Top Growth opportunities: Meat in the US
United States has the largest meat sector by value globally, worth in excess of US$200 billion. However, growth for this market is low compared with other developed nations, with a forecast CAGR for 2016–2021 of less than 1%. Japan, China, and Mexico represent three of the largest export destinations for US meat producers, although the recent US withdrawal from the TPP trade deal and deterioration in relations between the US and key trading partners threaten to restrict exports, with tit-for-tat tariffs a possible outcome of recent tensions. Proposed interest rate hikes seek to manage domestic demand, while the strong US dollar continues to make meat imports more expensive for foreign buyers, particularly in developing markets. Fluctuations in demand are possible, and producers should be careful to avoid surplus production and overcapacity in the meat sector.
The US meat market will struggle to match the growth in average consumer spend witnessed in other markets, such as Austria and Hong Kong. A positive economic outlook, buoyed by strong consumer confidence and regulatory reform, will support growth in meat consumption in the immediate future, and create opportunities for both established brands and new market entrants to target consumers.
The Off-Trade meat sector has experienced steady growth since 2011, with value-conscious consumers choosing to create meal ‘experiences’ at home and buying meat in certain segments. Frozen Meat, for example, has posted an impressive CAGR, and looks set to outstrip growth in other segments in the five years to 2021. US economic growth and positive consumer sentiment could help boost On- Trade growth in the meat sector in the next five years. Chilled Raw Packaged Meat Processed) is the highest value category, and is estimated to be worth US$63 billion by 2021, despite a slowing growth rate overall.
In the US in 2016, hypermarkets and supermarkets accounted for over 82% of meat consumption value. This shows the prominence of the channel in the US market. Food & Drink Specialists in meat often sell high-priced items such as gourmet and premium meat products, which help it to account for more than 10% of the money spent on meat in the country. Convenience Stores are able to attract 4.5% of the money spent on meat despite having a higher price tag. This is because consumers are willing to pay more for convenience. Cash & Carries allow consumers to buy in bulk and save money on everyday food products such as meat and frozen goods. This channel accounted for almost 1% of consumption by value in 2016.
The report Top Growth opportunities: Meat in the US, provides recommended actions and detailed analysis of how to target the best growth opportunities for meat producers and retailers. Readers can understand what categories, channels, companies, and consumers will drive the success of Meat markets in the US.
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