The global pork industry draws attention as a market driven by China, the EU and the USA. These countries continue to maintain their leadership positions in terms of pig population, pork production/consumption and pig feed production, and lead global growth prospects. The global pork meat market size is projected to reach $257,874.5 million by 2027, registering a CAGR of 3.9% from 2021 to 2027. Similar growth is expected in the pig feed market. Pig feed market is expected to register a CAGR of 4.1% during the forecast period, 2020-2025.
The global pig industry can be evaluated under two separate headings as meat and feed. According to Allied Market Research’s “Pork Meat Market (2021–2027)” report; the global pork meat market size was valued at $236,112.7 million in 2019, and is projected to reach $257,874.5 million by 2027, registering a CAGR of 3.9% from 2021 to 2027. Similar growth is expected in the pig feed market. According to the Swine Feed Market (2021 – 2026) report prepared by Mordor Intelligence; the swine feed market was valued at USD 135.30 billion in 2019 and is expected to register a CAGR of 4.1% during the forecast period, 2020-2025.
According to Food and Agricultural Organization (FAO), 50% of the global pig population is concentrated in China followed by the EU and the U.S. Such trends show that these regions will remain the highest compound feed consumers for pork production. On the pork trade side; Pacific countries like Japan, Australia, Mexico, New Zealand, and North Korea are the major pork importers, whereas China, the U.S., Canada, the European countries and Brazil are the major pork exporters.
PIG POPULATION WORLDWIDE
Pigs are one of the most commonly raised animals in the world. They are the primary protein source for millions of people across numerous different cultures and geographical regions. That’s why they have a significant population around the world.
According to the data of the US Department of Agriculture (USDA) Foreign Agricultural Service; in 2021, there were over 752 million of pigs worldwide, increasing from around 654 million heads in the previous year. In the same period, China was home to the largest number of pigs of any country with 406 million heads, meaning that China was home to more than half of the global pig population. That year, the European Union and the United States were second and third in the list, with over 150 and 77 million heads respectively.
Brazil with 37 million heads, Canada with 14 million heads, Mexico and South Korea with 11 million each follow these countries.
GLOBAL PORK MARKET
Pork is the most popular and widely consumed meat source worldwide, majorly in Europe and Southeast Asia. Pork is cheaper than other meat sources which is a major factor for its high consumption. In addition, its palatability, fat content and texture fascinate the consumer. A large middle class population, growing disposable income and changing consumer preferences are levitating the pork demand.
According to the Swine Feed Market report of Mordor Intelligence; pork production and consumption are very high in the developed regions, such as North America and Europe and in the developing countries such as China and Japan. This is supported by the USDA data as well.
According to the “Livestock and Poultry: World Markets and Trade” report of the USDA; global pork production in 2021 amounted to 105 million metric tons. And China, which produced over 43 million metric tons of pork, was the leading country in the market. The European Union with 24 million metric tons and the United States with 12 million metric tons held the second and third positions, respectively. These countries were followed by Brazil, Canada, Mexico, South Korea, Japan, the Philippines and Hong Kong, respectively.
Since early 2021, China hog slaughter has been strong and carcass weights higher. Rebounding pork production at a time of weak seasonal demand has caused prices to drop rapidly, prompting liquidation of animals as Chinese producers have sought to protect margins. However, the reported culling of breeding animals, continued productivity challenges, and weaker producer margins are expected to slow China production growth later in the year.
According to the USDA report; the most commonly consumed meat in world are poultry and pork, though in the next several years poultry is expected to overtake pork in popularity. Global consumption of pork is projected to increase from 117.35 metric kilotons in 2017 to about 131 metric kilotons by 2027. In the United States however, per capita consumption of red meat is expected to level off after reaching about 114 pounds.
Mordor Intelligence draws attention to the following points about the Asia-Pacific region in its report: Asia is the leading market for pork consumption and production which accounts for about half of the world production. Owing to huge consumption of pork meat, the Asia-Pacific region is the largest market for swine feed products. South East Asia is the largest producer and exporter of pork in the world, followed by Europe and North America. Pork meat is consumed in the region from ancient times and is the most preferred meat due to its fat content and taste. China is the major market for pork production, followed by Vietnam, Thailand, South Korea, Japan and the Philippines. Japan, South Korea and Taiwan are the saturated markets for pork consumption, while Vietnam and the Philippines are the emerging markets.
GLOBAL PORK TRADE
According to the USDA report; global pork exports for 2021 are revised up 2 percent to 11.8 million tons on higher estimates for all major exporters. China imports continue to underpin global trade and are raised 3 percent to 5.0 million tons. Japan, Mexico and South Korea follow China in pork imports. Meanwhile, the Philippines imports are revised up 21 percent to 425,000 tons on lower tariffs and a continued ASF-induced supply deficit. Mexico imports are raised nearly 3 percent to 985,000 tons on high domestic prices, a stronger peso, and as an offset to strong exports. Japan, Mexico and South Korea follow China in pork imports.
In the global pork exports, European Union maintained its leadership with 4.4 million tons. The U.S., the second largest pork exporter, exported over 3 million tons in the same period. Canada and Brazil ranked third and fourth, respectively, in world pork exports.
MARKET STATUS IN GLOBAL PIG FEED
According to 2020 Alltech Global Feed Survey; pig feeds take the second place in global compound feed production (1.126 billion metric tons) with a share of 24.1 percent. The Asia-Pacific region stands out with 120.6 million tons in pig feed production, which was 286.3 million tons globally in 2020. Asia-Pacific region is followed by Europe with 72.9 million tons and by North America with 53.9 million tons in pig feed.
