February 27, 2015

                                 

Huge opportunities await meat industry in Asia and Africa: institute

 
 

There are huge opportunities for the global meat industry, particularly in Asia and Africa, according to the Institute of Grocery Development (IGD).

 

At the Agriculture & Horticulture Development Board (AHDB) Outlook Conference in London last week, Nick Miles, Asia-Pacific region manager for IGD, told delegates that Asia's growing demand for meat, coupled with its evolving grocery market meant prospects were positive for exporters, with the overall grocery market expected to see year-on-year growth of 8.5% between now and 2020.

 

According to Miles, meat consumption in Asia is set to achieve a compound annual growth rate (CAGR) of 13% between 2014 and 2020. This compares to a CAGR of 3% predicted for Europe, 8% in North America, 11% in Oceania and 22% in Africa.

 

Within Asia itself, China was forecast to see a CAGR in meat consumption of 10%, led by increasing demand for pork. Forecasts for India and Southeast Asia were respectively 19% and 20%.

 

Trends in the Asian retail market included a focus on communicating the quality and origin of meat products. Some retailers offer consumers the ability to scan QR codes on-pack to find out which farm the animal came from, as well as other information, such as recipe tips.

 

While the Asian retail market was a mix of the modern and traditional, international meat products were playing an increasingly important part, with their exclusivity a key selling point, said Miles.

 

The population in Asia was also growing rapidly, with 59.5% of the world's population expected to be living there by 2020 - 54% of which are expected to be 'middle class', he added.

 

Miles explained that fierce competition meant retailers wanted to differentiate, so local understanding is key to success.

 

For example, while in Japan there were a relatively large number of smaller retailers that control the market, in countries like the Philippines national retailers dominated, and in China there was such huge fragmentation that there was no clear domination.

 

Overall, data also suggested that supermarkets were seeing less success than domestic and regional retailers.

 

In addition, only five of the top retailers in Asia were headquartered outside the continent, including Walmart, Carrefour and Tesco, Miles said.

Video >

Follow Us

FacebookTwitterLinkedIn