May 2006, 138 pages,
USD 1099,
Organic Beef Sales Propelling Market Growth.
The meat sector is the fastest growing in the North American organic food industry with sales increasing by 51% in 2005. Most growth is occurring in the US organic beef market which has doubled each year since BSE was first reported.
Consumer demand for organic beef has surged since the first cases of BSE were reported on American and Canadian herds in 2003. Although consumer confidence in conventional beef has largely remained intact, BSE has elevated consumer awareness of organic production methods. Organic meats have become popular as they are made from animals that are not given antibiotics, growth promoters or synthetic feeds. Many consumers perceive them to be safer and more nutritious than conventional meats.
High market growth rates have led to organic meat supply shortages with producers unable to meet burgeoning demand from retailers. The organic beef and pork markets are the most affected because of low production levels. American farmers have showed little interest in producing these organic meats due to high production costs and the lack of distribution infrastructure. Although production has stepped up since 2004, supply is expected to lag demand for a number of years.
The US market for organic meat products has become highly reliant on imports because of the shortfall in domestic supply. Organic meats are coming in from Latin America, Australasia as well as Canada. The organic pork market is most import dependent with imports comprising over 60% of total sales.
Although organic beef has the fastest growing market, organic poultry comprises most volume. Chicken is the most widely available organic meat in North America; it is found in a large number of natural food retailers and conventional grocery channels with some supermarkets marketed it under their private labels. Organic chicken dominates because of the relatively short production cycle and low price premium.
A number of new entrants are coming into the organic meat industry. Natural & conventional meat companies are taking up high market share as they utilize their distribution networks to launch organic meats. In contrast, some dedicated organic meat companies are facing difficulty in building supply chains from farmers to retailers because of distribution problems.
This updated report analyzes the leading product segments in the US and Canadian organic market for organic meat products. Market & competitive information includes market sizes, volume & revenue forecasts, market drivers & restraints, distribution & pricing trends, market shares and profiles of leading producers & retailers. Business recommendations are given to existing producers and new entrants in this emerging market.
Related Insights: USA: Market Growth Stifled by Undersupply
Global Organic Meat Supply Tightens
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