Market Overview:
Bacon is a type of salt-cured pork meat made from several different cuts, typically from the pork belly or from the less fattier back cuts. It is first salted for a period of 1 to 6 months, and then smoked or fried. Bacon has a characteristic smoky flavor and aroma owing to the curing and cooking process such as smoking. It is often made from pork belly slices which are cured and sometimes smoked. Bacon is not only tasty but also contains nutrients like vitamin B12, zinc, protein and others which are important for overall health. It is widely used as a flavoring ingredient in various food dishes and cuisines as well as consumed as a breakfast meat.
Market key trends:
One of the key trends witnessed in the bacon market is research and development of new bacon varieties. Market players are focusing on developing new and innovative bacon products to cater changing consumer preferences. For instance, organic, natural and gluten-free varieties of bacon are gaining popularity. Companies like Hormel Foods Corporation have introduced preservative-free natural choice brand of bacon. Likewise, Tofurky offers plant-based vegan bacon made from soy and wheat protein. Furthermore, players are investing in developing lower sodium, lower fat and nitrite-free bacon to appeal health conscious consumers. Such product launches are expected to drive the bacon market growth over the forecast period.
The global Bacon Market Size is estimated to be valued at US$ 24937.01 Mn in 2023 and is expected to exhibit a CAGR of 3.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the bacon market. New entrants would require large capital investments to set up production facilities and distribution networks. They would also need to compete against established brands and cope with stringent regulations.
Bargaining power of buyers: The bargaining power of buyers is moderate to high. Large retail chains such as supermarkets have significant bargaining power over bacon producers. Buyers can negotiate better prices and demand higher quality products and services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Key raw materials such as pork are globally sourced. Suppliers of packaging materials and other inputs also have moderate bargaining power due to availability of substitute products.
Threat of new substitutes: The threat of substitutes is low to medium. Alternatives to bacon include other processed pork products as well as plant-based meat analogs. However, bacon remains popular for its unique taste and versatility in cooking applications.
Competitive rivalry: The bacon market is highly competitive due to presence of numerous regional and global players. Companies compete based on product quality, price, innovation, brand loyalty and effective marketing.
SWOT Analysis
Strengths: Bacon has a unique taste and versatility that enhances dishes. Established brands have strong brand recognition and distribution networks. The market is driven by changing tastes of health-conscious consumers seeking protein-rich snacks.
Weaknesses: Raw material costs especially for pork depend on market fluctuations. Strict food quality and safety regulations increase production costs. Some substitutes promote health benefits over bacon.
Opportunities: Growing demand for convenient ready-to-eat products presents opportunities. Developing regions in Asia Pacific and Latin America are emerging lucrative markets. Growing popularity of meat alternatives could boost plant-based bacon variants.
Threats: Volatile pork prices and outbreaks of animal diseases pose threats. Intense competition erodes profit margins. Stringent regulations on antibiotic use in livestock farming increases compliance costs. Rising health awareness may slow demand growth.
Key Takeaways
The global bacon market is expected to witness high growth, exhibiting CAGR of 3.1% over the forecast period, due to increasing demand for convenience foods and meat snacks. The market size for 2023 is US$ 24937.01 Mn.
Regionally, North America dominates the global bacon market followed by Europe. The US and Canada are major bacon consuming nations in North America driven by culinary traditions and busy lifestyles. However, Asia Pacific is emerging as the fastest growing regional market with rising meat consumption in China, India and other developing economies.
Key players operating in the bacon market are Hormel Foods Corporation, Tyson Foods Inc., The Kraft Heinz Company, WH Group Limited, JBS SA, Fresh Mark Inc., Seaboard Corporation, Maple Leaf Foods, Hill Meat Company, Peer Foods Group Inc., Kunzler & Company Inc., and Jones Dairy Farm.
