Dramatic Growth of the Meat Extract Market Ahead
An interesting scenario is likely to crop up in the market by the end of the decade, as APEJ records incremental growth and braces to surpass North America. Another fascinating market feature to look for during the forecast period will be the immense popularity of beef for the production of meat extract in APEJ, despite the growing religious sentiments towards cattle.
Consumers’ quest for protein outside of traditional sources is encouraging manufacturers to focus on leveraging meat extract as an active ingredient for a wide range of applications, including snacks, soup powders, sauces, nuggets, seasonings, and bouillon cubes. As the culture of consuming 'go-to-meals' gains traction, consumers leading a demanding lifestyle evince a high proclivity for pre-cooked and instant meals, wherein, meat extract will play a pivotal role.
The advent of advanced manufacturing capabilities with multistep processes offer a zoomed-in focus on the quality of meat extract to control the spread of diseases from animals to humans, which will turn meat extract products premium. However, the stringent scrutiny of food and beverages in the industry, on account of the rising demand for halal- and kosher-certified products is likely to impact the supply and sales of meat extracts. Given the influence of the aforementioned parameters, the global meat extract market will grow ~2X during the forecast period of 2019-2029.
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High Impact of Religious Sentiments on the Market
Despite beef being a significant source of meat in Western countries, the discourse associated with cattle is religious in nature, in India. Article 48 of the Indian Constitution considers the slaughter of cows, calves, milch, and draught cattle as an offense. In May 2017, the Environment Ministry of India banned the slaughter of cattle such as progeny, heifer, calves, oxen, bulls, and bullocks. According to the law, the slaughter of cows, their possession, and even the consumption of their meat is punishable with several years in jail and high monetary fines.
Beef being the top-selling category for the production of meat extracts, is majorly exported from India, as the country holds the second position in the world as far as exporting beef is concerned. With the legislation of stringent laws and regulations protecting animal rights, the slaughter of cattle is likely to get impacted, which will reflect on the export of beef, and, in turn, the production of meat extracts.
Fascinating Case of APEJ Making it to the Lead Position
Traditionally, North America has been an attractive meat extract market, with a majority of consumers leading a demanding lifestyle and seeking 'ready-to-eat' meals. The surfacing of advanced technologies that ensure the purity of the meat extraction process is integral to the clean-label demand of consumers.
The high concentration of key players in North America is a critical lever to the growth of the market, and key players are integrating backward across the supply chain to enhance the quality of raw materials that are used for the production of meat extracts. With the increase in the number of fast-food chains such as Taco Bell and McDonald’s across the region, the demand for meat extract in the powdered and liquid forms is growing at a significant pace.
Currently, the value of the North American meat extract market equals ~US$ 370 million, and that of the APEJ market is ~US$ 160 million. The expected high growth of the APEJ meat extract market can be attributed to the high population density and the growing preference for innovative food products in the region.
The consumption of chicken and pork extracts is high in South Korea, and is likely to grow in the coming decade, given the focus of consumers on new sensory experiences. Given the exponential growth of 13%, APEJ will outperform the North American meat extract market by 2029. Another significant driver likely to improve the performance of APEJ is the ongoing trade war with China, India, Australia, and South Korea, leading to less exports to the U.S., and, in turn, leading to the utilization of more raw materials in the region to cater to the growing demand for meat extracts.
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What Should Market Players Look At?
In Focus: Powdered Meat Extract
In 2019, the sales of meat extracts in the powdered form will account for ~60%; however, the preference for meat extracts in the liquid form will increase among consumers. The concentration of powdered meat extracts is high as compared to liquid meat extracts, as they dissolve readily with any substance. In addition, end users look at powdered meat extracts as products that experience a low impact of time over their liquid counterparts. With high savings on packaging and shipping, the lower price tag for powdered meat extracts is likely to remain an attractive proposition for end users in the meat extract market.
Product-level Innovation Holds the Key
Since the preferences of consumers are fickle, manufacturers can focus on the introduction of new flavors with small-sized packaging, and can leverage the prowess of e-Commerce channels to add a new sales tangent to their businesses. A good example of product-level innovation can be taken from Hormel Foods. Recently, the company introduced two new flavors that include Mediterranean style chicken with bruschetta jack cheese and chipotle chicken with queso quesadilla cheese & flaxseed corn chips, to its snacking portfolio. Such an innovative product-level innovation approach taken by the company is aimed at offering a delicious and convenient way for people to snack naturally.
