North America Swine Feed Market Size, Share & COVID-19 Impact Analysis, By Type (Starter Feed, Sow Feed, and Grower Feed), Additives (Vitamins, Amino Acids, Antibiotics, Enzymes, and Others), Form (Pellets, Mash, and Crumbles), and Regional Forecast, 2021-2028

The North America swine feed market size was USD 17.38 billion in 2020. The market is projected to grow from USD 17.86 billion in 2021 to USD 23.0 billion in 2028 at a CAGR of 3.68% during the 2021-2028 period.The global impact of COVID-19 has been unprecedented and staggering, with swine feed witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a growth of 2.51% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The growth of this market is attributed to a significantly rising demand for pork products. In addition, demand for the feed type is increasing, owing to the surging popularity and adoption of well-researched and improved feed additives that help in enhancing the pig's health. In recent years, demand for animal-origin products has increased due to evolving lifestyles, increasing incomes, and population growth. The growing commercialization of feed products and the rising consumption of pork meat in the region and globally is expected to have a positive impact on North America swine feed market growth.

Supply Chain Disruptions and Temporary Closure of Businesses amid COVID-19 to Impede Growth

The global outbreak of the COVID-19 pandemic has impacted almost every industry, which presents several unprecedented challenges and opportunities for the pig feed industry. Various government regulations were imposed in the initial months of the outbreak, which led to many businesses being temporarily shut down. Restrictions on public mobility, shortages in the workforce, transportation delays, and border closures – all the factors that contributed to sluggish market growth. According to the American Feed Industry Association (AFIA), during the initial months of the pandemic, some ranchers and farmers stocked up their feed supplies, which was mainly due to the uncertainty among the animal feed manufacturers being declared under ‘essential’ services. However, the government deemed animal feed services essential, which led the market to gradually gain its usual pace.

The demand for animal-rich protein amidst the pandemic surged, owing to the consumers’ desire to stay fit and healthy - creating an opportunity for the pig and other animal feed manufacturers to grow in the upcoming years. Uneven demand has been observed for pig feed across different regions due to COVID-19. Thus, companies are likely to plan well-informed tactical changes and streamline their productions to navigate this uneven demand situation till the risk of the COVID-19 is over, and business dynamics arrive at pre-outbreak stages. This pandemic has forced pig feed companies to think about market penetration using novel characteristics of formulations and cost-saving.

LATEST TRENDS

Increasing Demand for Organic Pork Meat to Drive Market Growth

Demand for organic products has surged in recent times, which has significantly swayed consumers’ inclination towards organic and high-quality meat. The growing consumer attention towards health, environmental sustainability, and animal welfare entices them to purchase pasture-raised and organic pork meat. This significantly has influenced animal feed manufacturers to venture upon organic pig feed. Nowadays, animal welfare, and food traceability are among the top concerns of consumers. They want transparency in the food they consume, leading feed manufacturers to channel their focus on boosting their production capabilities and infrastructure to fulfill the demands. Furthermore, they are incorporating various non-GMO swine feed ingredients such as corn, soybean, and others to manufacture organic feed, which is likely to fuel market growth in the forthcoming years.

DRIVING FACTORS

Increase in New Feed Additives and Supplements Launch to Augment Growth

The demand for pig feed additives to enhance the overall quality and health of the pigs is gradually rising among swine growers. Feed additives, such as nutritional supplements, prebiotics, and probiotics, help in improving the quality, digestibility, aesthetic, and nutritive quality of the food. Various feed ingredient producers are working on developing innovative, sustainable, and safe feed additives to meet the demands. For instance, in February 2019, AB Vista launched a microbiome stimulator in swine and poultry feed called Signis, a combination of xylanase and fermentable xylo-oligosaccharides (XOS). This additive helps in improving digestion in pigs and was initially launched in the U.S., Europe, New Zealand, Canada, and India for use in feed. Furthermore, players focusing on lowering the carbon footprint in pig feed formulation and manufacturing pork, coupled with the introduction of various feeding systems and awareness programs in the pig feed industry, are anticipated to propel market growth.

Surging Demand for High-Quality Meat to Fuel Growth

In recent years, the consumers’ demand for animal protein-rich in the form of meat products has increased significantly. This influences the need for high-quality feed to produce delicious, disease-free, and healthy meat. Furthermore, the growing likeability and demand for pig-based meat products such as ham, bacon, salami, and others have contributed to market growth. According to the U.S. Census data and Simmons National Consumer Survey (NHCS), in 2020, 268 million Americans consumed bacon and nearly 16 million consumed five pounds of bacon or more. Furthermore, North America being one of the prominent pork producers in the world, is witnessing an increase in pork meat exports to other regions due to its high-quality and taste. It is projected to boost the market growth.

RESTRAINING FACTORS

Price Volatility of Feed Ingredients/Raw Materials to Negatively Influence Growth

The high price volatility associated with the raw materials used in pig feed such as corn, soybean, barley, and others is one of the major factors hampering the market performance. The frequent fluctuations in the price of grains and pulses due to environmental, political, and production factors, significantly impact the industry. For instance, a significant uptick in corn price can impact the overall prices of the feed, as corn is a major commodity used in hog feed production and presents a 60% share in overall hog feed produced. Therefore, this impacts the affordability of the overall feed for farmers. Furthermore, several factors, such as rising number of vegan population and people refraining from consuming meat, are negatively impacting the regional market growth.

