Page 14 - AA 2024

Bahrain

Bahrain Poultry Meat Market Size & Share

Analysis - Growth Trends & Forecasts Up To 2029

Bahrain Poultry Meat Market Analysis
The Bahrain Poultry Meat Market size is
estimated at 197.26 million USD in 2024, and
is expected to reach 209.32 million USD by
2029, growing at a CAGR of 1.19% during
the forecast period (2024-2029).
High consumption and high personal
disposable income boost sales
• Off-trade is projected to be the fastest-
growing distribution channel with a CAGR
value of 1.58% during the forecast period
2023-2029, within which online channels
are the fastest-growing distribution chan-
nel with a CAGR value of 10.62%, during the ports to meet local food demand, import- poultry prices
forecast period 2023-2029. This is due to the ing about 94% of its food in 2022. Bahrain is
increasing internet penetration rate in the currently in the 55th position in the Global • The poultry meat market registered a
country, which was 99% in 2021, with more Food Security Index and lags behind major CAGR of 2.08% from 2017 to 2022 in Bah-
than 1.71 million internet users in 2021. The Gulf countries like Qatar, UAE, Saudi Arabia, rain. The country has been recently working
increased consumer spending is also boost- and Kuwait. The total volume of food imports on food security and self-reliance, owing to
ing sales, which increased by 18.49% from increased by 7.8% from 2015 to 2021 in Bah- which the government is distributing licens-
2020 to 2021. rain, a greater increase than bigger GCC es for chicken slaughterhouses to influence
• However, on-trade channels are major countries such as Saudi Arabia (5.3%) and the traders to indulge in local production.
Bahrain plans to increase local poultry pro-
shareholders, which witnessed a growth UAE (3.1%). duction from 9 million to 20 million chickens
of 9.8% in terms of sales value from 2020 • In February 2021, Bahrain and UAE over the period of 2023 to 2025 to satisfy the
to 2022. Due to the rising demand in food- signed a Memorandum of Understanding exponentially increasing consumption in
service outlets, fresh/chilled is the most (MoU) to exchange expertise, studies, and the country. Also, an increase in local pro-
consumed type of poultry meat, accounting research related to food security. This part- duction will help in moderating the price
for more than 58.5% of sales in 2022. There nership involved conducting joint training level in the country, as reliance on imported
has been a staggering 984% increase in the programs as well as significant investments, commodities would be lower.
number of tourists arriving in Bahrain, fuel- loans, and subsidies from the government’s
ing the demand through on-trade channels. end to farmers, encouraging the private • The recent surge in prices of poultry
However, restaurants need fresh/chilled sector and eventually boosting local pro- meat in all forms and varieties is occur-
meat to prepare fresh dishes like butter duction. ring in Bahrain. This is mostly because of
chicken, chicken shawarma, kebabs, biry- the increase in the prices of local chicken,
ani, grilled chicken, and other chicken meat • Bahrain is very open to foreign direct owing to its high feed and logistics costs.
dishes. investments, and as of 2021, FDI in Bahrain Some persistent logistical problems suppli-
increased by 73% to USD 1.76 billion. For- ers have been facing constantly are driver
• Supermarkets/hypermarkets alone ac- eign investments and partnerships also shortages, port congestion, soaring freight
counted for 24.72% of the overall poultry benefit the current production scenario. The rates, and more. Also, with oil prices falling,
meat sales throughout the country in 2022. Bahraini Ambassador of Brazil and Minis- Bahrain, primarily depending on oil and gas
Owing to the large number of shoppers, as ter of Works, Municipal Affairs and Urban export revenue, lifted price subsidies on
people have busy lifestyles, they have the Plannings conducted an investor’s forum in various goods and services, including meat,
nature of stockpiling the products which has 2021 to welcome foreign investments in the which helped the government recover USD
increased the sales for frozen, canned, and livestock sector. The forum also explored 75 million in 2021.
processed poultry products. Poultry meat is the advantages of modern technologies to
the second highest domestically produced support the livestock sector in the field of • The price of poultry meat is also severe-
meat in Bahrain, which was around 8.3 thou- breeding, as well as to increase the import ly affected by chicken feed prices. Prices of
sand tons in 2022, thus increasing the avail- and export of livestock, red and white meat, soybean and maize, the two key inputs that
ability of the meat at lower prices for USD and veterinary medicine between the two are used as livestock feed in the poultry in-
2.5 per kg, only around 30-40% lower than countries. An agreement regarding food dustry, are rising sharply due to the conflict
red meat prices. security was signed between Bahrain and between Russia and Ukraine. The main driv-
er of rising feed costs has been soybean.
Bahrain Poultry Meat Market Trends Israel in 2020. As of 2021, Bahrain produced Feed accounts for 70% of variable costs, and
around 9 million chicks and imported about
Increased domestic poultry production 70,000 metric ton of poultry, an 18,000 met- by volume, maize forms 60-63% of the feed,
driving the market growth ric ton increase over 2019, where the import while soymeal forms 25-27%. In 2021, maize
was 52,000 metric ton. prices fell by 30%, while soybean prices
• Due to its limited ability to cultivate rose by 6% Y-o-Y compared to the previous
crops, Bahrain relies heavily on food im- Rising production costs are impacting year.
12 Arab Agriculture 2024