Something Fowl? Poultry Consumption on the Rise

Chicken consumption is flying high: It’s predicted to increase to 2.5% to 3% in 2024, putting it at historical levels. 

Poultry market at a glance. Thanks to the increase in consumption, the market is looking bullish. Due to the rising cost of competing proteins, poultry products are looking pretty appealing in the current economy. 

Globally, things are going well thanks to lower production costs and solid demand in *most* markets. The exceptions? China and Japan, due to local oversupply. Despite this, trade is expected to stay high through the end of the year. This is big news after a few slow years for the industry. Europe is expecting an increase in poultry production of 3-4%, where imports were up 3% in the first half of 2024. Globally, the market forecast is continual growth—but earmarked with volatility. 

Concerns. Geopolitical turmoil in the Middle East means trades have been rerouted to South Africa, increasing transportation time and cost between Asia and Europe. Disease still remains a prevalent concern, especially after a recent outbreak of Newcastle disease on a farm in Rio Grande do Sul, Brazil, which caused major export bans. No further cases have been reported, but the incident has sent up warning flags of concern for Brazil and other trading partners. 

Avian influenza is also still a concern, especially in the U.S. With winter on the horizon, an increase in outbreaks is expected in the Northern Hemisphere. 

Soundbite “Poultry’s strong price position against other proteins in most markets, along with strong retail demand, recovering foodservice demand, and rising sustainability strategies that support chicken demand are supporting rapid growth.” — Nan-Dirk Mulder, senior analyst for animal protein at RaboResearch