Antibiotic-Free Meat Market Update: Big Week For Companies Seeking High Revenues

Increasing consumer demand for antibiotic-free food products along with rising political pressure to reduce the use of antibiotics is challenging for the entire value chain of meat production. Growing concerns regarding antibiotic resistance bacteria have pushed the meat manufacturers to end the practice of feeding livestock with antibiotics thus, contributing towards the market growth of antibiotic-free meat. Major chicken producers such as Tyson Foods Inc., have already taken initiative to stop producing antibiotic-free meat. Tyson Food Inc., which is one of the largest beef suppliers has the policy of “no antibiotics” and are relying on products such as probiotics, oregano and thyme for routine treatment of meat instead of using antibiotics. Farmers across the globe use antibiotics to help animals grow faster and prevent the chances of occurrence of any kind of disease. The rise for clean meat labelling in countries such as U.S. and Europe is on rise and manufacturers across these countries are continuously promoting the importance of antibiotic-free meat. However, in countries such as China and India the consumption of antibiotic is expected to increase however, growing concerns with respect to environmental and health issues could create pull to the market for antibiotic-free meat.

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Reasons for Covering this Title

As per data releases by the U.S. Food and Drug Administration, currently 80% of the all antibiotics sold in the U.S. are given to animals resulting in overuse of antibiotics in livestock production and considered as one of the top sustainability concern.  As a result, consumers across the globe are becoming aware regarding benefits of antibiotic-free meat including chicken, turkey, pork and beef, hence, is one of the prime factors contributing towards the market for antibiotic-free meat globally. For example, an independent study conducted in U.S. concluded that 86% of the consumers are looking for antibiotic-free meat and willing to spend more on it. An increasing number of fast food chain have also taken initiatives to reduce the use of antibiotics in in their food products thus pushing the market revenue generation in the overall antibiotic-free meat market. For instance, in 2015, McDonald’s which is one of the largest fast food chain announced that it would sell only antibiotic-free meat across the U.S.

Although the consumption of antibiotic-free meat in the U.S. accounts for a mere 5% of the total sales, the market is growing fast, especially the market growth of antibiotic-free chicken is booming with 34% growth in 2014.

Global Antibiotic-Free Meat Market: Key Players

Some of the key players operating in the global Antibiotic-Free Meat market are Pilgrim's Pride Corporation, Tyson Foods, Inc., Perdue Farms Inc., Springer Mountain Farms, Smart Chicken, Applegate, Bell & Evans, DaBecca Natural Foods, Foster Farms, EVOL FOODS, Meyer Natural Angus LLC., White Oak Pastures, Springer Mountain Farms, Red Bird Farms among others.

Key Developments

On 10th August 2017, Giant Food of Maryland, LLC, which is an American supermarket chain launched private labelled antibiotic-free meat range in order to deliver consumers highest quality of fresh meat products. This included, company’s antibiotic-free pork range.

On 22nd February 2017, Smithfield Foods, Inc., which is a              S. based meat processing manufacturer launched a range of antibiotic-free meat including, bacon, fresh pork products, packed meat under its clean mart brand Pure Farm for food service and retail. This range of antibiotic-free meat is produced under minimal processing and is produced under highest standards without the use of antibiotics.

On 1st March, 2016, Tyson Foods, Inc., which is an American multinational corporation launched antibiotic-free pork brand. This new antibiotic-free meat product is minimally processed and is free from any artificial ingredients.

In 2015, Foster’s Farm Co, which is engaged in processing five million chicken a week announced efforts to produce antibiotic-free meat.

Opportunities for Market Participants

Antibiotics are one of the greatest discovery and for over 60 years antibiotics are widely used in livestock for several reasons. Over the last few years, the use of antibiotics in animal industry has been witnessing significant fall thus, contributing towards the market growth of antibiotic-free meat globally. Poultry is one of the largest growing meat category globally which is a push for the global market of antibiotic-free meat in the near future. Growing consumers demand for organic and clean label products will further add on to the growing market of antibiotic-free meat in the near future.

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Brief Approach to Research

A modelling-based approach and triangulation methodology will be followed to estimate data covered in this report. A detailed market understanding and assessment of the nature, product type and end uses of the product segments covered in the study is followed by carrying out a demand-side approach to estimate the sales of target product segments, which is then cross-referenced with a supply-side assessment of value generated over a pre-defined period. The statistics and data is collected at a regional level, consolidated and synthesized at a global level to estimate the overall market sizes.

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