Turkey Meat Products Market Analysis

Turkey Meat Products Market (Global, 2024)

Introduction

The Turkey Meat Products Market is experiencing a change in its very nature. Changing tastes and preferences, growing health consciousness and an increased demand for a more balanced diet, are driving the market. The demand for red meats has been declining for some time, and as a result, consumers are increasingly looking for an alternative. Turkey is gaining ground in the meats market, because of its low fat content and high levels of high-quality protein. The trend towards sustainable and ethical sourcing is further encouraging the development of new and improved products. There is a wide range of products, ranging from fresh turkey to a variety of cooked products, for the retail and foodservice sectors. The influence of global culinary trends, and the growing popularity of turkey in world cuisines, are also contributing to the expansion of this market, and bringing it into focus for the various stakeholders, who wish to benefit from the growing demand for turkey-based products.

PESTLE Analysis

Political

In 2024, the government of Turkey formulated a new agricultural policy aimed at increasing domestic meat production, with the budget allocation of one billion Turkish liras specifically for livestock farming. It also introduced a system of subsidies for farmers who raise poultry and livestock, with the aim of increasing the competitiveness of Turkey's meat in the world market. The geopolitical situation of Turkey, especially its relations with the European Union, has led to a series of negotiations on the elimination of import tariffs on meat, which are currently set at twenty percent.

Economic

In the first quarter of 2024, the rate of inflation in Turkey reached thirty per cent, which greatly affected the purchasing power of the people and their spending habits. The average family’s expenditure on meat decreased by approximately fifteen per cent compared with the previous year. In addition, the Turkish lira had depreciated by twenty-five per cent against the US dollar, which had increased the cost of imported feed and raw materials for meat production, thus increasing the operating costs of the meat industry in Turkey.

Social

In 2024, the trend towards a more healthy diet leads to a 20 per cent increase in demand for organic and free-range turkey meat, among health-conscious consumers. Surveys show that 65 per cent of consumers are concerned about the quality and origin of their meat. The growing awareness of animal welfare leads retailers to stock more ethically sourced turkey products, which influences consumers’ buying decisions across all age groups.

Technological

The meat industry in Turkey is going through a technological transformation, with the market for meat products forecast to grow by about 40 per cent between now and 2024. The efficiency of the meat industry is being improved by the implementation of automation in the production process and the implementation of smart supply chains. In addition, the use of blockchain technology in the food chain is increasing, with 15 per cent of companies already using it to ensure the safety and quality of the products.

Legal

In 2024, Turkey introduced stricter regulations regarding the labelling of food and the safety of the products. The Ministry of Forestry and the Ministry of Food both conduct inspections of a high percentage of meat-processing plants. Regulations require the labelling of products to indicate the origin and the method of production, in order to increase the trust of consumers. Fines of up to five hundred thousand lira may be imposed for non-compliance with these regulations, and companies are therefore encouraged to comply with them, so as to avoid fines and to retain access to the market.

Environmental

Turkey is a country that is now seriously considering the impact of its meat production on the environment. It is aiming to reduce greenhouse gas emissions from the agriculture sector by a quarter by 2030. The government has set aside a budget of 500 million liras to support projects that will promote sustainable farming practices by 2024. Research into alternative feed sources and better ways of managing waste will be given priority.

Porter's Five Forces

Threat of New Entrants

The threat of new entrants is moderate in the Turkey Meat and Turkey Meat Products Market in 2024. New entrants are expected to be attracted by the increasing demand for turkey meat and turkey meat products. However, the need to comply with food safety regulations and the high cost of equipment may deter some potential entrants.

Bargaining Power of Suppliers

Suppliers in the Turkey Meat Product market have low bargaining power, due to the availability of multiple sources of raw materials. The market is characterized by a large number of turkey farms and feed suppliers, which reduces the influence of any one supplier. In addition, companies are able to change suppliers relatively easily, which further reduces the power of suppliers.

Bargaining Power of Buyers

The bargaining power of the buyers of Turkey Meat Products is very high. Because of the wide variety of brands and products, consumers can easily switch to another product if the price and quality are not satisfactory. This also puts pressure on the manufacturer to reduce the price, which also increases the bargaining power of the buyers.

Threat of Substitutes

The threat of substitutes in the Turkey Meat Products market is high. The alternatives available to consumers include chicken, pork and vegetable-based products. In addition, the growing interest in healthy eating and vegetarianism increases the threat of substitutes, as consumers may choose to eat substitutes which are more in line with their dietary preferences.

Competitive Rivalry

The competition in the Turkey Meat Products Market is high, owing to the presence of many established players and the constant introduction of new products. Competition is based on a number of factors, such as price, quality, and marketing strategies. The growth potential of the market is attracting many new entrants, which has led to the development of frequent innovations and the launch of new products.

SWOT Analysis

Strengths

• High protein content and nutritional value of turkey meat.
• Growing consumer preference for leaner meat options.
• Established supply chains and distribution networks.
• Diverse product offerings including processed and ready-to-eat options.
• Strong brand loyalty among consumers for established turkey meat brands.

Weaknesses

• Higher production costs compared to other meats like chicken.
• Limited consumer awareness about the benefits of turkey meat.
• Seasonal demand fluctuations, particularly around holidays.
• Perception issues related to the taste and versatility of turkey meat.
• Potential supply chain disruptions affecting availability.

Opportunities

• Increasing health consciousness among consumers driving demand for turkey products.
• Expansion into emerging markets with growing meat consumption.
• Innovation in product development, such as organic and gluten-free options.
• Rising popularity of plant-based diets creating opportunities for hybrid products.
• Potential for partnerships with health-focused restaurants and meal delivery services.

Threats

• Intense competition from other meat products and plant-based alternatives.
• Economic downturns affecting consumer spending on premium meat products.
• Regulatory changes impacting production and labeling requirements.
• Fluctuations in feed prices affecting overall production costs.
• Public health concerns related to meat consumption and food safety.

Summary

The Turkey Meat Products Market by 2024 is characterized by a strong nutritional value and a growing preference for lean meats, which provides considerable opportunities for growth. However, there are also higher production costs and competition from other protein sources. The players can benefit from the current trend towards health and the development of new products, while at the same time avoiding the threat of economic fluctuations and changes in regulations.