Poultry Market Definition
The poultry market consists of sales of poultry by entities (organizations, sole traders and partnerships) such as meat processors and poultry farms that breed and/or raise poultry and sell the meat after slaughter, either at their own premises or through a third party which is engaged in preparing processed poultry and its byproducts. Poultry includes birds and white meats such as chickens, ducks, geese, rabbits, small game and turkeys. Poultry processing is fully or semi-automated in most countries. The companies in the industry package and distribute meat and meat products through various distribution channels to both individual customers and commercial establishments such as hotels and restaurants.
Poultry Market Size
The global poultry market reached a value of nearly $319.2 billion in 2019, having grown at a compound annual growth rate (CAGR) of 5.5% since 2015, and is expected to grow at a CAGR of 6.1% to nearly $405 billion by 2023. The market is expected to grow at a CAGR of 7.2% to nearly $465.7 billion by 2025, and at a CAGR of 6.8% to $645.7 billion by 2030.
Growth in the historic period resulted from low interest rates, rise in disposable income, and emerging markets growth. Factors that negatively affected growth in the historic period were geopolitical tensions, and shortage of labor.
Going forward continued technological developments, faster economic growth, population, food waste and increased awareness about the health benefits will drive the growth. Factors that could hinder the growth of the poultry market in the future include climate change and global warming, regulations, dependence on technical expertise, coronavirus pandemic, expensive production and rising costs of feed, shift towards vegan eating and awareness of animal cruelty.
Poultry Market Drivers
The key drivers of the poultry market include:
Continued Technology Development
Technological advances is expected to drive the poultry market during the forecast period. New practices involve the use of wireless technologies, GPS positioning and lasers, for tracking meat production and packaging. Meat producing and packaging companies are also expected to integrate big data analytics, IoT, robotics and other technologies into their production and packaging practices i. These technological developments are expected to drive the poultry market going forward.
Poultry Market Restraints
The key restraints on the poultry market include:
Climate Change And Global Warming
Climate change and global warming are expected to significantly affect the poultry market during the forecast period. The increase in earth`s average surface temperature due to increase in carbon dioxide emissions and deforestation is called as global warming. Increased animal agriculture for meat production releases high amount of methane gas which contributes towards global warming. Following which, several government organization such as UN’s Intergovernmental Panel on Climate Change (IPCC) raises awareness on the harmful effects of animal agriculture to meet demand for meat, urging people to switch to vegetarian diet forms ii iii .Thus, increase in global warming and awareness about climate change is likely to be a restraint for the growth of the poultry industry in the forecast period.
Poultry Market Trends
Major trends influencing the poultry market include:
Ready-To-Eat Meals
The demand for ready-to-eat food that also includes poultry foods increased, thus resulting as an emerging trend in the poultry market. Busy lifestyles are keeping people away from cooking meals; therefore, many of them are dependent on ready-to-eat foods as it saves time and energy. Ready-to-eat meals are available as frozen foods, canned foods, ready-to-eat snacks, meals, chilled foods and more. For instance, according to a research from IGD, a research and training charity in food and consumer goods industry of UK, predicted that UK’s food-to-go sector that includes convenience and ready-to-eat foods, is expected to reach £23.4 billion ($30.08 billion) by 2024.iv
Use of 3D Imaging Systems
Poultry processing companies are increasingly using 3D imaging systems to optimize yields. 3D imaging systems model the poultry bird using sensors and actuators to determine the position of cut. The bird is put under the vision system, which takes the images and measurements and geometry is determined. Near-infrared sensors determine the amount of meat and bone present in the bird. Vision analysis enables the system to perform optimal cuts for each bird regardless of the size and shape. It is a data-driven process which maximizes the yield and minimizes per unit cost for poultry meat processing. Major companies involved in pioneering this technology include Gainco, a meat and poultry equipment manufacturer, and Midwest Machine LLC. In July 2020, KFC announced to introduce new laboratory-produced 3D printing chicken nuggets. v vi
Opportunities And Recommendations In The Poultry Market
Opportunities – The top opportunities in the poultry market segmented by type of animal will arise in the chicken market segment, which will gain $71.08 billion of global annual sales by 2023. The top opportunities in the poultry market segmented by distribution channel will arise in the supermarkets/hypermarkets market segment, which will gain $33.87 billion of global annual sales by 2023. The top opportunities in the poultry market segmented by product type will arise in the frozen market segment, which will gain $36.55 billion of global annual sales by 2023. The top opportunities in the poultry market segmented by nature will arise in the conventional market segment, which will gain $79.76 billion of global annual sales by 2023. The poultry market size will gain the most in China at $23.38 billion.
Market-trend-based strategies for the poultry market include investing in making new ready-to-eat variants of poultry products to meet the increased demand, consider integrating 3D imaging systems to optimize processes, investing in solutions based on big data and predictive analysis to increase revenues, in robotics technology to enhance management of farms and to enhance productivity, invest in virtual reality to increase the efficiency of farms, and consider offering online delivery services to increase revenues. Player-adopted strategies in the poultry market include improving revenues through mergers and acquisitions, improve production efficiency and reduce costs through the implementation of advanced technologies and upgrading of production facilities and increasing business effectively by increasing stakes in group companies.
