The Collagen Casings Market is expected to grow at a CAGR of 5.9% from 2021 to 2028 to reach $2.04 billion by 2028. In terms of volume, the collagen casings market is expected to grow at a CAGR of 2.1% from 2021 to 2028 to reach 18.99 billion meters by 2028.
The key factors supporting the growth in this market include the increase in the global population and subsequent rise in meat consumption and production; casings manufacturers’ shift from natural casings to collagen casings to overcome operational challenges; and the rising number of fast-food restaurant chains. Moreover, growing demand from emerging economies in Asia-Pacific, Latin America, the Middle East, and Africa is expected to create lucrative opportunities for players operating in this market. However, consumer preference for natural casings over collagen casings is expected to hinder the growth of this market to some extent.
COVID-19 Impact on Key Regions
The COVID-19 pandemic has severely affected the collagen casings industry in developed regions like North America and Europe. According to agricultural financial institution Rabobank, as of April 2020, U.S. meat production declined by 20% compared to 2020. This decline in meat production is expected to increase the prices of meat products, thereby increasing collagen casings.
The outbreak compelled the closure of around 17 meat processing facilities in the U.S. Further, slaughtering of cattle in the U.S. declined 19% in the second and third weeks of April 2020 compared to the same period in 2019. Also, the outbreak of COVID-19, its negative associations with animal-based food declined European meat consumption. Numerous countries in the European region witnessed the worst outcomes of COVID in Q1’2020.
Similarly, the COVID-19 pandemic caused severe disruptions throughout the meat industry in developing regions, including Asia-Pacific, the Middle East & Africa, and Latin America. Processed meat products faced reduced consumption and disrupted supply chains. For instance, as of July 2020, China’s National Health Commission issued coronavirus control guidelines for meat companies, including imported livestock and poultry products. Also, the Government of China targets to halve meat consumption by 2030 to reduce both emissions and obesity levels. These situations in the processed meat market may lower the demand for collagen casings for animal meat-based sausages.
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Increasing Preference for Collagen Casings by Sausage Manufacturers to Drive Market Growth
For decades, sausages have been stuffed into natural sausage casings made from the intestines of animals, but now collagen casings are available in the market due to a tremendous amount of recent innovation and new product development in the casings industry. Collagen casings are available in a wide variety of shapes, sizes, and appearances. If natural sausage casings are not properly stored, they tend to smell bad due to gas being collected in them. Also, they have a very high tendency to break compared to the collagen casings (The chances of breakage during handling are high in the natural casing, which may lead to the risk of microbial contamination). On the other hand, collagen casings have undergone a tremendous amount of development and are now available in various shapes, sizes, and appearances; some of which nearly replicate natural sausage casings. Collagen casings are essential in the production of a variety of value-added or processed meat products.
In addition, collagen casings can offer coloring agents, spices, smoke flavoring, and various other materials as a part of the casing to be deposited on the product surface after stuffing and processing. The high mechanical strength and fibrous nature of these products have boosted their demand in numerous applications.
Further, the cost benefits of using collagen casings, especially for sausage manufactures, can be substantial with significant savings in time and labor costs as collagen casing is easy and quick to work with because it is a more consistent and stable product than the gut casing. Also, another advantage is that collagen casings are immediately ready for use. There is no soaking or other preparation required as, for instance, as required with gut casings.
Collagen casings are particularly effective when sausages are filled mechanically with conventional stuffing machines, as the casings are replenished automatically. This again leads to shorter throughput times. Overall, manufacturers can double their production volume compared to when using conventional gut casings. Thus, due to these properties of collagen casings, sausage manufacturers increasingly prefer collagen casings over natural sausage casings.
Animal Diseases and Health Concerns Challenges the Global Collagen Casings Market Growth
Processed meat, in general, has been the target of several studies that aim to show the relationship between the consumption of these products and health concerns. For instance, the World Cancer Research Fund has already communicated their findings in 2007 & 2011 reports about the existence of evidence that red and processed meats are the origins of bowel cancers. Also, the International Agency for Research on Cancer (IARC) has classified processed meat as a carcinogen that causes cancer. And it has classified red meat as a probable carcinogen, something that probably causes cancer.
As a result, the American Cancer Society has long ago recommended a diet that limits processed meat and red meat high in vegetables, fruits, and whole grains. The American Cancer Society Guidelines on Nutrition and Physical Activity for Cancer Prevention recommend choosing fish, poultry, or beans instead of red meat and processed meat. The consumers’ reaction to these announcements and recommendations poses a challenge to the casing market as they can eventually have an impact on the levels of meat consumption per capita, especially in industrialized regions (Europe and North America), where there is a tendency to improve the quality of food diets in general. For instance, in 2018, in Western Europe, meat consumption, especially beef and veal, declined by 0.3% and 1.0%, respectively, amidst mounting health concerns, linking red meat to cardiovascular disorders and colon cancer.
Further, another important risk is the outburst of animal diseases, which has a temporal impact on meat consumption, leading consumers to avoid processed meat. Some real examples were the crisis of BSE /Bovine Spongiform Encephalopathy (Mad Cow Disease) and the Avian Flu. In some countries, there have been outbreaks of BSE in cattle with the suspicion that it might be transmitted to human beings through affected meat. This has added to other popular suspicions about meat and may be partly responsible for the reduction in beef consumption in some countries, thus, ultimately posing a challenge to the growth of the collagen casings market across the globe.
