Hot Dog & Sausages Market Size, Share & Industry Analysis, By Meat Type (Chicken, Beef, Pork, Others), By Distribution (Supermarkets/Hypermarkets, Convenience Stores, Online Channel, Food Service, Others) And Regional Forecast, 2024-2032

The increase in the working population and hectic lifestyle has played a vital role in consuming ready-to-eat foods such as hot dogs and sausages. The hot dog is a bakery product made from bread and sausages, mainly made with minced meat such as pork, beef, or chicken and seasoned with spices. Furthermore, the rising customer spending on shelf-stable foods is expected to support the market's steady growth.

The prominent and niche players operating in the market are embarking on new product developments and product innovation trends to strengthen their footprint in the global market. For instance, in April 2020, Meatless Farm Co. (New York) launched a series of plant-based sausages and patties formulated with pea-based protein.

Individual food expenditure in developed countries is gradually shifting to ready-to-eat meals and eating out instead of buying fresh produce to cook at home, which is likely to support the market growth during the forecast period. 

The hectic and fast-paced lifestyle of people due to growth in the working population has contributed in increasing the demand for ready-to-eat foods. The less time spent on cooking has fuelled the demand for convenience and on-the-go food products like hot dogs. The popularity of high-protein foods and the interest in natural and organic products are driving the sales. New products are there in the market with reduced fat content or increased protein content. The use of organic meat is also helping in the development of a sustainable product portfolio and supporting the product demand across the health-conscious population.

Moreover, hot dog and sausages manufacturers are also experimenting and introducing unique tastes and flavours owing to the evolving consumers' taste preferences, which can further boost the product demand. New flavors such as honey or brown sugar, Cajun, spicy, and teriyaki have hit the market in the last few years.

According to the World Health Organization (WHO), red meat contains heterocyclic aromatic amines and polycyclic aromatic hydrocarbons, considered carcinogens. In addition, the World Cancer Research Fund (WCRF) has recommended limiting consumption of red and processed meats a result. The health concerns associated with the consumption of red meat are believed to restrain the growth of the hot dogs and sausages market.

Key Players Covered:

The key manufacturers operating in the global hot dog and sausages market are Johnsonville Sausage, Tyson Foods Inc., Nestlé S.A, Bar-S Foods Co., ConAgra Foods, Campofrio Food Group, Elpozo, Bob Evans Farms, Smithfield Foods, Inc., Carolina Packers (Bright Leaf Hotdogs), and Others.

By meat type, the market is segmented into chicken, beef, and pork. Among these, chicken segment is expected to hold the maximum market share because of the rising awareness regarding the health benefits of poultry protein. Poultry meat is a great source of protein and has a low price as compared to other meat.

Pork and beef are also consumed widely worldwide due to their flavourful taste and their wide incorporation in convenience foods. Pork has the highest protein content among other red meats. These factors are predicted to impact the sales of the aforementioned meat varieties in hot dogs and sausages in the upcoming years.

Among distribution channels, the supermarkets/hypermarkets segment dominates the hot dog and sausages market with the highest market share. Supermarkets are self-service stores where a variety of meat products are available. Sausages have a dedicated section in supermarkets. Therefore, there are many options for customers to choose. Consumers prefer to buy hot dogs and sausages in supermarkets and hypermarkets because they trust high-quality products. According to National Hot Dog and Sausages Council (NHDSC), the data for the year 2020, 944.3 million pounds of hot dogs were sold at retail stores, representing more than $2.8 billion in supermarket sales.

Online retail is also gaining popularity as it offers a digitalized buying experience with a wide range of products and discount prices with doorstep delivery. The segment is predicted to grow at a significant pace attributed to the high convenience offered by it.

Regional Analysis:

North America accounted for a substantial share of the global hot dog and sausage market. According to National Hot Dog and Sausages Council (NHDSC), the top hot dog consuming cities in 2020 are Los Angeles, New York City, Dallas/Ft. Worth, Chicago, Philadelphia, Boston, Houston, Atlanta, Tampa, and Phoenix. Americans spent more than $7.68 Billion on hot dogs and sausages. According to sales data from NHDSC, New Yorkers spent more money on hot dogs in retail stores ($133.6 million) than any other market in the country, followed by Los Angeles residents with $94.6 million spent on hot dogs.

The increasing rate of urbanization is facilitating the adoption of new consumption trends, as urbanization is associated with more processed and prepared foods. According to Food and Agriculture Organization (FAO), the increasing demand for meat in developing countries is mainly due to the rapid progress of urbanization and the tendency of urban residents to spend more on food than the lower-income rural population. If they can afford it, urban dwellers will spend more money on higher-cost, lower-calorie protein foods.

Asia-Pacific is expected to grow at an impressive CAGR during the forecast period because hot dogs and sausages are very popular among the younger generation in countries such as China and Japan. Rising per capita income of consumers in some of the Asian countries can also motivate consumers to spend on convenience foods like hot dogs which will support the market growth.

Segmentation

Key Industry Developments:

• In April 2019, it was reported that Chinese pork processor Jinluo targeted health-conscious individuals in China with the launch of some new series of heat-treated sausage snacks.


• In 2018, Russia’s largest consumer-centric manufacturer of meat products, Cherkizovo Group has established a fully automated smokes sausage factory and in October 2019 they invested in a comprehensive rebranding of more than 300 products categories of sausages.