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Alfalfa Hay Market Analysis & Forecast: 2025-2032

Alfalfa Hay Market, By Type (Bales, Pellets, and Cubes), By Application (Daily Animal Feed, Poultry Feed, Horse Feed, and Others), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

  • Published In : 14 Jul, 2025
  • Code : CMI5418
  • Pages :124
  • Formats :
      Excel and PDF
  • Industry : Food and Beverages
  • Historical Range: 2020 - 2024
  • Forecast Period: 2025 - 2032

Alfalfa Hay Market Analysis & Forecast

The global alfalfa hay market is estimated to be valued at USD 86.46 Bn in 2025 and is expected to reach USD 136.22 Bn by 2032, growing at a compound annual growth rate (CAGR) of 6.7% from 2025 to 2032.

Key Takeaways

  • Based on the Type, the pellets segment dominates with 57.2% market share due to enhanced shelf-life and uniform feeding.
  • Based on the Application, the Daily animal feed segment dominates with 37.3% the market share due to the demand from the dairy and cattle industries.
  • Based on the Region, North America is expected to account for 36.1% of the market share in 2025.

Alfalfa Hay Market Key Factors

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Market Overview

The alfalfa hay market is witnessing steady growth driven by increasing demand for high-quality animal feed across dairy, beef, and equine sectors. Its rich protein, fiber, and digestibility make it a preferred forage crop, especially in developed agricultural economies like the U.S., Canada, and parts of Europe. The rising livestock productivity targets and expansion of organized dairy farms in Asia-Pacific and the Middle East are further boosting demand. Technological advancements in harvesting and storage are enhancing hay quality and shelf life. Additionally, global trade is expanding, with the U.S. and Spain being major exporters to Asia and the Gulf region.

Current Events and Their Impact on the Alfalfa Hay Market

Current Events

Description and its impact

Technological Adaptation Pressures

  • Description: Water-Efficient Cultivation.
  • Impact: Deficit irrigation adoption (60-95% yield retention) becomes critical for farm viability, favoring large producers with irrigation infrastructure.
  • Description: Drought-Tolerant Varieties.
  • Impact: UC Davis breeding programs accelerate the release of resilient cultivars, potentially mitigating 30-40% of climate-related production losses by 2027.

Policy-Driven Market Interventions

  • Description: U.S. Agricultural Subsidy Shifts.
  • Impact: Potential Trump-era subsidies favoring corn/soybeans could reduce alfalfa acreage 12-15% in swing states, tightening supply. 
  • Description:  SGMA Groundwater Regulations.
  • Impact: California's Sustainable Groundwater Management Act forces 500K+ acres of fallowing by 2040, permanently reducing high-quality hay output.

Dairy Industry Demand Shifts

  • Description: Chinese Herd Expansion.
  • Impact: 30% dairy herd growth in Ningxia (2023) drives 2.1Mt alfalfa import demand, tightening global availability.
  • Description: U.S. Dairy Feed Optimization.
  • Impact: High milk prices (2025) incentivize premium alfalfa use, increasing domestic consumption by 8-12% and reducing exportable surplus.

Severe Drought Conditions in Key Production Regions

  • Description: Midwest Drought Probability (60%).
  • Impact: Potential 25-50% yield reduction in the largest U.S. growing region, exacerbating domestic supply shortages and price inflation.
  • Description: Western U.S. Water Restrictions.
  • Impact: Deficit Irrigation Programs in California/Imperial Valley cutting water allotments by 25-50%, reducing output in top alfalfa-producing states.

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End-user Feedback and Unmet Needs in the Alfalfa Hay Market

End-user Feedback

  • High Nutritional Value Praised: Dairy and livestock farmers appreciate alfalfa hay for its rich protein and easy digestion, which helps improve milk production and animal growth.
  • Quality Not Always the Same: Users often observe that hay quality changes because of different cutting times, storage problems, and the impact of weather on crops.
  • Price and Supply Often Change: Even though it is very useful, users worry about rising prices and limited supply during dry weather or poor harvests.

