Asia has been a profitable hub for interested meat traders to export livestock until a sudden fall in demand was experienced in quarter one and two of 2020,with the emergence of COVID-19 pandemic. This has majorly affected meat trade from China, where large scale lockdowns in agricultural enterprises have led to an acute shortage of livestock owing to supply chain disruptions.

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In Europe, the decision to suspend livestock trading was taken due to risk of infections. Forecasted global growth will be cut down to nearly 1.5% in 2020 owing to the fall in consumer demand.

Surge in Demand for Grassfed Meat through Retail Sales is anticipated to Grow

The grassfed meat market has witnessed a skyrocketing growth owing to theevolving tastesof health conscious meat consumers who prefer quality. This rising demand has encouraged producers as well as distributors of meat to offer grassfed meat products to capture a potentially growing market share.

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Supermarkets and hypermarkets are presently contributing to nearly 1/2 of the overall retail store supplies, owing to a shift in demand from conventional meat variants toorganic and natural meat products. However, online stores are expected to grow at a CAGR of 5.0% during the forecasted periodowing to shifting dynamics in buying behavior of the customers. Moreover, in regions like North America and Europe the demand for grass-fed meat will grow at nearly the same rate as the global average.

Key Takeaways of Grass-Feed Meat Market

  • Direct salesare expected to retain their dominance over retail sales channels. The former’smarket share is expected to grow by 5.5%largely on account of asurge in demand fromfood processing and HoReCa sectors.

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  • Latin America holds nearly 2/5th of the total grass-feed meat consumption. However Asia Pacific will grow at CAGR of nearly 6.0% which is higher than the overall global average.
  • China’s demand for grass feed meat is expected grow by 2X during the forecast period, owing to the current ban imposed on eating wild animals due to outbreak of covid-19.
  • Consumption of lamb and goat will grow at a CAGR of 5.0% considering the impact of covid-19 outbreak which will affect the trade of live-stock.
  • United States expenditure on processed meat will grow at a CAGR of 4.0%, owing to the rising demand from its demographic. Along with this, food processing companies will see a rise in demand for processed meat with a CAGR of nearly 5.0%in global market.

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Players look to Obviate Supply Chain Disruptions amid COVID-19 Pandemic

Earlier the players were developing technologies due to high concern for meat quality. However, during the last five years new players have fragmented the market of grassfed meat by introducing technologies like block chain to maintain their supply channel and to reduce cost. One of the existing key players JBS USA, has adopted block chain to trace their meat through RFID and QR codes.These technologies have shown that now the market is not limited just to quality. Reducing cost by adopting newtechnologies is of significant priority.

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