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New Study Reveals Why Organic Beef Meat is Prominent in Developed Markets

01-17-2019 09:15 AM CET | Advertising, Media Consulting, Marketing Research

Press release from: Future Market Insights

New Study Reveals Why Organic Beef Meat is Prominent in Developed

Going forward, rearing cattle on certified organic fodders is turning out to be more profitable than conventional practices. Growing concerns of consumers over food safety has propelled the demand for organic foods, and has incidentally affected the global beef production. Particularly in developed markets, the demand for organic beef meat is gaining traction pertaining to the rising confidence of consumers towards organic beef over regular beef. The main difference between these options lies in the fodder fed to the cattle, at which point organic fodder is healthier and nutritious than regular cattle feed.

In 2017, over 1.5 million metric tonnes of organic beef meat is anticipated to be consumed across the globe. Future Market Insights’ recent study on global organic beef meat market projects that by the end of this year, the global market will be valued a little over US$ 8.8 Bn. Large retail chains such as Whole Foods are already boosting the presence of organic agricultural produce in their store shelves, and this trend is also expected to promote the availability of organic beef meat. TESCO, a prominent retail chain in the UK, is following this path by offering organic beef in various processed formats, and under its own label.

The report projects that by the end of 2027, the value of global market for organic beef meat will get doubled, surpassing US$ 16.4 Bn and reflecting a healthy CAGR of 6.4%. Higher on-shelf availability of organic beef meat products in countries such as the UK vindicates the report’s key finding that observes Western Europe as a leading region in the global market. The report anticipates that through 2027, around 30% of organic beef meat consumed in the world will be concentrated in Western Europe.

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Developed Markets Lucrative for Sales of Organic Beef Meat

Highlights from the report’s regional analysis on the global organic beef meat market indicate North America and Western Europe as dominant regions. Beef is a primary source of food for consumers across these developed regions. Moreover, consumers in developed countries such as the US and Canada are more aware about organic certified foods, and how they are better than conventional food products. Throughout the forecast period, over two-fifth of organic beef meat sold in the global market will be accounted by consumers in the US and Canada.

With North America at the forefront, the global organic beef meat market is also expected to witness considerable contribution from Western European countries. The organic beef meat market in Western Europe is pegged to reach nearly US$ 5 Bn in value towards the end of 2027. On the other hand, the demand for organic beef meat products will lose traction in the Asia-Pacific excluding Japan (APEJ) region. A remarkable highlight of these regional projections is that the Middle East & Africa (MEA) region, which exhibits a higher contribution to global beef consumption, will be accounting for not more than 2% share of global organic beef meat revenues throughout the forecast period.

Sales of Processed Organic Beef Meat to Gain Traction

The report has recorded the market’s growth across two sales channels, direct and indirect. In 2017, indirect sales of organic beef meat is projected to account for more than 60% share on global market revenues, and this contribution is slated to witness a significant boost towards the end of forecast period. Across both sales channels, the report has witnessed a considerable rise in demand for processed organic beef meat. By the end of 2017, global sales of fresh organic beef meat will be raking revenues just over US$ 2.1 Bn, whereas organic beef meat in processed format will dominate with more than 75% revenue share. Towards the latter half of the forecast period, the global demand for processed organic beef meat will further gain traction, bringing in revenues worth over US$ 12.8 Bn.

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The report has profiled key players partaking in the global organic beef meat market, which include JBS Global, Danish Crown, Tyson Foods Inc., Meyer Natural Foods, Perdue Farms, OBE Organic, Australian Organic Meats Group Pty Ltd., Eversfield Organic Ltd., Verde Farms, LLC, Blackwood Valley Beef, Arcadian Organic & Natural Meat CO Pty Ltd.

Some manufacturers of organic beef meat products are focusing more on offering organic beef in packaged products. Companies are also prioritizing in building up a strong supply chain management with farmers selling beef. However, high production costs and presence of substitutes such as grass-fed beef are observed to be key restraints curbing the growth of global organic beef meat production.

Future Market Insights (FMI) is a leading market intelligence and consulting firm. We deliver syndicated research reports, custom research reports and consulting services, which are personalized in nature. FMI delivers a complete packaged solution, which combines current market intelligence, statistical anecdotes, technology inputs, valuable growth insights, an aerial view of the competitive framework, and future market trends.

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Email: sales@futuremarketinsights.com
Website: www.futuremarketinsights.com

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