IBISWorld anticipates that the poultry processing industry's revenue will increase by 2.4 per cent over the next five years to total $7.48 billion as more Australians tuck into a hot roast chicken, rather than traditional roast lamb or beef, during the winter months.
According to Karen Dobie, general manager of IBISWorld, chicken is a win-win scenario for consumers.
"Chicken is often favoured over red meats by health-conscious consumers for its lean qualities, and it's cheaper than red meat. It is also popular for its convenience credentials as it's relatively quick and easy to cook – something that appeals to increasingly time-poor households," Dobie said.
Australia currently produces 980 kilotonnes of domestic poultry, with exports accounting for just three per cent of total production. Consumption of chicken in Australia is around 43.8 kilograms per person, per year, surpassing beef and veal at 33.9 kilograms per person per year.
"Australians are definitely eating more chicken. Since 2010, chicken has been our most favoured meat in terms of consumption and value – significantly outperforming beef and veal," Dobie said.
This year, fresh poultry makes up 17.2 per cent of the meat, fish and poultry retailing sector, contributing $1.96 billion of its revenue. This compares with 16.3 per cent for the fresh beef and veal industry, which is worth $1.86 billion.
Meat, fish and poultry retailing in 2011-12
|
Segment |
Share of revenue (%) |
Revenue ($ billion) |
|
Fresh poultry |
17.2 |
1.96 |
|
Fresh beef & veal |
16.3 |
1.86 |
|
Fresh lamb |
9.4 |
1.07 |
|
Fresh pork |
5.9 |
0.67 |
|
Fresh seafood |
16.1 |
1.84 |
|
Processed and other meats |
35.1 |
4.00 |
Discussing factors behind the popularity of poultry, Dobie said: "The trend towards organic and free-range chicken is providing the poultry processing sector with some room to innovate and grow as processors look for high-value niches and market opportunities.
"There's a distinct trend towards providing consumers with ethical meat products. Free-range chicken now accounts for about four per cent of all chicken produced, while organic chicken represents two per cent of total chicken produced," she asserted.
Dobie said even the supermarket giant Coles is responding to demand for ethical meat. Coles now provides sow-stall free pork, HGP-free beef and eggs and chicken with the RSPCA's seal of approval.
In addition, Dobie said as people have less time to spend in the kitchen, pre-prepared meals and prepared cuts are becoming first picks in the supermarket - and chicken is no exception - with many people opting for packaged chicken in the form of stir-fry, tenderloins or pre-seasoned cuts.
Within the chicken farming and manufacturing sector, Dobie said chicken farmers were taking on higher costs as they are being forced by poultry processors to invest in techniques to boost productivity to meet higher demand for their products.
"The chicken farming and manufacturing industries are experiencing a period of increased consolidation as companies seek to vertically integrate and maximise economies of scale," she added.
