The Growth of the EU Fresh Beef Carcases Market Lost Its Momentum

IndexBox has just published a new report: 'EU - Fresh Or Chilled Carcases Of Beef And Veal - Market Analysis, Forecast, Size, Trends and Insights'. Here is a summary of the report's key findings.

The revenue of the fresh beef carcase market in the European Union amounted to $12.6B in 2018, falling by -3.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, fresh beef carcass consumption, however, continues to indicate a relatively flat trend pattern. The level of fresh beef carcass consumption peaked at $14.6B in 2013; however, from 2014 to 2018, consumption remained at a lower figure.

Consumption By Country

The countries with the highest volumes of fresh beef carcase consumption in 2018 were Italy (1M tons), Germany (791K tons) and Spain (388K tons), with a combined 55% share of total consumption. France, the Netherlands, Poland, the UK, Belgium, Ireland, Greece, Portugal and Hungary lagged somewhat behind, together accounting for a further 36%.

From 2007 to 2018, the most notable rate of growth in terms of fresh beef carcass consumption, amongst the main consuming countries, was attained by the Netherlands, while fresh beef carcass consumption for the other leaders experienced more modest paces of growth.

In value terms, the largest fresh beef carcase markets in the European Union were Italy ($3.8B), Germany ($2.1B) and France ($1.6B), with a combined 59% share of the total market. These countries were followed by the Netherlands, the UK, Spain, Poland, Ireland, Greece, Portugal, Belgium and Hungary, which together accounted for a further 33%.

The countries with the highest levels of fresh beef carcase per capita consumption in 2018 were Ireland (24 kg per person), Italy (17 kg per person) and the Netherlands (17 kg per person).

Market Forecast to 2030

Driven by increasing demand for fresh beef carcase in the European Union, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +2.2% for the period from 2018 to 2030, which is projected to bring the market volume to 5.1M tons by the end of 2030.

Production in the EU

The fresh beef carcase production totaled 4.1M tons in 2018, lowering by -10.7% against the previous year. Over the period under review, fresh beef carcase production, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2016 with an increase of 7.7% y-o-y. In that year, fresh beef carcase production reached its peak volume of 4.6M tons. From 2017 to 2018, fresh beef carcase production growth failed to regain its momentum.

Production By Country

The countries with the highest volumes of fresh beef carcase production in 2018 were Italy (817K tons), Germany (802K tons) and Spain (448K tons), with a combined 51% share of total production.

From 2007 to 2018, the most notable rate of growth in terms of fresh beef carcase production, amongst the main producing countries, was attained by Germany, while fresh beef carcase production for the other leaders experienced more modest paces of growth.

Exports in the EU

In 2018, approx. 1.2M tons of fresh or chilled carcases of beef and veal were exported in the European Union; increasing by 3.5% against the previous year. In general, fresh beef carcase exports continue to indicate a relatively flat trend pattern. In value terms, fresh beef carcase exports stood at $5.2B (IndexBox estimates) in 2018.

Exports by Country

The exports of the six major exporters of fresh or chilled carcases of beef and veal, namely Poland, France, the Netherlands, Germany, Spain and Belgium, represented more than two-thirds of total export. It was distantly followed by Italy (59K tons), mixing up a 4.9% share of total exports. Ireland (50K tons) held a minor share of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Poland, while exports for the other leaders experienced more modest paces of growth.

In value terms, Poland ($901M), France ($822M) and the Netherlands ($752M) were the countries with the highest levels of exports in 2018, with a combined 47% share of total exports.

Export Prices by Country

In 2018, the fresh beef carcase export price in the European Union amounted to $4,312 per ton, increasing by 3.7% against the previous year. In general, the fresh beef carcase export price, however, continues to indicate a relatively flat trend pattern.

Average prices varied somewhat amongst the major exporting countries. In 2018, major exporting countries recorded the following prices: in the Netherlands ($5,145 per ton) and Belgium ($4,824 per ton), while Italy ($3,720 per ton) and Poland ($3,967 per ton) were amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Poland, while the other leaders experienced more modest paces of growth.

Imports in the EU

The volume of imports amounted to 1.1M tons in 2018, therefore, remained relatively stable against the previous year. Over the period under review, fresh beef carcase imports, however, continue to indicate a relatively flat trend pattern. In value terms, fresh beef carcase imports stood at $4.9B (IndexBox estimates) in 2018.

Imports by Country

Italy (247K tons) and the Netherlands (244K tons) represented roughly 45% of total imports of fresh or chilled carcases of beef and veal in 2018. Germany (129K tons) held the next position in the ranking, followed by France (84K tons), Greece (82K tons), Portugal (61K tons) and Spain (56K tons). All these countries together took approx. 38% share of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by the Netherlands, while imports for the other leaders experienced more modest paces of growth.

In value terms, Italy ($1.3B), the Netherlands ($887M) and Germany ($563M) constituted the countries with the highest levels of imports in 2018, with a combined 56% share of total imports.

Import Prices by Country

The fresh beef carcase import price in the European Union stood at $4,500 per ton in 2018, going up by 5.3% against the previous year. In general, the fresh beef carcase import price, however, continues to indicate a relatively flat trend pattern. The level of import price peaked at $5,077 per ton in 2013; however, from 2014 to 2018, import prices stood at a somewhat lower figure.

Average prices varied somewhat amongst the major importing countries. In 2018, major importing countries recorded the following prices: in Spain ($5,325 per ton) and Italy ($5,290 per ton), while the Netherlands ($3,637 per ton) and Germany ($4,352 per ton) were amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by France, while the other leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform