have great taste and texture, and as a
result, the convenience foods segment
is forecast to experience strong
ongoing growth. In the UK alone,
the market is expected to be valued
at £49 billion by 2019 – an increase
of more than 30 percent compared to
2014 3 . The category includes canned
and frozen foods, as well as ready-toeat
snacks and meals. Meat features
heavily in many of these products,
which include applications such as
fried chicken, kebabs, pizza toppings
and microwave meals, like lasagne.
Related to the convenience trend is
the rise in popularity of meat snacks
such as beef jerky, with the US
market estimated to grow by 18.86
percent to US$1.2 billion in 2018 5 .
The products are often targeted at
millennials and marketed on a highprotein
positioning in order to appeal
to consumers looking for healthy and
convenient snacks. The trend is now
beginning to have an impact on the
market in Western Europe. There is
increased demand in the region for
fermented or dried shelf-life stable
snacks, such as biltong beef, which is
exported from South Africa.
Cost remains a key consideration for
all consumers, and meat processors
that want to profit from the ‘onthe-go’
trend need to find a way to
match organoleptic expectations
with an acceptable price. This is
particularly the case in regions such
as the Middle East and South Africa,
where ingredients that can replace or
extend meat are gaining a significant
position in the ready-to-eat market
as a result. Despite the emphasis on
cost, however, the European market is
also becoming more polarised, with
some shoppers prepared to pay more
for better quality meat.
Meeting consumer demand
Per capita meat consumption
and income are highly correlated.
Other socio-economic changes,
such as increased urbanisation and
population growth, are also closely
linked to rising meat uptake amongst
consumers. In recent years, there
has been an increase in demand for
meat in developing markets such
as Africa and Asia, which are often
supplied by producers in the EU and
South America 5 . Poultry in particular
is featuring in an increasing number
of meat products due to its high
availability and low cost, with the
meat typically taken from chicken or
turkey. There is also strong potential
for meat and meat products in
Eastern Europe, where demand for
foods such as kebabs, shawarma and
gyros is high. In Poland, for example,
meat is a main constituent of the diets
for the majority of the population,
and the market is expected to grow
at a compound annual growth rate of
two percent until 2016 6 .
The opportunities for processors
to profit from increased meat
consumption are clear, but rising costs
throughout the supply chain have
historically put the industry under
significant pressure. With fluctuations
in raw material prices due to high
margins and unpredictable weather
conditions affecting animal feed
supplies, it can be difficult for meat
processors to ensure they remain
profitable. There are a number of ways
of countering rising costs, including
improving yield by incorporating costeffective
ingredients that can extend
or optimise meat products, whilst also
continuing to appeal to shoppers.
Choosing the correct ingredients is
essential to achieving the levels of
quality demanded by consumers,
while finding ingredients at a price
point that allows for profit is equally
as important.
Consumers want to purchase
convenient foods that match
perceptions of taste and texture,
regardless of price. It is therefore
4 1
Mintel, Meat, Poultry and Fish Global Annual Review, January 2015
3 IGD Retail Analysis
6 Mintel
2 Mintel, Meat, Poultry and Fish Product Innovation, August 2014
Datamonitor
5 Prospects for EU agricultural markets and income, December 2014
6 | www.meatingpoint - mag.com | 2015 | Issue 5