Animal Feed Market Analysis

Animal Feed Market Overview

Animal Feed Market Size was valued at USD 5,48,784.8 million in 2021. The animal feed market industry is projected to grow from USD 5,73,480.1 million in 2024 to USD 7,80,427.2 million by 2030, exhibiting a compound annual growth rate (CAGR) of 4.72% during the forecast period (2024 - 2030). Growing demand for meat and animal-based products, as well as an increase in livestock production, are major market drivers increasing the animal feed demand in the market. Because consumers are becoming more health conscious, dairy and meat products are becoming increasingly popular as sources of various nutrients, positively impacting animal feed demand.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Animal Feed Market Trends

• Rising Animal Food demand to boost the market growth

The animal feed market is projected to grow during the 2024-2030 due to the increasing  food demand and population. It has been forecast that by the year 2050, the food demand will increase by over 50%. It is estimated that animal food production (for dairy, fish, and poultry) will increase by three times and nearly double (for swine, poultry, and beef) compared to current production levels. It is anticipated that meat production ly will increase by about 70%, aquaculture by about 90%, and dairy products by about 55% in the next five years. Therefore, animal farming and protein consumption are essential for maintaining nutritional health throughout the world. Thus, the market is expected to grow at a significant sustainable rate over the next five years.

From 2010 to 2050, FAO estimates that animal protein production will grow by approximately 1.7% (approximately) each year.  compound animal feed production reached one billion tonnes per year in 2020, according to the International Feed Industry Federation's Annual Report 2020-21. Over 400 billion dollars worth of commercial animal feed is manufactured worldwide annually. In addition, world feed tonnage increased by 1% to almost 1.2 billion tons.

Large-scale livestock production enables food to be produced sustainably. In addition to contributing to food production, farm animals have important economic and social functions. Approximately 40% of agricultural output is derived from livestock in developed countries and 20% from developing countries, supporting the livelihoods of 1.3 billion people worldwide. In addition, the livestock sector provides 34% of the world's protein supply. Therefore, factors related to the growing animal food demand have enhanced the animal feed market CAGR in recent years.

However, there has been an increase in demand for animal products since incomes have increased, diets have changed, and the population has grown, another factor driving the animal feed market revenue.

Animal Feed Market Segment Insights

Animal Feed Form Insights

The animal feed market segmentation, based on form, includes pellets and crumbles. The pellets animal feed segment held the majority share in 2021, contributing around 65-67% to the market revenue. The animals we raise for meat, leather, fur, milk, eggs, and wool are cattle, cows, pigs, camels, sheep, deer, rabbits, alpacas, etc. Many of these animals can be fed pellets since pellets have a higher nutritional density, a more comprehensive nutritional supply, and a higher economic value. Additionally, these pallets are easier to store and transport than traditional roughage and can be digested, absorbed, and conserved better by these animals.

Animal Feed Species Insights

The animal feed market segmentation, based on species, includes poultry and aqua. The poultry segment dominated the animal feed market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. In poultry feed, whole maize, maize germ, soybeans, cottonseed cake, sunflower, and fish meal are common ingredients. To ensure that chickens get enough micronutrients, minerals, and vitamins to meet their daily nutritional needs, farmers add several animal feed additives such as micronutrients, minerals, and vitamins. As farming became more specialized, many farmers chose to feed their poultry a nutritionally complete diet. Hence, the high benefits of feed in poultry positively impact the market growth.

Figure 2:  Animal Feed Market, by Species, 2021 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

As food preferences changed and animal-based protein consumption increased, livestock products were consumed more frequently, driven by the animal feed protein market. The increase in demand for livestock products (milk, meat, and poultry) and the rise in demand for high-quality meat products are factors driving the demand for animal feed.

Animal Feed Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The Asia-Pacific animal feed market accounted for USD 2,60,672.8 million in 2021 and is expected to exhibit a significant CAGR growth during the study period. A growing middle-class population and an increase in family income contribute to the market's growth in the forecast period. Consumers have greater disposable income to spend on nutritional products aside from cereals. Additionally, the growing disposable income of individuals is expected to boost the animal feed market, as well as the growing interest in animal protein's health benefits.

Further, the major countries studied in the animal feed market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  ANIMAL FEED MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The Europe animal feed market accounts for the second-largest market share. Increasing demand for innovative animal feed products is the primary factor driving the European market. In light of the increasing animal farming and feed industries in the region, players such as Archer Daniels Midland Co., Cargill Inc., Charoen Pokphand Foods Plc, Evonik Industries AG, ForFarmers N.V., and others are seeing plenty of opportunities in the animal feed market. Further, the German animal feed market held the largest market share, and the UK animal feed market was the fastest-growing market in the European region.

The North American animal feed market is expected to grow at the fastest CAGR from 2022 to 2030. Increasingly, feed additives are being used in animal feed because of the market's growing demand for high-quality and higher-value products. Moreover, the U.S. animal feed market held the largest market share, and the Canadian animal feed market was the fastest-growing market in the Asia-Pacific region.

Recent Development

On July 28, 2023, Hendrix Genetics, a multi-species animal breeding, genetics, and technology company, announced a partnership with CSA Animal Nutrition, a leading provider of professional nutrition services, to gain nutrition support within the Americas region for its turkey business unit, Hybrid Turkeys. Under the partnership, CSA will provide precise nutrition to Hybrid Turkeys to match its performance goals.

On July 27, 2023, Ensus UK announced that it is working on producing high-protein feed for aquaculture and pet food applications. The two by-products of the distillation and fermentation process are dried distillers' grains with soluble (DDGS), sold as protein-enriched animal feed, and biogenic CO2 for use in the food and drinks industries and other sectors.

On July 26, 2023, ForFarmers/Tasomix, a Polish brand of Lochem, Netherlands-based feed manufacturer ForFarmers, announced the acquisition of Piast Pasze Sp. z.o.o., a leading animal feed manufacturer.

These companies will merge their feed activities to increase ForFarmers/Tasomix production by 410,000 tonnes and strengthen the company's position in the broiler sector. Expected to complete by the fourth quarter of 2023, the acquisition will enable both companies to grow their footprints in the country while allowing them a larger operating area to enhance the solid platform to develop further and improve a sustainable future for the business.

On July 19, 2023, Sanders, the animal feed business unit of Avril, a French agribusiness, announced its plan to acquire Soufflet Agriculture to expand its animal nutrition footprint in France. The deal includes the Talmont-Saint-Hilaire production site of Soufflet Agriculture in Vendée, France, which produces 45,000 tons of mash feed annually. The transaction aligns with Sanders' commitment to the beef and dairy sector's future. Sanders team's proven technical expertise in beef cattle will be extended throughout France.

On July 10, 2023, UFAC-UK, a leading animal supplement manufacturer and supplier, announced the completion of a major upgrade in its manufacturing facility in Suffolk, England. UFAC-UK aims to enhance production efficiencies and reduce its carbon footprint through intelligent control systems. This feed mill upgrade with intelligent control systems will help reduce the facility's carbon footprint. The company has invested significantly in the manufacturing management software system and advanced liquid holding facilities to increase capacity further.

Animal Feed Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the animal feed market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the animal feed industry must offer the cost-effective product to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the animal feed industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. The animal feed industry has provided medicine with some of the most significant benefits in recent years. The animal feed market major player such as Archer Daniels Midland (ADM) Company (U.S.), Cargill Inc. (U.S.), Neovia Group (France), Land 'O Lakes Inc. (U.S.), and others are working on expanding the market demand by investing in research and development activities.

The Archer-Daniels-Midland Company procures, transports, stores, and merchandises agricultural commodities and products. Archer-Daniels-Midland also processes produce products that have primarily two end uses, including feed ingredients and oilseeds. Archer-Daniels-Midland also processes corn, milo, oats, barley, peanuts, and wheat. In April 2019, ADM opened a new high-tech livestock feed facility in Quincy, Illinois. The investment is another example of an effort to become the world's best partner for livestock, aquaculture, and companion animals.

Also, agricultural products are provided by Cargill, Incorporated. The company produces grains and oilseeds and offers farmers services and risk management services, animal nutrition, biofuels, meat and poultry, food, and industrial products. Cargill serves customers in over 150 countries. In October 2021, BASF and Cargill further expanded their partnership in animal nutrition as well as expanding their feed enzymes sales agreements.

Key Companies in the animal feed market include

• Neovia Group (France)


• Archer Daniels Midland (ADM) Company (U.S.)


• COFCO Limited (Hong Kong)


• New Hope Group (China)


• ForFarmers N.V. (The Netherlands)


• Charoen Pokphand Group (Thailand)


• Cargill Inc. (U.S.)


• Japfa Comfeed Indonesia Tbk (Indonesia)


• NUTRECO N.V. (The Netherlands)


• Land 'O Lakes Inc. (U.S.), among others

Animal Feed Industry Developments

July 2020: Kemin Industries presented architectural renderings of its new quality control lab at its Des Moines, Iowa headquarters to enhance its innovation and research capabilities.

March 2020: To enhance its feed products portfolio for fish farmers across North America, Alltech announced a partnership with aqua feed nutrition company Corey Nutrition.

December 2021: An enzyme designed for animal feed, Natupulse TS, was introduced by BASF. It breaks down non-starch polysaccharides (NSPs). It is an endo-1,4-ß-D-mannanase (MOS), which hydrolyzes ß-mannans into smaller components, such as manno-oligosaccharides. By introducing ß-mannanase to feed, viscosity is reduced, digestibility is improved, and sustainability is achieved.

Animal Feed Market Segmentation

Animal Feed Form Outlook

• Pellets


• Crumbles

Animal Feed Species Outlook

• Poultry


• Aqua

Animal Feed Regional Outlook

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America