Poultry

Market Report 2008 Third Edition May 2008

Publication Date	May 2008
Publisher	Key Note
Product Type	Report
Pages	96
ISBN Number	not applicable
Product Code	KEY00138

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Summary

The poultry market continues to grow rapidly in the UK rising by 16% in value terms in the 5year period between 2003 and 2007. Increased sales of addedvalue and premium products have helped to drive value growth, while poultry's healthy image and its versatility have helped to boost volume sales.

The poultry market can be split into two sectors: retail poultry sales and catering poultry sales.

Retailers are responding to welfare concerns to create a healthier image for the poultry market. Campaigns by organisations such as the Royal Society for the Prevention of Cruelty to Animals (RSPCA) have sought to highlight the plight of intensively farmed chickens. Furthermore, in January 2008, two of Britain's bestknown chefs, Hugh FearnleyWhittingstall and Jamie Oliver, raised awareness of the appalling conditions in which many chickens are reared, with television programmes highlighting the issue. Morrisons became the first supermarket to sell freerange duck bearing the RSPCA's Freedom Food label, guaranteeing higher animal welfare. Other health concerns remain, and two outbreaks of avian influenza affected turkey sales in 2007, slowing the overall growth of poultry during the year.

Chicken continues to dominate the market, accounting for 82.7% of retail sales by value in 2007. However, sales of other poultry are also rising. Turkey is increasingly bought throughout the year, aided by its versatility and healthy image. Sales of duck are also growing robustly. The 'other poultry' sector, including geese and pheasants, is also growing in popularity, as consumers seek to eat more freerange, 'naturally reared' food.

Chicken restaurants enjoyed rapid growth in the UK in the 1990s, but the rise in their sales value has slowed sharply over the past 5 years (2003 to 2007).

This reflects a growing concern over healthy eating (unlike the poultry market the chicken restaurant market does not have a healthy image), and increasing competition from other fastfood outlets (such as the main burger chains, which are also now selling chickenbased meals).

The major supermarkets dominate the sale of fresh and frozen poultry, accounting for around 85% of sales by value in 2007. The catering industry has also become a major market for poultry and now accounts for 30% of total consumption. The major grocery retailers are increasingly focusing on supplying premium products.

Key Note expects the poultry market to experience continued healthy growth over the next 5 years (to 2012), driven by further growth in demand for addedvalue products in the chilled cabinet, as well as premium products (such as organic and freerange meat). Furthermore, global imbalances in supply and demand will fuel inflation in the sector.

Prospects for the chicken restaurant sector are less bright. Health concerns and increasing competition from other fastfood outlets are likely to slow growth in the UK. Key Note expects sales to continue expanding over the next 5 years (2008 to 2012), but sales growth is likely to be only in line with inflation.

