Market Trends of Europe Poultry Feed Industry
Rising Poultry Meat Consumption Fuels Broiler Feed Demand
- As a more affordable source of animal protein, broiler meat has shown resilience against the high food inflation and energy costs affecting Europe. Research indicates that EU consumers often turn to chicken meat as a substitute when prices for beef or pork rise. Additionally, the demand for locally sourced chicken is on the rise. Retailers in Austria are actively promoting local and regional suppliers. However, this trend highlights a significant challenge: the surging consumer appetite for locally produced chicken is set to bolster the broiler feed segment.
- As consumer demand for chicken produced through specific methods or feeds continues to rise, preferences for animal welfare, such as cage-free and free-range chickens, and feed types, including GMO-free or organically produced chicken, are increasingly prominent on labels and at points of sale. These shifting consumer preferences are having a substantial impact on the feed market. According to Eurostat, as of 2023, Poland was the leading poultry meat producer in the region, boasting an annual production of 2.7 million metric tons. Other notable producer countries include Spain, France, Germany, and Italy.
- Sales of budget-friendly chicken cuts, like legs and wings, are rising in Europe. Countries like Germany, France, and Poland are witnessing a shift toward chicken consumption, bolstered by perceptions of chicken being healthier, leaner, and easier to prepare. These trends are driving up the demand for broiler feed in the region.
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Europe's Poultry Feed Production Sees a Minor Decline
- As reported by the Alltech Feed Survey, Europe experienced a 2.06% dip in broiler feed production in 2023, translating to a decrease of 1.17 million metric tons. Notably, broiler feed constitutes 21.20% of Europe's total feed production. While several markets were bouncing back from the impacts of avian influenza, nations like Denmark, Hungary, and Portugal faced hurdles. These challenges stemmed from a downturn in broiler production, which posed difficulties for local slaughterhouses.
- According to data from the European Feed Manufacturers' Federation (FEFAC), poultry feed production is expected to increase by 1.6% in 2024. This growth comes after a difficult year in 2023 and is being driven by a resurgence in poultry production in several important member states. Countries such as France, Spain, Portugal, and Italy are recovering from the avian influenza setbacks of 2023 and are leading this growth. However, market dynamics may be swayed by factors such as imported poultry meat and a shift from organic to conventional production methods.
- By 2025, competitive pricing and its reputation as a healthier protein option are set to drive an increase in broiler meat consumption. As chicken meat prices increase, the poultry feed segment is positioned to benefit from these positive trends. Additionally, data from the EU Commission predicts per capita egg consumption will hit 15.0 kg by 2030, with production growing at an average annual rate of 0.7%. This projected production surplus is anticipated to satisfy the EU's internal consumption needs and elevate the demand for broiler and layer feed in the region.
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