Jerky proves a hit in Europe, will drive meat snack market past $4.5 billion by 2025
Once a solely US snacking favourite, jerky is now very much on the snacking menus of many Europeans, a trend which is driving growth in the continent’s meat snack market.
It is expected to reach USD 4.59 billion by 2025, with the rising demand for healthier protein snacks coupled with growing awareness of healthy lifestyles also expected to drive market growth.
The demand for meat snacks in Europe is expected to increase rapidly as the market is still in its nascent stage. The introduction of Jack Link’s jerky product has transformed the market landscape in this region, and the growing demand for jerky has garnered the attention of major European snack manufacturers. The launch of different product forms, such as handmade sausage crisps, is expected to have a positive impact on market demand as well.
Supermarkets and hypermarkets are the preferred method of distribution for manufacturers, on account of bulk buying advantage. However, rapid growth of e-commerce portals with home delivery services is expected to overshadow the current distribution dynamics, thus restricting growth of traditional large retailers.
Further key findings from the report suggest:
- Germany accounted for 15.5 percent of the European meat snacks market in 2016, owing to the presence of major manufacturers and new product introductions.
- The UK, Belgium and Luxembourg are projected to be the fastest growing countries, registering a CAGR of 10.6 percent and 10.8 percent respectively from 2017 to 2025. Rising consumer preference towards healthier snacking options over traditional food, such as sausages and poultry meat, is expected to drive meat snacks market in the region.
- Pickled poultry meat demand is expected to witness below average growth rate, registering a CAGR of 9.6 percent from 2017 to 2025 on account of increased demand for other product categories.
- Restaurants are expected to be a preferred distribution channel with a fastest CAGR of 10.9 percent from 2017 to 2025. This growth is attributed to manufacturers, who are tailoring products as per consumer taste and preference and investing highly in this distribution channel.
Regarding acquisitions, the industry is expected to witness consolidation in the future. This is because of growing merger and acquisition activities with an aim to gain dominance in the product category or establish control over the distribution channels.
For instance, in September 2016 Bell acquired Geiser AG, a company specialising in deliveries to the food service sector. The acquisition was carried out to establish the former’s influence on the restaurant distribution channel.