Compound Feed Market Outline
Market Research Future (MRFR), after careful analysis, predicts that the global compound feed market is on its way to reach the valuation of USD 709.65 billion by 2030. Also, it will be clocking in a CAGR of 4.85% during the forecast period (2022-2030).
Growth Drivers and Key Restraints
The global compound feed industry will be observing a brisk growth pattern in the coming years, on account of the increase in animal-based food product consumption across the globe. The evolving customer dietary habits with regard to meat and dairy products quality is set to contribute massively to the compound feed market growth from 2022 to 2030.
Moreover, there are numerous advantages associated with compound feed, including high meat product quality, cost-effective nutrition enhancement as well as food nutritional quality. Plus, it helps improve the feed quality which benefits animal’s health substantially.
Apart from this, the surging animal-based food consumption around the world in the recent past is expected to augment the demand for the industry. Not just this but the ever-rising demand for dairy products will also result in the tremendous industry growth in the years to come. With the growing meat consumption observed around the world, the compound feed industry will note massive demand for better quality meat. Also, the livestock diseases outbreak in the past couple of years will prompt various meat and dairy product vendors to make use of the product as well as additives for livestock quality along with health assurance. However, the fluctuating prices of raw materials like barley and wheat could leave a negative impact on the growth of the market. On the plus side, rapid industrialization coupled with enhanced processed meat equipment, there will be a striking surge in the meat production. This factor will most likely shape the positive outlook for the compound feed market soon.
Compound Feed Market Opportunities
Rising Popularity of Organic Feed
Organic feed refers to a type of feed which is produced using the methods that have been outlined as per the standards of organic farming. Simply put, organic means that the ingredients in the feed cannot be genetically modified, cannot be fertilized with chemical fertilizers or treated with fungicides, pesticides and insecticides.
Thus, owing to these reasons, there has been a sharp rise in the popularity of organic feed, which has given way to growing trend of vertical integration (contract farming), leaving a major impact on the compound feed market growth at a global level. Moreover, growing expenditure for advertising organic feed product is expected to assist the industries in creating opportunities, thereby expanding the compound feed market share.
Compound Feed Market Segmentation
The global compound feed market has been segmented into ingredients, source, form and livestock.
Based on ingredients, the market has been segmented into cereals, cakes & meals, by-products and supplements. The cereals category accounted for the largest share of the market in 2021. Due to their availability and superior nutritional profile, cereals are consumed in higher quantities when compared to other components. The three main sources of feed grains are wheat, corn, and rice in developed and developing nations. Oats, millet, sorghum, and barley are some other feed grains that livestock eat. On the other hand, the cakes & meals category is anticipated to grow at a significant rate. Soybean meal, cottonseed meal and canola meals are cakes and meals frequently used in feeding formulation. In animal diets, oilseed meals are a significant source of protein.
Based on the source, the market has been segmented into plant-based and animal-based. The animal-based category accounted for the largest revenue share in 2021 in the compound feed market. The main animal-based components in the compound feed are fish meal, fish oil, bone and bone meal, minerals, vitamins, and enzymes. Despite being a good source of protein and fat for feed, they are more expensive and scarcer than food from plants.
Based on the form, the market has been segmented into mash, pellet, crumble and other forms. The pellet category accounted for the largest revenue share in 2021 in the compound feed market. The most popular type of compound feed, pellets, are in high demand because of their advantages. Because it is simple to give animals, the pelleted form encourages early feed uptake and decreases wastage.
Based on livestock, the market has been segmented into poultry, ruminants, swine, aquaculture and other livestock. The poultry category accounted for the largest share of the market in 2021. Growing demand for chicken and turkey will propel the expansion of this segment in the future year if there is an increase in the breeding of poultry animals across numerous nations. Since poultry is an excellent source of economical protein, the industry is anticipated to expand in the upcoming years. There is a higher demand for the poultry market because eating white meat has health benefits compared to eating red meat.
Compound Feed Market Top Vendors
The top vendors in the global compound feed market are United Animal Health Inc. (U.S.), Land 'O Lakes Inc. (U.S.), Nutreco NV (The Netherlands), Weston Milling Animal Nutrition (Australia), COFCO (China), Neovia Group (France), Feedone Co., Ltd. (Japan), Cargill Inc. (U.S.), New Hope Group (China), Charoen Pokphand Foods PCL (Thailand), ForFarmers NV (The Netherlands), Archer Daniels Midland (ADM) Company (U.S.), PT Japfa Comfeed Indonesia Tk (Indonesia), among others.
Compound Feed Market Regional Outlook
Asia Pacific dominated the market for compound feed in 2021. The market in this area is anticipated to expand well due to rising human incomes and demand for meat consumption. Compound feed is consumed at its highest level in numerous Asia Pacific nations.
North America is expected to register lucrative growth in the market for compound feed. The market will expand strongly during the forecast period due to rising demand in North America for both cattle and poultry. The market for compound feed in developed countries is anticipated to grow strongly in the coming years as meat production rises due to a rise in consumer demand for these goods.
Industry Update
March 2019 – Paris-based Ÿnsect, an agtech startup, has developed a type of protein by breeding various insects, followed by their transformation into premium protein for pet food, organic plant fertilizers as well as fish feed. The company will be building the world’s largest insect farm in Amiens Metropole, Northern France, in addition to the expansion in international markets, targeting the North American market in particular.
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