The global animal feed market was valued at USD 541.2 Billion in 2022 and is projected to reach USD 731.5 Billion by 2030, registering a CAGR of 4.4 % for the forecast period 2023-2030.
Market Definition
Animal feed is food given to domestic animals, especially livestock, in the course of animal husbandry. As the global population expands, the demand for livestock products, such as meat, dairy, and eggs, rises exponentially. This surge in demand underscores the critical role of animal nutrition in meeting protein needs, thus representing a prime factor driving the animal feed industry growth. Urbanization has led to changing dietary patterns, with more people consuming meat and dairy products. The shift in diets towards protein-rich foods results in increased demand for animal feed to support livestock rearing. Furthermore, as farming practices evolve and intensify, there's a higher focus on productivity and efficiency in livestock farming. To meet these demands, animals are often reared in concentrated systems, where they are fed formulated feeds to ensure optimal growth, thereby driving the need for animal feed.
Market Size:
- 2022: USD 541.2 Billion
- 2030: USD 731.5 Billion
- CAGR (2023-2030): 4.4 %
Animal Feed Market Dynamics
Drivers : Increasing Population of Pets and Domesticated Animals
The increasing investment in pet care products and services, there's a rising interest among investors in this thriving sector. According to Venture Intelligence, between 2021 and 2022, the industry garnered a total of USD77 million in investments. Notably, L Catterton, a global leader in pet food investments, made a ground-breaking move by entering the Indian pet food market, injecting a record-breaking USD60 million into Drools. The surge is particularly noticeable in countries experiencing a burgeoning middle class, contributing to evolving attitudes and the emergence of a new pet culture focused on heightened humanization of pets and a larger number of pets kept solely for companionship. In China, the relaxation of pet ownership regulations coupled with a declining birth rate have further fuelled the surge in pet ownership. Between 2014 and 2019, pet ownership rose by 113%. By 2024, experts project that China will surpass all other countries to have the highest number of pets globally. In other parts of Asia, such as South Korea, pet ownership increased from 5 million to 7.5 million between 2014 and 2018, marking a significant 50% growth in pet ownership.
Millennials, individuals typically aged between their early 20s and late 30s, constitute a growing segment of pet owners. This demographic is inclined to have children at later stages in life, pursue work from home or in hybrid work setups, and tend to possess higher income and educational levels. Projections suggest that by 2050, the global demand for animal products will surge by 60% to 70%, with developing countries driving the major share of this increase. Currently, roughly 800 million tonnes of cereals (about a third of total cereal production) are utilized in animal feed, and by 2050, this figure is estimated to exceed 1.1 billion tonnes. The substantial rise in feed demand is expected to occur primarily in developing nations, which already grapple with numerous food security challenges. If the additional feed needed for the projected surge in animal product demand relies on food grains, it could exacerbate food insecurity in these countries. Moreover, on a global scale, the production, processing, and transportation of feed contribute to approximately 45% of greenhouse gas emissions from the livestock sector. Overall, the escalating population of pets and domesticated animals directly correlates with the increasing necessity for pet food and animal feed, exacerbating various food and environmental challenges.
Recent Developments
In July 2023, Hendrix Genetics and CSA announced a new partnership with CSA Animal Nutrition to provide nutrition support within the Americas region for our turkey business unit, Hybrid Turkeys.
IN February 2023, Evonik aims to help keep sows, laying hens and dairy cows healthy with a new plant-based product. The product, called PhytriCare IM, consists of selected plant extracts with a high flavonoid content.
April 2023, BASF and Schothorst Feed Research (SFR) signed an agreement where SFR receives specific non-exclusive licensing rights to Opteinics, BASF's digital solution designed for assessing the environmental impact of feed and animal protein.
Restraint : Low-quality Counterfeit Products
The presence of substandard imitation animal nutrition products in the market poses a significant obstacle to market growth. Consumption of these inferior imitations can result in adverse health effects for animals, including heightened toxicity, infertility, compromised immunity, and other health issues. These factors directly influence livestock production. Research indicates that providing animals with poor-quality protein sources disrupts the balance of dietary protein and can trigger health-related problems in animals. The prevalence of low-quality and inexpensive imitated animal nutrition products in the market creates challenges for other manufacturers aiming to expand their presence.
Counterfeit animal feed lacks vital nutrients or may contain harmful substances, leading to inadequate nutrition and compromising the health of animals. Animals fed with low-quality imitation feeds are more prone to diseases, slower growth rates, and reduced productivity, thereby affecting the overall performance of livestock and poultry. Nutritional integrity is crucial for an animal's proper development, and the fabrication or use of inferior raw materials in these products can impede an animal's growth and development, consequently impacting market growth.
Challenges : Economic fluctuations
Animal feed production involves various inputs, such as grains, proteins, and supplements. Economic shifts, especially in the prices of these inputs, can impact the overall production cost. Fluctuating prices can make feed production more expensive, affecting affordability for both producers and consumers. Economic instability can directly affect consumer behaviour, leading to changes in spending patterns. In uncertain economic times, consumers might cut back on non-essential expenses, which could affect the demand for certain animal products. This change in demand can have a cascading effect on the need for animal feed. Economic fluctuations might impact the competitive landscape. Smaller feed manufacturers might find it challenging to sustain operations during economic downturns, potentially leading to market consolidation and reducing the variety of available products.
Opportunities : Increasing Investments in research and development
Increasing investments in research and development (R&D) within the animal feed market can offer several opportunities for advancements and growth in the industry. Research and development investments can lead to the creation of innovative and more effective animal feed products. This might include feeds with improved nutritional content, better digestibility, and increased efficiency in converting feed into animal products like meat, milk, or eggs. Research can identify new additives or ingredients that improve animal health, reduce the need for antibiotics, and enhance disease resistance. This benefit both animal welfare and the quality of animal-derived products. Overall, investments in R&D within the animal feed market have the potential to drive significant advancements, foster innovation, and create a more sustainable and efficient industry, benefiting both producers and consumers alike
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 541.2 Billion |
| Market Forecast in 2030 | USD 731.5 Billion |
| Compound Annual Growth Rate (CAGR) | 4.4 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Species, By Additives, By Ingredient, By Region. |
| By Species |
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| By Additives |
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| By Ingredient |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Animal Feed Market
By species
Based on species, the poultry segment dominated the market in 2022 with the largest revenue share of 36.1%. This is attributable to continuous growth in broiler production across regions. The poultry industry is a significant component of the global agricultural sector, focused on the production of chicken, turkey, ducks, and other domesticated birds for meat, eggs, and other products. It is a vital source of animal protein, providing nutritious food to millions of people worldwide. Poultry, especially broiler chickens, is economically efficient in converting feed into meat. They have a high feed conversion ratio, meaning they require relatively less feed to produce a pound of meat compared to other livestock like cattle or pigs. The demand for poultry meat and eggs has been consistently high due to their relatively lower cost compared to other meats, making the poultry industry a significant consumer of animal feed. These factors contribute the poultry segment has continued to dominate the animal feed market.
By Additives
In terms of additives, the amino acid segment dominated the market in 2022 with a highest revenue share of 31.7% in 2022. This is due to the capacity of additives to support animal growth and aid in the development of immunity. The market offers a variety of animal feed additives, such as acidifiers, enzymes, antioxidants, antibiotics, vitamins, and amino acids, that are used to boost production and improve the product's nutritional value. In developing nations, where incomes are rising and populations are becoming more urbanized, there is an apparent increase in consumption as people vary their diets.
Regional Analysis
Asia Pacific has gained the largest market share in 2022:
In 2022, the Asia Pacific region held a leading position in the market, accounting for the highest revenue share of 38.1%. This dominance can be attributed to the region's rapidly growing population, a surge in middle-class income, and the ongoing trend of urbanization. The increase in disposable incomes, coupled with shifts in dietary choices, has elevated the demand for animal-derived products, subsequently driving a greater need for animal feed to facilitate the production of livestock. Additionally, significant industry players are anticipated to broaden their range of poultry feed products in response to evolving consumer inclinations toward meat consumption.
North America is expected to dominate the market in the forecast period. The surge in meat consumption, especially in the United States, is driving the North American market. The stringent regulations focusing on meat quality are poised to significantly influence the industry. Established mills and pet food manufacturing sectors will increase the need for animal feed products. Additionally, increasing health consciousness among consumers and a rise in per capita meat intake will further drive the industry's growth. The ample supply of raw materials such as maize and dextrose is anticipated to be a key factor propelling market expansion in the projected period.
List of the prominent players in the Animal Feed Market:
- Archer Daniels Midland Company
- BASF SE
- Land O Lakes Purina
- Nutreco N.V. (Trouw nutrition)
- Cargill Inc.
- Kemin Industries, Inc.
- ANOVA Group
- ADM
- Chr. Hansen Holding
- Alltech, Inc
Segmentation Analysis of the Animal Feed Market
By Species
- Poultry
- Cattle
- Swine
- Aqua
- Pet
- Antibiotics
- Vitamins
- Cereals
- Oilseed Meal
- Molasses
- Fish Oil and Fish Meal
Impact of the COVID-19 Pandemic on the Animal Feed Market:
The Covid-19 pandemic has had a significant impact on pet ownership, as shown in recent research by Animal Medicines Australia. There has been a steady rise in pet ownership in the country, with the number of Australian households owning pets having increased from 61 percent in 2019, to 69 percent in 2021. This means the total number of pets in Australia has increased from 28.5 million in 2019 to 30.4 million in 2021. Millions of Australians decided to adopt a pet during the pandemic, adding more than a million dogs to the total pet population, rising from 5.1 million owned dogs in 2019 to 6.34 million in 2021. The pandemic has been a key motivator for pet ownership, with 19 percent of dogs and 24 percent of all cats owned by Australians acquired since the beginning of the pandemic.
