Animal feed is an essential element in the farming and livestock industry. It includes ingredients such as corn, soybean meal, wheat, oilseed meals, vitamins, and minerals that provide essential nutrients to animals to meet the nutritional demand for animal growth and production of meat, eggs, and milk. The demand for animal feed has been increasing owing to rising global population and increased consumption of meat products. The increase in population has led to a surge in demand for animal protein sources, which is catalyzing the growth of the animal feed market.
The animal feed market is estimated to be valued at USD 468.8 Bn in 2024 and is expected to reach USD 638.1 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031.
Key Takeaways
Key players operating in the animal feed market are Cargill, Nutreco, ForFarmers, and Land O'Lakes. These players account for over 30% share of the global market. North America and Asia Pacific are emerging as highly lucrative markets owing to increasing meat consumption and growing feed production.
Key players are focusing on expansion in these regions through strategic partnerships and acquisitions. Increasing demand for compound feed and specialized nutritional feed products for pets, aquaculture, and poultry is expected to open new growth opportunities for Animal Feed Market players. Feed manufacturers are launching innovative and customized feed formulations to capitalize on this opportunity. Stringent regulations regarding antibiotics and growth promoters in animal feed in countries like U.S., China, and Brazil present a major challenge for market players. However, they are investing in R&D to develop antibiotic-free and natural growth-enhancing feed additives.
Market Drivers
Rising global meat consumption owing to population and income growth is a key driver for the animal feed market. Meat forms an essential part of diets globally. Growth of the livestock industry especially poultry and pork production is fueling the demand for animal feed products. Key producers are actively expanding their operations to meet the growing demand for animal protein.
Market Restraints
Volatility in raw material prices poses major risks for feed manufacturers and challenges their profit margins. Corn and soybean constitute over 60% of total feed formulation globally. stringent regulations pertaining to GMO ingredients and antimicrobials in feed in regions like Europe limit the usable ingredients for manufacturers. This necessitates R&D investments inclean label and natural alternatives.
Segment Analysis
The animal feed market is segmented according to animal type into poultry, swine, aquaculture, and others. The poultry segment currently dominates the market and is expected to continue its dominance over the forecast period. Poultry meat and eggs have witnessed rising demand globally owing to changing dietary habits and rising incomes in developing nations. This increasing demand for poultry products is driving the demand for poultry feed. Within the poultry segment, the layer feed type accounts for the largest share as layers constitute the highest poultry population.
Global Analysis
The Asia Pacific region currently dominates the global animal feed market and is anticipated to continue dominating over the forecast period. Economic development and growth of the livestock industry in countries such as China and India are the key factors driving demand in the region. China is currently the largest producer and consumer of animal feed globally. North America is another major regional market owing to a well-established livestock sector and considerable demand for meat and dairy products in the region. Brazil and some European nations are also significant markets globally. Overall the animal feed industry is growing in importance globally in line with the rising demand for animal based food products.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
