Organic Beef Meat Market: Processed Meat Product Type Segment to Account for Relatively High Volume Share During the Forecast Period
The processed meat segment is anticipated to remain dominant in terms of revenue share during the forecast period due to the advantage of reduced preparation time for processed meat. The processed meat segment is estimated to be valued at about US$ 6,700 Mn by 2017 end and is expected to increase at a CAGR of 6.7% over the forecast period. The segment is expected to be valued at more than US$ 12 Bn by the end of 2027, creating an absolute $ opportunity of more than US$ 350 Mn in 2017 over 2016 and an incremental $ opportunity of more than US$ 6,000 Mn between 2017 and 2027. The segment is likely to grab more than 75% market share during the projected period. In terms of value, the processed meat segment is projected to be the most attractive in the global organic beef meat market during the forecast period.
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Increasing consumer preference for organic food and easy availability of organic beef through retail chains likely to boost the global organic beef meat market between 2017 and 2027
In developed markets, organic food products are preferred over conventional products as consumers opt for products that are natural with fewer chemicals and additives. Organic food products do not have additives or chemicals and offer the required nutrients, thereby gaining higher trust and adoption than conventional food products. Although high prices of these specialised products are restricting product acceptance by the middle-class population, rising disposable income and increasing focus on healthy living support demand for these products.
A substantial percentage of total sales of organic beef takes place through the organised retail format in Western Europe. With economies of countries in the region growing, the retail chain is also expected to exhibit substantial growth. Owing to increasing preference for organic food products, retail chains are increasingly offering such products and this is expected to fuel demand for organic beef across the globe.
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Increasing market penetration is one of the major factors driving the growth of the global organic beef meat market. Growing consumer awareness and preference for natural and organic foods owing to associated health benefits has fuelled the shift in preference for organic food in day-to-day edibles by consumers, especially in Eastern Europe. Organic beef products are anticipated to gain popularity due to the organic wave in the region over the forecast period.
Due to the availability of natural resources in the countries of Latin America, companies have easy access to raw material cultivated for the production of organic products. In Latin America, Brazil and Argentina are the most prominent countries contributing towards the production of organic beef. For instance, in 2017, according to the report published by the Research Institute of Organic Agriculture (FiBL) and International Federation of Organic Agriculture Movements (IFOAM) – both non-profit organisations – over 70% of the total organic agricultural land in Latin America constitutes permanent pasture land.
Global organic beef meat market structure
The global organic beef meat market is primarily characterised by the presence of a large number of regional and multinational companies. An approximate share of 40%-45% is accounted for by multinational players who are also the price regulators of the global market. North America and Western Europe are the two main regions to target due to increasing number of health conscious consumers and increasing demand for organic food and beverages in these regions. Companies such as Tyson Foods Inc., JBS Global, Danish Crown and others are the major players in the organic beef meat market. Regional players and local players account for a market share of 30%-35% and 20%-25% respectively. These players largely operate in the U.S., U.K. and Australia markets and their major target audience includes consumers seeking organic processed meat.
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