Global Meat Market: Export Opportunity Analysis

Global Meat Market Forecast

The meat market was estimated to be valued at USD 945.7 billion in 2018 and expected to reach USD 1142.9 billion by 2023, at a CAGR of 3.9% during 2018-2023.

The market is segmented into the following product types: white meat including chicken, duck, and turkey meat, and red meat including pork, beef, goat meat. White meat shares the largest market of over 60% and poultry is the most consumed meat of all, increased by 16% during 2008-2017. The fastest growth is expected to be witnessed in the pork meat segment during 2018-2023. MarketWatch reports the growth of the market will be driven due to its rich source of protein.

Export/ Import Analysis

World’s Richest Countries reports the global market generated a total value of USD 124.1 billion in 2017. The United States was reported to be the world’s largest meat exporter with 13.2% of the global exports, followed by Brazil with 11.2% and the Netherlands with 7.5%. During 2016-2017, meat exports have increased the most in Turkey by 36.3%, followed by Argentina, Thailand, and the United States. The growth of exports is witnessed especially in the bovine, poultry, and ovine meat segment.

Japan was reported to be the world’s largest meat importer with 8.4% of the global imports, followed by China with 7.9% and the United States with 6.8%. The United States is the largest supplier for Japan, followed by Brazil and Australia. Recently, Japan has reduced tariffs charged on meat imports from countries in the Trans-Pacific Partnership. It resulted in an increase in beef imports from Canada, New Zealand, and the United States by 93.3%, 46.4%, and 5.3%, respectively.

Global Growth Opportunity Analysis

Europe shares the second-largest meat consumption, following the Asia-pacific region, and around 30% of the world’s growth of meat consumption comes from Europe, especially in Germany, Italy, France, the United Kingdom, and the Netherlands. Europe was reported to be one of the largest producers of red meat. Of all the European countries, France and Germany are the major producers of beef and pork meat, and the United Kingdom is the major producer for poultry, sheep, and goat meat. Europe was also reported to be the world’s largest exporter of red meat. It mainly exports pork meat for China and beef meat for Turkey, Hong Kong and Algeria.

The Asia-Pacific region was expected to witness the fastest growth in the processed meat market during 2020-2025, at a CAGR of 11.19%. Mordor Intelligence reports the significant growth will be driven by the increasing demand of convenient foods. Busy urban lifestyle in the Asian-Pasific region causes consumers to deter from cooking and shifts consumer preferences to quick-and-easy meals which processed meat is often used. Of all the Asia-Pacific countries, China shares the largest market of processed meat, followed by India and Japan.

Trend Analysis

Meat demand is increasing on a worldwide scale. One of the factors is the increasing health/ medical benefit awareness of meat consumption. It contains a variety of iron, magnesium, zinc, niacin, selenium, riboflavin and B-vitamins that help boost the energy level, immune system, metabolism, and brain health. Other factors include the growing disposable incomes and changing lifestyles and consumer preferences for diet.

Meat consumption can drop by 2030 due to the increasing environmental consciousness, especially in Europe. A new agricultural report by the EU reports the meat consumption per capita will drop from 69.3kg to 68.6kg in the next 12 years. Another factor is the health risk of meat consumption. Meat is reported to increase the risk of colorectal cancer, type-2 diabetes, and possibly cardiovascular disease. While meat production is expected to increase on a worldwide scale, these factors including the increasing popularity of veganism can stagnate or decline the growth of the meat market.

The meat market is currently experiencing higher prices due to the high demand for low supply of meat. As the world struggles with the coronavirus, supply chains have been interrupted and distributors are looking to diversify their networks. With a diversified portfolio, a firm can protect themselves from the risk imposed on them by factors such as the coronavirus.

United States Market Analysis

The United States was reported to share the largest global market of 31.5% and witness a significant growth during 2018-2023, at a CAGR of 4.6%. Increasing health/ medical benefit awareness of meat consumption and changing consumer preferences for diet will keep fueling the demand of meat in the United States.

The United States is the largest meat exporter and major supplier for the Asia-Pacific region, such as Japan, South Korea, Chin, and Hong Kong. Other destinations include Mexico and Canada. The meat segment with the largest market share is poultry meat which is expected to grow by more than 4% in 20020. Beef and pork meats share the second-largest market share, followed by turkey meat, and they are expected to increase by 2.7% and 7% by 2020, respectively. Major meat producing states are Minnesota, Nebraska, Georgia, and Pennsylvania.

In 2019, the United States and Japan reached the trade agreement for beef. In the previous year, the United States exported Japan a total value of USD 2 billion of meat and around 25% of its meat export is beef. The trade agreement reduced Japan’s tariffs charged on beef imports to 9% and it is expected to increase the U.S. beef export to Japan by USD 150-200 million annually. As the tariffs are expected to decline to 0% by 2030, the exports of beef from the United States to Japan will increase significantly.