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Learn Market Lessons the Winner’s Way
Inspiration regarding a consumer-centric approach can be drawn from Carnad A/S. This Danish-based company drives its business with intended focus on innovation and flexibility. The company uses raw materials from EU-approved Scandinavian meat and seafood processors, and conforms to 'clean label' requisites. A shift to the production of clean label meat extracts will aid manufacturers strike a balance between low supply and high demand. In addition, manufacturers are entering into partnerships and agreements to gain reciprocal advantages through conjoint research and development activities. For example, Griffith Foods announced a five-year innovation partnership with The Hatchery, to leverage its core competency of food science, culinary expertise, consumer insight, and sensory science, and enhance consumer delight.
While the APEJ region will take a lead in the meat extract market with its exponentially improving sales performance, market players can note down this market shift and devise strategies with a key focus on developing countries to control overhead costs and grow their profit margins. All-in-all, meat extract manufacturers can look at the market growing at a compound annual growth rate of ~8% during the forecast period.
High Nutritional Value of Meat Extract to Drive Market Growth
- Meat extract is a highly concentrated form of meat stock. It is a by-product obtained from broth during meat processing, with a yield production of 0.03 kg/kg of meat. Apart from high protein content, this product is rich in iron, amino acids, and many more vitamins & minerals.
- As diets become richer and more diverse, the high-value protein that meat extract-based products offer improves the nutrition of a majority of the population across the world. Meat extract-based products not only provide high-value protein but are also important sources of a wide range of other essential micronutrients, in particular, minerals such as iron and zinc, and vitamins such as vitamin A.
- For the large majority of people in the world, particularly in developing countries in Latin America and Asia Pacific, meat extract-based products remain the desired food for nutritional value and taste. However, excessive consumption of animal products in some countries and social classes can lead to the excessive intake of fat.
Surging Demand for Protein-Rich Products to Create Opportunities for Meat Extract Manufacturers
- Protein has become an important nutrient among all consumer groups, including the aging population. Commitment towards healthy and active living is the major factor driving the demand for protein-enriched food products across the globe. As the demand for protein-rich food products is growing rapidly, snack product manufacturers are using meat extract as an active ingredient in their product formulation to increase protein content in their products.
- Meat extract has a wide range of applications in the food processing industry, such as stock powder, stuffing, snacks, nuggets, ready meals, bouillon cubes, seasoning, soups, coatings, soup powders, and sauces.
- In the global meat extract market, the U.S. holds a major share, owing to the increasing demand for meat-based snacks and higher microbiological research activities in the region. The growing section of health-conscious consumers is generating high demand for protein-rich products, and this has directly impacted the demand for meat extracts positively.
- Besides, many companies invest in R&D to bring innovative meat extract-based products, which will positively affect the growth of the meat extract market in the region in the coming years.
Extensive Usage in Microbiology to Grow Culture Media for Various Research Activities
- Meat extract is extensively used in microbiology lab testing to replace the aqueous infusion of meat in microbiological culture media. Meat extract is usually used at a concentration of 0.3 to 1.0% in culture media preparation, although concentrations vary depending upon the nutritional requirements for medium formulation.
- A majority of the organisms studied in medical bacteriology are either pathogens or commensals of the human body, and to obtain suitable growth, the artificial culture medium should provide nutrients and a pH (about 7.2) approximating to those of the tissues and body fluids. For routine purposes, many of these nutrients are supplied by aqueous extracts of beef and peptone, which are produced after the digestion of protein.
- Beef extract broth can be used as a general-purpose nutrient medium, and is also recommended for the preparation of pure culture of Candida species for carrying out fermentation studies.
Increasing Consumer Awareness Regarding Claims
- To inculcate diet claims in their end products, many food product manufacturers collaborate with research companies to develop meat extract-based food products. Diet claims that mainly attract consumers are natural, high protein, low fat, and organic, where 'natural' is the leading claim across the food industry, and has significantly increased the demand for meat extracts in the food industry.
