Poultry consumption growth expected to continue through 2022, report says
Chicken fast food kiosk chains are said to be “well-suited to win” in the consumption landscape for countries in Asia.
The growth of poultry consumption in Vietnam, India, Indonesia and Philippines has already surpassed global growth and is expected to continue growing through 2022, according to the latest industry report by Rabobank.
The report, which looked at poultry consumption trends in the four countries, found that the growing demand for chicken is primarily driven by its relatively lower price point and “acceptability” across different cultures.
“The expanding middle class, looking for convenience and value for money, is driving this trend,” the report stated.
Millennials (labeled in the report as people aged 20 to 34), are also cited by Rabobank as one of the drivers of change in poultry consumption. The age group, they say, is “more adventurous” in their food choices and are willing to try different food options while being likely to eat out of home.
“In Vietnam, India, Indonesia and the Philippines, consumption preferences are increasingly gearing towards snacking and convenience. The growing acceptance of eating out and food delivery are proof of the changing consumer behaviour,” Umesh Madhavan, Rabobank analyst of consumer foods, said.
Growth of kiosks' share
Chicken fast food kiosk chains, as compared to fast food and full-service restaurant formats, also has a notable impact in poultry consumption.
Vietnam’s kiosks covers a share of 53.2% in the country’s foodservice outlets; 63.6% in India; 46.4% in Indonesia and 59.3% in the Philippines.
The study notes that in the Philippines, the chicken kiosk-style chain Chooks-to-Go is having a fast growth despite Jollibee being on top of the chicken fast food industry. From 913 stores in 2012, the number rose up to 1,350 kiosks at the end of 2017.
Their full-roasted chicken costs ₱239 (USD$4.50) whereas Jollibee sells a 6-piece chicken bucket at ₱360, allowing the kiosk chain to be a cheaper alternative. Other chicken kiosks-style brands is seeing growth, however, the fast food chains Mang Inasal and KFC slowed 5% down from 0% last 2012.
Another example of kiosks’ development is the Five-Star Chicken brand’s growth in Vietnam, Cambodia, India, Bangladesh, Pakistan and Malaysia. The brand has grown a compound annual growth rate (CAGR) of 26.2% and and 8.4% in Vietnam and India respectively.
The number of transactions per foodservice outlet Indonesia, India and Vietnam has grown from 0.8% to 5.7% compound annual growth rate (CAGR) from 2012 to 2017.
“As eating out becomes more common, smaller sized kiosks with a focus on poultry are expected to boost consumption through foodservice channels. However, supply-side factors such as increased competition in the processing industry and cheaper imports threaten to tighten margins for local VIIP poultry producers,” Ben Santoso, Rabobank’s senior analyst of animal protein, added.
He then suggested that poultry producers may consider investing or partnering with foodservice companies.
“Chicken fast-food kiosk chains appear well-suited to win in the changing consumption landscape of VIIP as they tick all the boxes when it comes to accessibility, infrastructure and direct consumer interaction,” Santoso concluded.
