Market Trends of Poultry Feed Industry
This section covers the major market trends shaping the Poultry Feed Market according to our research experts:
Rising Demand for Poultry Products
Recently, poultry is one of the fastest-growing segments of the agricultural sector. The poultry sector underwent significant structural changes during the past two decades due to modern intensive production methods introduction, genetic improvements, improved preventive disease control and biosecurity measures, increasing income and human population, and urbanization. The increase in poultry meat consumption is most evident in East and Southeast Asia and Latin America, particularly in China and Brazil. The share of the world's poultry meat consumed in developing countries increased over the past decade. It is estimated that poultry meat production and consumption in developing countries will increase by 3.6% per annum due to rising incomes, diet diversification, and expanding markets. According to OCED Agricultural Outlook, 2020, the per capita consumption of poultry meat worldwide increased from 13.86 kg in 2017 to 13.92 kg in 2020.
Supermarkets and shopping malls' emergence support chilled and frozen poultry product retailing growth. In addition, government policies ensure competitively priced product supply, boosting the poultry sector growth. Due to the increasing working population and incomes, the demand for convenient, high-quality chicken products is continually increasing. With increased health awareness, consumers are willing to spend more on healthy meat products, further contributing to the market's growth.
Furthermore, the demand for poultry meat from rapidly growing fast-food restaurants, such as McDonald's, KFC, Nando's, Marrybrown, and various other outlets, is fueling the poultry sector growth, which is, in turn, resulting in market development. For instance, according to USDA, chicken meat production in 2018 was 92,726 thousand metric tons which increased by approximately 7.9% and reached 100,026 metric tons in 2020.
Poultry production must increase to keep up with the increasing consumer demand, which requires optimum use of high-quality feed to improve production efficiency, feed conversion ratios and enhance animal health. It is anticipated to boost the market during the forecast period.
Asia-Pacific Dominates the Market
Asia-Pacific is the largest market for poultry feed. A vast population and growing disposable incomes are likely to trigger market growth at the fastest rate in the Asia Pacific. The poultry sector in China and India experienced vigorous growth over the past two decades in terms of poultry numbers and the level of output per bird. Higher production levels are associated with the spread of intensive systems in which food conversion ratios are high.
Feed use in China is growing due to the country's strong demand for chicken meat. The production of chicken meat increased from 14,373,315 metric tons in 2017 to 15,823,712 metric tons in 2020, according to the Food and Agriculture Organization (FAO). Further, the poultry industry is also benefiting from government incentives to support recovery and restocking. Additionally, several leading broiler enterprises in China invested in new broiler construction projects, with a total investment of up to RMB 7.4 billion (USD 1 billion) in 2020.
Likewise, increasing per capita income, expansion of quick-service restaurants in India, and growing demand for quality poultry products have significantly contributed to the rising demand for poultry feed in India. It will likely accelerate poultry feed sales in the country in the future. Hence, the need for poultry feed continues to be high in emerging economies of Asia-Pacific in countries like China and India. It leads to increasing quality feed use for a higher poultry population. Also, global poultry meat production is growing, with two-thirds of the increase in Asia-Pacific.
