Compound Feed Market Size, Share & Industry Analysis, By Ingredient (Feed Cereals, Cakes & Meals, Animal By-products, and Others), Form (Solid, Liquid), Animal Type (Cattle, Swine, Poultry, Aquaculture, and Others), and Regional Forecast, 2024-2032

The global compound feed market size was USD 556.59 billion in 2023 and is projected to grow from USD 583.03 billion in 2024 to USD 881.18 billion in 2032, at a CAGR of 5.30% during the 2024-2032 period. The global impact of COVID-19 has been unprecedented and staggering, with witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the year-on-year growth of the market was 3.50% in 2020. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Animals are reared in various countries for different purposes such as meat, milk, and eggs. Feed is a mixture of plant or animal origin products that are fed to farm animals to provide essential nutrients. Hence, the feed manufacturers focus on developing balanced feed to meet farm animals’ physiological requirements and support their performance, thereby allowing safe and economically viable livestock production. Thus, increasing animal production, rising consumption of meat and dairy products, and growing focus on animal health and nutrition surge the compound feed demand across the globe.

The spread of COVID-19 had severe impact on the livestock sector, including feed products. The production of feed was affected due to the sudden shutdown of manufacturing units and restrictions on transport services. Furthermore, implementation of border control also impacted the supply of feed from one country to another.

Additionally, the restriction on eating out led to decline in consumption of meat products at restaurants and hotels. The closure of schools, colleges, and offices also affected the consumption of animal products such as eggs, milk, and meat in many countries around the globe. Thus, the closure of hotels, restaurants, and institutions (HRIs) negatively affected meat consumption, which, in turn, impacted the feed production.

Compound Feed Market Trends

Rising Demand for Sustainable Feed and Increasing Consumption of Animal Protein to Stimulate Growth

Consumers across the globe are highly concerned regarding the supply chain of feed as the impact of different feed ingredients may vary and depend highly on its origin and the way it is being produced. Also, the environmental impact of livestock industry is becoming an important issue; hence, policymakers and retailers are turning their attention toward this industry. Therefore, farmers and feed manufacturers also focus on reducing the environmental impact both on the feed and the final protein while keeping minimum feed costs. For instance, in December 2020, BASF and Adifo Software entered into a partnership to launch a new digital solution, Opteinics (with BESTMIX feed formulation software). This new solution would help BASF to optimize feed formulation while supporting a more sustainable animal protein production.

In addition, the demand for animal protein is increasing globally due to increasing popularity of high-protein diets. The growing demand for animal proteins depicts that the role of feed would also increase in the coming years. Also, feed is important component for sustainable growth in animal husbandry. Therefore, increase in animal protein production would increase feed production for sustainable animal production.

Compound Feed Market Growth Factors

Surge in Animal Population and Demand for Animal Products to Augment Growth

The large-scale livestock production helps to meet the surging demand for livestock products. In addition to food production, farm animals play important economic and social role. Many small-scale farmers across the globe still depend on livestock for their livelihoods. According to Food and Agricultural Organization (FAO), livestock sector accounts for nearly 40% of total agricultural output in developed nations and 20% in developing nations, thereby supporting livelihoods of 1.3 billion people globally. Furthermore, the livestock sector provides 34% of the global food protein supply.

The growing incomes, changing diets, and population growth have led to increased demand for animal products. The share of animal products such as meat, eggs, and milk has also increased in recent years. According to FAO, from 2018 to 2020, consumption of meat in North America was 97 kg per capita as compared with the global average of 34 kg. Africa and Asia Pacific regions are the least consumers of meat with per capita consumption of 27 kg and 13 kg, respectively. Moreover, the milk consumption in the U.S. was 64 kg in 2020 while in Australia and New Zealand was 99 kg and 109 kg, respectively.

Therefore, the demand for compound feed is likely to grow owing to the surge in animal production and huge demand for animal products.