- Adding a high amount of functional and specific nutrition in the food can spoil the taste of the end products, and to overcome the unpleasant taste of the food, manufacturers use meat extracts, which act as flavor enhancers, in addition to providing high nutritional value.
- Consumers are increasingly concerned about the origin of food products. Interest in the local food economy, food safety, environmental impacts, and complexity of the entire food supply chain have led to the forming of new labels to differentiate food products, such as 'ethical'.
- Consumers prefer products that benefit their environment, country, and communities. Meat extract is produced from livestock kept under natural, humane conditions, and this is anticipated to fuel the demand for meat extract as an ethical food in the region.
Global Meat Extract Market: Key Players
A few key players operating their business in the global meat extract market are
- Carnad A/S
- Colin Ingredients
- JBS Global (UK) Ltd.
- NH Foods Australia Pty Ltd.
- Proliant Inc.
- ARIAKE Japan Co., Ltd
- Meioh Bussan Co., Ltd.
- Nikken Foods Co., Ltd.
- Innova Flavors (Griffith Foods Inc.)
- others.
Transparency Market Research (TMR) started a new study on the global meat extract market, providing forecast for the period of 2019 to 2029. The report enumerates valuable insights so as to enable readers make winning business decisions for the future growth of their businesses. The report sheds light on significant factors that are constantly shaping the growth of the meat extract market, untapped opportunities for manufacturers, trends and developments, and other insights across various key segments. The macroeconomic factors that are directly or indirectly affecting the growth of the global meat extract market are also incorporated in the report.
Key Questions Answered
- What will be the meat extract market size in 2029?
- Which region will remain the most lucrative for the growth of the meat extract market?
- Which meat is most preferred for extract, and what was its market size in 2018?
- What is the market share comparison between the different forms in the meat extract market?
- What will be the growth rate of powdered meat extract in 2021?
- What will the volume sales of beef extract be in 2024?
Key indicators associated with the meat extract market have been evaluated thoroughly in the report. The study highlights vital market dynamics such as the key drivers, challenges, and trends, along with potential opportunities in the meat extract market. A comprehensive study on the supply chain of the meat extract market has also been encompassed in the report.
Other key aspects laid down in the meat extract market include cost breakdown, pricing strategy of the leading market players, and raw material cost breakdown. Furthermore, forecast factors and the forecast scenario of the meat extract market have been encompassed in the report to understand the future prospects of the market.
A comprehensive evaluation and forecast on the meat extract market have been provided on the basis of meat, end use, form and region. The report also renders imperative numbers such as historical and forecast size of the various segments of the meat extract market.
Y-o-Y growth comparison, volume and revenue comparison, and market share comparison of various market segments have been delivered in the report. The meat extract market has been analyzed at both, regional and country levels.
The report provides an exhaustive evaluation on the structure of the meat extract market, in tandem with a dashboard view of all the leading companies profiled in the report. A company share analysis on meat extract market players has also been presented in the report, apart from the footprint matrix on the profiled market players. The report depicts the presence of meat extract manufacturers by leveraging an intensity map.
Key companies profiled in the meat extract market report include
- Carnad A/S, Colin Ingredients
- JBS Global (UK) Ltd.
- NH Foods Australia Pty Ltd.
- Proliant Inc.
- ARIAKE Japan Co., Ltd
- Meioh Bussan Co., Ltd.
- Nikken Foods Co., Ltd.
- Innova Flavors (Griffith Foods Inc.)
Research Methodology
A realistic methodology along with a holistic approach makes the base for the incisive insights provided in the meat extract market report for the study evaluation period. The TMR report comprises detailed information on the growth prospects of the meat extract industry, along with riveting insights into the forecast assessment of the market.
Extensive primary and secondary research has been employed to garner incisive insights into the forecast study of the meat extract market. The report on the meat extract market has further gone through cross-validation by in-house professionals to make the meat extract market report one-of-its-kind with the highest credibility.
Meat Extract Market: Segmentation
The meat extract market has been bifurcated on the basis of meat, end use, form, and region. Each of these segments are analyzed further to provide readers a holistic view of the meat extract industry.
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