Compound Feed Market Size, Industry Analysis Report, Regional Outlook (U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, Poland, Belgium, Netherlands, Russia, Japan, China, India, South Korea, Malaysia, Sri Lanka, Brazil, Argentina, UAE, South Africa, Saudi Arabia), Application Development Potential, Price Trends, Competitive Landscape & Forecast, 2020 - 2026
Report ID: GMI208
The proliferating demand for high-quality agriculture and meat products among consumers is a key driver propelling compound feed market share. Recent years have seen heightening awareness regarding the merits of high-grade milk and meat products for more well-rounded dietary choices, consequently boosting livestock production.
Compound feed refers to a mix of supplements and animal or vegetable-based products in fresh, preserved or natural state, organic or inorganic products, or products obtained from industrial processing, with or without additives. Corn, wheat, soybean, sorghum and barley are among the common raw materials used in combinations with minerals, amino acids, and vitamins as supplements or additives to produce compound feed.
A major trend driving compound feed market growth is a rapid shift in dietary habits, as a result of rising awareness regarding the benefits of a protein-rich diet, and escalating income levels among consumers. For instance, according to National Academy of Medicine recommendations, a minimum of 0.8g of protein is required for each kg of body weight per day for the average adult. This dietary evolution has thus led to higher meat and animal-based product consumption, fueling extensive manufacturing of livestock. In order to sustain these rising manufacturing levels, novel feed products and methods to ensure optimal feed conversion ratios and nutrition levels are needed, thereby adding impetus to compound feed industry size.
Cereal is gaining popularity as the preferred ingredient for compound feed manufacturing. Cereals are a primary energy source, and are used extensively in feed manufacturing, depending on the preference and availability in various regions, making them an integral segment in the compound feed market.
APAC is set to emerge as a fast-growing revenue source for the compound feed industry outlook over the forecast spell, given the high level of per-capita meat consumption in the region. Furthermore, as populations in prominent Asian nations including India, South Korea and China continue to expand, the demand for meat and animal sourced products, such as dairy will surge as well, in turn boosting regional industry demand.
The highly fragmented compound feed market share consists of major participants such as Alltech Inc., New Hope Group, Cargill and ADM, as well as other industries including ZhengDA International Group, Charoen Pokphand, Miratorg Agribusiness Holding (Agromir Limited), Ballance Agri-Nutrients, De Heus Voeders B.V.( De Heus Beheer B.V.), Nutreco NV(SHV Holdings), Ewos Group, and Heiskell & Co.
These players are engaged in several strategic activities such as mergers and acquisitions, in order to maintain a competitive position in the market.
For example, InnovaFeed and Cargill inked a strategic partnership in 2019, to collaboratively market fish feed with insect protein, with a mutual aim of advancing sustainable aquaculture.
Likewise, Nutreco signed an acquisition agreement to take over the Portugal-based compound feed business of Cargill in late 2019, in order to bolster the position of Nanta, Nutreco’s Iberian animal feed venture, in the Portugal market.
The dreaded COVID-19 pandemic has had a severe impact on animal feed supply-demand. Nations such Romania, for instance, have banned export of grains such as maize, wheat, barley, soybean, etc. to non-EU economies, resulting in significant challenges to the compound feed industry.
The HORECA (Hotel/Restaurant/Catering) industry has also taken a considerable hit during the crisis period, as closure of restaurants and food service outlets have led to a diminished demand for meat and dairy products. In fact, the European Compound Feed Manufacturers’ Federation (FEFAC) predicts a significant decline in cattle feed production in the EU, as well as a -3% to -6% decrease in total compound feed production in 2020, given the uncertainty surrounding the true impact of the pandemic. However, market conditions may witness a path to recovery in the future, once the meat & livestock production demand normalizes in the post-COVID-19 era.
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