Steak demand driven by organic, grass-fed
Sept. 5, 2017
by MEAT+POULTRY Staff
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A new report on global steaks market lists consumer demand and exotic steaks as top factor for growth.
LONDON- Global technology research and advisory company, Technavio, has released its latest research report on the global steaks market. Technavio expects the global steaks market to grow at a rapid pace in the 2012 to 2021 time period due to increasing consumer demand for protein-rich foods and the introduction of exotic steaks, for example, bison steaks.
The analysis includes beef steaks, chicken steaks, fish steaks, lamb steaks and pork steaks as the five major product segments, of which the beef steak segment accounted for about 42 percent of the market share in 2016.
The top three trends noted in the research are:
• Increasing demand for organic and grass-fed steaks
• Introduction of new packaging methods
• Fluctuating prices of steak
The growing awareness about the health benefits of organic food products is increasing the demand for organic steaks. Companies in the grass-fed and organic market continue to develop products to capitalize on these health-conscious consumers.
“The value-added benefits of grass-fed steaks, such as better taste and high nutritional values are increasing the demand for grass-fed steak.” said Manjunath Reddy, a lead analyst for food research at Technavio. “Grass-fed steaks are priced higher than regular steaks. Players in the market are coming up with new grass-fed steak products to cater to the increasing demand from the consumers.”
Improved product visibility through attractive, high-quality packaging that allows a longer shelf life will also influence growth during the period, according to the report.
Pricing volatility in the steak segment isthe third trend listed in Technavio’s report for the time period, citing factors such as meat production, environmental conditions and animal disease. The average price of beef steak decreased 3.5 percent from 2016 to 2017.
“The increasing number of players in the market and the rising demand for high-quality steaks will affect the steak prices during the forecast period,” Reddy said. “The intense competition among players will force them to decrease the price of their product offerings, which will affect the growth of the global steak market and the revenue stream of the players.”