Indonesia Poultry Feed Market Size, Share, Opportunities, And Trends By Raw Materials (Corn, Wheat, Others), By Type (Boilers, Layers, Others), And By Province - Forecasts From 2023 To 2028

  • Published : Dec 2023
  • Report Code : KSI061612452
  • Pages : 107

The Indonesian poultry feed market is expected to grow at a compound annual growth rate of 7.98% over the forecast period to reach a market size of US$8,189.421 million in 2028 from US$4,783.127 million in 2021.

Farmers provide poultry birds, including ducks, turkeys, chickens, geese, and other domestic breeds, with poultry feed. Contemporary feed is produced by meticulously selecting and blending components to offer a nutritionally rich diet that safeguards the well-being of poultry birds and enhances the quality of end products, such as meat and eggs. The essential components vital for poultry bird growth, reproduction, upkeep, and health encompass minerals, vitamins, carbohydrates, proteins, and water. This growth is being driven on account of the improvement in poultry nutrient availability, digestibility, and growing poultry population during the forecast period.

Rising demand of poultry in Indonesia

The demand for poultry is on the rise in Indonesia as it is considered to be a major source of animal protein due to the religious ban on pork consumption for almost 90% of the country’s Muslim population. Another key driver of the Indonesian poultry feed industry is the burgeoning demand for chicken consumption. It is forecasted for the year 2029 OECD that the annual per capita poultry meat consumption is approximately 9.3 kg. In a recent development in September 2023, Japfa Ltd, a prominent agri-food company, achieved another successful shipment of over 32,000 live chickens, equivalent to approximately 58.3 tons, via sea from Indonesia to Singapore. These chickens were bred in Bintan under the subsidiary PT Ciomas Adisatwa, a part of PT Japfa Comfeed Indonesia Tbk. Japfa holds a significant position as one of Indonesia's and the region's largest poultry producers, playing a vital role in supplying around 20% of the poultry products in the Indonesian market. The increase in chicken consumption has been instrumental in supporting the Indonesian poultry feed market growth.

Growth in demand for meat

The rising demand for meat in Indonesia is directly linked to the population's increasing meat consumption. As more people seek meat products, the overall consumption of meat in the country continues to grow. This surge in demand is primarily due to a larger population with a preference for meat in their diets over the last few years aided by rising disposable income, improvement in living standards, rapid urbanization, and the awareness regarding the health benefits of eating meat. There has specifically been an increase in the consumption of chicken meat which in turn has fueled the Indonesian poultry feed market. According to the OECD, the forecast for meat consumption in Indonesia by 2029 indicates a continuous increase in per capita poultry meat consumption, expected to rise by 1.1 kilograms per capita in the coming years. In 2022, it stood at 8.21 kilograms per capita, and in 2021, it was 8.05 kilograms per capita. Consequently, it's projected to reach 9.317 kilograms per capita by 2029. Thus, the increasing demand for meat in the country is expected to drive Indonesian poultry feed market growth during the forecast period.

Increasing use of corn as raw material for poultry feed in Indonesia

Corn-based feed is rich in methionine which enables the poultry in protein synthesis and improves their intestine ability in amino acid absorption. Also, corn gluten feed contains xanthophyll pigment which yellow colour of yolks. The growing demand for broiler chicken and eggs in Indonesia coupled with the country’s constant population increase is creating demand for effective feed products to improve the overall poultry health in the country which has positively impacted the demand for corn-based feed products thereby representing an increase in the overall corn feed production. For instance, according to the “Grain and Feed Annual” report issued by the United States Department of Agriculture in March 2023, the country’s corn feed & residual production in Indonesia is estimated to reach 9.8 MMT for 2023-2024, thereby signifying 2.1% increase over 2022-2023’s production of 9.6 MMT.

Various providers focus on providing corn feed

Various major providers of corn feed are eyeing to optimize the growing Indonesian poultry feed market demand for corn feed in Indonesia. For instance, in September 2022, Cargill inaugurated its USD100 million corn wet mill in Indonesian cities Surabaya, Pasuruan, and Pandaan. The newly established facility would cater to the growing demand for corn feed and would also strengthen the local economy. Moreover, the well-established presence of major corn-based feed providers in Indonesia such as Japfa Comfeed coupled with favourable efforts and investments to bolster corn production in the country are acting as an additional driving factor for corn feed segment growth.

Market Key Developments

  • In July 2022, Kemin Industries unveiled its Enterosure probiotic products designed to regulate the proliferation of harmful bacteria in poultry and livestock. This latest probiotic offering fosters a balanced microbiome, enhances intestinal strength, addresses gut health issues, and enhances animal productivity.

Segmentation:

  • By Raw Material
    • Corn
    • Wheat
    • Others
  • By Type
    • Boilers
    • Layers
    • Others
  • By Province
    • Sumatera Utara
    • Jawa Barat
    • Jawa Timur
    • Others

1.  INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. INDONESIA POULTRY FEED MARKET BY RAW MATERIAL 

5.1. Introduction

5.2. Corn

5.3. Wheat

5.4. Others

6. INDONESIA POULTRY FEED MARKET BY TYPE

6.1. Introduction

6.2. Boilers

6.3. Layers

6.4. Others

7. INDONESIA POULTRY FEED MARKET BY PROVINCE 

7.1. Introduction

7.2. Sumatera Utara

7.3. Jawa Barat

7.4. Jawa Timur 

7.5. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

9. COMPANY PROFILES

9.1. East Hope Group

9.2. Kemin Industries, Inc.

9.3. Novus International, Inc.

9.4. PT Japfa Comfeed Indonesia

9.5. Cargill

9.6. PT Malindo Feedmill Tbk

9.7. PT Charoen Pokphand Indonesia Tbk

9.8. Royal DSM N.V


East Hope Group

Kemin Industries, Inc.

Novus International, Inc.

PT Japfa Comfeed Indonesia

Cargill

PT Malindo Feedmill Tbk

PT Charoen Pokphand Indonesia Tbk

Royal DSM N.V