Page 36 - AA 2024

Oman

Oman Poultry Meat Market Analysis

The Oman Poultry Meat Market size is es- of poultry meat is high in the country and is
timated at 196.47 million USD in 2024, and expected to grow gradually in the upcom-
is expected to reach 214.40 million USD by ing years, thus creating a market for inter-
2029, growing at a CAGR of 1.76% during national poultry producers.
the forecast period (2024-2029).
Advancements in payment and de- • Domestic poultry meat production in-
livery technologies propelling retail creased by approximately 60 to 70 tonnes
compared to 2020, reaching 7,000 metric
stores’ sales
tonnes in 2021. Of the total production, Dho-
• People are spending more on their daily far produced approximately 5,000 tonnes
food intake. In 2022, Omani families spent of poultry meat in 2021. The company is a
about 24% of their household budget on prominent poultry producer and supplier
food, which is fueling both on-trade and consumers’ interest in ordering through de- of chicken, with a processing facility and
off-trade sales. Moreover, consumers are in- livery apps, as they accept orders 24*7 and farms located in Salalah, Oman, and other
creasingly seeking convenient food options deliver within the shortest period. GCC countries. The company had planned
due to their busy lifestyles, thus boosting Oman Poultry Meat Market to increase its revenue to USD 31.1 million
the demand for processed poultry prod- Trends in 2021 from USD 5.2 million in 2020.
ucts, which, in turn, is fueling off-trade chan- Rising international tourism and
nels. Stores like Carrefour and Lulu Group, High consumption of poultry meat high spending on meat are increasing
which operate with around 24 stores across and government investments are in- the market prices
10 cities in the country, are continuously creasing production
investing in expanding their footprint and • The number of Omani youth aged • The sales value of poultry meat in-
advancing their delivery techniques to gain 18 to 29 years is 0.54 million men and wom- creased by 7.3% from 2020 to 2022, reach-
consumers’ interest. en, representing 19.4% of the total popu- ing USD 187.27 million in 2022 due to the
• On-trade accounted for the major share lation, which mainly consumes processed increase in average prices for poultry meat,
of the market, witnessing a growth in sales poultry meat. However, the total popula- which rose by 4.34% from 1.74 per kg in
value of 17.4% from 2020 to 2022. Nor- tion of Oman reached 4.51 million in 2021, 2020 to 1.81 per kg in 2022. The rising in-
malization of the dine-out trend and the out of which 2.8 million were Omanis and ternational tourism and the large Muslim
increased number of travelers has also fu- 1.74 million were expatriates who highly population are key factors driving the sales
eled the segment’s growth. For instance, as consume processed poultry products. Due of poultry meat in the country. For instance,
of 2022, the number of international arrivals to their hectic lifestyles, they prefer to pur- around 273.01 thousand visitors came to
reached 15,261, compared to 8,075 in 2021, chase products with longer shelf lives, in- Oman in 2022, which was 161.58 thousand
recording a Y-o-Y hike of 89%. creasing the demand for frozen, canned, higher than the 2021 data.
and processed poultry meat in the country.
• However, within the off-trade channel, • However, due to the high Muslim popula-
supermarkets/hypermarkets accounted for • Poultry production accounted for the tion in the country, which accounts for more
more than 60% of the market share in terms fourth highest share of 7.4% of total meat than 95% of the population, the demand
of value in 2022, which is further projected production in the country. The country is for poultry meat is high, as people prefer
to witness a CAGR value of 2.12% during the focused more on imports to meet consum- to eat meat on a regular basis. The spend-
forecast period. Meanwhile, online chan- ers’ demand; therefore, around 0.13 mil- ing on food in Oman is high, as 24% of the
nels are projected to be the fastest-growing lion tonnes of poultry meat was imported household budget was spent on food in the
off-trade segment, with a projected CAGR in 2021. Due to high import prices and in- country in 2021, while the prices for poul-
value of 10.56% during the forecast period creasing demand for fresh/chilled poultry try meat were the lowest, around 30% lower
(2023-2029). The advancements in delivery meat, the government is investing in in- than red meat prices. Thus, the demand for
apps, like acceptance of digital payments, creasing domestic production. It is also tak- poultry meat is high, as its protein content
fast delivery methods, improved packag- ing initiatives to increase domestic poultry range is 26 to 28 g per 100 g of meat, which
ing, and contactless deliveries, have gained production, as the per capita consumption is sufficient to meet regular intake.
• Oman’s inflation rate has been on the
rise, increasing the cost of poultry meat. The
inflation rate in Oman in 2021 was 2.4%,
driven by a 4.9% increase in food prices
and a 2.9% rise in hotel and restaurant pric-
es compared to the same period of the pre-
vious year. The prices of poultry meat were
particularly high in 2021 and 2022, reaching
as high as 1.79 per kg in 2021 and as low
as 1.81 per kg in 2022, due to the country’s
high reliance on imports, which exceeded
126.96 thousand tons in 2021. As a result
of the rise in import prices and increased
taxes on meat, the government has shifted
its focus to domestic production.
34 Arab Agriculture 2024