Poultry consumption in VIIP countries outperform global growth: Report
Poultry consumption in Vietnam, India, Indonesia and the Philippines (VIIP) has outperformed global growth in the past five years and is expected to continue growing through 2022, found Rabobank’s industry report “Foodservice is the new growth driver” launched on Thursday.
The report, which analysed poultry consumption trends in the four countries, found the growing demand for poultry – chicken in particular – is primarily driven by its relatively lower price point and acceptability across different cultures in VIIP.
It also identified the key factors that will drive further growth in poultry consumption in the next five years.
Umesh Madhavan, Analyst of Consumer Foods at Rabobank, said, “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.
This growth pattern is supported by the significant millennial population in VIIP, who not only have a comparatively higher income but also are more likely to dine out and try different food options. These preferences will further boost the growth in foodservice.”
Explained Ben Santoso, Senior Analyst of Animal Protein at Rabobank, explained “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.
Poultry producers therefore need to fine-tune their strategies to secure long-term margins and market share. A key move would be to invest in the foodservice channel either by developing the competence to be fully engaged in consumer-facing outlets or by establishing partnerships.
For example, 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.”
The report, which analysed poultry consumption trends in the four countries, found the growing demand for poultry – chicken in particular – is primarily driven by its relatively lower price point and acceptability across different cultures in VIIP.
It also identified the key factors that will drive further growth in poultry consumption in the next five years.
Umesh Madhavan, Analyst of Consumer Foods at Rabobank, said, “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.
This growth pattern is supported by the significant millennial population in VIIP, who not only have a comparatively higher income but also are more likely to dine out and try different food options. These preferences will further boost the growth in foodservice.”
Explained Ben Santoso, Senior Analyst of Animal Protein at Rabobank, explained “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.
Poultry producers therefore need to fine-tune their strategies to secure long-term margins and market share. A key move would be to invest in the foodservice channel either by developing the competence to be fully engaged in consumer-facing outlets or by establishing partnerships.
For example, 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.”