Asia’s poultry sector powers global growth amid rising risks

• Stronger economic conditions in Southeast Asia, India, and China
• Competitive pricing compared to other proteins
• Consumer trends favoring convenience, variety, and health
• Expanding production capacity in bullish environments

These drivers support global poultry growth of around 2.5% in 2026, following three years of approximately 3% annual expansion. Yet these growth drivers are tempered by risks that could disrupt Asia’s poultry outlook..

China strategic position

China remains central to Asia’s poultry outlook. Rabobank notes that production growth in China is expected to continue, although the market requires careful rebalancing. Expansion under bullish conditions has created pressure, and slower growth may be needed to stabilize supply and demand.

The country is also well-positioned to gain further market share in global trade. Its scale, combined with government-driven food security policies, ensures poultry remains a priority protein. However, volatility from avian influenza and geopolitics could disrupt trade flows.

Southeast Asia’s expanding role

Southeast Asia remains one of the most promising growth areas. Countries in the region are benefiting from favorable market conditions, with production growth expected to stay robust. Rising incomes, limited cultural restrictions on poultry consumption, and competitive pricing compared to beef and eggs are driving demand.

Consumer preferences for convenience and health further strengthen poultry’s position. The rapid increase in the use of GLP-1 drugs for weight reduction may also boost chicken consumption, as poultry is often recommended in these diets.

Risks of volatility

Despite optimism, volatility remains a pressing concern. Avian influenza continues to pressure producers, particularly in the Northern Hemisphere, with potential spillover effects on Asian trade and local production.

Geopolitical developments also add uncertainty. New trade agreements or peace in Ukraine could reshape global flows, influencing Asian markets. Governments in the region are increasingly prioritizing food security, focusing on local production rather than imports.

Brazil and China are positioned to gain further market share, but Southeast Asia’s growth trajectory underscores the region’s resilience. Rabobank stresses that operational excellence will be critical for producers navigating these challenges.