Global poultry industry projects 3% growth in Q1 2025
The global poultry industry is set to experience a notable growth of approximately 3% in the first quarter of 2025, according to the latest report from Rabobank.
One of the primary reasons for this projected growth is the affordability of poultry meat. In times of economic uncertainty and high inflation, consumers tend to gravitate towards more cost-effective protein options. Poultry, being relatively cheaper compared to other meats, has become a preferred choice for many households. Additionally, the poultry industry’s efforts to market and develop new products have also contributed to its growing popularity.
Another significant factor is the increasing consumer preference for sustainable food sources. Poultry production generally has a lower carbon footprint compared to other animal proteins, making it an attractive option for environmentally conscious consumers in developed countries. This shift towards sustainability is expected to further boost the demand for poultry products.
Regional growth patterns
The growth in the poultry industry is not uniform across all regions. Emerging markets in Asia, Latin America, the Middle East, and Africa are expected to lead the way, with significant increases in production and consumption. These regions are experiencing rapid urbanization and rising incomes, which are driving higher demand for poultry meat.
In contrast, developed markets like Europe are also showing positive growth trends, albeit at a slower pace. Europe’s recovery in demand post-pandemic has been stronger than anticipated, contributing to the overall growth of the global poultry industry.
Continue after advertising.
Challenges and risks
Despite the positive outlook, the poultry industry faces several challenges. The ongoing threat of avian influenza remains a significant concern, as outbreaks can disrupt supply chains and affect production levels. Additionally, geopolitical tensions and trade restrictions could impact the global poultry trade, leading to price volatility and supply chain disruptions.
Operational costs are another area of concern. While the supply of key feed ingredients like corn and soybeans is expected to remain stable, potential climate events such as La Niña could affect crop yields and subsequently increase feed costs. These factors could pose risks to the industry’s growth projections.
Investment and future outlook
To sustain this growth, the poultry industry is likely to attract continued investments in modernization, new facilities, and consolidation efforts. However, recent price declines in regions like the European Union, South Africa, and Thailand highlight the risks of overly optimistic growth expectations.
In conclusion, while the global poultry industry is poised for a promising start in 2025, maintaining a balance between supply and demand will be crucial to consolidating this growth. The industry’s ability to navigate challenges such as disease outbreaks, geopolitical tensions, and operational costs will determine its long-term success.
