Specialist demand soars as supermarkets fumble.
London, United Kingdom (PRWEB) March 26, 2013
Companies in the Meat & Meat Product Retailing industry specialise in the sale of fresh meat and cooked meat. Industry operators typically purchase the produce from UK farms or suppliers, and just a small percentage is imported. According to IBISWorld industry analyst Temitope Onabanjo, “the industry has become characterised by intense competition mostly from supermarkets over the past decade”. Large chain retailers such as Tesco and Sainsbury's have been infringing on industry operators' revenue share by offering similar products at cheaper prices. The problem has worsened over the past five years as the 2008 financial crisis and subsequent recessionary conditions have forced consumers to cut down on purchases and spending. In light of this, consumers are being lured in by the wider range, cheaper prices and overall convenience that supermarkets have to offer.
Over the five years through 2012-13, industry revenue is estimated to decline at a compound annual rate of 1.1%, to total £2.81 billion. The industry has also faced rising costs owing to higher feed costs, an effect of the 2012 drought in the United States, which has pushed up meat prices and shrunk profit margins. Nevertheless, it would seem the industry has been thrown a lifeline, a result of the major scandal surrounding horsemeat, which has gripped the entire meat industry. It was reported in January 2013, that traces of horse DNA were found in burgers sold by supermarkets Tesco and ASDA and consumers have begun to question the content of what they eat. However, due to the transparent supply chains, industry operators have come out unscathed and virtually triumphant. Consumers have flocked to their local butchers in search of high-quality meat and this is expected to boost revenue in 2012-13. Industry revenue is expected to increase by 1.6% in 2012-13.
Over the next five years, little growth is projected for the industry. Retailers are currently performing well due to the fallout from the horsemeat scandal. With the help of product innovation and increased services such as online operations, operators may be able to keep consumers interested for some time. However, supermarkets have already begun damage control and will seek to reverse tarnished reputations. Onabanjo adds, “competition from supermarkets is expected to intensify, which will likely push a number of enterprises out of the industry”. Industry revenue is forecast to grow at only a meagre rate over the five years through 2017-18.
The Meat & Meat Product Retailing industry is highly fragmented, illustrated by the large number of enterprises and the preponderance of smaller operators. The more prominent enterprises in the industry are estimated to each have a market share of less than 1.0%. The industry is characterised by its many small-scale, regionally dispersed independent butchers. No company generates enough revenue to completely dominate the industry and therefore, there are no true major players.
For more information on the Meat & Meat Product Retailing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
The industry includes operators that specialise in the sale of meat such as poultry, beef, lamb, and pork.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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