Cut back: Revenue is expected to contract in 2018-19, despite strong export performance

Industry operators slaughter livestock to produce red meat. Participants produce fresh, chilled or frozen meat as carcasses and cuts, in addition to by-products like rendered lard, tallow and pulled wool. The industry excludes meats from fish and poultry, meaning these industries act as substitutes and a form of competition when red meat prices are high. Industry revenue declined at the beginning of the period as a result of reduced demand for industry products, and revenue is expected to have fluctuated somewhat over the second half of the period, affected by rises in meat consumption and variable costs to operators. The Meat Processing industry is expected to grow at a compound annual rate of 2% over the five years through 2018-19...read more.

Industry Statistics & Market Size
Revenue
£7.7bn
Annual Growth 14-19
2.0%
Forecast Growth 19-24
Profit
Employment
23,719
Businesses
357

Industry Threats & Opportunities

  • Industry revenue has been volatile, although strong recent exports have supported growth
  • Industry operators have responded to pressure on their margins with some consolidation activity
  • The UK’s exit from the European Union is likely to cause considerable disruption to farmers
  • Industry Report - Industry Analysis Chapter

    The UK Meat Processing industry has been characterised by fluctuating meat prices, tightening regulations, and increasing fragmentation of the industry over the past five years. The government has cracked down on companies not complying with regulations after the FSA reported a total of 9,511 animal welfare breaches between July 2014 and June 2016, by making CCTV in abattoirs compulsory. Although VION Food UK Ltd exited the industry in 2013, which was before the beginning of the period, the division of the company and subsequent sale to a number of other operators in the industry is demonstrative of the industry’s fragmentation. Mor...purchase to read more.

    Additional Insights for the Meat Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Meat Processing Industry are

  • Output is sold under contract - incorporate long-term sales contracts
  • Upstream vertical integration (ownership links)
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Domestic price of beef and Demand from supermarkets in the Meat Processing industry impact industry performance..

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    What's in this report

    What is the Meat Processing Industry?

    Businesses in the Meat Processing industry slaughter livestock to produce red meat. Participants produce fresh, chilled or frozen meat as carcasses and cuts, in addition to by-products like rendered lard, tallow and pulled wool. Operators also bone, preserve and pack meat. The industry excludes meats from non-mammal sources such as fish and poultry, and meat products such as sausages, bacon and pate (see IBISWorld report C10.130).

    Industry Products
  • Beef and veal
  • Lamb and sheep
  • Pork
  • Skins
  • Edible fats
  • Offal
  • Industry Activities
  • Slaughtering animals
  • Producing cuts of beef
  • Producing cuts of lamb and mutton
  • Producing cuts of pork
  • Producing cuts of other red meats
  • Selling by-products from the slaughtering process
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of beef
  • Demand from supermarkets
  • Domestic price of chicken
  • Domestic price of sheep meat
  • Real effective exchange rate

  • Current Performance
  • British beef
  • Pressure on profit
  • Restructuring the industry
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing exports
  • EU funding
  • Environmental and health concerns
  • Table: Meat Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Meat Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Meat Product Manufacturing
  • Meat Wholesaling
  • Supermarkets
  • Meat & Meat Product Retailing
  • Full-Service Restaurants

  • Key Selling Industries
  • Other Cattle & Buffalo Farming
  • Pig Farming
  • Sheep Farming

  • Products & Services
  • Beef and veal
  • Pork
  • Lamb and sheep
  • Offal
  • Skins
  • Edible fats
  • Other
  • Chart: Meat Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Food manufacturers
  • Food-service industries
  • Wholesalers
  • Butchers
  • Chart: Major Market Segmentation for the Meat Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesUtilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Meat Processing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Meat Processing Industry

  • Industry Globalization
    Dunbia Ltd, ABP Food Group, Cranswick plc, Wm Morrison Supermarkets plc,
  • Table: Dunbia Ltd - financial performance
  • Table: ABP Food Group - financial performance
  • Table: Cranswick plc - financial performance
  • Table: Wm Morrison Supermarkets plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Meat Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Meat Processing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bovine Spongiform Encephalopathy (Bse)
  • Also known as mad cow disease, this neurological illness infected many British cattle in the 1990s. Many more were slaughtered in the attempt to limit its spread.
  • Fifth-Quarter Products
  • Another way of referring to offal - the organs and body parts left behind once normal cuts of meat have been removed.
  • Tallow
  • A rendered form of beef or mutton fat.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Meat Processing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Meat Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Meat Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Meat Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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