MARKET OVERVIEW- GLOBAL SAUSAGE CASING MARKET
The global sausage casing market was valued at USD 6822.0 Million in 2022 and is projected to grow at a CAGR of 3.60 % for the forecast period of 2023 to 2029. The global market is estimated and forecasted in terms of revenue (USD Million) generated by the sausage casing market.
Sausage casing is a mixture of ground beef, spices, fat, and fillers that is stuffed into the casing and tied at intervals to form individual joints. Sausage casing or sausage skin or casing refers to the material used to cover the sausage stuffing. The casing plays a vital role in the structural, volumetric and chemical changes that occur in sausages during the various stages of production. It can be made from natural or artificial materials and has different sizes and shapes depending on the type of sausage being made. In recent years, consumers have increasingly chosen quality over quantity. Similarly, companies also focused on new product development and offered more innovative products of higher quality instead of focusing on high volumes and low prices. The growth of the industry is driven by an increase in disposable income and westernization. The sausage casings offer a high demand due to their longer shelf life. Furthermore, online grocery shopping and the development of new apps are among the latest innovations pushing businesses to make it easier for consumers to choose their products of choice.
MARKET DRIVERS
The rapid expansion of the food and restaurant industries coupled with increased urbanization across the globe are estimated to provide ample sales opportunities to players in the global sausage casing market. The rising demand for animal proteins attributed to their nutritional benefits is driving the global meat industry. This is further expected to drive the market consumption of sausage casing. The sausages casing market has undergone tremendous development in the past few years due to the robust demand for meat sausages. With the rise in number of fast-food restaurants and eateries, hence meat products consumption got increased, thereby the demand for global sausages casing has grown many folds. For instance, according to Organization for Economic Cooperation and Development (OCED), the global production of meat in 2020 was around 328.11 million metric tons in 2020, which has increased to 329.28 million metric tons. Thus, market is expanding on increasing meat production across the globe. Moreover, population growth, rapid urbanization, and the improved purchasing power of a large section of the population in developed and developing countries across the globe are some of the major factors driving the expansion of the global intestines market. Additionally, increased westernization across several developing countries as well as an increasing inclination towards the use of semi-finished products is likely to fuel market growth in the coming years.
MARKET OPPORTUNITIES
Changing dietary habits and growing consumer preference for western-style chilled processed meats, especially in the emerging market have created an accelerated market opportunity for meat products in the artificial casing market. In addition, the rapid growth of edible collagen in developing economies including Brazil, Argentina, and others has strongly contributed to the growth of the sausage casing market.
MARKET RESTRAINTS
The cost of production of sausage casing is relatively high which is leading to an increased cost of sausages which is leading to reluctance of consumers towards the sausages customers and choose alternative products. The production sausage casings is highly dependent on the availability of raw materials. The production requires fresh pig, sheep intestines. The intestines are cleaned, blanched and preserved in salt and soaked in cold water for at least two hours before use. Fresh casings have a shelf life of about two months if stored in salt and kept cold. Also, the strict policies of the Food Safety Authorities of respective governments across the regions regarding the sourcing of raw materials from meat or poultry are expected to hinder the market growth. The products are expensive due to high processing costs, extended processing time, the requirement for large processing spaces as the sausages are air-dried for several weeks to months, higher energy costs and higher risks. The abovementioned challenges coupled with a rising cost of production are expected to hinder market growth during the foreseen period.
MARKET GROWTH CHALLENGES
Availability of alternate products to substitute meat at cheaper prices in the market is one of the major factors restraining the market.
Vegan meat and cultured meat are among the major alternatives consumed in many ways, and their properties have proven to have a significant contribution to climate protection and resource conservation. According to World Bank Data, the share of vegan meat in total meat consumption is expected to be around 10% by 2025, which is anticipated to increase to 23% by 2035, and further expected to increase to 25% by 2040. Additionally, the plant-to-meat calorie conversion rate is about four times better than traditional meat because their production is much more focused and involves less energy loss. Moreover, vegan meat alternatives is offered at cheaper prices compared to conventional meat products. This reduction in the price gap between conventional meat, and meat alternative products is expected to increase the penetration of meat alternatives into the sausage casing market leading to a market restraint.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global sausage casing market, including market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. The increased westernization across several developing countries is expected to witness growth at a specific CAGR from 2023-2029.
SAUSAGE CASING MARKET SEGMENTAL OVERVIEW
The Sausage Casing Market consists of different market segments like By Product Type, Distribution Channel, End-Users and geography.
SAUSAGE CASING MARKET BY PRODUCT TYPE
The Sausage Casing market on the basis of product type include:
- Natural Casings
- Synthetic Casings
- Alternative Casings
Based on product type, the sausage casing market is segmented into three categories: natural casing, synthetic casings, and alternative casings. The natural casing type segment is expected to witness high growth over the estimated time period. The use of natural casing results in a deeper flavour and richness in the sausage, as the smoking and cooking flavours can permeate the casing and infuse the meat. Since the casings are all-natural, the sausages are very natural looking, being somewhat irregular in shape and size. Increasing urbanization, meat production, and meat consumption; consumer preference for natural casings over artificial casings; and the rising number of fast-food restaurant chains are the key factors due to which the natural segment is expected to dominate the market over the forecast period.
