The global egg market is on the rise, driven by increasing incomes and changing consumer preferences. According to Rabobank’s RaboResearch, the market is expected to grow at a steady annual rate of approximately 2%, resulting in a 22% increase by the year 2035.
As detailed in a recent RaboResearch report, eggs are projected to maintain a competitive edge over other protein sources in the foreseeable future. Unlike developed economies, emerging regions in Asia, Africa, and Latin America will account for 90% of this expansion.
However, growth in established markets like the EU, Japan, and South Korea is projected to be slower due to declining populations (Figure 1).
Factors Driving Growth
The report identifies several key drivers behind this anticipated growth:
- Income growth and affordability
- Shifting consumer preferences
- Availability of eggs
- Population growth
- Innovative marketing and product development
Emerging Demand Trends
Over the last three decades, the global egg market has more than doubled in size, with an expected continued growth of about 20% in the next decade. This growth, however, is not evenly distributed.
Between 2015 and 2025, over 90% of the increase in egg consumption occurred in emerging markets, with China alone accounting for 35% and the remainder of Asia contributing 40%. Latin America added approximately 15% to global growth.
Higher-income emerging markets, such as China and certain areas of the Middle East and Latin America, will see slower growth rates, while regions like South Asia, Southeast Asia, and Africa will be major expansion drivers.
Key trends influencing egg consumption include:
- Young demographics: By 2035, it is projected that over 75% of consumers in emerging regions will fall within the age bracket of 15 to 34 years, shaping future demand.
- Wellness focus: Interest in wellness-related spending is threefold in advanced economies, but varies significantly among different age demographics.
- Sustainability consciousness: Younger consumers are increasingly prioritizing sustainability, although their willingness to pay for premium sustainable products has waned.
Challenges in Production
Egg producers face considerable challenges concerning production methods and locations as issues around resources, sustainability, and geopolitical tensions become more pronounced.
With 90% of anticipated growth expected in emerging markets, producers must navigate challenges such as limited global resources and diminishing agricultural land. Countries in fast-growing regions, such as Asia, face considerable constraints concerning arable land relative to their population sizes.
Geopolitical changes also necessitate a reevaluation of investment strategies, with a growing focus on food and resource security. This includes rendering food value chains more resilient and strategic.
Investing in the Future
As global investment conditions change rapidly, the egg market is anticipated to sustain its growth trajectory, particularly in emerging economies. Yet, the production value chains need to adapt to shifting landscapes informed by government policies, evolving consumer expectations, and heightened concerns regarding sustainability, animal welfare, and disease control.
These factors compel international investors in the egg sector to reevaluate their strategies to remain competitive and resilient in a complex global environment.
Feel free to use this structured and formatted HTML article for seamless integration into your WordPress site!