SEGMENTATION

By Type Analysis

Grower Feed to Account for Major Share Owing to Rising Number of Piglets

On the basis of type, the market is segmented into starter feed, sow feed, and grower feed. The grower feed segment is projected to hold a major share in the market due to the increasing number of piglets and their high consumption. Grower feed provides the essential nutrients required for optimized growth of piglets, which also remains one of the factors for its higher market share. Furthermore, the increase in demand for quality starter feeds for young pigs of 5 to 6 weeks is likely to drive the segment. Manufacturers are focusing on delivery starter feeds that are safe, free of contaminants, and offer extra nutrition to ensure proper growth is expected to further propel market growth.

Sow feed is for lactating pigs and is expected to observe a remarkable growth rate, owing to the manufacturers venturing upon advanced technology to produce high quality feed to produce healthy newborn. Thus, it is expected to contribute to its steady growth.

By Additives Analysis

Amino Acids to Emerge as Fastest-Growing Segment backed by its Wide Utilization

Based on additives, the market is segmented into vitamins, amino acids, antibiotics, enzymes, and others. Amino acids are likely to hold the largest share in the additives segment in comparison to others, owing to the major roles played by them in promoting hormone metabolism, muscle protein, digestive enzymes, milk protein, and others in swine. Amino acids such as lysine, methionine, and valine are added most often in diets. However, other additives such as vitamins and enzymes are also witnessing significant rise in feed incorporation as they help in holistic development, growth, maintenance, reproduction, and other physiological functions in pig. These additives are expected to observe substantial growth during the forecast period as the demand for high-quality pig meat is growing.

By Form Analysis

Pellets Surface as to be Leading Form of Feed Attributed to its Better Functionality

Pellets segment to hold the largest share in the segment, and are anticipated to remain the same in the upcoming years, due to the advantages offered by it compared to other forms. Pellets are the most preferred form of feed by the pig farmers, as they are more palatable, easily digestible, coupled with ease of handling, mixing, and feeding processes. Along with this, their wider availability, ability to improve performance, and being a low waste and low cost solution, makes it more desirable than the others.

On the other hand, the demand for mash feed is also rising among the pig farm owners  as it helps in lowering pH of the stomach content and enhances growth and performance. It also offers the benefits of customization and fortification to increase its nutritional value and intake in lactating pigs. Thus, it is anticipated to fuel the sales of mash feed in the forthcoming years.

REGIONAL INSIGHTS

The U.S. accounts for the major share in the regional market and stood at USD 13.69 billion in 2020. This is attributed to the animal feed and pet food manufacturing industry being one of the important industries contributing in the economic activity in the country. According to Alltech Feed Survey, 2020, the U.S. is the largest feed-processing country, with broiler, beef, and pigs being the primary species. The demand for high quality pig meat is another factor promoting the industry growth in the country. Increase in pork exports from Canada and the U.S. paves opportunities for the market to grow.

Further, presence of numerous key players in the market, such as Cargill, Inc., Alltech, ADM, and others, account for a major share in the market, contributes to the regional performance of the pig feed market. In addition, manufacturers are introducing innovative and sustainable feeds, which propel the market growth.

The animal feed industry plays an essential part in the Canadian agriculture industry. According to Alltech Global Feed Survey, 2020, Canada produced 21.6 MMt of animal feed, out of which 8.23 MMT consists of pig feed. The country is observing a surge in pork meat and derived products demand, and the consumers are inclining towards healthy, delicious, and disease-free meat. This is anticipated to drive the potential growth of the quality pig feed in the country.

KEY INDUSTRY PLAYERS

Prominent Players Embarking Upon Acquisitions and New Product Development to Fortify Market Presence

The North America swine feed market is moderately consolidated due to the presence of a few prominent and major players. Companies, such as Cargill, Inc., Alltech, Inc., ADM, BASF SE, Novus International, Inc., and others, are extensively focusing on developing innovative feed ingredients and increasing their production capabilities to meet the rising feed demands. The product innovation and acquisitions are the strategies explored by the manufacturers to broaden their product offering range along with fortifying their market foothold. For instance, in May 2021, Cargill, Inc. and InnovaFeed expanded their partnership by introducing pig feed supplementation fortified with insect oil to deliver sustainable and healthy feed.

LIST OF KEY COMPANIES PROFILED:

• Cargill, Inc. (U.S.)


• Alltech, Inc. (U.S.)


• Archer Daniels Midland Company (U.S.)


• Land O'Lakes, Inc. (U.S.)


• BASF SE (Germany)


• Novus International, Inc. (U.S.)


• Kent Nutrition Group, Inc. (U.S.)


• ForFarmers N.V. (Netherlands)


• Chr. Hansen Holding A/S (Denmark)


• Lallemand Inc. (Canada)

KEY INDUSTRY DEVELOPMENTS:

• February 2021: Cargill, Inc., announced the opening of its animal nutrition premix facility in Ohio, U.S. The facility is deployed with advanced technology to produce high-quality and traceable feed premix for swine and other animals.


• December 2020: BASF SE and Adifo Software introduced a new digital solution for animal agriculture by integrating BASF’s AgBalance Livestock project using Adifo’s BESTMIX feed formulation software. This partnership is anticipated to significantly improve the feed formulation for livestock animals that includes pigs, cattle, poultry, and others.

REPORT COVERAGE

The North America swine feed market report provides qualitative and quantitative insights into the market. It also offers an in-depth analysis of the market size and growth rate for all possible segments in the market. Various key insights presented in the market research report are an overview of related markets, demand for the product, and recent industry developments such as mergers & acquisitions, competitive landscape, regulatory scenario in critical countries, and key market trends.

Report Scope & Segmentation