Recommendations- To take advantage of the opportunities, the business research company recommends the poultry companies to focus on investing in ready-to-eat meals, adoption of robotics and automation, offer competitive pricing, premium pricing, expanding in emerging economies, adoption of online meat delivery services, leveraging social media to promote poultry products and focus on promoting white meat as a healthy option.
Poultry Market Segmentation
The poultry market is segmented by type of animal, by distribution channel, by product type and by nature.
By Type Of Animal-
The Poultry market can be segmented by type of animal
- a. Chicken
- b. Turkey
- c. Ducks and Geese
- d. Others
The chicken market was the largest segment of the poultry market segmented by type of animal, accounting for $266.7 billion or 83.5% of the total in 2019. Going forward, the ducks and geese segment is expected to be the fastest growing segment in the poultry market, at a CAGR of 10.4% during 2019-2023.
By Distribution Channel –?
The Poultry market can be segmented by distribution channel
- a. Supermarkets/Hypermarkets
- b. Convenience Stores
- c. Foodservice Stores
- d. E-commerce
- e. Others
The supermarkets/hypermarkets market was the largest segment of the poultry market segmented by distribution channel, accounting for 148.5 or 46.5% of the total in 2019. Going forward, the e-commerce segment is expected to be the fastest growing segment in the poultry market, at a CAGR of 7.64% during 2019-2023.
Product Type –?
The Poultry market can be segmented by product type
- a. Fresh/Chilled
- b. Frozen
- c. Ready-To-Cook
- d. Ready-To-Eat
- e. Others
The frozen market was the largest segment of the poultry market segmented by product type, accounting for $138.7 billion or 43.5% of the total in 2019. Going forward, the ready-to-eat segment is expected to be the fastest growing segment in the poultry market, at a CAGR of 9.1% during 2019-2023.
By Nature –?
The Poultry market can be segmented by nature
- a. Organic
- b. Conventional
The conventional market was the largest segment of the poultry market segmented by nature, accounting for 310.4 or 97.2% of the total in 2019. Going forward, the organic segment is expected to be the fastest growing segment in the poultry market, at a CAGR of 14.0% during 2019-2023.
By Geography-
The poultry market is segmented into
- o North America
- o Western Europe
- Austria
- Belgium
- Denmark
- Finland
- France
- Germany
- Ireland
- Italy
- Netherlands
- Norway
- Portugal
- Spain
- Sweden
- Switzerland
- UK
- o Asia Pacific
- China
- Australia
- Hong Kong
- India
- Indonesia
- Japan
- Malaysia
- New Zealand
- Philippines
- Singapore
- South Korea
- Thailand
- Vietnam
- o Eastern Europe
- Russia
- Czech Republic
- Poland
- Romania
- o South America
- Brazil
- Argentina
- Chile
- Colombia
- Peru
- Venezuela
- o Middle East
- Saudi Arabia
- Israel
- Turkey
- UAE
- o Africa
- Egypt
- Nigeria
- South Africa
Asia Pacific was the largest region in the global poultry market, accounting for 31.6% of the total in 2019. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the poultry market will be Asia Pacific and Africa, where growth will be at CAGRs of 9.4% and 8.4% respectively. These will be followed by the Middle East, and Eastern Europe, where the markets are expected to grow at CAGRs of 7.1% and 6.0% respectively.
Poultry Competitive Landscape
Major Competitors are:
- • Tyson Foods, Inc.
- • JBS S.A.
- • BRF S.A.
- • Koch Foods
- • Charoen Pokphand Foods
Other Competitors Include:
- • Sanderson Farms
- • New Hope Liuhe
- • Perdue Farms
- • Industrias Bachoco
- • Foster Farms
- • Suguna Foods
- • Doyoo Group
- • Sunner Development Co
- • Shandong New Hope Liuhe Group Co. Ltd.
- • Guangdong Wen`s Food Group Co., Ltd.
- • Dalian Hanwei Enterprise Group
- • Beijing DQY Agriculture Technology Co., Ltd.
- • Cargill Meat Solutions Corp.
- • SYSCO Corp.
- • Smithfield Foods Inc.
- • Hormel Foods Corp.
- • Maple Leaf
- • Maple Lodge
- • Olymel
- • Lilydale
- • Exceldor
- • Pif Paf Alimentos
- • Apex Brazil Ltda
- • AD`ORO
- • Bello Alimentos Ltd
- • Bonasa Alimentos
- • Redondos S.A
- • San Fernando
- • LDC
- • Plukon Food Group
- • PWH Group
- • AIA
- • 2 Sisters Food Group
- • Gruppo Veronesi
- • Moy Park Ltd
- • Amadori
- • Avara
- • Cherkizovo
- • MHP
- • Gap Resurs
- • AO Prioskolie
- • Arab Company For Livestock Development (ACOLID)
- • Al-Watania
- • Al-Fakeih Poultry Farms
- • Keskinoglu
- • Emirates Modern Poultry Company (Al Rawdah)
- • RCL Foods Ltd
- • Astral Foods
- • Cairo Poultry Company
- • Country Bird Holdings
- • Sovereign Food Investments
- • Arab Poultry Breeders Co.