Poultry consumption in Vietnam, India, Indonesia and the Philippines (VIIP) has outperformed global growth in the past 5 years and is expected to continue to grow until at least 2022, according to a new study by Rabobank.
Their report, “Foodservice is the new growth driver”, found that the relatively low price point for chicken meant that it was hugely popular in the four countries.
Other factors included foodservice as a more important channel than retail and the rising influence of millennials.
Ben Santoso, senior animal protein analyst, said he expected consumption to be boosted in the short term through the ongoing proliferation of smaller sized outdoor poultry kiosks as eating out becomes more common.
“Chains of chicken fast-food kiosks appear well-suited to win in the changing consumption landscape of Vietnam, India, Indonesia and the Philippines. These kiosks tick all the boxes when it comes to accessibility, infrastructure and direct consumer interaction.
However, he added that supply side factors such as increased competition in the processing sector and cheaper imports threatened to tighten margins for local VIIP poultry producers. Poultry producers will need to connect with consumers and to improve product accessibility through their own distribution channels.
Umesh Madhavan, consumer foods analyst, added that evidence showed consumer preferences were increasingly gearing towards snacking and convenience.
“The growing acceptance of eating out and food delivery are proof of the changing consumer behaviour.”
The report highlighted the significant millennial population in the VIIP countries, who have both a higher income and are more likely to dine out and try different food services.