July 17, 2009

An expansion in US meat, poultry and seafood production and a continuing shift to case-ready packaging by retailers will be the main drivers in packing for the sectors topping US$9 billion by 2013, according to a new study.

 

The report by The Freedonia Group, entitled Meat, Poultry and Seafood Packaging, said demand will also be boosted by changes in packing practices - such as the increasing prevalence of meat, poultry and seafood items in smaller, more convenient sizes and expansion of product ranges.

 

While demand for packing in the meat, poultry and seafood sectors is expected to see annual growth of 3.5 percent during the review period, authors predicted that the value gains will be slow compared to those recorded in the five years to 2008 thanks to a moderation in raw material prices for such commodities as metal, plastics and paper.

 

Demand for flexible packaging will continue to outstrip rigid packaging - climbing 4.4 percent annually to reach US$4 billion in four years. Part of this growth will be driven by optimistic prospects for high barrier film pouches as a rising proportion of meat is set to be marketed in case-ready packaging.

 

The study forecasts that flexible packing will also benefit from further penetration of retort pouches into traditional can applications.

 

By contrast, rigid packing will experience only sluggish gains as a result of the maturity in the large corrugated box segment and declines in the metal can sector. However, the period will also be characterised by healthy growth for plastic trays and containers.

 

In the meat segment, poultry will outperform beef thanks to its lower cost, "favourable nutritional profile and versatility", declared the report authors. Ready-to-eat (RTE) applications, such as rotisserie chickens, will further spur strong performance.

Although seafood will continue to hold a significantly smaller market share than meat or poultry, consumer consumption will climb thanks to revised US government nutritional guidelines and seafood's perceived health benefits.

 

While the two major markets of the last five years, fresh and frozen, and processed, will demonstrate continued leadership in the meat, poultry and seafood segments, the RTE sector is predicted to post the fastest advances during the period, according to the report.

 

Driven by the availability of prepared foods in retail venues, the RTE market will rise from US$365 million in 2008 to US$470 million by 2013 - an annual growth rate exceeding five percent.

 

At the same time, growth in the two largest segments will see a more modest rate of growth of 3.5 percent year-on-year. Demand for fresh and frozen meat, poultry and seafood will climb from US$4.49 billion last year to US$5.33 billion in 2013.

 

This will be aided by the "growing importance of higher-value case-ready and modified atmosphere packaging to extend shelf life", said the study by the Cleveland-based industry research group.

 

Processed food in these areas will also increase from US$2.89 billion to US$3.4 billion over the same period, thanks to regular product introductions of convenience-orientated items such as sliced luncheon meats in resealable tubs.