China processed meat market is projected to grow at a CAGR of 5.74% during the forecast period (2020 - 2025).
- Chinese consumer's dietary patterns have changed considerably since lifestyles have gradually become more rapid pace. On top of that, disposable incomes have risen. Consumption of processed meat has been steadily increasing, in line with growth in income which drives the processed meat market in the country.
- Furthermore, innovations in meat processing technologies due to higher consumption rates have led to the introduction of diverse products in the market that can satiate the rising consumer demand and attract new consumers, simultaneously.
- China's processed meat industry is witnessing a key shift from fresh meat consumption to chilled and frozen pork. As modern trade channels continue to expand, demand for chilled and frozen pork is expected to rise rapidly in the forecast period.
Key Market Trends
Increasing Per Capita Consumption of Pork
Pork is one of the most commonly consumed red meat that is often consumed unprocessed. However, cured or preserved pork products are also widely consumed. These include smoked pork, ham, bacon, and sausages. China accounts for 49% of the global pork consumption, consuming 28% of the worldŐs meat supply, which is way ahead of Europe and the United States with 21 and 9.7 million metric tons, respectively. The trend of chilled and frozen pork products is also boosting the market studied. In line with this trend, several chilled processed red meat products, including Classical German Bacon, Tasty Pork Shank, and Black Pepper Pork Chop, have been introduced into the market for this early new trend, which makes the sales for processed meat on the rise. However, the African swine fever epidemic ravaged pig herds resulting in a 14% rise in pork prices. The rising pork prices are expected to trigger a ripple effect throughout ChinaŐs economy, as it is importing pork from European Union, Brazil, Canada, and the United States, to meet the domestic demand as it is countryŐs essential meat.
Online Retailing is the Fastest Growing Retail Channel
Online retailing is an emerging retail platform for processed meat across the country but it is projected to be the fastest-growing channel in terms of sales value in the next several years. The main reason behind the rise in sales through online retailing is the level of convenience it provides for consumers by its complete data-driven process, which aids consumers in selecting the right product for their daily diet. Often, new products are being launched through online platforms in the region, which were previously first seen in the supermarkets, these factors further enhance the share of online retailing in China. Also, with the spread of awareness regarding the benefits of online shopping, consumers are readily purchasing meat products through online retail sites that offer discounts such as buy one get one. Thus, the advantages associated with the distribution channel are expected to drive the market in the near future.
China processed meat market is highly competitive. The market is dominated by both global as well as regional players such as Tyson Foods, WH Foods Limited and others. The leading global players operating in the market are forming a strategic partnership with the domestic players of the country, to increase their product distribution and broaden their consumer base. For instance, in 2017, Smithfield Foods Inc. formed a strategic partnership with JD.com and Henan Shanghai Investment and Development Co. Ltd, to increase the sales of pork products, in China, through online platforms. Thus, online retailing also plays a significant role in the growth of the market studied.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
3.1 Market Overview
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Meat Type
5.2 By Product Type
5.3 By Distribution Channel
5.3.2 Convenience Stores
5.3.3 Online Retailing
6 COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Tyson Foods, Inc.
6.4.2 WH Group Limited
6.4.3 CHERKIZOVO GROUP
6.4.4 Foster Farms
6.4.5 Hormel Foods Corporation
6.4.6 China Yurun Food Group Ltd.
6.4.7 NH Foods Ltd.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.