Poultry consumption

IBISWorld expects the per capita poultry consumption to dip negligibly by 0.01% to 49.9 kilograms during 2023-24. The wide availability and affordable nature of poultry will lift consumption. Greater health consciousness has also boosted demand for more expensive free-range poultry products. Nevertheless, the latest data from ABARES indicates that poultry meat prices are expected to rise, primarily due to escalating inflationary pressure and an increase in input costs. In particular, the volatility from the Russia-Ukraine conflict has resulted in unstable grain prices that play a significant role in poultry feed costs. Despite a gradual slowdown in the increase of input costs, the domestic price of poultry is expected to increase, limiting poultry consumption.

Chicken is the most popular meat in Australia and has overtaken all other types of meat consumption, including beef and veal, lamb and mutton and pig meat since 2004-05. Chicken meat is perceived to be a healthier option than many red meats, thanks to its relatively low-fat content. Over the past two decades, poultry has grown enormously as a share of total meat consumption. Poultry consumption represented 25.0% of total meat consumption in 1992-93 and is expected to account for more than 48% in 2023-24. Poultry is Australia's most consumed meat type, and Australians typically consume more chicken than beef, veal and pig meat combined. However, growth in chicken consumption has reached a point of relative saturation in per capita terms.

The production of poultry is affected by input costs. Feed grain and oilseed prices can cause farmers to adjust production levels. The price of feed grain and oilseeds is affected by variable weather conditions. Despite this, prices for poultry are relatively stable compared with other types of meat. Most poultry birds are housed in sheds, so production is less susceptible to weather than grass-fed livestock, such as beef and lamb. Poultry processing is also dominated by two large companies with significant production scales, Inghams and Baiada Poultry, which helps maintain price stability. Stable prices make poultry consumption less volatile than other meats like lamb.

Poultry consumption has risen over the past five years. Increasing beef and lamb prices have encouraged consumers to purchase less expensive poultry products. Based on price trends, consumers have demonstrated a willingness to substitute poultry for other meats. For instance, poultry consumption declined in 2017-18, while the price of red meats grew only slightly, and the price of pig meat plunged. Constrained output due to drought conditions also led to falling consumption in 2019-20. Trends toward veganism and vegetarianism have limited poultry consumption over the period. However, rising health consciousness has been the most significant factor in the increased consumption of leaner protein sources, like chicken. Chicken remains the most consumed meat in Australia despite a subdued per capita increase over the past five years. IBISWorld expects poultry consumption to rise at a compound annual rate of 1.0% over the five years through 2023-24.