China Leads the Expansion of Lamb and Sheep Meat Market in Asia-Pacific

IndexBox has just published a new report: 'Asia-Pacific - Lamb And Sheep Meat - Market Analysis, Forecast, Size, Trends and Insights'. Here is a summary of the report's key findings.

The revenue of the lamb and sheep meat market in Asia-Pacific amounted to $26B in 2018, increasing by 2.2% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The total market indicated a prominent increase from 2007 to 2018: its value increased at an average annual rate of +1.1% over the last eleven-year period. The level of lamb and sheep meat consumption peaked in 2018 and is likely to see steady growth in the immediate term.

Consumption By Country in Asia-Pacific

The country with the largest volume of lamb and sheep meat consumption was China (2.7M tons), accounting for 73% of total volume. Moreover, lamb and sheep meat consumption in China exceeded the figures recorded by the second-largest consumer, Australia (250K tons), more than tenfold. The third position in this ranking was occupied by India (207K tons), with a 5.6% share.

From 2007 to 2018, the average annual growth rate of volume in China amounted to +2.3%. In the other countries, the average annual rates were as follows: Australia (-3.0% per year) and India (-1.9% per year).

In value terms, China ($20.1B) led the market, alone. The second position in the ranking was occupied by Australia ($1.4B). It was followed by India.

In 2018, the highest levels of lamb and sheep meat per capita consumption was registered in Australia (10,056 kg per 1000 persons), followed by Afghanistan (3,272 kg per 1000 persons), China (1,861 kg per 1000 persons) and Pakistan (859 kg per 1000 persons), while the average per capita consumption of lamb and sheep meat in the region was estimated at 886 kg per 1000 persons.

Market Forecast 2019-2025 in Asia-Pacific

Driven by increasing demand for lamb and sheep meat in Asia-Pacific, the market is expected to continue an upward consumption trend over the next seven years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.4% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 4.1M tons by the end of 2025.

Production in Asia-Pacific

The lamb and sheep meat production totaled 4.1M tons in 2018, flattening at the previous year. Over the period under review, lamb and sheep meat production continues to indicate a relatively flat trend pattern.

Production By Country in Asia-Pacific

China (2.4M tons) constituted the country with the largest volume of lamb and sheep meat production, accounting for 58% of total volume. Lamb and sheep meat production in China exceeded the figures of Australia (668K tons), fourfold. The third position in this ranking was occupied by New Zealand (440K tons), with a 11% share.

From 2007 to 2018, the average annual growth rate of volume in China amounted to +1.4%. The remaining producing countries recorded the following average annual rates of production growth: Australia (-0.2% per year) and New Zealand (-2.5% per year).

Producing Animals and Yield in Asia-Pacific

In 2018, approx. 245M heads of animals slaughtered for lamb and sheep meat production in Asia-Pacific; remaining constant against the previous year. The average lamb and sheep meat yield totaled 17 kg per head in 2018, flattening at the previous year. In general, the lamb and sheep meat yield continues to indicate a relatively flat trend pattern.

Exports in Asia-Pacific

In 2018, the amount of lamb and sheep meat exported in Asia-Pacific totaled 858K tons. Over the period under review, lamb and sheep meat exports continue to indicate a relatively flat trend pattern. In value terms, lamb and sheep meat exports stood at $5.3B (IndexBox estimates) in 2018.

Exports by Country

Australia (419K tons) and New Zealand (408K tons) dominates lamb and sheep meat exports structure, together mixing up 96% of total exports. India (25K tons) held a relatively small share of total exports.

In value terms, the largest lamb and sheep meat exporters in Asia-Pacific were also New Zealand ($2.6B), Australia ($2.5B) and India ($145M), with a combined 99% share of total exports. In terms of the main exporting countries, India experienced the highest growth rate of market size, over the period under review, while exports for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the lamb and sheep meat export price in Asia-Pacific amounted to $6,169 per ton, picking up by 8.9% against the previous year. The export price indicated a buoyant expansion from 2007 to 2018: its price increased at an average annual rate of +4.8% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the export prices for lamb and sheep meat reached their peak figure at $6,336 per ton in 2011; however, from 2012 to 2018, export prices stood at a somewhat lower figure.

Average prices varied noticeably amongst the major exporting countries. In 2018, the country with the highest price was New Zealand ($6,458 per ton), while India ($5,784 per ton) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Australia, while the other leaders experienced more modest paces of growth.

Imports in Asia-Pacific

In 2018, the lamb and sheep meat imports in Asia-Pacific amounted to 443K tons, surging by 12% against the previous year. Over the period under review, lamb and sheep meat imports continue to indicate a prominent increase, driven by rising supplies to China. Over the period under review, lamb and sheep meat imports reached their peak figure in 2018 and are expected to retain its growth in the immediate term. In value terms, lamb and sheep meat imports totaled $1.8B (IndexBox estimates) in 2018.

Imports by Country

China dominates lamb and sheep meat imports structure, reaching 282K tons, which was approx. 64% of total imports in 2018. Malaysia (36K tons) took an 8.1% share (based on tons) of total imports, which put it in second place, followed by Japan (5.8%). The following importers - Singapore (19K tons), Taiwan, Chinese (19K tons), South Korea (16K tons), Papua New Guinea (12K tons) and China, Hong Kong SAR (7.8K tons) - together made up 17% of total imports.

China was also the fastest-growing in terms of the lamb and sheep meat imports, with a CAGR of +16.8% from 2007 to 2018. At the same time, South Korea (+14.4%), Malaysia (+6.6%), Singapore (+6.4%), China, Hong Kong SAR (+1.1%) and Japan (+1.0%) also displayed positive paces of growth. Taiwan, meanwhile, experienced a relatively flat trend pattern. By contrast, Papua New Guinea (-7.0%) illustrated a downward trend over the same period.

In value terms, China ($884M) constitutes the largest market for imported lamb and sheep meat in Asia-Pacific, comprising 48% of total lamb and sheep meat imports. The second position in the ranking was occupied by Japan ($204M), with a 11% share of total imports. It was followed by Malaysia, with a 9.7% share.

Import Prices by Country

In 2018, the lamb and sheep meat import price in Asia-Pacific amounted to $4,157 per ton, coming down by -3.3% against the previous year.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was South Korea ($8,067 per ton), while China ($3,132 per ton) was amongst the lowest.

Source: IndexBox Market Intelligence Platform