The poultry sector continues to represent one of the more dynamic sectors of the world meat market.
On a global scale, poultry continues to increase its share of the meat industry, largely at the expense of beef and pork. Throughout most of the last decade, consumption of poultry meat has held up relatively well, despite fears of avian flu and a decline in frequency with which some people have eaten meat in countries such as the UK. Not only is poultry meat viewed as a healthier alternative to red meat amongst large sections of the global population, but demand is rising in potentially large markets such as China and Brazil.
In 2010/2011, global meat production amounted to almost 290 million tonnes. Poultry accounted for over a third (34%) of this figure, with global output worth in the region of 100 million tonnes. At present, pork accounts for a leading 37% of global meat production, with output worth 108 million tonnes. This figure drops to 65 million tonnes of beef – which accounts for 22% of world output – with other varieties such as sheep and goat meat making up much of the remaining 7% of global production.
However, the picture is expected to change over the next two decades. By 2030, world production of poultry meat is expected to reach nearly 155 million tonnes, representing an increase of more than 56% compared with current levels. With global meat output forecast to reach almost 400 million tonnes by this time, the share taken by the poultry sector is expected to increase to nearly 40%. Much of this increase is projected to occur at the expense of beef and pork.
Global consumption of poultry meat is currently worth an estimated 79 million tonnes. This represents a 33% share of global meat consumption, ahead of beef (21%) but behind pork ((42%). However, most indications suggest that poultry meat is set to overtake pork at some point within the next decade or so, driven by rising demand in the world’s emerging economies. On a regional basis, Europe accounts for an estimated 17% of global poultry meat production. The industry is led by Asia and North America, which account for shares of 34% and 25% respectively. Outside Europe, some of the world’s leading producers of poultry meat include the US and Brazil in the Americas region, as well as China in Asia, where annual output amounts to almost 17 million tonnes. Another notable supplier of poultry meat from the Far East is Thailand. During the summer of 2012, the EU lifted a longstanding ban on poultry meat imports, which had been put in place back in 2004 following concerns over avian flu. This is set to increase EU poultry meat imports from Thailand by some 50,000 tonnes.
With output worth approximately 2.4 million tonnes, Russia represents Europe’s leading producer of poultry meat by some distance. Within the EU region, leading producer countries include France (1.86 million tonnes), the UK (1.55 million tonnes), Germany (1.45 million tonnes) and Spain (1.27 million tonnes). Significant quantities are destined for overseas markets, since the EU exports over 1.1 million tonnes of poultry meat per annum. Exports are worth in the region of 775,000 tonnes, whilst consumption across the EU region amounts to more than 11.6 million tonnes, or over 23 kg per capita. Although France remains the EU’s largest producer of poultry meat, the industry has been suffering from deep-seated structural problems, examples of which include lack of investment in infrastructure, the rising cost of agricultural commodities and debt. These problems have been illustrated by the situation facing leading poultry meat supplier Doux Group, which has recently entered administration (this situation is discussed at greater length later on). Partly as a consequence of these problems, production of chicken meat decreased by 400,000 tonnes between the late 1990s and 2011.
Consumption
Per capita consumption of poultry meat varies across the EU region. It is generally highest in countries such as Spain (32 kg), the UK (30 kg) and France (25 kg). This figure decreases to less than 20 kg in places like Germany and Italy. Chicken is generally the most popular variety of poultry meat, although the last few years have witnessed increased levels of production of other varieties in parts of the EU, notably duck and goose meat. In most instances, consumption of frozen poultry lags well behind its fresh/chilled equivalent. However, sizeable markets for frozen poultry exist across Western Europe – in the UK, for example, the sector was worth GBP330m in 2011, equivalent to 6% of the overall frozen foods industry. In volume terms, the sector expanded by over 5% within the last year. In Germany, meanwhile, sales of frozen meat and poultry are worth in the region of EUR675m per annum.
Coated Poultry Products
Together with fish and seafood, poultry and other meat-based products represent the other major sector of the Western European coated foods market. Although chicken and other poultry meat (most notably turkey) hold sway in most of the EU markets, a sizeable demand also exists for coated varieties of other meats, with pork schnitzels in Germany representing one notable example. The market for coated poultry across much of Europe benefits from the fact that many consumers are familiar with these products, due in part to the widespread presence of fast food chains such as KFC.
Retail sales of coated meat and poultry products in Western Europe are worth almost EUR2bn at present. Although sales have been adversely affected in recent years by factors such as the economic recession and fears over avian flu, demand has held up reasonably well in most of the region’s markets. The adverse economic situation has also aided growth in some instances, as coated poultry products such as chicken nuggets and escalopes have been perceived as meal centers offering good value, whilst efforts by manufacturers to improve the nutritional quality of their ranges – usually through the removal of artificial additives – has also benefited the market.
The region’s largest markets are the UK and Germany, worth an estimated EUR695m and EUR405m respectively in 2011. Other large Western European markets include France, Italy and the Netherlands. Although the chilled sector accounts for 55% of the Western European market, growth has been observed in the frozen category over the last few years, especially in places such as the UK. The frozen sector holds a particularly dominant position in Germany, France, the UK and Ireland.
Ethically-Reared Poultry
During the last decade, one notable trend within the European poultry meat market was increasing demand for more ethically-sourced varieties, especially in countries such as the UK and France. This was evidenced by growth in the organic meat sector, as well as via heightened demand for poultry featuring certification and/or quality labels, examples of which included the RSPCA’s Freedom Food scheme in the UK and Label Rouge in France.