Outlook for Asia’s Poultry Market: Growth, Opportunities and Challenges

12th August 2024
Asia is driving the exponential growth in poultry production.

The poultry industry in Asia is a rapidly evolving sector, playing a crucial role in the region's agriculture and economy. With a burgeoning population, rising income levels, and increasing demand for protein-rich foods, the poultry market in Asia is poised for significant growth. In fact, the demand for chicken meat in Asia is expected to reach up to 154 million metric tons by 2031.

Key Growth Drivers

According to a Mordor Intelligence report, Asia-Pacific is expected to witness substantial growth in the poultry products market, registering a CAGR of 7.8% by 2028. Backing up this projection are a few critical developments in the region: 

  • Market Expansion in South and Southeast Asia
    South and Southeast Asia are projected to be the epicentres of growth in the global poultry market, with an expected market expansion of 30% between 2023 and 2030. This growth is driven by a resilient economic outlook, population growth, and shifting consumer preferences towards poultry as a preferred source of protein. Key markets such as India, Indonesia, and Pakistan are set to drive approximately 60% of this growth.
  • Rising Urbanization and Disposable Income
    Currently, 52% of Asia's population lives in urban areas, a figure projected to increase to 70% by 2050. This urbanization trend, coupled with rising disposable incomes, is leading to increased spending on protein-rich foods like poultry. The shift towards urban living is expected to contribute significantly to the growing demand for poultry products across the region
  • Modernization of Supply Chains
    The expansion and modernization of local poultry supply chains are critical for accommodating this growth. Investments in new infrastructure, breeding technologies, and cold storage facilities are key factors driving efficiency and productivity in the poultry industry. For example, India has emerged as a significant player, with vertically integrated operations accounting for 60-70% of total poultry meat production

Major Market Players 

  • Southeast Asia: Besides China, Countries like Thailand, Vietnam, and the Philippines are witnessing substantial growth due to favourable climatic conditions, government support, and strategic market positioning
  • India: India is rapidly expanding its poultry sector, driven by increasing disposable incomes and a shift towards high-protein diets. The country has become the third largest egg producer and the sixth-largest broiler meat producer globally
  • China: As the world's largest poultry producer, China leads in both production and consumption. The country's poultry industry has grown significantly, driven by domestic demand and export opportunities.

Poultry Industry Growth Trends

Understanding the Poultry Industry Growth Trends is essential for producers looking to capitalise on the market. Some of the key trends include technological advancements, changes in consumer behaviour, and shifts in market dynamics.

Technological Advancements
Modern poultry production facilities are more efficient and productive.

The use of modern technologies in poultry farming is transforming the industry. Innovations such as automated feeding systems, climate-controlled housing, and advanced breeding techniques are improving efficiency and productivity. These technologies help reduce labour costs and increase the overall output of poultry farms.

Consumer Behaviour Changes

Consumers in Asia are becoming more discerning. There is a growing preference for organic and free-range poultry products. Additionally, the convenience of ready-to-eat and pre-cooked poultry products is driving demand. Producers who can adapt to these preferences will likely see significant growth.

Market Dynamics

The market dynamics in Asia are shifting. While domestic production is on the rise, there is also an increasing trend towards importing high-quality poultry products. Countries with strong trade agreements and export capabilities stand to benefit from this trend.

Poultry Market Opportunities

The Poultry Market Opportunities in Asia are vast. Producers who can identify and leverage these opportunities will be well-positioned for success.

Organic and Free-Range Products
The demand for organic poultry products are also on the rise.

There is a growing market for organic and free-range poultry products. Consumers are willing to pay a premium for products that are perceived as healthier and more environmentally friendly. Producers who can meet this demand will find a lucrative market segment.

Value-Added Products
Poultry meat can be easily repurposed to various ready-to-eat meals.

Value-added products, such as marinated chicken, chicken nuggets, and ready-to-eat meals, are becoming increasingly popular. These products offer convenience to consumers, especially in urban areas where busy lifestyles demand quick and easy meal options.

Export Markets

Asian poultry producers can tap into export markets by adhering to international standards and quality controls. Countries like Japan, South Korea, and the Middle East present significant opportunities for high-quality poultry products.

Poultry Market Challenges

Despite the opportunities, the Poultry Market Challenges in Asia are numerous. Addressing these challenges is crucial for sustainable growth.

Disease Outbreaks
Strict biosecurity measures are essential for poultry production performance.

One of the biggest challenges facing the poultry industry is the threat of disease outbreaks. Avian influenza and other infectious diseases can devastate poultry populations and disrupt the supply chain. Implementing strict biosecurity measures and vaccination programs is essential to mitigate these risks.

Rising Feed Cost

The cost of feed is a significant factor in poultry production. Fluctuations in the prices of corn and soybean, which are primary ingredients in poultry feed, can impact profitability. Producers need to explore alternative feed sources and improve feed efficiency to manage costs effectively.

Environmental Impact
Technologies such as CompoTower help to minimise environmental impact.

Poultry farming can have a considerable environmental impact, including water pollution, greenhouse gas emissions, and deforestation for feed crop production. Sustainable farming practices, such as waste management, recycling, and renewable energy use, are critical to minimising this impact.

Regulatory Compliance

Different countries have varying regulations regarding poultry farming practices, food safety, and environmental standards. Staying compliant with these regulations is essential for producers to avoid penalties and maintain market access.

The outlook for Asia’s poultry market is promising, with numerous growth opportunities on the horizon. By understanding the Poultry Market Outlook Asia, keeping up with Poultry Industry Growth Trends, and addressing the Poultry Market Challenges, producers can position themselves for success. 

Investing in technology, focusing on quality, diversifying product offerings, and enhancing sustainability are essential strategies for thriving in this dynamic market. As the demand for poultry products continues to rise, producers who can adapt to changing consumer preferences and market conditions will be well-equipped to capitalise on the opportunities and overcome the challenges.

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