TSN - Zacks Industry Outlook Highlights Tyson Foods Hormel Foods and Pilgrim's Pride | Benzinga
The Zacks Food – Meat Products industry players have been benefiting from consumers' growing appetite for protein-rich products stemming from their rising consciousness toward health and wellness. Efforts to make the most of these trends through product diversification, capacity expansion and exploring plant-based meats have been working well.
However, several meat companies have been battling hurdles associated with cost inflation, though the trend is moderating. Also, companies remain troubled by challenges in the Beef business. Nonetheless, the abovementioned upsides keep Tyson Foods, Inc. (NYSE: TSN), Hormel Foods Corp. (NYSE: HRL) and Pilgrim's Pride Corp. (NASDAQ: PPC) well-positioned for growth.
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
Protein Consumption on the Rise, Plant-Based Meat Surges: The growing preference for protein-rich diets has been a boon for meat companies, prompting them to continuously innovate their product offerings. This trend is fueled by heightened health consciousness among consumers, especially fitness enthusiasts embracing high-protein diets like keto. In recent years, the popularity of meatless alternatives and plant-based meat substitutes has been steadily increasing, driven by consumers' preference for fresh, healthier options over traditional meat products.
Most plant-based food alternatives are well-regarded for their reduced reliance on artificial ingredients and additives, making them a wholesome choice. These alternatives also serve as valuable sources of protein for those following vegan dietary practices. Industry experts believe that plant-based protein could lead to significant disruptions in the traditional meat market.
Dynamic Expansion Strategies: Industry players are actively diversifying their product ranges and strengthening market positions through strategic alliances, acquisitions and capacity expansions. Efforts include ramping up manufacturing capabilities through new facilities, plant expansions and partnerships with co-manufacturers. Concurrently, select companies are making investments in automation technology, with a keen focus on accelerating the digitalization process. Additionally, some players are directing their efforts toward entering international markets, a strategy that is yielding favorable results.
Beef Segment Challenges: The beef segment has been battling numerous challenges in 2024, including consumer caution, economic uncertainties, ...