Top Growth opportunities: Meat in Portugal
Portugal is a mid-sized European meat market worth US$6.3 Billion. With a CAGR of 5.2% forecast in the five years to 2021, Portugal’s meat market is recovering steadily from the European sovereign debt crisis following strong export performance and a recovery in domestic demand. High unemployment and mass emigration threaten to restrict this recovery, along with high levels of corporate and household debt. The current low interest environment is also impeding the ability of Portuguese banks to increase liquidity and lend to viable businesses, limiting domestic NPD opportunities in the meat market.
The meat market in Portugal suffered heavily between 2011 and 2016, as the European sovereign debt crisis and corresponding EU-IMF bailout forced the government to implement spending cuts and tax increases. This resulted in a decline in meat market value during the same period. Despite this, a recovery is underway, and the meat market is forecast to experience strong growth in the five years to 2021.
In Portugal, all meat categories experienced contractions in value terms between 2011 and 2016, except the Ambient Meat category which registered sluggish growth at a CAGR of 0.05% during the same period. However, value growth is projected to rise rapidly in the next five years and all Meat categories are expected to register strong growth during 2016-2021. Chilled Raw Packaged Meat (Whole Cuts) and Fresh Meat (Counter), the two largest categories in value terms in 2016, are forecast to register strong growth during the same period, with CAGRs of 5.3% and 5.1%, respectively. This is a reversal of the negative growth experienced during 2011-2016.
In Portugal in 2016, Hypermarkets and Supermarkets accounted for almost 51% of meat consumption value, expanding their share of overall value by 2.4pp. This shows the prominence of the channel in the Portuguese market, and underlines its success in continuing to attract consumers in a difficult business environment. 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 32% of the money spent on meat in the country. A difficult business climate has restricted overall value growth – the lowest of all channels – and value share development.
Convenience Stores attract 13.7% of consumer spending on meat, despite having a higher price tag. This is because consumers are increasingly 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.
The report Top Growth opportunities: Meat in Portugal, 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 Portugal.
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