Introduction
The global meat industry has been facing increasing competition from alternative proteins in recent years. Consumers are becoming more conscious of their health, the environment, and animal welfare, leading to a shift in preferences towards plant-based and lab-grown meat alternatives. This report will focus on the top 10 meat companies that are facing competition from alternative proteins, analyzing their financials, volumes, and strategies to stay competitive in the market.
1. Tyson Foods
Tyson Foods is one of the largest meat companies in the world, with a focus on chicken, beef, and pork products. However, the company has been facing challenges from the growing demand for plant-based meat alternatives. In response, Tyson Foods has launched its own line of plant-based products under the brand “Raised & Rooted” to cater to changing consumer preferences.
Financials:
– Tyson Foods reported net sales of $42.4 billion in 2020
– The company’s operating income was $2.4 billion
– Tyson Foods invested $150 million in alternative protein research and development in 2020
Volumes:
– Tyson Foods produces over 20% of the total meat consumed in the US
– The company launched over 50 new plant-based products in 2020
2. JBS S.A.
JBS S.A. is a Brazilian multinational company that is one of the largest meat processors in the world. The company has been expanding its presence in the alternative protein market through acquisitions and partnerships with plant-based companies. JBS S.A. owns the plant-based brand OZO Foods, which offers a range of meat alternatives.
Financials:
– JBS S.A. reported net revenue of $51.7 billion in 2020
– The company’s EBITDA was $6.3 billion
– JBS S.A. acquired the plant-based company Vivera for $530 million in 2021
Volumes:
– JBS S.A. processes over 10 million animals per day
– The company’s plant-based products are available in over 20 countries
3. Cargill
Cargill is an American multinational company that is one of the largest privately held corporations in the United States. The company has been investing in alternative proteins through its joint venture with PURIS, a plant-based company that specializes in pea protein. Cargill also offers a range of plant-based ingredients for food manufacturers.
Financials:
– Cargill reported net earnings of $3.2 billion in 2020
– The company’s revenue was $114.6 billion
– Cargill invested $75 million in its joint venture with PURIS in 2021
Volumes:
– Cargill processes over 100,000 tons of plant-based proteins per year
– The company’s plant-based ingredients are used in a wide range of food products
4. WH Group
WH Group is a Chinese multinational company that is one of the largest meat processors in the world. The company has been exploring opportunities in the alternative protein market through partnerships and investments in plant-based startups. WH Group owns the plant-based brand Green Monday, which offers a variety of meat alternatives.
Financials:
– WH Group reported net profit of $1.4 billion in 2020
– The company’s revenue was $28.2 billion
– WH Group acquired a minority stake in the plant-based company Beyond Meat in 2021
Volumes:
– WH Group processes over 100 million hogs per year
– The company’s plant-based products are available in over 10 countries
5. Marfrig Global Foods
Marfrig Global Foods is a Brazilian multinational company that is one of the largest beef producers in the world. The company has been investing in alternative proteins through its joint venture with Archer Daniels Midland (ADM), a global food processing and commodities trading corporation. Marfrig Global Foods offers a range of plant-based products under the brand plantPlus.
Financials:
– Marfrig Global Foods reported net revenue of $13.6 billion in 2020
– The company’s EBITDA was $1.4 billion
– Marfrig Global Foods invested $100 million in its joint venture with ADM in 2021
Volumes:
– Marfrig Global Foods processes over 2 million tons of beef per year
– The company’s plant-based products are available in over 15 countries
6. Hormel Foods
Hormel Foods is an American multinational company that is one of the largest food and meat producers in the United States. The company has been expanding its presence in the alternative protein market through acquisitions and partnerships with plant-based companies. Hormel Foods owns the plant-based brand Happy Little Plants, which offers a range of meat alternatives.
Financials:
– Hormel Foods reported net sales of $9.6 billion in 2020
– The company’s operating income was $1.2 billion
– Hormel Foods acquired the plant-based company Planters for $250 million in 2021
Volumes:
– Hormel Foods produces over 1.5 million tons of meat products per year
– The company’s plant-based products are available in over 5 countries
7. National Beef Packing Company
National Beef Packing Company is an American meat processing company that is one of the largest beef packers in the United States. The company has been exploring opportunities in the alternative protein market through partnerships and investments in plant-based startups. National Beef Packing Company offers a range of plant-based products under the brand Green Fields.
Financials:
– National Beef Packing Company reported net sales of $8.4 billion in 2020
– The company’s EBITDA was $800 million
– National Beef Packing Company invested $50 million in its plant-based initiatives in 2021
Volumes:
– National Beef Packing Company processes over 1 million head of cattle per year
– The company’s plant-based products are available in over 3 countries
8. OSI Group
OSI Group is an American multinational company that is one of the largest meat processors in the world. The company has been investing in alternative proteins through its joint venture with Impossible Foods, a plant-based company that is known for its meatless burgers. OSI Group also offers a range of plant-based ingredients for food manufacturers.
Financials:
– OSI Group reported net revenue of $7.3 billion in 2020
– The company’s EBITDA was $700 million
– OSI Group invested $30 million in its joint venture with Impossible Foods in 2021
Volumes:
– OSI Group processes over 500,000 tons of meat products per year
– The company’s plant-based ingredients are used in a wide range of food products
9. Pilgrim’s Pride Corporation
Pilgrim’s Pride Corporation is an American multinational company that is one of the largest chicken producers in the world. The company has been exploring opportunities in the alternative protein market through partnerships and investments in plant-based startups. Pilgrim’s Pride Corporation offers a range of plant-based products under the brand Pure Farmland.
Financials:
– Pilgrim’s Pride Corporation reported net revenue of $11.2 billion in 2020
– The company’s EBITDA was $1.1 billion
– Pilgrim’s Pride Corporation invested $60 million in its plant-based initiatives in 2021
Volumes:
– Pilgrim’s Pride Corporation processes over 12 million birds per week
– The company’s plant-based products are available in over 8 countries
10. Danish Crown
Danish Crown is a Danish multinational company that is one of the largest pork producers in the world. The company has been expanding its presence in the alternative protein market through acquisitions and partnerships with plant-based companies. Danish Crown owns the plant-based brand Naturli, which offers a range of meat alternatives.
Financials:
– Danish Crown reported net revenue of $9.8 billion in 2020
– The company’s EBITDA was $900 million
– Danish Crown acquired the plant-based company LikeMeat for $200 million in 2021
Volumes:
– Danish Crown processes over 20 million pigs per year
– The company’s plant-based products are available in over 12 countries
In conclusion, the top 10 meat companies are facing increasing competition from alternative proteins as consumers shift towards plant-based and lab-grown meat alternatives. These companies are adapting to the changing market landscape by investing in research and development, launching their own plant-based products, and forming partnerships with plant-based companies to stay competitive in the market. It will be interesting to see how these companies continue to innovate and evolve in response to the growing demand for alternative proteins.
