February 11, 2019 by Steve Blade
The organic chicken market is likely to witness a notable shift from traditional selling to chain stores and online selling channels. Manufacturers can leverage the strength of retail chain stores to establish brand visibility in a bid to enhance sales. Moreover, online stores are also expected to gain significant traction as manufactures can tap remote consumers and enhance their sales funnel. Fact.MR reveals that the sales of organic chicken via chain stores are likely to grow at a meteoric CAGR of 14.7% in terms of value during the period of forecast, 2018-2028. However, sales of organic chicken through direct sales are estimated to surpass other channels, says the report.
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Sales of organic chicken are expected to remain concentrated in the developed countries of Europe closely followed by emerging economies of Asia Pacific excluding Japan (APEJ), physical fitness being a common and a key aspect observed in these regions. Strong fitness industry of Europe is likely to present potential opportunities with rising people participation in fitness clubs. For instance, according to IHRSA, in 2017 European health club market served around 56 million members with fitness clubs generating more than US$ 29 billion. This has translated into increasing demand for high protein natural food products such as organic chicken, in turn boosting its market’s growth in Europe.
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Organic Chicken Market: Fresh from the Organic Producers
Against the backdrop of a steadily increasing consumption of organic chicken, participants and key stakeholders in the market are focused on enhancing their product portfolios by increasing their product lines. For instance, Tyson Foods Inc., is focusing on increasing its organic chicken product line by acquiring Tecumseh Poultry LLC – an organic chicken producer. With this acquisition, Tyson’s product line would extend by including organic chicken sausages and organic fresh chicken, which is expected to favor sales and growth prospects for Tyson in the burgeoning chicken market. Likewise, new players are entering the organic chicken market, given the rising demand for organic poultry. Players such as Pilgrim’s Inc., is in the process of tapping organic chicken space. Tepid growth of conventional chicken products since the past few years has provoked this move by the company as Pilgrim’s has witnessed a mushrooming demand for antibiotic free organic chicken.
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Thermoformed Variants Likely to Gain Significant Traction
Albeit a steady demand for vacuum skin packaging method, food and beverage manufacturers have come up with a novel packaging technique for their vacuum variants – the vacuum thermoformed packaging – for the food and beverage sector. Demand for vacuum thermoformed variants for organic chicken packaging is likely to reign in sales and are expected to witness resurgence throughout the period of assessment, says the report. Initially, organic chicken packaging was carried out using vacuum skin packaging, however, the packaging technique faced limitation apropos of size of the product. Vacuum thermoformed packaging offers more packaging space, with high durability, transparency and strength, preventing from contamination which resulted in high adoption of vacuum thermoformed packaging for organic chicken.
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