Global Animal Feed Market Size, Share & Growth Analysis - Report Forecast Trends and Outlook (2024-2032)

Animal Feed Market Growth

India is one of the leading exporters of animal feed. In FY 2023-24, it exported 8.92 lakh tons of oil to Bangladesh, 8.32 lakh tons to South Korea, and 6.33 lakh tons to Thailand. Iran is the largest soybean meal importer from India, recording 8.64 lakh tons of imports in 2023.

Over 70% of global antimicrobials sold are estimated to be used in animal feed production. However, strict implementation of animal welfare laws has led to a 28% reduction in the use of antimicrobials for animal feed in Europe as compared to 2018. While the consumption rate increased significantly in Africa and North America, increasing initiatives towards tackling antibiotic resistance among farmed animals is expected to result in the animal feed demand growth during the forecast period.

With the growing environmental consciousness, major market players are adopting sustainable techniques, like precision fermentation which minimises carbon emissions to produce animal feed. By gene modification and fermentation of yeast, this process can sustainably produce different vitamins and minerals, enzymes, and flavours for animal feed. This is expected to drive the market growth in the coming years.

Key Trends and Recent Developments

Rising focus on sustainability, technological advancements and expansion and introduction of alternative proteins to spur new animal feed market dynamics and trends.

June 2024

In keeping with the tradition of providing the market with innovative products and solutions that will lead to a higher level of satisfaction for its customers, Evonik released the new generation of Biolys®. The novel Biolys® formula had 62.4 percent L-lysine (an 80 percent ratio to Lysine HCl) whereas the older version had 60 percent L-lysine (a 77 percent ratio to Lysine HCl).

Increased Focus on Sustainability

A key trend in the animal feed market is that there is a rising emphasis on sustainable practices in animal feed production. Companies are developing eco-friendly feed ingredients and reducing waste, aiming to lower the environmental impact. This trend supports the demand for more responsible and efficient feed solutions that align with global sustainability goals.

Technological Advancements

Technological advancements are reshaping animal feed production, with innovations such as automated feeding systems, smart sensors, and data analytics improving efficiency. These technologies allow for precise monitoring and control of feed distribution, therefore, optimising animal health and growth as well as providing overall operational efficiency.

Expansion of Alternative Proteins

The industry is increasingly using novel protein sources for animal feed, including insect meals and plant-based proteins, opening up new animal feed market opportunities. This new trend introduces the demand for greener and cheaper feed options, thereby, taking away some of the strain that traditional fishmeal puts on the environment and at the same time improvements in producing fish feed.

Animal Feed Market Trends

A key trend in the animal feed market is the growing adoption of precision nutrition. This method uses data analytics and technology to customise feed formulations to the distinct necessities of certain animals or groups. Through precision nutrition, the efficiency of feed is improved, animal health is maintained, and productivity is increased by the best possible nutrient delivery. A rise in sensors, monitoring systems, and software is the key factor pushing the animal feed industry growth, which allows for more targeted and efficient feeding regimens that will green up farming and provide more profits.

Industry Outlook

The faster pace of meat consumption fuels the demand for quality animal feed. Further, the preference for pork and chicken, Hong Kong sways industry reports and per capita basis, as of 2024, Hong Kong tops total meat consumption at 136.31 kg per capita per annum, with pork at 55.24 kg and the chicken at 55.52kg as majorly consumed kinds of meat, underscoring substantial preference for these two types of meat. In the case of the United States, it is shown that there is a higher preference for chicken 58.69 kg and beef 37.87 kg, the sum of which is 128.63 kg per capita, hence indicating that red meat and poultry is consumed relatively balanced with each other.

Meat consumption in Australia reveals a lot about the preferences: beef: 37.02 kg, chicken: 48.73 kg, total: 121.53 kg per capita. Of the highest interest, of course, are the original eating habits of Mongolia: goat and lamb: 66.33 kg, which entirely described the traditional way of life of the nomads and pastoral culture. Argentina, for example, which has a very high rate of beef consumption, 46.93 kg per capita, counts to another 110.16 kg. Spain and Israel show other examples of high consumption states with respect to pork and chicken, respectively. 125.

According to the European Feed Manufacturers' Federation (FEFAC), in 2022, regional disparities in output of EU compound feed were substantial, which represents the different scales of agricultural production involved in the member states. Thus, Spain was leading industry-wise with a huge 26.479 million tonnes, further enhancing the position of Spain as one of the main agricultural producers of the European Union. In second and third place were Germany, with 22.194 million tonnes, and France, with 19.234 million tonnes, respectively, carving up new trends in the animal feed market.
 
Italy and the Netherlands exhibited excellent rates of production at 14.519 and 14,291 million tonnes, respectively. Further, the advanced agricultural means being employed in these countries and the developed agricultural infrastructure allow the attainment of high rates of feedstuff productions that place them at very strong positions in the EU market. The output of 11.642 million tonnes also proves ways in which Poland is empowered in the agricultural landscape of Europe.

Animal Feed Industry Segmentation

“Global Animal Feed Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Fodder and Forage
• Compound Feed 

Market Breakup by Livestock

• Pork
• Aquatic Animal
• Cattle
• Poultry
• Others

Market Breakup by Raw Material

• Soy
• Corn
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa 

Animal Feed Market Share

Compound Feed To Gain Traction Owing To The Need Of Nutritional And Healthy Balanced Diet

As per animal feed market analysis, compound feed is likelier to continue capturing a larger market share than fodder and forage. This can be attributed to the fact that it ensures a nutritional and healthy balance in the diet, targeting different types of livestock with their specific requirements. Compound feeds include added nutrition, vitamins, and minerals for better growth, productivity, and health of the animals. Compound feed is one of the answers both to the optimization of feed conversion and to an improved general management of animal production, which, with every day passing, is put under stress by the growing demand for more efficiency and high performance.

