Source: Lisa M. Keefe, MEATINGPLACE, 12/28/16

The global market for beef is expected to reach $2.1 trillion by 2020, according to a new study by Grand View Research Inc., based in San Francisco.

Beef is the third-most consumed meat globally. Growing consumer preference for meat as source of protein is expected to be a major driver of demand for beef over the forecast period. In addition, growing disposable income in emerging markets has resulted in increased consumption of beef in comparison to pork and poultry. And, the market is expected to witness significant growth owing to food safety issues such as chemical residue and pathogen detection in other meat products.

Ground beef is the most-consumed product, with demand exceeding 29.5 million tons in 2013. Popularity of ground beef comes from its use in hamburgers and meatballs. Beef steaks are expected to be the fastest-growing segment due to increased preference for high quality beef, particularly in North America. The segment is expected to witness growth at an estimated compound annual growth rate of 1.24 percent from 2014 to 2020.

Further key findings from the study suggest:
• The global beef demand was 67.4 million tons in 2012 and is expected to reach 72.9 million tons by 2020, growing at a compound annual growth rate of 1.15 percent from 2014 to 2020
• Asia Pacific is expected to be the largest regional market for beef with revenue exceeding $580 billion in 2013. Growing disposable income of China coupled with high preference toward red meat is expected to be a key driver for the market over the forecast period.
• North America was a significant contributor to beef demand with consumption in excess of 12.0 million tons in 2013.
• Increasing demand for halal beef in predominantly Islamic nations is expected to be a key factor having a positive impact on the market over the forecast period. The demand for Kosher beef is expected to increase in North America owing to consumer perceptions that it is a safer, higher quality and healthier beef.
• The global market was moderately consolidated with the top four companies accounting for more than 70 percent of the market in 2013. The key companies in the market include Tyson Foods, JBS, National Beef Co. and Cargill Meat Solutions.

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