Hot Dog & Sausage Production in the US

Hot dog and sausage producers enjoy solid market acceptance for their products. While demand for sausage products is seasonal, being highest in the summertime, the industry's low price point has insulated producers from consumer concerns about red meat's link to heart disease and uncertain...

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Language:eng
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Summary:Hot dog and sausage producers enjoy solid market acceptance for their products. While demand for sausage products is seasonal, being highest in the summertime, the industry's low price point has insulated producers from consumer concerns about red meat's link to heart disease and uncertainty through the COVID-19 pandemic. Revenue surged especially high in the years following the pandemic as drought lifted the price of meat products, and inflation in 2022 continued to push sausage prices upwards. Due to these uncharacteristically strong years of growth, industry-wide revenue has been growing at a CAGR of 4.2% over the past five years, and is expected to total $23.4 billion in 2023, when revenue will jump an estimated 1.7%. International trade has been especially influential on the industry's structure in recent years. Pent-up demand for meat products was released as the pandemic subsided, leading to a boom in both export and import activity. US producers have been able to capture demand for meat from emerging markets in Asian countries, especially China, Japan and South Korea. Still, imports have climbed even faster, intensifying competition for domestic demand and limiting US producers' ability to control prices. This has led to profit compression over the past five years. US hot dog and sausage producers will struggle to gain revenue over the next five years as the price of red meat falls from previous highs, driving down the price of sausage products. Still, import competition will ease as the US dollar depreciates, allowing profit to expand and promoting US sausages abroad. Sausage producers will roll out new, plant-based options that cater to health-conscious and vegetarian consumers. These boons won't make up for price drops, however, and industry revenue is forecast to stagnate over the five years through 2028 to total $23.3 billion.