Estimate the market size for poultry in the U.S.? 

marketsizing
New answer on Jul 07, 2021
1 Answer
72 Views
Anonymous A asked on Jul 07, 2021

Was wonder what you guys thought of my approach... thanks in advance!

I would start with country population - assume x% eat poultry - normal frequency of consumption (eg 1kg/week, 1kg/month, 1kg/6 month)

But what assumptions should I make? Poultry  isn’t really segmented by age. I could do social status and assume that richer classes buy more expensive/gourmet type options?

So I could go with 320 million - but I’d have to estimate how many people eat poultry and how often they do it. Based on habits by friends I would estimate that 80% of the U.S. population eats poultry. That makes it 256 million. 

We could assume that 

Upper-Middle/Higher Class: on average eat 1kg of poultry a week $12 per kg (15%)

Lower Middle : on average eat 1.5 kg of poultry a week $9 per kg (35%)

Lower/Working class: On average eat 1kg of poultry a week at an average price of 7$ per kg (50%)

That comes out to 

Upper class - 15%*256 = 38 million. 38 million * 1 * 12 *52 = let’s make it 40*12*50 = 2.4 billion USD 

Lower Middle = 35%*256= 90 million = 90*1.5=135 135*9*52 = 135*50= 6.75 billion * 9 = 60 billion

Lower working class = 132 million = 132*1*7*50= 130*50*7= 45 billion

So in total market for poultry is 45 + 60 + 2.5 = 107.5 billion

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Ian
Expert
Content Creator
replied on Jul 07, 2021
BCG | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi there,

You're right to break things down by weekly consumption and income, but what's the point in breaking it down by income if your eating habits are 1 kg, 1.5kg, and 1kg as income comes down? This is sort of nonsensical...your segments have to directly correlate to frequency of consumption! (Low income would eat the least, high income the most).

I might also add price per kg in the calcs, where you recognize that higher income individuals will pay more for poultry (both because prices where they lvie are more expensive and because they will demand higher quality produce)

Was this answer helpful?
Ian gave the best answer

Ian

Content Creator
BCG | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep
396
Meetings
34,288
Q&A Upvotes
78
Awards
64 Reviews