The UK poultry market is being threatened by recent revelations regarding the prevalence of campylobacter in supermarket chicken, according to a report by Key Note.

Key Note estimated that poultry sales grew in value by 1.6% in 2014, significantly less than in any of the previous 4 years, when growth rarely exceeded 5%. Despite this, a growth of 1.6% is considered healthy and underlines the extent to which rising demand continues to drive volume sales, thereby offsetting lower values. Yet, although all market sectors grew in 2014, chicken accounts for the large majority of market value and the campylobacter issue therefore represents a huge threat to overall market performance.

Due to the industry hygiene concerns initially emerging back in 2014, the strength of poultry demand combined with the time it took to raise consumer awareness meant that the issue did not restrict annual growth.

However, the publication of the Food Standards Agencys (FSA) full year results in May 2015 gained a lot of media exposure. Now, Britons are worried about the safety of consuming chicken, with the issue tapping into wider concerns about supply chain transparency and animal welfare.

Poultry processors have been negatively affected by these revelations in 2015 despite attempts to reassure consumers through the introduction of new supply line testing. While some consumers are switching to other forms of poultry benefiting the wider market, campylobacter concerns are contributing to the emerging popularity of low meat or meat free diets, and this represents the greater long term threat.

The rate at which chicken consumption has risen in recent years therefore appears unsustainable, as ethical and environmental issues become more penetrative.

Instead, Key Notes polutry report forecasts that the market will continue to grow at a steadier rate of 8.5% between 2015 and 2019, with the chicken sector unlikely to significantly increase its market share over other poultry meats.