Global Market Outlook on Egg and Poultry 

The global production of poultry grew at a CAGR of 2.6 percent and consumption by 2.3 percent during 2012 – 2017. Increase in supply is driven by lower feed cost, which lowers the production cost in turn providing a higher margin in the economies of scale, increase in demand is driven by increased protein consumption and growing population

egg-and-poultry-global-market-sizeGlobal production and consumption of egg is expected to grow at a CAGR of 2 percent during 2016 to 2020. Increase in demand is driven by increased protein consumption and growing population, increase in supply is driven by lower feed cost, which lowers the production cost in turn providing a higher margin in the economies of scale.

  • Poultry prices exhibit seasonality due to dependency of biological and climatic conditions. Chicken spends most of its time in houses until aged for slaughtering. The high cold conditions during that period may affect the weight of the chicken
  • Scope for higher fast food sales during spring and early summer can push poultry prices higher. In turn, low fast food sales in the winter may weigh on prices. Buyers can make use of such price seasonality to secure better prices
  • Egg and poultry prices trend in tandem with seasonality due to dependency of biological and climatic conditions. Chicken  spends most of its time in houses for laying period. The high cold conditions during that period may affect the egg  production cycle. Scope for higher fast food sales during spring and early summer can push egg prices higher. In turn, low fast food sales in the winter may weigh on prices. Buyers can make use of such price seasonality to secure better prices

Poultry & Egg Value Chain 

The market complexity is considered to be low in the poultry and egg market due to low variation, predictability (except during epidemic outbreaks) and majority of the products finding applications in food and beverage industry.

Poultry: Supply–Demand Analysis

The US is a major producer and China is a major consumer of poultry. Both these markets witnessed a flat production and consumption in the second half of 2018 due to US-China trade war that affected the poultry industry by affecting the supply of pork

Market Outlook (2018)

  • Poultry consumption witnessed a consecutive growth, due to increased income and lower meat prices
  • Lower feed cost, increase in preventive disease control, genetic developments, bio security factors, and better margins supported the supply side, along with an increased protein consumption and urbanization to drive the demand
  • Asian producers are likely to increase their competitiveness by increasing integration, more consolidation. Mainly, cooperatives are expected to gain efficiency in producing poultry products

Poultry: Trade Dynamics 

  • The US poultry industry, being affected by avian flu, witnessed a drop in exports to major markets 
  • Import into China has increased, due to increasing demand on shift from other meat, which resulted from the trade war between the US and China