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| MEAT, POULTY & BACON |
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| Executive Summary |
| Meat and Meat Products
The UK meat and meat products market was valued at £12bn in 2000. Market growth, estimated at 2.6% in 2000, represented the strongest increase in the market over recent years. This was helped by some price increases and the growth in demand for added-value meat products. While total volume consumption of meat and meat products remains relatively static, the emergence of more added-value products has increased spending.
Carcass meats — including beef, lamb, and pork — still account for the largest segment of the retail market in terms of expenditure, but the single most popular sector is poultry. Bacon and ham is another market sector comprising unprocessed meat. However, the sector experiencing the fastest growth is other meat and meat products. This is a diverse sector, which includes traditional products such as canned meats, sausages and meat pies. It also includes some of the rapidly expanding areas such as ready meals.
Like most other food markets, the meat and meat products market has been affected by changing consumer demands and different lifestyles. Demand for traditional joints, chops and roasts is declining, but there is increased demand for pre-packed meats, leaner varieties, and cuts of meat that are suited to today's cooking demands (e.g. ingredients for pasta and stir-fry dishes). Further processed products — such as coated and breaded varieties — are increasingly popular, while the emergence of microwaveable meat products represents another market satisfying the demands of today's busy consumers. Own-label products are taking a greater share of the market.
The European meat supply industry is suffering from over-capacity and over-supply. These problems are exacerbated in the UK because of the strong pound. Exports of beef are still small, despite the lifting of the export ban, and although the UK supplies most of its meat requirements from home production, imports are becoming increasingly important in some sectors — such as pork and lamb. The outbreak of swine fever in 2000 increased the UK's dependence on foreign supplies, and many livestock farmers are facing decreasing incomes. However, in the meat processing sector, many of the larger companies have responded to the industry problems and changing market conditions by switching from the production of commodity meats to added-value products.
Value growth in the meat market should be maintained in the next few years as more suppliers improve their product offerings and increase supplies of premium products. More products will be aimed at younger consumers who usually only purchase small quantities of many traditional meats.
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