Rising Focus on Animal Health and Nutrition to Drive Growth

Livestock farmers across developing and developed nations are highly focused on improving the health of farm animals since healthy animals contribute to the elimination of hunger, sustainable food production, and healthy people. Apart from food source, animal products represent a source of income for several small farmers and animal holders in developing countries.

Additionally, the quality and safety of animal feed are key factors to meet the domestic demand for safe and high-quality foodstuffs of animal origin. Animal nutrition plays a key role in livestock industry and contributes significantly to nutrient efficient livestock production. It also fosters the safety and dietary quality of animal products for human consumption by enhancing animal health and welfare status of farm animals. Animal nutrition science also helps to reduce greenhouse gas emissions and land use linked to livestock production on a unit product base, for instance, per liter of milk or kg of meat and eggs.

Hence, the rising focus on animal health and nutrition is projected to surge the demand for compound feed.

RESTRAINING FACTORS

Fluctuating Raw Material Prices and Stringent Government Regulations to Restrict Market Growth

The compound feed market growth is highly impacted by rising raw material prices across the globe and stringent government regulations in developed countries. The type and quantity of feed raw material used in animal feed depends largely on the nutritional value and costs. The change in weather condition has major effect on the production, nutrition content, and price of plant-based raw materials such as corn, soybean, and others. The prices of animal by-product meals also fluctuate with any change in production and consumption of animal and animal products, respectively.

According to Adisseo’s report on “how to overcome the cost of raw material”, raw material prices increased dramatically in 2020. For instance, cereal prices increased by 10% whereas protein meals increased by 20%; and about 8 to 10% increase was observed in soybean oil prices.

The common rules on animal feed include feed hygiene, feed composition, measures relating to feed safety, GM crop-derived ingredients, imports and exports, and associated official controls. Thus, if any feed manufacturer fails to comply with this requirement, the feed is not approved for marketing and use in the subject region. For instance, according to European regulations, feed should contain minimum three raw materials.

Compound Feed Market Segmentation Analysis

By Animal Type Analysis

Swine Segment Dominates Market Due to Huge Consumption of Compound Feed

Based on animal type, the market is segmented into cattle, swine, poultry, aquaculture, and others. The swine segment held the major share during the forecast period owing to high demand for pig meat in the U.S, Mexico, China, and other South East Asian countries.

The poultry segment is expected to grow at a highest CAGR due to the growing production of poultry animals such as chicken and turkey due to high demand for chicken and eggs as an inexpensive source of protein. The demand for white meat is increasing globally, which further supports the growth of the poultry segment.

By Form Analysis

Use of Compound Feed in Solid Form is Growing across the Globe

Based on form, the market is segregated into solid and liquid. Feed products in solid form are widely preferred by livestock farmers as they are easily digestible by farm animals. The solid form of feed is available in three forms, pellets, powder, and granules. Also, solid form of feed is easy to carry and store; hence, majority of feed manufacturers provide feed in solid form. Although liquid form accounts for minimal consumption, its adoption is likely to remain stable in the coming years.

By Ingredient Analysis

Feed Cereals Holds Major Market Share 

Based on ingredient, the market is segmented into feed cereals, cakes & meals, animal by-products, and others. Feed cereals are consumed in high amounts when compared with other ingredients due to their wide availability and strong nutritional profile. In developed and developing regions, corn, wheat, and rice are the major sources of feed cereals. Other feed cereals consumed by farm animals include oats, sorghum, millet, and barley.

Cakes & meals commonly used in composition of feed include soybean meal, canola meal, and cottonseed meal. Oilseeds meals are used as a major source of protein in animal diets. In addition, oilseed meals have high consumption in the U.S., Canada, China, Brazil, Australia, and India.

