Poultry Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Poultry

The global production of poultry grew at a CAGR of 2.8 percent and consumption by 2.85 percent during 2012–2019. 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

• 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 first half of 2020, due to the US–China trade war that affected the poultry industry by affecting the supply of pork
• The global poultry market was valued at $2.6 billion in 2018, and it is expected to exhibit a CAGR of 3 percent between 2019 and 2027

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 

Supply–Demand Analysis 

Increasing demand for cage-free egg and poultry products will cause a shift in the global supply and demand numbers in the next decade, as free range eggs and poultry require large areas for the chickens to grow. This is a challenge to the existing suppliers, where the demand for free range eggs exceeds the supply

Rapid growth in consumer demand for livestock products in China and India, owing to rising poultry meat and egg production and consumption is expected to fuel growth of the global poultry market. Broiler meat production in China was 700,000 metric tons in 2017, and it increased by 11.7 million metric tons in 2018.

• Chicken meat consumption increased by 4.77 percent in 2019 compared to 2018
• Short production cycle enables producers to make use of low risk and higher profitability. Factors like rapid improvement in genetics, feeding practices, and animal health, have also supported the global supplies
• Currently, the poultry market is oversupplied, even with increasing global demand, the market is likely to be oversupplied in the coming years, as producers are building larger houses to increase the heads

Market Analysis – US 

Production

• The US poultry production witnessed a growth of 2.99 percent CAGR during 2012–2019
• 2015 witnessed a decrease in the production numbers due to avian flu, which increased the number diseased chicken, unsuitable for consumption and laying eggs
• Most of the broiler meat producers are vertically integrated owning and operating feed mills, processing plants and further processing units. However, breeding and bird growing are mostly outsourced

Consumption

• US poultry intake has been witnessing steady increase in recent year. The US poultry intake kilogram per person stands at around 45.6, 47.8 and 48.4 during 2014, 2015, and 2016
• Consumption witnessed a drop in 2015, when avian flu affected the poultry industry in the US
• Consumption to gain momentum in the next few years as people include more egg and poultry in their meals as source of protein