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Compound feed market size to reach USD$539.9 billion by 2023

Compound feed market size to reach USD$539.9 billion by 2023 at 4.02 percent compound annual growth rate (CAGR), predicts Market Research Future.

9 May 2019, at 11:15a.m.

The compound feed market is poised to reach $539.9 billion by 2023 at a 4.02 percent CAGR during the forecast period (2018-2023), reveals the latest report by Market Research Future (MRFR).

The special interest given to animal diets in the current age of farming has upped the importance of animal feeds. Emphasis on protein-rich diets by consumers is expected to put the pressure on farmers. Compound feeds comprise a mixture of various concentrates and required nutrients in an easy to digest form. They are manufactured in the form of pellets, crumbles, cubes, mashed, etc.

Market outlook

The worldwide compound feed market is expected to thrive at a CAGR of 4.02 percent from 2018 to 2023 (forecast period), asserts Market Research Future (MRF) in its latest report. High demand for nutritious meats, rise in organised farming, and precision nutrition are factors predicted to drive the market valuation to $USD539.9 billion over the forecast period.

High consumption of animal-based foods is likely to propel the demand in the compound feed market. This is supported by the survey undertaken by the Food and Agriculture Organization of the United Nations (FAO) which touts a meat consumption per capita of 77.82 pounds by 2025. Demand for dairy and a growing populace are other factors touted to positively impact market growth.

But rising prices of raw materials such as corn and maize can impede market growth. Strict policies restricting the use of animal feeds is another obstacle faced by the market.

Key players and industry buzz

Well-known names in the compound feed market include COFCO, Land 'O Lakes, New Hope Group, PT Japfa Comfeed Indonesia Tk, Charoen Pokphand Foods PCL, Archer Daniels Midland (ADM) Company, Neovia Group, Nutreco NV, Cargill, Weston Milling Animal Nutrition, Feedone, United Animal Health, and ForFarmers NV.

Partnerships and agreements are foremost strategies considered by these players to gain a competitive edge in the market. In April 2019, Cargill decided to open up a first-of-its-kind animal premix factory in the Middle East. The unit can cater to the demand of livestock farmers and meet consumer expectations of high-quality meat.

Liquid feed formulations take the front seat

Zinpro Corporation, the frontrunner in developing performance minerals, has launched ProPath LQ, a breakthrough product which can be used in liquid feeds for all animals. The additive plays a vital role in improving animal wellness and performance. The unique formulation combines two amino acids attached to a mineral that allows the feed to be absorbed rapidly into the digestive system.

New research emphasises importance of plasma

Plasma has been discovered to contain the specific ingredients required to improve the wellness of shrimp. This has come as a boon for farmers in aquaculture. According to research by Darling Ingredients, fishmeal replaced by plasma in the diet of shrimp culminated in 10 percent increased growth. Moreover, the ratio of immunoglobulins had risen after feeding.

APAC to be the largest revenue generator

Region-wise, the Compound Feed Market is segmented into South America, Asia Pacific, North America, Europe, and the Middle East & Africa (MEA).

The APAC region can enjoy a CAGR of 4.21 percent over the forecast period to touch a valuation of $211.2 million by 2023. The demand by farmers in India and China for effective feeds is likely to augur well for the compound feed market. In addition, the preference for protein-dense meats is expected to lead to high investments by international feed producers. Other factors such as urbanisation and high-income growth of consumers can facilitate market growth.

Browse the market data and information spread across 118 pages with 105 data tables and 21 figures of the report Compound Feed Market Report - Forecast 2018-2023 in-depth.

Segmentation analysis

The global compound feed market is segmented by ingredient, supplement, and livestock.

By ingredient, the market is segmented into cereals, cereal by-products, oils, oilseed meal, molasses, supplements, and others. Cereals accounted for close to 37.44 percent share in the compound feed market in 2017 thanks to the plentiful supply of raw materials such as sorghum and corn required for its production. It could exhibit 3.48 percent CAGR over the review period to reach a valuation of $195.9 million by 2023. Supplements could display a CAGR of 4.71 percent during the forecast period to generate close to $74.6 million for the compound feed market. This can be credited to the immunity it provides to animals against infectious diseases. Its extensive use by farmers and beef producers due to its low cost is likely to register in a strong demand.

By supplement, the market is segmented into acidifiers, enzymes, amino acids, antioxidants, antibiotics, vitamins, and others. Amino acids can exhibit a CAGR of 5.31 percent during the forecast period to reach a valuation of $18.5 billion. Preference of protein-rich foods is the primary driver of this segment.

By livestock, it is segmented into poultry, swine, ruminants, aquaculture, and others. The poultry segment can accumulate revenue close to $212.2 billion by 2023 thanks to preference of eggs by consumers.

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