Market Trends of Poultry Feed Industry
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 the introduction of modern intensive production methods, genetic improvements, improved preventive disease control, 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.
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. For instance, according to USDA, global chicken meat production in 2022 was 102,199 thousand metric tons which increased by approximately 1.6% and reached 103,828 thousand metric tons in 2023.
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, in 2023, a leading Chinese feed producer, New Hope Liuhe, launched a new line of compound feeds specifically formulated for various bird species. With the growing demand poultry production increases 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 holds the largest share of the global poultry feed market. The region's vast population and increasing disposable incomes are driving rapid market growth. Over the past two decades, China and India have experienced significant expansion in their poultry sectors, both in terms of bird numbers and output per bird. This growth is closely linked to the adoption of intensive farming systems, which utilize high food conversion ratios.
China's feed usage is increasing due to strong demand for chicken meat. According to USDA data, chicken meat consumption in China rose from 14,401 thousand metric tons in 2022 to 15,002 thousand metric tons in 2023. The country's major compound feed production areas for poultry are concentrated in Henan, Shandong, Guangdong, and Sichuan, strategically located near raw materials and poultry farms.
Investments in the poultry feed sector across Asian countries are contributing to market growth. For example, in January 2024, San Miguel, a leading commercial feed producer in the Philippines, announced plans to invest PHP21 billion (USD 384 million) in the country's poultry feed and poultry sector, including the establishment of 12 new poultry feed facilities. In India, factors such as rising per capita income, expansion of quick-service restaurants, and increasing demand for quality poultry products have significantly boosted the demand for poultry feed. These trends are expected to accelerate poultry feed sales in the country in the coming years.
The demand for poultry feed remains high in emerging economies of Asia-Pacific, particularly in China and India. This trend is driving the use of higher-quality feed for a growing poultry population. Notably, Asia-Pacific accounts for two-thirds of the increase in global poultry meat production, further underlining the region's importance in the poultry feed market.
