Processed Poultry Meat to Gain Prominence Due to High Protein Content and Affordable Price

Market Overview: Drivers & Opportunities

The production and consumption of meat and poultry has changed dramatically over the years–consumers are increasingly preferring poultry meat over other meat products, largely driven by higher protein content and less cost involved in processing of meat. Processed poultry meat product consists of processing and treatment of raw poultry meat that essentially enhances its flavor, taste and prolong its shelf life through the increasing use of chemical preservatives such as sodium nitrite. The market for processes poultry meat is driven by increased preference of poultry meat owing to its high protein content amongst individuals who are health conscious coupled with growing inclination towards convenience food across regions.

Significant growth in the organized retail sectors across regions, favorable government initiatives in emerging economies promoting the market players and consolidated and streamlined regulations by global and regional food regulatory agencies are the key factors that would unlock abundant growth opportunities in the market.

However, the growing number of unorganized players and rising risk of avian diseases in poultry birds are the key factors restricting the market growth.

Strategic landscape

Major poultry farms and meat packaging companies are endeavoring to enter the processed poultry market to meet the consumption of meat including chicken meat in emerging nations, primarily in semi-urban and urban areas. Market players of processed poultry meat are yet to penetrate the rural areas in these regions. They have begun exploring new avenues for expanding their business. Last year, Sneha Farms and SR Hatcheries intended to expand their presence in the processed chicken business in India that has offered intense competition to the stalwarts already in the processed meat market such as KFC and McDonald. Sneha Farms has already invested $ 15.031 million to set up a plant in Telangana having a combined processing capacity of as many as 6,000 birds per hour.

In another of a similar development, Pune-based meat delivery startup EasyMeat.in has signed a one-year revenue-sharing agreement with Venky's, a subsidiary of the VH Group that specializes in processed chicken meat products. This would result in the consolidation of online presence of the startup in processed poultry meat market.

Meanwhile, regulatory agencies in developed economies have streamlined regulations over the processing of meat and integrated policies to boost the market growth. The U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) has recently announced a proposed rule that would help in the consolidation and streamlining of existing regulations for meat and poultry products. The rule would help eliminate redundant trichinae control requirements for pork and pork products. Further, it would consolidate regulations for thermally processed and commercially available sterile meat and several poultry products. Other prominent players operating in processed poultry market actively adhere to various safety guidelines in handling and processing of meat products that has led to the market growth across developing and developed regions. Acquisition, expansion and product launch are the key growth strategies adopted by the market players to consolidate their market presence.

Market Prospects of Processed Poultry Meat

As per a recent report by Allied Market Research titled “World Processed Poultry Meat Market - Opportunities and Forecasts, 2014 – 2020”, the world market would garner $289.16 billion by 2020, growing at a CAGR of 6.4% during the forecast period 2015–2020. North America is the largest market of processed poultry meat. However, Asia Pacific region would be the fastest growing during the forecast period.

The processed poultry meat is gaining fast adoption across various end-user segments such as retail and food service industries. Retail segment occupies the largest percentage, and as per the report has contributed a significant share of the global market in 2014. However, food service user segment would witness a higher CAGR of 6.9% during the forecast period, driven by growing preference of processed poultry meat to fresh meat.

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