Estimated reading time: 4 minutes
The global chicken egg market continues to expand and is forecast to reach 138 million tons by 2030 thanks to an increase in demand, driven by population growth. This according a new report by IndexBox: ‘World – Hen Eggs – Market Analysis, Forecast, Size, Trends and Insights’. During the pandemic, sales to the hotel/restaurant/catering (HoReCa) sector crashed. However, this was offset by heightened demand from the retail market. With a 50% global market share, China remains the absolute leader in egg consumption. The diminishing use of preventative antibiotics in livestock emerges as a market trend. This potentially causes the safer form of medication, immunotherapy, to become an attractive sector for investments.
Key trends and insights
The size of the global chicken egg market continues to climb due to heightened demand from growing populations, particularly in Asia, Eastern Europe, the Middle East and Northern Africa. According to IndexBox, global production in 2020 surpassed 2019 levels by 2,7%, reaching 116 million tons. Another factor strengthening consumption could be the use of eggs in the production of flu and Covid-19 vaccines. These aspects are expected to continue impacting the demand in the midterm and heading into 2030, the global chicken egg market will reach 138 million tonnes.
In the global consumption of chicken eggs, China has a massive lead over all other countries. At 58,6 million tons in 2020, Chinese consumption was almost nine times higher than the United States (US), which ranked second in production and consumption. China also is the first in the world for per capita consumption (40kg per year per person).
Demand for eggs in the HoReCa segment worldwide fell sharply during the pandemic. Producers quickly adapted to the changing conditions and diverted deliveries away from the foodservice industry and toward the retail sector to meet the rapidly growing demand from households. Another option is to offer pre-boiled and otherwise prepared eggs to consumers who work remotely and thus cook and eat at home.
In the past few years, the use of antibiotics has been diminishing because of concerns that target bacteria will develop a resistance to them. The World Health Organization called on producers to cease using preventative medicines and strictly limit the use of specific antibiotics. Besides that, consumer behaviour has changed with heightened attention to healthy eating habits. In response, the use of antibiotics has been unwelcome. Immunotherapies are now used more often in livestock and could potentially become a safer alternative to antibiotics. In the long run, this trend could make immunotherapies an attractive sector for investment.
Bird infection outbreaks constitute the main hindrance for the market, as it leads to supply cuts and losses for producers. In the long-term, climate change and global warming will also negatively affect the market because warmer weather conditions decrease chickens’ egg production ability and increase their susceptibility to disease.
Egg production by country
For the ninth consecutive year, the global market recorded growth in the production of chicken eggs, which increased by 2,7% to 116 million tons in 2020. The total output volume increased at an average annual rate of 2,9% from 2012 to 2020. In value terms, chicken egg production stood at US$291,4 billion in 2020 estimated in export prices.
The country with the largest volume of chicken egg production was China (59 million tons), comprising approximately 51% of total volume. Moreover, chicken egg production in China exceeded the figures recorded by the second-largest producer, namely the US (6,8 million tons), ninefold. India (6,1 million tons) ranked third in terms of total production with a 5,3% share.
In China, chicken egg production increased at an average annual rate of 2,4% over the period from 2012 to 2020. In the other countries, the average annual rates were as follows: the US (1,8% per year) and India (5,8% per year).
Egg exports by country
In 2020, approximately two million tons of chicken eggs were exported worldwide, almost mirroring 2019 figures. In value terms, chicken egg exports shrank modestly to US$3,5 billion in 2020.
In 2020, the Netherlands (409 000 tons), Turkey (281 000 tons), Poland (196 000 tons), the US (145 000 tons), Germany (109 000 tons), Ukraine (107 000 tons), Spain (92 000 tons), Belgium (87 000 tons), China (75 000 tons) and Malaysia (74 000 tons) represented the major exporter of chicken eggs in the world. These countries comprised 78% of total export. Belarus (44 000 tons) and Russia (39 000 tons) each amounted to a 4,1% share of total exports.
In value terms, the largest chicken egg supplying countries worldwide were the Netherlands (US$734 million), the US (US$427 million) and Turkey (US$298 million), with a combined 42% share of global exports. These countries were followed by Poland, Germany, Belgium, Spain, Malaysia, China, Ukraine, Russia and Belarus, which together accounted for a further 36%.
The average chicken egg export price stood at US$1,725/ton in 2020, stabilising at the previous year’s level. Over the period under review, export price indicated a pronounced expansion from 2007 to 2020. Its price increased at an average annual rate of 4,1% over the past 13 years. Prices varied noticeably by the country of origin. The country with the highest price was the US (US$2,945 /ton), while Belarus (US$727/ton was among the lowest. – IndexBox AI Platform