The Indonesia poultry feed market is expected to grow at a compound annual growth rate of 5.44% over the forecast period to reach a market size of US$7,190.516 million in 2026 from US$4,963.205 million in 2019. The market is expected to be driven owing to the improvement in poultry nutrient availability, digestibility, and growing poultry population during the forecast period. The growth is also influenced by the rising awareness and increasing government emphasis on the development of the poultry feed industry coupled with growing poultry health concerns. The demand for poultry is on a rise in Indonesia as poultry is considered to be a major source of animal protein due to the religious ban on pork consumption for almost 90% of the country’s Muslim population. Another key driver of the poultry feed market in Indonesia is the burgeoning demand for chicken consumption in the country. It is estimated that the annual per capita chicken meat consumption is approximately 12.70 kg and egg consumption is more than 80 kg. The increase in chicken consumption has been instrumental in supporting the market growth.
INDONESIA POULTRY FEED MARKET, US$ million, 2019 to 2026
Source: Knowledge Sourcing Intelligence Analysis
By raw material, corn is projected to hold a notable market share because it is capable of meeting the energy requirement of the animals the most out of all the other materials. By type, the broiler segment is expected to have a significant market owing to the increasing population of broilers in the country.
The market is expected to be driven by the increase in the meat-consuming population of Indonesia. The population consuming meat has increased over the last few years in Indonesia owing to the increase in disposable income of the people, better 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 market growth for poultry feed in the country. According to a report by AHK, chicken consumption in Indonesia increased from 3.5 to 6 kilograms per person per year between 2010 and 2019 and is expected to grow further in the years to come. Thus, the increasing demand for meat in the country is expected to drive market growth during the forecast period.
Impact of COVID – 19
COVID-19 Pandemic harmed Indonesia’s poultry feed market. According to the data given by the Association of Animal Feed Entrepreneurs, total animal feed production in the country was expected to be around 17.5 million tons in the year 2020, as compared to 19.5 million tons produced in the year 2019. 90% of the total production was of poultry feed in the country. The government in the country imposed large-scale social restrictions in several major regions of the country, which harmed the market. Moreover, the restrictions of hotels and restaurant operations, closure of tourist spots and places, also resulted in the reduction in the demand for poultry meat, which in turn declined the demand for poultry feed. The decline started in the months of May-June 2020, and major feed producers had experienced several problems in the arrival of certain types of raw materials, from China, and the Americas. The impact of the COVID-19 pandemic had caused a decline in the demand for poultry meat products, which led to the fall and decrease in live bird prices, below the total production cost. The country’s agricultural ministry stated that total broiler demand in the year 2020, was lower than the projected 3.4 million tones, and was at 2.7 million tones. Moreover, the official also stated that oversupply had been expected and the government had been planning to control day-old chick production, by bringing in early culling of stock of chickens and reducing egg hatching, intending to control the poultry prices. But, in the year 2021, the demand is expected to surge, due to the ease in restrictions, and the introduction of vaccines in the country.
Prominent/major key market players in the Indonesia Poultry Feed Market are East Hope Group, Kemin Industries, Inc., Novus International, Inc., PT Japfa Comfeed Indonesia, Cargill, PT Malindo Feedmill Tbk, PT Charoen Pokphand Indonesia Tbk, and Royal DSM N.V. The players in the Indonesia Poultry Feed Market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies in this report and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the Indonesia Poultry Feed Market.
4.3.Porters Five Forces Analysis
4.3.1.Bargaining Power of Suppliers
4.3.2.Bargaining Power of Buyers
4.3.3.The threat of New Entrants
4.3.4.Threat of Substitutes
4.3.5.Competitive Rivalry in the Industry
4.3.6.Industry Value Chain Analysis
5.Indonesia Poultry Feed Markey, By Raw Material
6.Indonesia Poultry Feed Markey, By Type
7.Indonesia Poultry Feed Markey, By Province
8.1. Competitive Benchmarking and Analysis
8.2. Recent Investment and Deals
8.3. Strategies of Key Players
9.Indonesia Poultry Feed Markey, By Province
9.1.East Hope Group
9.2.Kemin Industries, Inc.
9.3.Novus International, Inc.
9.4.PT Japfa Comfeed Indonesia
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,
PT Malindo Feedmill Tbk,
PT Charoen Pokphand Indonesia Tbk,
Royal DSM N.V.
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