Meat + Poultry - October 2005 - 33

PROCESSING
PROJECTIONS
Outlook
report details
past and
present sales,
predicts future
transactions

T

he 2005-2006 Outlook for the
U.S. Processed Meat Industry, published earlier this year
by Business Trend Analysts, Inc.,
Commack, N.Y., is a comprehensive
overview and forecast of the market
for sausage products, processed pork,
canned meats and other processed
meat products, which represents a
market valued at nearly $32 billion
per year.
B.T.A.'s report acknowledges the
past and potential challenges and
opportunities facing the U.S. meat in-

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dustry, including a slowing economy,
animal disease outbreaks, diet trends,
food safety scares and large-scale
product recalls.
Despite all the obstacles facing the
processed meat segment, most notably
the discovery of the first case of bovine
spongiform encephalopathy in a U.S.
cow in 2003, sales continue to surge.
In the year following the discovery,
U.S. sales of processed meat grew by
more than 3 percent, according to the
report. Sales are projected to continue
growing, with sales in 2006 expected
to top $34.3 billion. By 2014, processed meat sales are predicted to total
$38.9 billion.
Within the segment, sausage sales
account for about 25 percent of all
processed meat sales. The category of
"other smoked or cooked sausage are
expected to make up about 37 percent
of U.S. sales in 2006. The rest of the
sausage products category are also expected to contuinue growing in 2006,
reaching $8.2 billion.
Meanwhile, processed pork is expected to account for about one-third
of all processed meat sales, thanks in
large part, to the continued popularity
of ham products. In 2003, processed
pork sales topped $10.5 billion and are
expected to continue growing through

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2006, when B.T.A. predicts sales to
reach $11.4 billion.
Thanks in large part to the cult-like
following of Hormel Foods' Spam
product, sales of canned meats creep
up slowly but steadily each year. In
2003, sales of canned meats increased
1.4 percent over the previous year, to a
total of $2.1 billion. Forecasters expect
this segment to continue to inching up
to an estimated $2.3 billion in 2006.
Included in the category of "other
processed meats," is frozen ground
meat patties, which helped grow the
segment by 2.7 percent in 2003, to
$11.2 billion. Frozen ground meat
patties typically account for about 23
percent of sales within the segment.
B.T.A. expects sales of the "other" category to reach $12.4 billion by 2006.
The following data has been provided by B.T.A. and only represents a
fraction of the company's entire report,
which spans 450 pages and covers
every aspect of the processed meats
industry, from company-specific sales,
to demographic data about consumers
and their consumption patterns. The
report also provides long-term forecasts for the segment through 2014.
For more information on the B.T.A.
Outlook for the U.S. Processed Meat
Industry, go to www.bta-ler.com.
http://www.bta-ler.com http://www.MEATPOULTRY.com
Meat + Poultry - October 2005

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