Foodservice Is The New Growth Driver
Poultry consumption in Vietnam, India, Indonesia, and the Philippines has outperformed global growth in the past five years, and we expect this trend to continue in the next five. There are three key factors we believe will play a greater role in driving change in consumer demand in these countries: (1) value for money and convenience, (2) the millennials’ increasing influence, and (3) foodservice as a more important channel than retail.
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In today’s fast-growing poultry markets of Vietnam, India, Indonesia, and the Philippines, consumers are increasingly focused on value-for-money and convenience.
Expansion of processing capacity and potential disruptions (e.g. cheaper imports of chicken cuts) will increase competition in further processed products – delivered into food retail – requiring more innovation in the retail channel to remain competitive.
The share of poultry consumption through foodservice is far bigger than further processed products, and the significant millennial population in VIIP will give this a further boost over the next five years.
We believe poultry producers will increasingly need to connect with consumers, and to improve product accessibility through their own distribution channels.
“Chains of chicken fast-food kiosks appear well-suited to win in the changing consumption landscape of Vietnam, India, Indonesia, and the Philippines,” according to Ben Santoso, Senior Analyst – Animal Protein. “These kiosks tick all the boxes when it comes to accessibility, infrastructure, and direct consumer interaction.”