REGIONAL INSIGHTS

Asia Pacific accounted for the largest market share and is expected to remain the leading consumer of feed in the coming years. High animal production and high meat consumption due to high incomes are responsible for the dominance of the region. The region is the leader in the livestock sector and the livestock population in the Asia Pacific region is the highest in the world. The livestock population in the region has been growing faster than any other region, which can be attributed to the extensive growth of the livestock, swine, and poultry industries. Livestock by-products contribute to more than 40% of the overall agricultural output. In addition, the growth in the consumption of animal products due to population growth and increased living standards is expected to boost the adoption rate of feed. Thus, the rise in consumption of livestock products would fuel the necessity to produce an adequate animal population that would require nutritious feed.

China, India, and Indonesia are the major feed consumers in the region, and the promising growth prospects of the industry attract global feed manufacturers to the region. The high income associated with fast growing economy and strong demand for meat, fish, and dairy products has led to rapid growth in consumption of these products. The high growth rate in consumption is met by growing local meat and dairy production, resulting in a very rapid increase in feed consumption.

North America and Europe are expected to follow Asia Pacific in terms of compound feed market share. In North America, the U.S. is the largest feed market with high demand from poultry and cattle. According to the North America Meat Institute (NAMI), American meat companies produced 42.2 billion of chicken, 25.6 billion of pork, and 26.3 billion of beef in 2017. The high meat production and demand coupled with large livestock production drives the feed market in the country.

Plant-based feed has high demand among European livestock owners. The vast majority of European crop production is used to feed farm animals. As per Eurostat, 2018-2019, the region is over producing meat and dairy with EU production of poultry, pork, and beef 8%, 16%, and 4% higher than consumption, respectively, and production of dairy 14% higher than consumption.

In South America, both corn and soybean-based ingredients are major sources of compound feed production. The feed market in the region is driven by resilient animal production, high meat consumption, and strong feed production.

The compound feed market in the Middle East & Africa is driven by growing demand for meat and animal products. South Africa and Turkey are prominent markets in the region due to high animal production and feed consumption.

List of Key Companies in Compound Feed Market

Companies to Focus on Expanding its Geographical Footprint through Acquisitions to Improve Market Position

The feed market is consolidated with the presence of key players holding maximum share in the global market. Charoen Pokphand Foods PCL, New Hope Group, and Cargill are the top three players in the global market. The feed manufacturers are constantly focusing on developing cost-efficient nutritious feed products. There are also some companies that are focusing on expanding their geographical presence through acquisitions and partnerships. For instance, in September 2020, Charoen Pokphand Foods PCL announced the plan to acquire swine business of Chia Tai Investment Co. Ltd. (CTI). This acquisition would help both the companies to expand geographical footprint. Land O’ Lakes, Guangdong HAID Group Co., Ltd., BRF, and ForFarmers N.V. are some of the prominent companies with major shares in the global market for feed.

LIST OF KEY COMPANIES PROFILED

• Charoen Pokphand Foods PCL – (Bangkok, Thailand)


• New Hope Group – (Chengdu, China)


• Cargill, Inc. – (Minnesota, U.S.)


• Land O’ Lakes – (Minnesota, U.S.)


• Guangdong HAID Group Co., Ltd. – (Guangzhou, China)


• BRF – (Sao Paulo, Brazil)


• Tyson Foods, Inc. – (Arkansas, U.S.)


• Nutreco – (Amersfoot, Netherlands)


• De Heus Animal Nutrition – (Ede, Netherlands)


• ForFarmers  – (Lochem, Netherlands)

KEY INDUSTRY DEVELOPMENTS

• July 2020: De Heus Animal Nutrition, a Netherland-based renowned feed company, signed an agreement with Polish feed company, Golpasz, to acquire Golpasz production facility in Poland.


• December 2019: Bidco Land O’ Lakes, a joint venture between American Cooperative Land O’ Lakes and East African company Bidco Africa, announced the expansion of new animal feed manufacturing unit in Nakuru, Kenya.

REPORT COVERAGE

The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, animal types, and leading sources of the product. Besides this, the report offers insights into market trends and highlights the key industry developments. In addition to the aforementioned factors, the report encompasses several major factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation