Page 15 - AA 2025 Year Book Summary

Bahrain

red and white meat, and veterinary for 70% of variable costs, and by vol- to the introduction of healthier pro-
medicine between the two countries. ume, maize forms 60-63% of the feed, cessed options with reduced sodium
An agreement regarding food secu- while soymeal forms 25-27%. In 2021, content and natural ingredients.
rity was signed between Bahrain and maize prices fell by 30%, while soy- Remaining Segments in Form
Israel in 2020. As of 2021, Bahrain bean prices rose by 6% Y-o-Y com-
produced around 9 million chicks pared to the previous year. The frozen poultry and canned
and imported about 70,000 metric Fresh/Chilled Segment in Bahrain segments complete the Bahrain poul-
tons of poultry, an 18,000 metric ton Poultry Meat Market try meat market’s form segmenta-
increase over 2019, where the import The fresh poultry segment domi- tion, each serving distinct consumer
was 52,000 metric tons. nates the Bahrain poultry meat mar- needs and preferences. The frozen
Rising production costs are im- ket, commanding approximately poultry segment maintains a strong
pacting poultry prices 52% market share by value in 2024. presence in the market due to its
The poultry meat market registered This significant market position is longer shelf life and convenience in
storage, particularly appealing to
a CAGR of 2.08% from 2017 to 2022 in driven by consumer preferences for bulk buyers and food service estab-
Bahrain. The country has been re- fresh poultry products due to their lishments. Meanwhile, the canned
cently working on food security and perceived higher nutritional value segment, though smaller in market
self-reliance, owing to which the and superior flavor profile. The seg-
government is distributing licenses ment’s dominance is further strength- share, serves specific market needs
for chicken slaughterhouses to influ- ened by the expanding network of such as military supplies and emer-
ence the traders to indulge in local modern retail outlets and cold chain gency food storage. Both segments
production. Bahrain plans to increase infrastructure across Bahrain. House- benefit from ongoing improvements
local poultry production from 9 mil- holds predominantly prefer raw poul- in preservation technologies and
lion to 20 million chickens over the try over other forms due to minimal packaging innovations, while also
period of 2023 to 2025 to satisfy the preparation time requirements. The adapting to increasing consumer
exponentially increasing consump- segment’s growth is supported by demand for high-quality, convenient
tion in the country. Also, an increase major poultry farms expanding their poultry products.
in local production will help in mod- production capacities to achieve self- Segment Analysis: Distribution
erating the price level in the country, sufficiency in domestic supply. The Channel
as reliance on imported commodities average price point of fresh poultry On-Trade Segment in Bahrain
would be lower. meat, being around half that of beef Poultry Meat Market
The recent surge in prices of poul- and other meats, continues to drive
The on-trade segment holds a sig-
try meat in all forms and varieties is sales through affordability. nificant position in Bahrain’s poul-
occurring in Bahrain. This is mostly Processed Segment in Bahrain try meat market, accounting for ap-
because of the increase in the prices Poultry Meat Market
of local chicken, owing to its high The processed poultry segment proximately 50% of the total market
feed and logistics costs. Some per- is emerging as the fastest-growing value in 2024. This substantial market
sistent logistical problems suppliers category in the Bahrain poultry meat share is primarily driven by the ro-
have been facing constantly are driv- market for the period 2024-2029. bust foodservice sector, where over
er shortages, port congestion, soar- This growth is primarily driven by 45% of outlets incorporate chicken
ing freight rates, and more. Also, with increasing urbanization and the ris- dishes in their menus. The segment’s
oil prices falling, Bahrain, primarily ing demand for convenient, ready- strength is further reinforced by the
depending on oil and gas export rev- to-cook processed poultry products. country’s thriving tourism sector and
enue, lifted price subsidies on vari- The segment’s expansion is sup- the proliferation of international res-
ous goods and services, including ported by innovations in product of- taurant chains. Fresh/chilled poultry
meat, which helped the government ferings, including new variants of meat dominates the on-trade chan-
recover USD 75 million in 2021. nuggets, sausages, and marinated nel, particularly due to its extensive
The price of poultry meat is also products that cater to evolving con- use in popular dishes like biryani,
severely affected by chicken feed sumer preferences. International shawarma, kebabs, and grilled prep-
prices. Prices of soybean and maize, fast-food chains and local food ser- arations. The segment’s growth is
the two key inputs that are used as vice establishments are significantly supported by the expansion of both
livestock feed in the poultry indus- contributing to the segment’s growth local and international restaurant
try, are rising sharply due to the con- by introducing various processed chains, including major players like
flict between Russia and Ukraine. poultry products. The segment is wit- McDonald’s, KFC, and various re-
The main driver of rising feed costs nessing substantial investments in gional establishments that primarily
has been soybean. Feed accounts research and development, leading serve chicken-based dishes.
Arab Agriculture 2025 13