Key Findings in the Global Collagen Casings Market Study:
The edible collagen casings segment to witness significant growth in the collagen casings market during the forecast period
Based on type, the collagen casings market is segmented into edible and non-edible collagen casings. The edible collagen casings segment accounted for the largest share of the overall collagen casings market in 2021. The leading position of this segment is mainly attributed to its cost benefits and increasing consumer acceptance. The edible collagen casings are used for fried sausages (including typical breakfast sausages) and small calibre dry sausages, such as beef sticks.
The small calibers segment accounted for the largest share of the overall collagen casing market in 2021
Based on caliber, the collagen casing market is segmented into large and small calibers. The small calibers segment accounted for the largest share of the global collagen casings market in 2021. The leading position of this segment is mainly attributed to its low cost, edile nature, and increased demand for poultry products, particularly in regions where beef and pork are not eaten for cultural or religious reasons.
The processed sausages segment accounted for the largest share of the overall collagen casing market in 2021
Based on application, the collagen casings market is segmented into fresh and processed sausages. The processed sausages segment accounted for the largest share of the overall collagen casings market in 2021. The leading position of this segment is mainly attributed to increased demand for ready-to-go premium meat products, a greater variety of processed products available in multiple distribution channels, and increasing preference by craft food producers for innovative processing technologies such as smoking technology. This segment is also expected to grow at the fastest CAGR during the forecast period.
Based on type, the processed sausages market is segmented into pre-cooked, smoked, and cured sausages. The pre-cooked sausages segment accounted for the largest share of the overall processed sausages market in 2021. The leading position of this segment is mainly attributed to rising demand from various end-user, such as hotels and restaurants from fast-food chains; the proactive and busy lifestyle of the working class; and growing the convenience for cooking that these sausages provide. However, the smoked sausages segment is expected to grow at the fastest CAGR during the forecast period due to the greater variety of smoked products available in modern groceries.
The food processing organizations segment to dominate the global collagen casings market in 2021
Based on end user, the collagen casings market is segmented into food processing organizations, food service providers, food retail, and others. The food processing organizations segment accounted for the largest share of the overall collagen casings market in 2021. Increasing demand for sausages has led to the large-scale production of sausages in food processing organizations. The leading position of this segment is mainly attributed to the growing preference for innovation in food menu options, increased automation, maximized production efficiencies. However, the foodservice providers segment is expected to grow at the fastest CAGR during the forecast period. The rapid growth of this market is mainly due to reduced practice of preparing home-cooked meals; improving distribution channels.
The online segment to witness significant growth in the collagen casings market during the forecast period
Based on the distribution channel, the global collagen casings market is mainly segmented into offline and online. The offline segment accounted for the largest share of the overall global collagen casings market in 2021. The large share of this market is mainly attributed to the growing number of modern groceries, mainly due to higher-quality food products offering, broader collection, and an improved shopping experience. However, the online distribution channel segment is expected to grow at the fastest CAGR during the forecast period.
Asia-Pacific: The fastest-growing regional market
At the regional level, North America accounted for the largest share of the overall collagen casings market in 2021. The leading position of North America in the collagen casings market is primarily attributed to the well-established meat processing industry, huge availability of sausage and processed premium meat products, high consumer demand for ready-to-eat and ready-to-cook meat products, increasing number of fast-food restaurant chains, and presence of a large number of sausages manufacturers. However, the Asia-Pacific region possesses lucrative growth potential for the collagen casing market during the forecast period. This is mainly attributed to the increasing outside food consumption, rising expenditure on meat and healthy products, growing westernization culture, and growing population & urbanization.
Key Players
The collagen casings market is highly fragmented, with the presence of many small private vendors in the market. Some of the key players operating in the global collagen casings market are Viscofan, S.A. (Spain), Devro plc, Shenguan Holdings (Group) Limited, DAT-Schaub Group (Part of Danish Crown Amba), ViskoTeepak Holding Ab Ltd. (Finland), Fibran, S.A. (Spain), Nippi, Inc. (Japan), FABIOS S.A. (Poland), Oversea Casing Company (U.S.), LEM Products, and Selo B.V. (The Netherlands).
Scope of the report
Collagen Casings Market, by Type
- Edible Collagen Casings
- Non-edible Collagen Casings
Collagen Casings Market, by Caliber
- Large Calibers
- Small Calibers
Collagen Casings Market, by Application
- Fresh Sausages
- Processed Sausages
- Pre-cooked Sausages
- Smoked Sausages
- Cured Sausages
Collagen Casings Market, by End User
- Food Processing Organizations
- Food Service Providers
- Food Retail
- Others
Collagen Casings Market, by Distribution Channel
Collagen Casings Market, by Geography
- North America
- Europe
- Germany
- France
- Italy
- U.K.
- Spain
- Poland
- Netherlands
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Chile
- Argentina
- Colombia
- Rest of Latin America
- Middle East & Africa
Key questions answered in the report: