Compound feed market expected to reach $596 billion by 2030

Market growth from increased demand for dairy, meat expected
calendar icon 1 April 2022
clock icon 3 minute read

According to a report by InsightAce Analytic, the global compound feed market is valued at USD$426 billion in 2021, and it is expected to reach USD$596 billion by 2030, with a CAGR of 3.85% during the forecast period of 2022-2030.

Compound feed plays a vital role in ensuring feed and food safety across the livestock and aquaculture supply chain. For cattle, poultry, swine, rabbits, and horses, compound feed provides the proteins and energy complements they require. Compound feed is a homogeneous mixture containing the optimal daily amount of nourishment for animals in a fixed ratio of various loose components.

The growing importance of the compound feed sector will be reflected in the rising demand for animal proteins. Therefore, animal husbandry's most crucial component for long-term growth is the feed industry, said the report. For animal production to be sustainable, any increase in animal protein production demands a significant increase in feed production.

According to InsightAce Analytic, the market is expected to be driven by increasing demand for dairy, meat, and aquaculture products across the globe. Rising demand for organic feed coupled with the growth of organized livestock is another factor influencing market trends. Increasing demand for safe and nutritious animal food, growth in the number of domesticated animals and livestock, rapid industrialization of livestock and cattle farming, and increased animal health issues are projected to be the major driving factors for market growth.

According to the Food and Agriculture Organization of the United Nations, in 2021, global meat production was expected to reach 352.7 million tonnes (in carcass weight equivalent), up 4.2 % from 2020 and the fastest rate of growth since 1997. Global poultry meat output is expected to increase by 1.1 % to 135 million tonnes in 2021, owing to expected increases in demand in Brazil, China, India, and Mexico, but potential reductions in the European Union and Indonesia, among other places.

Regionally, The Asia Pacific dominated the market for compound animal feed and accounted for the largest revenue share in 2021. The regional growth is attributed to the increased animal production and rising demand for meat & dairy products in the region, especially in Thailand, China, Malaysia, India. The USDA estimates that India's feed business is developing at a 5-7 % CAGR, with the poultry, cattle, and aqua feed sectors emerging as important growth drivers, citing feed industry sources.

Europe also holds a significant market share for compound feed in 2021 due to the surge in poultry and cattle feed production. France, Italy, Spain, Germany, and the UK are major European poultry feed producers. Approximately 43.79 % of total EU compound feed is produced in these countries. In North America, Compound feed consumption in the US has increased dramatically in recent years, owing to increased demand for poultry and livestock.

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