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Fibrous Casings Market to Grow Steadily, on Back of Heightened Demand from Meat Processing Industry

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Fibrous Casings Market to Grow Steadily, on Back of Heightened Demand from Meat Processing Industry

January 1, 2020 by Asia Food Journal

Asia Food Journal

Fibrous casings market is projected to register a growth of over 4%, double the growth of overall casings market. This surge in growth can largely be attributed to an increase in processed meat consumption globally, generating significant demand from processed meat providers.

Fibrous casings are most suitable for the processed meat industry owing to their consistency in shape retention and higher shelf life. Fibrous casings manufacturers including Viskase and ViscoTeepak are proactively focusing on increasing barrier strength by adding viscose layers to their products to make their products suitable for processed meat. While such developments will give a significant uptick to the existing demand, it will also rejuvenate the product life cycle of fibrous casings.

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Key Takeaways of the Fibrous Casings Market –

  • Europe accounts for the highest share in the fibrous casings market and is expected to show steady growth during the forecast period.
  • East Asia is anticipated to present highest growth potential in fibrous casings market and is projected to present an absolute $ opportunity of more than US$ 50 Mn during the forecast period.
  • In terms of product type, the seg-ment of clear casings will lead in the fibrous casings market and is expected to grow 1.6X by 2029 over 2019.
  • In terms of application, sausages and salami hold the highest share in fibrous casings market, accounting for more than 40% throughout the forecast period.
  • Small calibre fibrous casings have garnered significant demand in re-cent years and are expected to grow steadily during the forecast period.
  • Owing to high demand in food processing industry, direct sales will be the preferred sales channel in the fibrous casings market, and are expected to show a positive BPS during forecast.

“Investments on increasing the production of clear fibrous casings is expected to present long term returns for fibrous casings manufacturers. The fibrous casings suppliers and distributors can benefit from increasing their presence in domestic markets, with collaborations with associated food chains and other small businesses”, says the report analyst.

Collaborations and Acquisitions to Shape Manufacturers’ Bottom Line
Fibrous casings market is highly consolidated with only handful of players controlling the total production share of the market. Competition between manufacturers has been extremely high and is based on product level pricing. Fibrous casings manufacturers have focused on increasing their regional presence with collaborations and acquisitions. Viscofan Group, one of the market leaders in the fibrous casings market, acquired Globus Group in 2018. With Globus Group being a distributor in Australian and New Zealand markets, the acquisition was aimed to increase Viscofan’s presence in Oceania market. Similar efforts have been seen to be carried out by other players like Viskase Companies, Inc. who acquired Walsroder Casings Group in 2017. These efforts by companies to increase their presence and establish their supremacy on the supply chain, has benefitted the fibrous casings market. AFJ

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