3 Meat Stocks in the Spotlight as Industry Trends Gain Strength

Vrishali Bagree
6 min read

In This Article:

Growing consumer demand for protein-rich products, fueled by an increasing focus on health and wellness, has been working well for the Zacks Food – Meat Products industry. Players in the space have responded to these trends by diversifying their product offerings, expanding production capacity and exploring plant-based meat alternatives.

However, many meat companies face challenges from rising input costs and elevated operating expenses. Despite these obstacles, Tyson Foods, Inc. TSN, Pilgrim's Pride Corporation PPC and Beyond Meat, Inc. BYND remain well-positioned for growth due to their strategic initiatives and ability to tap into evolving consumer preferences.


About the Industry

The Zacks Food – Meat Products industry comprises companies that manufacture, process, market, distribute and sell a wide range of meat products like chicken, pork, beef, prepared food and plant-based meats. Some companies also offer poultry and turkey products, alongside providing nutritional food products and supplements, desserts and drink mixes and industrial gelatin products. Most companies offer their products to retail and foodservice customers, while some cater to deli and commercial operators, including grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, industrial food processing companies, chain restaurants, international export companies, school cafeterias and hospitals, among others. Some products offered include frozen whole chicken, primary pork cuts, salads, sandwiches and meatballs.

Major Trends Shaping the Future of the Meat Food Industry

Rising Protein Consumption & Growth of Plant-Based Meat: The increasing demand for protein-rich diets continues to benefit meat companies, encouraging them to consistently innovate their product offerings. This surge is driven by rising health awareness, especially among fitness enthusiasts adopting high-protein diets like keto. In recent years, the growing popularity of plant-based meat alternatives has been a notable trend as consumers increasingly seek fresher, healthier options over traditional meat products. These alternatives are highly regarded for minimizing the use of artificial ingredients and additives, making them a more wholesome choice. They also offer a valuable protein source for individuals following vegan or plant-based diets. Industry experts suggest that plant-based protein could disrupt the conventional meat industry, positioning it as a strong competitor in the protein market.

Strategic Expansion Initiatives: Industry players have been diversifying their product portfolios and solidifying their market presence through strategic initiatives, including mergers, acquisitions and capacity expansion efforts. Companies are bolstering production capabilities by launching new facilities, expanding plants and collaborating with co-manufacturers. Several companies are also investing in automation and advanced technology to accelerate digital transformation and streamline operations. Some companies are focusing on expanding into international markets, where they are seeing favorable outcomes and strong growth potential.

Cost Pressures: High input costs remain a challenge for many companies in the meat industry. Rising expenses related to feed, raw materials, logistics and labor have increased production costs. The continued pressure from inflation, coupled with elevated operational expenses, remains a threat to profit margins.

Recommended Stories