Market Trends of Europe Processed Meat Industry
Premiumization Driving Demand
Eating habits and lifestyles have changed dramatically in the last few decades, resulting in high demand for processed foods worldwide. Globalization and the growing popularity of various cuisines have increased the consumption of various types of meat. Changing consumer preferences, high availability of processed foods, hectic lifestyles, a growing working women population, rising per capita disposable income, advancements in freezing technology, and an increase in demand for fresh meat from a health-conscious population are key factors expected to drive the demand for processed meat in Europe at present and over the forecast period. The sector is also expected to be driven by product premiumization, where meat consumption remains a popular inclusion across different palates.
For instance, according to the World Bank, in 2021, women constituted 46.4% of the working population in Europe. However, the less but better concept is likely to gain momentum shortly, where the quality over quantity mindsets are prevalent in the market. The approach is particularly strong among health-conscious and flexitarian consumers, where the success of premium processed meat products is anticipated to scale up amid the meat reduction trends in the region. The growing preference for premium processed brands, especially through online retail channels, is one of those key factors driving the market.
Russia's Stronghold Position in the Processed Meat Consumption
With the growing working population, increasing disposable income, and rapid urbanization, the preference for ready-to-eat food products is rising, which may boost the market's growth in the future. Besides, the growing consumer preference toward convenience food, as it requires lesser time and effort for cooking, is a significant factor contributing to the market's growth. These foods can be stored for a longer duration than the traditional ones, due to which a large number of consumers are opting for them. In addition, these products offer numerous benefits, such as ease of availability, longer storage duration, and reasonable price, thus driving the processed meat market in Russia.
Freezing at optimal temperature suspends microbial and fungal activity in the meat, making it ideal for imports and exports. Owing to this factor, manufacturers have refined preparation, storage, and reheating techniques to create healthy, flavorful, gourmet-quality poultry meat. Many poultry producers have switched their chicken meat production lines from frozen to chilled products for higher profit margins. They are higher partly because chilling saves freezing and cold storage charges, thus driving the market for chilled poultry. Driven by the dynamic food industry in Russia, which is assertive and balanced, while developing new products that address the demands of the domestic and export markets, the processed meat market in Russia is expected to witness significant growth. On a comparative note, Russia still has the lowest prices by EU-28, where overall, Russians spend less than 12% of their income on food and beverages. On the other hand, the same set of consumers eats approximately 17.2 kg of processed meat annually, one of the highest in the European region.
