On the basis of country, the U.S. is the largest market for natural sausage casings. The U.S. food and beverage sector is one of the most advanced across the globe. With improved availability of sausages and processed meat products, which increase the average meat consumption, the natural casings market is growing with immense opportunities. Major factors influencing this market's growth are increasing demand for convenience food like ready-to-eat and ready-to-cook meat products, the growing small caliber sausage production, rising demand for high protein foods, growing meat processing industry, and increasing population. The demand for small diameter casings is growing exponentially due to the increasing consumption of snack sticks in the fresh and cooked sausage category. According to the U.S. Census Bureau, the U.S. is projected to grow by nearly 79 million people in the next four decades, from about 328.2 million to ~404 million between 2017 and 2060. According to the World Bank, in 2019, the share of the urban population in the U.S. accounted for 82.4%, an increase of 0.7% from 2015. This increase in population is expected to propel the consumption of meat and sausages, which, in turn, is expected to accelerate the demand for natural casings in this country.
In the U.S., ~36% of children and adolescents from ages 2 to 19 eat fast food every day (Source: National Centre for Health Statistics). In 2018, there are ~247,191 fast-food restaurants located across the country, up from 243,698 in 2017, and 50 million people depend on fast food. Such a large number of fast-food restaurants increase the consumption of processed meat products, including sausages and hot dogs, thereby fuelling the demand for natural casings.
Moreover, the increasing meat expenditure pattern shows significant growth for the natural sausage casings market. According to the United States Department of Agriculture (USDA), the per capita meat expenditure increased from USD 578.86 in 2010 to USD 705.3 in 2018. According to the national hot dog and sausage council, consumers spent more than USD 4.3 billion on hot dogs and sausages in the U.S. supermarkets in 2016, and this had increased to USD 6.2 billion in 2019. The increased sales of hot dogs and sausages are attributed to the increasing trend of on-the-go food items.
According to the USDA, the per capita meat consumption in the U.S. increased from 208.9 pounds in 2010 to 215.24 in 2018 and 217.75 in 2019 and is further expected to increase approximately 219 pounds by 2025. This increase in meat consumption shows the potential for the natural casings market in the U.S.
Further, apart from processing the natural sausage casings saved by slaughterhouses in the country, the U.S. also imports and exports significant amounts of natural casings, especially beef casings, to meet domestic and global demand. However, there are strict rules and regulations in the U.S. for the export and import of beef casings. The U.S does not allow beef casings to be imported or used in the country from the countries with Bovine Spongiform Encephalopathy (BSE) status as listed in USDA regulations: 9CFR 94.18 (a) and (b). These regions include Albania, Andorra, Austria, Belgium, Bosnia-Herzegovina, Bulgaria, Canada, Croatia, the Czech Republic, Denmark, the Federal Republic of Yugoslavia, Finland, France, Germany, Greece, Hungary, the Republic of Ireland, Italy, Israel, Japan, Liechtenstein, Luxembourg, the Former Yugoslav Republic of Macedonia, Monaco, Oman, the Netherlands, Norway, Poland, Portugal, Romania, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, and the U.K. The countries from where beef casings are allowed to be imported and used in the U.S. from all sources not listed as BSE risk countries are Latin American Countries, Australia, and New Zealand. These regulations are hampering the growth of natural casings, especially beef casings in the U.S market.
However, there is a rising popularity of vegetarianism and veganism conventionally diminishing the demand for animal originated products in this country. For instance, according to the website Happy Cow, which works like Yelp, but for vegan and vegetarian food, there are over 24,000 veg-friendly eateries in the U.S., including 1,474 exclusively vegan restaurants. According to the Good Food Institute (2018), 11.9% of U.S. households purchased plant-based meat, up from 10.5% compared to the previous year. Even if fewer than 1 in 10 Americans follow a vegetarian or vegan diet. According to a Gallup poll, there were 3 million more vegans in the U.S. in 2018 than in 2012. Therefore, such a growing number of vegetarian or vegan populations and related increases in vegan restaurants, and increasing plant-based food sales are expected to restrict the country's demand for natural sausage casings.
The major players operating in the U.S. natural casings market are Combinatie Teijsen V.D. Hengel (CTH) (Netherlands), World Casing Corporation (U.S.), Oversea Casing Company LLC. (U.S.), DAT-Schaub Group, Saria Se And Co. Kg (Denmark), Natural Casing Company, Inc. (U.S.), and De Wied International Inc. (U.S.).
Meticulous Research, in its latest publication on ‘Natural Sausage Casings Market,’ states that the global natural sausage casings market is expected to reach USD 2.79 billion by 2028, supported by a CAGR of 2% during the forecast period of 2021 to 2028.