Beef Industry Analysis
Spend growth of this industry has the potential to touch a value of over USD 19 billion with spend momentum accelerate at a CAGR of more than 1% between 2019-2024. The rise in demand for beef from the fast-food chains is serving as one of the key growth drivers in the global beef industry. Most of these fast food chains are launching new products that use fresh beef rather than frozen beef. This is increasing the probability of the consumption of these products and is subsequently propelling spend momentum in the beef industry.
Top Spending Regions in the Beef industry
While a preference shift from chicken and pork to beef is driving industry's spend momentum, the growing awareness about the negative health effects of beef is inhibiting spend momentum in the beef industry across the key geographies.
APAC
The middle-class income group is exhibiting a gradual preference shift from the consumption of chicken and pork to beef. This is resulting in a rapid increase in beef consumption in some of the emerging economies, such as China, Indonesia, and South Korea.
The United States
Despite being one of the major contributors to spend growth in the global beef industry, rising consumer awareness regarding the negative health effects of beef and increasing focus to reduce environmental footprint will limit beef consumption in the region during the forecast period.
Subscribe to our free web-based procurement platform to get instant and regular insights on the factors that are changing the dynamics of the beef industry across regions.
What are the Key Price Trends in this Industry?
- Adverse meteorological factors such as drought in some of chief beef producing regions such as Australia will herald major supply shortage in the industry. With the growing demand, such a supply crunch will have an inflationary impact on the beef price.
- A rise in feed and fodder prices owing to drought will increase beef prices globally. For instance, soybean meal and corn prices are expected to increase by nearly 15% during the forecast period.
- Beef suppliers will tackle a substantial rise in logistics cost that includes warehousing and transportation costs. This increase is attributed to the rise in the number of quality control measures adopted by suppliers across regions to comply with the regional and local regulations for the storage and transportation of beef. Also, rising fuel prices are expected to increase this cost component of suppliers.
Download the free sample of this report to know what the key beef procurement best practices that you must adopt to address price dynamism in this industry.
Insights Offered in this Beef industry Report
- Global and regional spend potential for the beef industry for the period of 2019-2024
- Supplier relationship management practices in the beef industry
- Supplier margins and selection criteria in the beef industry
- Top beef suppliers and their cost structures
- Top beef suppliers in the US and their cost structures
- Beef industry spend analysis in the US
- Beef price trends, and forecasts
- Cost drivers influencing the beef prices
Insights into Beef Supply Market
- Most of the top beef suppliers have their own fleet for the transportation of beef to their buyers. This helps them eliminate the challenges associated with delays in delivery by their logistics subcontractors. In addition, buyers benefit from the flexibility of the operation pertaining to transportation, as the suppliers provide transportation solutions as per buyers' needs
- Buyers are advised adopt a global sourcing model for beef procurement to mitigate risks such as cattle disease epidemics in a particular area. Reliance on a few regional or local suppliers will cause severe losses to buyers and result in a supply shortage during disease epidemics.
- Regional suppliers have high bargaining power over their vendors than their global counterparts, owing to the better knowledge of regional industry conditions and access to local resources. These suppliers are expanding their business across countries through JVs and M&As. Also, these suppliers are increasingly investing in sustainability practices to reduce the environmental footprint of their operations. Regional suppliers are increasingly collaborating with local farmers and joining in national programs to improve beef cattle rearing methods and develop improved breeds for sustainable beef production.
Insights into Some of the Leading Beef Suppliers
The supply industry dynamics hint at a substantial hike in suppliers' OPEX which will drive buyer's procurement spend. Keeping such dynamics in mind, strategic selection of suppliers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the beef industry. This beef industry procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top beef suppliers. The top beef suppliers highlighted in this report include:
- Cargill Inc.
- JBS SA
- Tyson Foods Inc.
- Wanzhou International Co. Ltd.
- BRF SA
- NH Foods Ltd.
Criteria to select suppliers in this dynamic beef industry is subject to change based on the day-to-day industry outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
