Advantageous demographic density dividend and increasing urbanization led to a rise in concentrated disposable income among the Middle and Affluent class consumers in Bangladesh. The current consumption trend of Bangladesh indicates a growth in animal protein consumption which is expected to continue throughout the next decade.

    Source: Ministry of Fisheries and Livestock

    The animal feed sector has been expanding in tandem with the livestock and aquaculture sectors, as commercial animal farming has become more conventional. Motivated by the presumed large market potential, but also pushed by changes in the legal framework, our client, Larive International B.V., a Netherlands-based international business development firm reached out to LightCastle for being a premier source of information regarding the local animal feed and poultry market. With the expression of interest of an international animal feed producer, Larive initially wanted to explore the local animal feed market. Subsequently, having the backward value chain established, they further sought to analyze the Poultry sector of our country in order to facilitate the transition of Dutch Government-funded activities through the Embassy of Kingdom of the Netherlands (EKN) in Bangladesh.

    Bangladesh is witnessing a growing animal feed market

    In order to assess the animal feed market prospects, we analyzed three broad actor groups: demand side, supply side and market dynamics, and support ecosystem which includes financial institutions, microfinance, government, INGO, NGO, and donors. We divided our regional scope of study as per the production hubs of livestock and aquaculture farms. LightCastle reached out to local and SME level farmers to assess the demand side of the feed market and retailers, wholesalers and dealers (also exclusive dealers) to garner suppliers’ perspective.


    Source: LightCastle Primary and LightCastle Projections

    We have looked into the policies and tax incentives tied to the industry and carried out an in-depth analysis of the cost structure of logistics in order to form top-line market entry strategies for the client and support their interest in entering Bangladesh. Finally, we provided a detailed overview of the feed market along with multiple strategic recommendations as to how to acquire the market share tactically.

    With the increase in purchasing power, the consumption of poultry meat has increased over the past decade

    We have identified that the poultry sector of Bangladesh has developed a structured value chain with established stakeholders throughout the supply chain. With a growing decentralized middle-class population, demand for low cost protein meals has increased exponentially over the last decade. With higher incomes, consumer segments have started consuming poultry at a faster pace, which in turn has led to the growth of the industry.

    *p= Projected / Source: HIES and LightCastle Projection

    With urbanization, increased popularity of processed food in the millennial generation and young professionals’ segment, the demand for further processed chicken is on the rise. However, the main challenge in this product segment is that competition is high owning to low product diversification. The poultry sector of Bangladesh requires policy reformation in ensuring bio-security in farming poultry and proper vaccination schedules for preventing against avian influenza in order to sustain the growth of the past years.

    Way forward

    Based on the representation of our findings, the international animal feed producing company has decided to invest in the feed sector of Bangladesh. We are excited to help them enter the Bangladesh market and boost the local feed industry through strategic investment. Moreover, EKN will be hosting an information dissemination session for the poultry sector of our country.