SAUSAGE CASING MARKET BY DISTRIBUTION CHANNEL
The Sausage Casing market on the basis of distribution channel include:
- Direct Sales (B2B)
- Indirect Sales (B2C)
- Hypermarkets/Supermarkets
- Online Stores
- Other Retailers
Based on distribution channel, sausage casing market is segmented into direct sales (b2b), indirect sales (b2c), hypermarkets/supermarkets, online stores, and other. Since the emergence of internet, a lot of things have been made easier, and direct channels of distribution have become much more common in business. Also, nowadays, many B2B franchise opportunities seem appealing because of their low start-up costs, multiple revenue streams, and executive business models that allow for a range of involvement on the part of franchisees. Technological advancements, increasing urbanization, and a shift in customer purchasing patterns has driven the demand for B2B food and beverage e-commerce. Therefore, the direct sales (B2B) segment is expected to dominate the market over the forecast period.
SAUSAGE CASING MARKET BY END-USERS
The Sausage Casing market on the basis of end-users include:
Based on end-users, industrial segment holds the highest market share during forecasted period. The high demand for sausages has led food processing companies to increase their sausage production. This is driving the demand for different types of casings. Due to this factor, the industrial segment is expected to dominate the market over the forecast period. Furthermore, the growing preference for innovative food options and the rising automation in sausage production, resulted in the maximization of production efficiencies. It is expected to provide new opportunities for key players in the market over the estimated time period.
SAUSAGE CASING MARKET BY GEOGRAPHY
The Sausage Casing market is studied for the following region:
- North America
- Europe
- Asia-Pacific
- Rest of the World (RoW)
For the sausage casing market, Europe is expected to witness the largest share in the sausage casing market. Europe is estimated to hold the largest share of the overall natural casings market in 2021. Europe's prominent position in the market for natural casings is mainly attributed to the presence of a large number of producers of processed meat products, increasing consumer demand for flavoured and high-protein food products, and population growth leading to increased consumption of cured meats. However, the Asia-Pacific region has a booming potential for the natural casings market during the forecast period. This is mainly due to the growing number of fast food restaurant chains, increasing spending on meat products, growing population and urbanization.
COVID-19 IMPACT ANALYSIS ON THE GLOBAL SAUSAGE CASING MARKET
Axiom MRC provides a 360-degree analysis of the micro and macro-economic factors of the sausage casing market. The report included an exclusive analysis of the impact of COVID-19. In addition, the report also studied a complete analysis of changes in the global sausage casing market, spending, and economic and international policies on the supply and demand side. The COVID-19 pandemic has resulted in positive market growth. During the pandemic, most of the population was at home due to strict regulation, and lockdown owing to the increased consumption of processed foods due to food shortages. In addition, customers would rather not go to supermarkets owing to the high risk of COVID-19. Buyers choose takeout and home delivery due to social distancing and restaurant closures. Furthermore, consumers focused on goods with a long shelf life with proteinaceous foods, which have specifically contributed to the healthy growth of the global sausage casings the market.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the sausage casing is primarily focused on expanding the global growth of sausage casing market with new form innovation, business expansion, and the increasing presence of a range of manufacturers operating in the sausage casing market has led to growing demand for the market.
The key players studied in the market are
- AGROKOM GROUP LLC (Russia)
- Devro Plc (United Kingdom)
- Darling Ingredients Inc. (United States)
- Shenguan Holdings (Group) Ltd. (United States)
- Kalle GmbH (Europe)
- Viskase Companies Inc. (United States)
- Viscofan SA (United States)
- Weschenfelder Direct Ltd (United States)
- ViskoTeepak Holding Ab Ltd. (Finland)
- Peter Gelhard (Germany)
- Van Hessen (Netherlands)
- Walton’s Inc.(United States)
- APN NATURDARM GmbH
- Oversea Casing Company LLC (United States)
- Nitta Casings Inc. (United States)
- Almol (Australia) Casing Pty. Ltd. (Australia)
- Carl Lipmann & Co., Kg (Germany)
- Natural Casing Company Inc. (United States)
- Fortis SRL (Netherlands)
- CombinatieTeijsen V.D. Hengel
- A Holdijk GmbH (Europe)
- World Casing Corporation (United States)
- LEM Products (United States)
RECENT DEVELOPMENT:
April 2021: Viskase Companies Inc has announced sustainable EcoLine plastic casings. Visflex, Vismax and Vislon Casings contain more than 80% chemically recycled plastic. Polyjax Casings contain more than 90% chemically recycled plastic.
March 2021: Oversea Casing Company LLC, the leading producer of natural sausage casings announced today that it has changed the name of its sales and distribution unit in Mexico to Oversea Casing S. de RL. de CV. Oversea Casing purchased the parent company.
August 2022: DAT-Schaub, the subsidiary company of Danish Crown has announced that it has acquired DCW Casing LLC. DAT-Schaub bought the majority of stake in the company and becomes Sole Owner of Successful US Company. This acquisition will help the US company grow in the North American Market.
