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Poultry consumption growth to continue through 2022

Released at: 14:29, 17/09/2018

Poultry consumption growth to continue through 2022

photo: cokhimoitruong.com.vn

Rabobank report sees continued growth in poultry consumption in Vietnam, India, Indonesia, and the Philippines.

by Doanh Doanh

Poultry consumption in Vietnam, India, Indonesia, and the Philippines (VIIP) has outperformed global growth in the past five years and is expected to continue growing through 2022, according to the “Foodservice is the new growth driver” report released recently by Rabobank.

The report, which analyzed poultry consumption trends in the four countries, found that the growing demand for poultry - chicken in particular - is primarily driven by its relatively lower price point and acceptability across different cultures in VIIP.

It also identified the key factors that will drive further growth in poultry consumption in the next five years. “In Vietnam, India, Indonesia and the Philippines, consumption preferences are increasingly gearing towards snacking and convenience,” said Mr. Umesh Madhavan, Analyst of Consumer Foods at Rabobank. “The growing acceptance of eating out and food delivery are proof of changing consumer behavior.”

“This growth pattern is supported by the significant millennial population in VIIP, who not only have a comparatively higher income but are also more likely to dine out and try different food options. These preferences will further boost the growth in foodservice.”

“As eating out becomes more common, smaller sized kiosks with a focus on poultry are expected to boost consumption through foodservice channels,” Mr. Ben Santoso, Senior Analyst of Animal Protein at Rabobank, explained. “However, supply-side factors such as increased competition in the processing industry and cheaper imports threaten to tighten margins for local VIIP poultry producers.”

“Poultry producers therefore need to fine-tune their strategies to secure long-term margins and market share. A key move would be to invest in the food-service channel either by developing the competence to be fully engaged in consumer-facing outlets or by establishing partnerships. For example, chicken fast-food kiosk chains appear well-suited to win in the changing consumption landscape in VIIP, as they tick all the boxes when it comes to accessibility, infrastructure, and direct consumer interaction.”

Rabobank is an international financial services provider operating on the basis of cooperative principles. It offers retail banking, wholesale banking, private banking, leasing and real estate services. As a cooperative bank, Rabobank puts customers’ interests first in its services. It is committed to being a leading customer-focused cooperative bank in the Netherlands and a leading food and agri bank worldwide. Rabobank employs approximately 43,810 people internally and externally. The Rabobank Group is active in 40 countries.

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