South Africa Processed Meat Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

South Africa Processed Meat Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The South African processed meat market is projected to register a CAGR of 4.3% during the forecast period (2022 to 2027).

The COVID-19 pandemic has placed unprecedented stresses on food supply chains, with bottlenecks in farm labor, processing, transport, and logistics, as well as momentous shifts in demand. COVID-19 pandemic has directly and indirectly impacted overall meat production. Through the infected workforce causing the shutdown of meat plants, there was a decrease in production, processing, distribution, and marketing potential. However, the livestock industry in South Africa, recovering from the impact of a recent devastating drought and disease outbreak, is likely to generate demand for feed additives due to the growing population. Demand for quality meat products and a spike in consumer spending, particularly among the middle class, may drive the processed meat market.

Most demand for processed meat will likely come from hotels, restaurants, and foodservice segments. However, the consumption of fresh meat is anticipated to stay prominent, trailing the higher poultry meat/products consumption. The increase in disposable income drives the growth of the South African processed meat market. However, the rising cost of raw materials used in feed is a significant restraint on the market. Religious practices further reduce the consumption of pork and beef, wherein the promotional campaigns by major companies are helping further market expansion.

South Africa is the largest regional exporter of processed meat. The Southern African countries (Botswana, Lesotho, Malawi, Mozambique, Namibia, Seychelles, Swaziland, Zambia, and Zimbabwe) suspended imports of processed meat from South Africa, which hampered the processed meat industry. According to the Department of Trade and Industry, demand for processed meat dropped by 75% due to a listeriosis outbreak that hit the country.

Key Market TrendsGrowth of Foodservice Restaurants Increased Meat Consumption

Due to the strong presence of international consumers, the foodservice market is primarily driven by the increasing frequency of dining out amidst time-pressed schedules and the growing influence of cross-culture dietary patterns. The growth of food service is evident in the fact that the market for processed meat is expected to witness its growth, citing offerings in different formats to lure more domestic consumers and international tourists. As for food franchises in South Africa, over 100 such companies are listed on the Franchise Association of South Africa (FASA). South Africa is proving a very successful market for foreign food service franchises as well, where several international brands have undertaken the advantage of the country's retail growth of 3 to 5% over the past few years by investing heavily in the segment as a part of expansion or unveiling of plans to do so in the future.

Poultry is the Most Preferred Type of Processed Meat

South Africa is the largest regional exporter of processed meat. The Southern African countries Botswana, Lesotho, Malawi, Mozambique, Namibia, Seychelles, Swaziland, Zambia, and Zimbabwe suspended imports of processed meat from South Africa, which hampered the processed meat industry. Processed Poultry is the largest segment in the processed meat industry and accounts for around 40% of the market share. The processed chicken meat is expected to perform well, mainly due to the rising prices of other meat and the strong popularity of Chicken meat in South Africa. Chicken meat is widely consumed and accounts for 65% of the market share. Also, demand for meat products has been influenced by the variety, prices, and services the retail food firms have offered to their customers.

Competitive Landscape

The South African processed meat market is competitive due to many regional and domestic players. South Africa is an emerging market, and vendors emphasize the companies' mergers, expansion, acquisitions, partnerships, and new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. The major companies are promoting the health benefits of animal proteins in this region to increase the market's growth. Innovations in meat processing technology encourage vendors to introduce new products. Major companies operating in the country are Tiger Brands, RCL Foods, Tyson Foods, Eskort Co-operative, and BRF SA, among others.

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