According to the survey; pig feed production was greatly impacted by African swine fever, with an 11% decrease. The primary producing region for pig feed remains Asia-Pacific, but it also experienced the largest decline of 26%, with China (-35%), Cambodia (-22%), Vietnam (-21%) and Thailand (-16%) experiencing large decreases. Europe, North America and Latin America remained relatively stable compared to the previous year, within a percentage point’s worth of gain or loss. While Africa is a small region from a tonnage standpoint for pig feed, it showed a large increase of 29%.
PORK MARKET TRENDS
According to Pork Meat Market (2021–2027) report of Allied Market Research; the global pork meat market size was valued at $236,112.7 million in 2019, and is projected to reach $257,874.5 million by 2027, registering a CAGR of 3.9% from 2021 to 2027. The frozen segment was the highest contributor to the pork meat market in 2019, and is estimated to grow at a CAGR of 3.9% during 2021–2027 forecast period. Asia-Pacific was the highest revenue contributor, accounting for more than half of the global market share 2019, and is estimated to grow at a CAGR of 4.5% through the forecast period.
The growth of the pork meat market can be attributed to changes in the food consumption pattern of people all around the world. The expansion of retail market and easy availability of the product through various sales channel make it convenient for consumers to purchase packaged pork meat, which drive the sales figures. However, rise in the adoption of veganism and stringent law implemented against animal cruelty act as the major restraints of the global pork meat market. On the contrary, increase in popularity for organic pork meat and clean label products is expected to offer lucrative opportunities for the expansion and the global pork meat market growth.
Depending on the global pork meat market analysis by type, the frozen segment accounted for the highest share in 2019. The frozen segment is growing manifold due to rapid increase in consumption of meat, poultry and seafood. However, the frozen segment is expected to witness a modest growth rate through the forecast period. The growth of this segment can be attributed to the fact that consumers often prefer chilled pork meat than the frozen meat.
Depending on the global pork meat market forecast by application, the commercial segment accounted for the highest share in 2019. The growth in the commercial application of pork can be directly contributed to the growing working population and the trend of consuming meals outside homes. On the contrary, the outbreak of coronavirus has reduced the demand for pork in commercial establishments, and as a result, the consumption of pork meat through these establishments has been impacted negatively. The household segment is projected to witness a notable growth rate throughout the forecast period. This is attributed to the fact that the household consumption of pork has increased considerably in Asia-Pacific, because it is a staple food. Moreover, various benefits associated with pork meat such as it is a rich source of proteins and vitamins and its luscious taste boost the growth of pork meat market. Moreover, the demand for pork meat for home consumption has increased, due to implementation of stringent lockdown, which, in turn, increased the consumption of home food.
Region wise, Asia-Pacific was the most prominent market for pork meat in 2019, and is expected to exhibit high growth rate during the forecast period. Europe and North America are expected to witness steady growth rate throughout the forecast period, owing to the presence of a large number of local players.
The players in the pork meat industry have adopted product launch as their key development strategy to increase profitability and improve their stance in the pork meat market. The key players profiled in the report include WH Group, JBS S.A., Smithfield Foods, Triumph Foods, Danish Crown, Tyson Foods Inc., Tönnies, Yurun Group, Vion Food Group Ltd., and Shuanghui Development.
PIG FEED MARKET TRENDS
According to the Swine Feed Market (2021 – 2026) report prepared by Mordor Intelligence; the swine feed market was valued at USD 135.30 billion in 2019 and is expected to register a CAGR of 4.1% during the forecast period, 2020-2025. Rising consumption of pork meat is expected to drive the product demand in the market.
According to Food and Agricultural Organization (FAO), 50% of the global pig population is concentrated in China followed by the EU and the U.S. Such trends show that these regions will remain the highest compound feed consumers for pork production.
Asia is the leading market for pork consumption and production which accounts for about half of the world production. Owing to huge consumption of pork meat, the Asia-Pacific region it is the largest market for swine feed products. South East Asia is the largest producer and exporter of pork in the world, followed by Europe and North America.
According to IMARC Group’s Swine Feed Market report; the increasing concerns regarding food safety have created a demand for high-quality swine feed to ensure meat safety. Another factor that is stimulating the growth of the swine feed market is the rising awareness about the importance of maintaining a healthy pig diet amongst farm owners. In accordance with this, they are shifting from regular swine feed to functional and premium variants that help in improving the immunity of the animals against enzootic diseases as well as reducing the risk of metabolic disorders, acidosis, injuries and infections. Furthermore, an increase in the demand for organic pig meat from consumers in the developed nations, along with the introduction of new animal rearing practices and maintenance of high farming standards, has created a positive outlook for the global swine feed market.
• Alltech 2021 Global Feed Survey, https://one.alltech.com/2021-global-feed-survey/
• Mordor Intelligence, Swine Feed Market (2021 – 2026) report, https://www.mordorintelligence.com/industry-reports/global-swine-feed-market-industry
• IMARC Group, Swine Feed Market report, 2021-2026, https://www.imarcgroup.com/swine-feed-market
• Food and Agriculture Organization of the United Nations (FAO), Meat Market Review-March 2021, http://www.fao.org/3/cb3700en/cb3700en.pdf
• US Department of Agriculture, Foreign Agricultural Service (USDA), Livestock and Poultry: World Markets and Trade, July 12, 2021, https://www.fas.usda.gov/data/livestock-and-poultry-world-markets-and-trade
• Allied Market Research, Pork Meat Market (2021–2027) report, https://www.alliedmarketresearch.com/pork-meat-market