Hot Dogs And Sausages Market Headed for Growth and Global Expansion by 2025

Image Credit : National Hot Dog and Sausage Council

Hot dogs and sausages are highly preferred across the globe due to its taste, flavors, and convenient packaging. The availability of hot dogs and sausages in different flavors such as honey, brown sugar, barbeque, Sajun, spicy, and teriyaki along with others is a major factor driving the market growth. According to the National Hot Dog and Sausages Council, on an average, people in the U.S. ate 20 billion hot dogs and spent over US$ 2.4 billion on hot dogs in the U.S. supermarkets in 2016. The sausages industry is segmented into both non-vegan and vegan categories. Companies such as Linda McCartney Foods provide vegetarian sausages, which are branded as Linda McCartney’s.

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The vegetarian sausages are much healthier, as they are filled with 60 to 65% of high amount of soy protein along with other ingredients such as soy protein concentrates, sulfites, raising agents, and stabilizers. The casing provided in the vegetarian sausages are also edible, as they are made from collagen and other organic materials. Other factors such as rise in food truck business has fueled growth of hotdogs and sausages market, as they are easy to cook and can provide different varieties to the consumers. For instance, Mastiff Food Truck, a startup company in the U.S. provides their own variety of sausages such as protein-based sausages, fat-based sausages, and others with a variety of tastes. Owing to these factors, the hotdogs and sausages market is expected to grow at a high rate over the forecast period.

Key Segment Trends

According to the National Consumer Survey (NCS), in 2017, sausages were breakfast meal for 247.93 million people in the U.S. Cocktail sausages accounted for highest revenue share in global hot dogs and sausages market, owing to its easy accessibility. Across the world, consumers are shifting from consumption of red meat to chicken due to its high cholesterol content as compared to chicken.

On the basis of meat type, beef segment is expected to fuel growth of hot dogs and sausages market over the forecast period. According to the National Hot dogs and Sausages Council, in 2016, around 1 billion pounds of hot dogs were sold at retail stores in North America, out of which around 61% of hot dogs had beef content, 12% had pork, and 17% had turkey in it. Beef hot dogs are highly preferred, as they have natural casing and they are skinless, which provides a better taste, texture, and appearance.

Market Restraints

According to the U.S. Department of Agriculture, large amount of sodium nitrate used in processed meat products such as hot dogs and sausages increases the risk of colon cancer. Other factors such as large amount of saturated fat with less amino acid molecules in sausages can cause type 2 diabetes and heart disease. Furthermore, long term consumption of sausages made from red meat are considered to be harmful, as it contains a red pigment known as haems that can cause cancer. Furthermore, the World Health Organization (WHO) has classified processed meat as carcinogenic to humans. According to the International Agency for Research on Cancer (IARC), daily consumption of 50 gram of processed meat increases the risk of colorectal cancer by 18 percent.

Key Market Trends

North America region held a dominant position in the hot dogs and sausages market in 2016. According to the National Hot dogs and Sausages Council, in 2016, around 19.4 million hot dogs were sold in this region. Furthermore, increasing consumption of hot dogs for breakfast is a major factor driving growth of hot dogs and sausages market in this region. According to NHDSC, around 89% of the people in the U.S. consume hotdogs for breakfast.

Hot dogs and sausages market in Asia Pacific region is fueled by the rising preference for fast food among the younger generation in China and India, followed by Japan, Malaysia, Korea, Philippines, Thailand, and Australia. The demand for on-the-go breakfast products such as milk products, hot dogs, donuts and various others is increasing in this region, as economies in this region have large number of women going for work. According to Coherent Market Insights, the overall on-the-go breakfast market in Asia Pacific region is expected to reach US$ 372.3 Mn by 2025.

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Key Players in Hot Dogs and Sausages Market

The major players in hot dogs and sausages market include Bar-S Foods Co., ConAgra Foods, Inc., Bob Evans Farms, Inc., Johnsonville Sausage, LLC, Sara Lee Food & Beverage, Family Dollar Stores, Inc., Boklunder, Atria Plc., Animex, Campofrio Food Group, Elpozo, Sigma Alimentos, JBS Argentina and Tyson Foods Inc., Fleury Michon SA, Nestlé S.A, and Hormel Foods Corporation among others. Shineway Group, Venky’s, and Goodman Fielder Ltd are some of the major players in the hot dogs and sausages market in Asia Pacific.

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