Poultry Meat Processing in the UK Industry Market Research Report Now Updated by IBISWorld

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The outlook for the Poultry Meat Processing industry is positive and revenue is forecast to continue to rise as the popularity of chicken and rising year-round consumption of other poultry meat products continues. The growth in major markets, led by supermarkets and restaurant chains, is poised to power on, supporting the industry as the economic recovery takes hold.

IBISWorld industry market research
Processors consolidate to compete for large contracts

The Poultry Meat Processing industry has managed to pluck success from the jaws of the recession over the past five years. Far from falling foul of depressed income conditions, chicken consumption has doubled in the past 20 years, as its versatility and relatively low price have tempted customers away from pork, beef and lamb. The horsemeat scandal, implicating only red meat products, has provided a late boost to demand as some consumers trade to chicken as an unaffected option. According to IBISWorld industry analyst Patrick Ross, “processors have been able to create a very strong role for themselves by vertically and horizontally integrating to ensure growth and enable them to compete for the largest contracts and this consolidation has mapped closely with the expansion of supermarkets and restaurant chains because larger contracts demand greater supply capacity”. The industry satisfies approximately 80% of domestic demand, leaving only a small amount to be fulfilled by foreign suppliers. Profitability has been capped by rising input costs but has expanded slowly as the efficiency gains from reorganisation have emerged. Over the five years through 2013-14, industry revenue is expected to grow at a compound annual rate of 2.9% to reach £4.4 billion. Revenue is forecast to increase by 3.0% over the current year.

The outlook for the industry is positive, as the popularity of chicken and rising year-round consumption of other poultry meat products continues. The growth in major markets, led by supermarkets and restaurant chains, is poised to power on, supporting the industry as the economic recovery takes hold. The recovery could present a threat to industry revenue if consumers trade back to more expensive pork, beef and lamb products. However, overall demand for poultry is expected to remain constant, since it has become a staple over the past five years. Ross adds, “processors are expected to achieve further efficiency from reorganisation and acquisition, and will use this advantage to compete for ever larger supply contracts.” Operators will be faced with a dilemma about how much of the growth in the price of raw chicken will be passed on to consumers. A price point that incorporates some cost increase but stops considerably short of red meats will emerge. Over the coming five years to 2018-19, revenue is forecast to continue to rise.

The level of market share concentration among the major suppliers in the Poultry Meat Processing industry is medium, with the top four firms holding 69.6% of the market. Supermarkets represent the largest market, particularly as the recession has prompted consumers to move towards shop-bought meals rather than eating out. For this reason, the industry's major companies have been competing frantically for supermarket supply contracts over the past five years. Major companies include 2 Sisters Food Group, Moy Park and Faccenda Group.

For more information on the Poultry Meat Processing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Firms in this industry purchase live poultry and produce fresh, chilled or frozen meat in individual portions. The industry ends at the initial point of sale of poultry products, including feathers and down.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
IBISWorld
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