Driving Factors toward Growth in the Global Animal Feed Market: Increasing Global Population, Rising Demand for Animal Protein

• Growing demand due to a rising world population with an increased requirement and demand for animal protein is one of the major driving factors for the expansion of this market, according to animal feed industry analysis.
• Innovative developments are well documented in feed formulation and production technologies to increase feed efficiency and animal health. 
• The market provides products for all types of livestock, including poultry, swine, beef, and aquaculture.
• This, in turn, helps large-scale players reduce their costs and further improve production efficiency, ultimately selling feed at a cheaper price to farmers.

Fluctuating Prices and Disrupted Supply Chain of Raw Materials Likely to Hamper Profitability in Global Animal Feed Market

• Prices of raw materials such as corn, soybeans, and other grains continue to fluctuate, impacting the overall cost of animal feed, impeding the animal feed market growth.
• If natural disasters or geopolitical issues occur, the global supply chain for animal feed ingredients could be broken, affecting the feed availability and price.
• Disease episodes of outbreaks of some livestock diseases, such as avian influenza and swine fever, reduce the demand for animal feed sharply and disrupt the market.
• Alternative meat sources from plants or laboratories will reduce the demand for traditional livestock products and affect the animal feed market.
• Because economic declines may relate to a decline in meat and dairy product consumption, which again affects the demand for animal feed.

Environmental regulations and sustainability standards will further increase over the coming years and can make it difficult and expensive to produce animal feed or even ban certain ingredients to be used in the manufacturing process of production.

• The growing awareness among end-customers about the issue of sustainability increases demand for quality feed.
• The growth in aquaculture is another demand driver as fish and other aquatic species require quality feed.
• The other factors pushing ahead the demand for organic and sustainable animal feed products are increasing consumer awareness toward sustainable and animal welfare.

Animal Feed Market Regional Analysis

With increasing population, rise in incomes, and more animal product consumption, demands for animal feed will be rising accordingly in the Asia-Pacific region. The expansion of livestock industries and rising demand for efficient high-value feed resources for increased productivity and better health are some other vital factors driving the animal feed industry in Asia Pacific. Another key factor that adds to the incline in the market involves investments in modern farming technologies across regions.

Competitive Landscape

The firms in the animal feed market compete on providing good-quality and nutritionally balanced feed. Continuous developments in feed additives and feed formulation lead to better health and improved growth rates of animals.

Cargill, founded in 1865, and the main headquarters are located in Wayzata, Minnesota, is heavily involved in research and development to create new feed solutions for improving animal health and performance. Through recent and ongoing times, the company has further digitised its processes by incorporating its platform, "Cargill Digital Nutrition Solutions," for the optimization of feeds.

Founded in 1902 and headquartered in Chicago, Illinois, Archer Daniels Midland Company diversified the product mix toward antimicrobials, amino acids, specialty feeds, feed premixes, aqua feed, and other health-promoting feed additives. ADM is committed to sustainability within its operations to include impact reduction on the environment and the sourcing of inputs through sustainable means.

Nutreco N.V., founded in 1994, is headquartered in Amersfoort, Netherlands, and is very research- and development-oriented with a view to developing high-value feed solutions. The company seeks the enhancement of feed efficiency and good health among animals while ensuring sustainability through lower GHG emissions and responsible procurement of ingredients. Nutreco is at the forefront of innovations in animal nutrition through its collaborations with various institutes engaged in research and industry players.

Alltech Inc., established in 1980 and headquartered in Nicholasville, Kentucky, operates several innovation centres globally, with a focus on creating value in animal nutrition and health. In addition, Alltech produces a line of environmentally friendly natural feed additives and supports education and training programs for farmers and professionals on best management and nutrition practices.

BASF SE, founded in 1865 in Ludwigshafen, Germany, is focused on researching and developing improved feed additives to enhance animal growth, health, and feed use efficiency. One of the bases of the corporation is sustainability because it takes continuous efforts and actions to reduce the ecological footprint of products and operations.

Other key players in the animal feed market report include Land O’Lakes, Inc., Charoen Pokphand Foods PCL, FEED ONE CO., LTD., BRF S.A, Kent Nutrition Group, and ForFarmers N.V., among others.

Competitive Factors in the Global Animal Feed Market

• The management of cost in raw material sourcing and production processes is an issue of prime importance. Firms can provide competitive prices to farmers only if production costs are lower.
• Efficient logistics provide a good scope for wide reach of the markets and helps in response to changes in demand patterns.
• Agribusiness firms focusing on environmental stewardship will receive buyers and be compliant with regulations.
• Companies at the cutting edge of technology can offer solutions to very definite needs for specified livestock, driving the animal feed industry revenue. 
• Agribusiness companies operating well in these regulatory landscapes avoid the damages and maintain access to markets.
• On top of that, it is value-adding through technical support and advisory services. A strong customer service relation will help in creating long-term relationships and loyalty among farmers.
• Constant R&D spending is the impetus behind product innovation. Businesses leading from the front can introduce better products with an advantage over their rivals, accelerating the animal feed market revenue.