The Animal Feed Market Will Grow At Highest Pace Owing To Increasing Focus On Animal Health

By Author: Ravina Pandya
Total Articles: 28
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The animal feed market comprises nutritious balanced food for animals including pet food, aquafeed, poultry feed and ruminant feed among others. Animal feed ingredients including corn, wheat, soybean, oils, fishes and various additives provide essential vitamins, minerals, fibers and proteins to animals. Rising consumption of meat and dairy products across the globe is fueling the demand for animal feed to ensure better health and productivity of livestock. Growing focus on animal welfare and health is also driving 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, Archer Daniels Midland, New Hope Group, Nutreco N.V and Charoen Pokphand Foods.

Growing meat consumption globally is driving the demand for Animal Feed Market. Asia Pacific region accounts for over 50% of global meat consumption attributed to increasing disposable incomes and westernization of diets ...
... in developing countries.

Technological advancements in animal feed development such as usage of biotechnology and precision nutrition are helping address specific nutritional requirements of different species resulting in improved productivity.

Market Trends
Usage of antibiotics as growth promoters is banned in EU and other developed regions to tackle antimicrobial resistance. This has led to increased demand for antibiotic-free animal feed supplements.

Feed traceability using blockchain technology is gaining prominence to strengthen transparency across supply chain and ensure feed quality compliance. Major players are investing in blockchain solutions for digital animal feed tracking.

Market Opportunities
Rising focus on aquaculture is opening new growth opportunities. Development of custom aquafeed formulations tailored for different fish species will drive market gains.
Pet food industry is growing at a robust pace driven by humanization of pets. Functional pet food segments such as nutraceuticals and therapeutics are emerging growth verticals.

Animal Feed Market Impact of Covid-19
The outbreak of the COVID-19 pandemic has impacted the animal feed market significantly. Before the pandemic struck, the market was growing steadily at around 4.5% CAGR. However, disruptions caused due to lockdowns and social distancing measures affected the supply chains and distribution channels of animal feed producers globally. Movement restrictions made it difficult to transport raw materials as well as finished animal feed products. This led to shortages and price rises of various feed ingredients like corn, soybean meal and others in many parts of the world. On the demand side, restrictions on the operations of livestock processing facilities and food service industry impacted meat consumption and animal protein demand negatively. This led to oversupply of animals, reduced slaughter rates and less spending on animal feed.

However, as lockdowns eased in late 2020 and 2021, the market has started recovering gradually. Producers are focusing on developing alternate supply routes, boosting local sourcing and maintaining inventory levels to deal with future disruptions better. On the demand side, pent up consumer spending on protein and food services is supporting animal protein demand recovery. The long term growth fundamentals also remain strong driven by rising global meat consumption, demand for animal protein in developing markets and focus on sustainable and specialized animal feed products. While challenges persist, industry participants will have to continue mitigating supply risks, adjusting production to evolving demand dynamics and investing in digital and technological capabilities to capture opportunities in the post covid era.

The United States accounts for the largest share of the global animal feed market, both in terms of production as well as consumption. It is among the leading producers as well as consumers of meat globally. China follows in second place owing to its huge livestock population as well as rising meat consumption. Other major markets include Brazil due to large cattle herd, poultry industry and feed exports. Some of the fastest growing regional markets for animal feed include Southeast Asia due to dietary shifts towards meat consumption, Mexico benefiting from livestock trade with the US under USMCA and Eastern European countries expanding poultry and pork production.

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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.
(https://www.linkedin.com/in/ravina-pandya-1a3984191)