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Hog Production and Pork Market- Challenges and Opportunities to 2027

 

Hog Production and Pork Market: Introduction

A recent study published by Transparency Market Research on the hog production and pork market includes global industry analysis and opportunity assessment for 2019-2027. The global hog production and pork market is expected to be valued at ~US$ ~398 Bn in 2019, which is projected to rise at a CAGR of ~2%, to reach a value of US$ 464 Bn by 2027.

Pork Industry Growth Favored By Strong Demand Due to Low Cost of Feed

Decade-low cost of feed is one of the key factors, which is driving the hog production and pork market. As the importance of ‘health’ is significant in meat-consuming countries, the demand for hog production is high. In emerging countries, such as India and China, population is rising, especially of the middle class consumers due to which, the demand for pork is increasing. Besides decade-low feed price, rise in demand for nutritional benefits of pork meat is fueling the hog production and pork market. Pork products in packaged form are considered to be more hygienic and of high quality, as they are sold by well-established companies, such as the WH Group in China. In response to the growing consumer demand for healthy processed pork products, these manufacturers are increasingly shifting their focus from shelf-stable processed pork to chilled processed pork.

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Rise in Demand for Frozen Meat Creates Lucrative Opportunities

The demand for frozen food is increasing rapidly across the globe, due to changes in lifestyle and food habits of consumers. Customers across the globe are anticipated to demand frozen foods, owing to the convenience factor associated with them. Moreover, the demand for frozen foods is predominantly driven by the trend of food traceability by millennial and health conscious consumers. Furthermore, availability of new technologies, such as swift advancements in freezing techniques to extend the lifespan of pork products, along with quality products are driving the sales of frozen pork. Moreover, changing consumer preferences are likely to provide significant growth opportunities to manufacturers in the hog production and pork market to launch products with better appearance, taste, packaging, and flavors. This is expected to fuel the adoption of frozen meat products in the near future.

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Consumer Inclination toward Organic Products to Support Market Growth

Consumer preference toward organic products has been increasing. The market sales of certified organic products hit US$ 6.2 Bn in 2015, up by 14% from 2014 in North America.

Rising demand for organic food products is anticipated to be a major contributor to the growth of the hog production and pork market. Organic food products are derived from organically grown ingredients and processed naturally without the addition of any chemical. Organic food products are considered essential and are a popular trend, especially in Europe, Oceania, and North America. The demand for products produced with known ingredients is increasing and thus, the demand for organic products is also rising. Furthermore, consumer awareness regarding health benefits of organic products as well as strong support from local companies for the development of such products are key factors driving the demand for organic pork products.

·         According to the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS), 2014 Organic Survey released in 2015 shows that around 14,000 certified organic farms in the U.S. sold organic products worth US$ 5.5 Bn in 2014, which is a rise of 72% since 2008

·         According to FiBL & IFOAM - Organic International’s 2017 report, the global organic food market is estimated to be valued at US$ 80 Bn, and the U.S. accounts for a share of 47%

 

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