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.
Raw material prices
And while demand for packing in the meat, poultry and seafood sectors is expected to see annual growth of 3.5 per cent during the review period, the value gains will slow compared to those recorded in the fives years to 2008 thanks to a moderation in raw material prices for such commodities as metal, plastics and paper, predicted the authors.
Flexible versus rigid packing
Demand for flexible packaging will continue to outstrip rigid packaging – climbing 4.4 per cent annually to reach $4bn in four years. Part of this growth will be driven by buoyant prospects for high barrier film pouches as a rising proportion of meat is set to be marketed in case-ready packaging. Flexible packing will also benefit from further penetration of retort pouches into traditional can applications, forecasts the study.
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.
Format forecasts
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 $365m in 2008 to $470m by 2013 – an annual growth rate exceeding five per cent.
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 $4.49bn last year to $5.33bn 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 $2.89bn to $3.4bn over the same period, thanks to regular product introductions of convenience-orientated items such as sliced luncheon meats in resealable tubs.