The Middle East Poultry Meat Market size is estimated at 16.25 billion USD in 2025, and is expected to reach 17.83 billion USD by 2030, growing at a CAGR of 1.87% during the forecast period (2025-2030).
High internet penetration, social media marketing is boosting the growth of the market
- The distribution channels for poultry meat are dominated by the on-trade segment, through which almost two-thirds of the poultry meat products are consumed in the country. The growing food service industry is boosting sales of poultry meat in on-trade channels. Around 76% of consumers in the Middle East preferred to consume healthy food in 2021. Many consumers started trying new foods that were tested and invented by several on-trade channels across Middle Eastern food service establishments, which increased the market share of poultry meat. Food service businesses resorted to delivery platforms to make up for the foot traffic lost in their stores after the effect of the pandemic.
- The fastest-growing distribution segment is the off-trade segment, which is projected to record a CAGR of 2.20% by value during the forecast period. The growth of this segment will be fueled by the proliferation of the online trade channel, which has been booming in line with the large-scale expansion of e-commerce. Internet penetration has been increasing rapidly in the region. As of 2022, the Middle East had more than 200 million internet users, which amounted to 79% of the total population. Of this, 145.441 million were users of social media platforms, which is where most online meat delivery apps market their service and acquire customers through digital marketing.
- Supermarkets and hypermarkets witnessed a study growth with a CAGR of 6.21% by value from 2017 to 2022. Supermarkets and hypermarkets provide promotional offers and discounts. The growth in the segment is due to the presence of a wide range of products, including imported products, which are price-competitive when compared to local products.
Government's investments to achieve self-sufficiency in poultry meat
- The poultry meat market has been growing over recent years. During the historical period, it registered a CAGR of 5.40% by value in the Middle East. With the increased demand for poultry meat due to an increase in ex-pats, the government provided support to expand poultry production, leading to the growth of the market. The Middle East Poultry Expo is the largest exhibition in the poultry industry, organized in the Kingdom of Saudi Arabia. It enhances investment opportunities in the poultry industry and provides an ideal trading platform that brings local investors, suppliers, and global expertise houses together to develop the poultry industry and achieve self-sufficiency.
- The region witnessed an influx of ex-pats from Asia and Western countries, especially in UAE, Kuwait, and Saudi Arabia. The ex-pat population in Saudi Arabia was around 41.6%, whereas the UAE had around 90% ex-pat population as of 2022. The increasing ex-pat population is resulting in food preferences becoming more international, and food such as hamburgers and fried chicken are becoming popular with consumers in the region.
- Poultry meat is majorly consumed in Saudi Arabia. It is projected to register a growth rate of 1.84% by value during the forecast period. Saudi Arabia's self-sufficiency in poultry meat production increased from 45% in 2016 to 68% in 2022. Saudi Arabia's Minister of Environment plans to increase the Kingdom's self-sufficiency rate for poultry meat by 80% by 2025. The new investments into Saudi Arabia's poultry production sector will be valued at USD 4.5 billion by 2025, with plans to increase production capacity to 1.3 million metric tons of broiler chicken annually.
Middle East Poultry Meat Market Trends
Increased domestic poultry production is driving the market's growth
- Saudi Arabia is the largest producer of poultry in the Middle East, accounting for about 22.93% of the region's total poultry production in 2022. Domestic poultry production in the country reached more than 60% self-sufficiency level in 2022. The Saudi Ministry of Environment, Water, and Agriculture (MEWA) announced plans to collaborate with the private sector to increase that level to more than 85% by 2030. The government has also been actively working to remove obstacles for producers to acquire and use the land for poultry production, provide loans for equipment purchases, and reform its subsidy system for feed, livestock, and poultry.
- In 2022, Saudi's local chicken meat production reached 1.130,000 metric tons, an increase of 25.56% from 2020, mainly due to the expansion of production facilities of the largest chicken producers, such as Al Watania Poultry Farms and Alyoum Chicken Farm. The expansion project will increase these farms' daily production from 850,000 to one million chickens per day.
- Poultry production in the United Arab Emirates reached 52,573 metric tons (MT) in 2022. Increasing feed prices and other inputs and a government-set price ceiling on fresh chicken at retail outlets have stopped further production increases. Moreover, the country's limited agriculture is concentrated in Abu Dhabi, where most poultry production occurs. Local poultry farmers, particularly larger and medium-sized producers, have implemented improved biosecurity procedures to reduce the risk of contagious poultry diseases. Some well-managed poultry producers have achieved a 2.5% or lower mortality rate, which has increased output while significantly reducing overall production costs.
Rising production costs are impacting poultry prices
- In the Middle East, the cost of poultry increased by 0.92% in 2022. The region has seen an increase in local production. The majority of locally produced chicken meat is chilled, expensive, and consumed primarily by the local population. Price controls have unintentionally favored cheaper, non-fresh imported poultry products. The UAE government imposed a price ceiling on regional coops and other retail enterprises that sell primarily to the UAE community. The price cap also impacted the profitability of chicken farms because farms could not boost prices to keep up with the rising costs. All fresh chicken sold within the United Arab Emirates is subject to a price cap set by the government at USD 5.85 + VAT, which shops are not allowed to exceed.
- For a decade, Kuwait has been dealing with a shortage of poultry products, which is set to increase the price of poultry in the country further. The shortage of poultry is caused by local poultry companies that deliberately refrained from providing supermarkets with their products in order to increase their prices, which rose by 20% in June 2022. Notably, Saudi Arabian poultry exports have not increased in 2022, while Bahraini exports have fallen dramatically, as both countries face higher feed costs (both are dependent on imported feed and other inputs).
- The Russia-Ukraine war was also responsible for the price increase in 2022, with some poultry companies raising their prices due to rising feed costs. The Kuwaiti government's support only covers corn and does not cover other feeds, such as soy, vitamins, and salts, and these prices have risen globally. Globally, the price of a ton of soy increased from USD 450 to 900 in just a month in March 2022. Thus, these factors have boosted the price of poultry in the region.
Middle East Poultry Meat Industry Overview
The Middle East Poultry Meat Market is fragmented, with the top five companies occupying 5.88%. The major players in this market are Al-Watania Poultry, Almarai Food Company, BRF S.A., Tanmiah Food Company and The Savola Group (sorted alphabetically).
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