Content

Executive Summary
- 1. Market Definition
Report Coverage
Market Sectors
Market Trends
- Food Scares, Animal Diseases and Health Concerns
- Changes in Cooking and Eating Habits
- Ethical Issues
- Organic and FreeRange Products
Economic Trends
- Population
- Table 1: UK Resident Population Estimates by Sex (000), MidYears 20032007
- Gross Domestic Product
- Table 2: UK Gross Domestic Product at Current and Annual ChainLinked
- Prices (m), 20032007
- Inflation
- Table 3: UK Rate of Inflation (%), 20032007
- Unemployment
- Table 4: Actual Number of Unemployed Persons in The UK (Million), 20032007
- Household Disposable Income
- Table 5: UK Household Disposable Income per Capita (), 20032007
Market Position
- The UK
- Table 6: Household Expenditure on Poultry and on All Meat and Meat Products
- at Current Prices (m at Rsp and %), 20032007
- Overseas
- Table 7: Global Consumption of Poultry per Capita per Annum (Kilograms), 20022007
- 2. Market Size
The Total Market
- Table 8: The UK Poultry Market by Value at Current Prices (m at Rsp), 20032007
- Figure 1: The UK Poultry Market by Value at Current Prices (m at Rsp), 20032007
- Table 9: UK Poultry Meat Supplies by Volume (000 Tonnes and %),
- Average of 19961998 and 20032007
by Market Sector
- Table 10: The UK Poultry Market by Sector by Value at Current Prices
- (m at Rsp), 20032007
- Chicken
- Table 11: The UK Chicken Sector by Value at Current Prices
- (m at Rsp and %), 20032007
- Turkey
- Table 12: The UK Turkey Sector by Value at Current Prices
- (m at Rsp and %), 20032007
- Duck
- Table 13: The UK Duck Sector by Value at Current Prices
- (m at Rsp and %), 20032007
- Other Poultry
- Table 14: The UK Other Poultry Sector by Value at Current Prices
- (m at Rsp and %), 20032007
- Chicken Restaurants
- Table 15: The UK Chicken Restaurant Market by Value at Current Prices
- (m at Rsp), 20032007
Overseas Trade
- Table 16: UK Trade in Poultry Meat by Value at 2006 Prices (m),
- Average of 19951997 and 20022006
- Table 17: UK Trade in Poultry Meat by Volume (000 Tonnes),
- Average of 19951997 and 20022006
- 3. Industry Background
Recent History
- Common Agricultural Policy
- Livestock Production
- Table 18: UK Poultry Numbers (000), Average of 19961998 and 20032007
Number of Companies
- Farming of Poultry
- Table 19: Number of UK VatBased Enterprises Engaged in The Farming
- of Poultry by Turnover Sizeband (Number and %), 2007
- Table 20: Number of UK VatBased Enterprises Engaged in The Production
- and Preserving of Poultry Meat by Turnover Sizeband (Number and %), 2007
Employment
- Table 21: Number of UK VatBased Enterprises Engaged in The Farming of Poultry
- by Employment Sizeband (Number and %), 2007
- Table 22: Number of UK VatBased Enterprises Engaged in The Production and
- Preserving of Poultry Meat by Employment Sizeband (Number and %), 2007
Regional Variations in The Marketplace
Distribution
- Table 23: UK Retail Sales of Fresh Meat by Type of Outlet by Value (%), 2007
- How Robust Is The Market?
Legislation
- Food Safety Act 1990
- Food Labelling Regulations 1996
- Food Standards Act 1999
Key Trade Associations
- British Poultry Council
- 4. Competitor Analysis
The Marketplace
- The British Poultry Council
Chicken Processors
- Market Leaders
- Bernard Matthews Ltd
- Birds Eye
- Boparan Holdings Ltd
- Faccenda Group Ltd
- Grampian Country Food Group Ltd
- Kerry Group Plc
- Lloyd Maunder Ltd
- Moy Park Ltd
- Sun Valley Foods Ltd
- Other Companies
- Aviagen Ltd
- Cherry Valley Farms Ltd
- Cobb Europe Ltd
- Cranberry Foods Ltd
- Lincs Turkeys Ltd
- Perkins Foods Holdings Ltd
Chicken Catering
- Market Leaders
- Kentucky Fried Chicken (Great Britain) Ltd
- Nandos Chickenland Ltd
- Other Companies
- Dixy Fried Chicken Ltd
- Favorite Fried Chicken Ltd
outside Suppliers
Marketing Activity
- Main Media Advertising
- Table 24: Main Media Advertising Expenditure on Fresh and Frozen Poultry
- and Sliced Poultry Meat (000), Year Ending December 2007
Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats

Retail Poultry Sector

Catering Poultry Sector

6. Buying Behaviour

Consumer Expenditure

Organic Meat
Table 25: Consumption of Organic Meat in The past 12 Months by Sex, Age, Social Grade,
Marital Status, Working Status and Standard Region (% of Adults), 2007
7. Current Issues

Animal Welfare