Unmet Needs

  • Better Quality Checks: Farmers want clearer and more reliable checks and labels to know the nutritional value of the hay they are buying.
  • Stronger Supply in Bad Weather: Users are asking for more stable supply options or processed hay like pellets to avoid shortages during bad weather conditions.
  • Improved Storage Methods: Many farmers need better ways to store hay for longer without losing nutrition or having issues like mold and damage.

Export Analysis of Alfalfa Hay Market

Between August 2023 and July 2024 (TTM), India exported 2 shipments of Alfalfa Hay. These exports were carried out by a single Indian exporter and delivered to two different buyers.

In July 2024 specifically, India recorded 2 Alfalfa Hay export shipments, representing a 2% increase year-over-year from July 2023 and a 2% rise compared to June 2024.

Segmental Insights

Alfalfa Hay Market By Type

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Alfalfa Hay Market Insights, By Type

The pellets segment dominates the market due to enhanced shelf-life and uniform feeding

Among the various types of alfalfa hay, including bales, pellets, and cubes available in the market, pellets have emerged as the dominant form, accounting for the largest share, which is expected to account for 57.2% of the market share in 2025. There are multiple factors that have led to the popularity and higher adoption of alfalfa hay pellets over other types. Pellets provide a longer shelf life as compared to loose or baled hay due to their dense structure, which prevents air exposure and moisture penetration. This extended shelf-life allows pellets to be stored for longer durations without quality deterioration. Furthermore, the uniform size and density of pellets enable consistent intake and accurate feeding amounts for animals. The precise and controlled feeding facilitated by pellets minimizes feed wastage and ensures balanced nutrition intake. Also, pellets have lower transportation and warehousing costs relative to other types due to their high density and ability to be packed efficiently without airspaces in containers and warehouses. For instance, Andy by Anderson Hay™ and Belstra's Heinold®Feeds, have collaborated to create custom Alfalfa-based feed Pellets for young rabbits. This is further propelling the alfalfa hay market share.

Alfalfa Hay Market Insights, By Application

The Daily animal feed segment dominates the market due to the demand from the dairy and cattle industries

Within the various application segments where alfalfa hay is utilized, daily animal feed has emerged as the largest segment globally, and it is expected to account for 37.3% of the market share in 2025. This dominant position is attributed mainly to the massive consumption of alfalfa hay in the dairy and cattle breeding industries.  Dairy farming requires high-quality and nutrient-rich fodder to maximize milk yields from cows. Alfalfa hay is rich in proteins, minerals, and vitamins essential for dairy cows and has been demonstrated to boost milk production considerably when used as a major feed component. Similarly, in cattle breeding, high-performance alfalfa hay is invaluable for supporting the nutritional needs of beef and dairy cattle and enabling healthy growth at different life stages. The expanding global populations in these industries have therefore stimulated growing demand for alfalfa hay specifically targeted for daily animal feed use.

Additional growth in this segment is attributed to the rising living standards and protein consumption, driving continuous growth in the dairy and meat sectors. Together, these industry-level trends have made daily animal feed the leading application segment within the overall alfalfa hay market landscape. For instance, Gramik launched cattle feed supplements in India, which include "Doodh Sagar" for lactating cattle, "Heifer Mix" for young female cattle, and "Urja Pashu Poshak Aahar" for energy and reproductive health. Such innovations are accelerating the alfalfa hay market growth.

Regional Insights

Alfalfa Hay Market Regional Insights

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North America Alfalfa Hay Market Trends

North America has established itself as the dominant region in the global alfalfa hay market over the past few decades. The region is expected to account for 36.1% of the market share in 2025. The U.S., in particular, accounts for the prominent share of the market in the region, given the widespread use of alfalfa as a major feed for cattle.

Major alfalfa-producing states such as California, Wisconsin, and Pennsylvania in the U.S. generate huge volumes that are primarily consumed locally by the large dairy and beef industries present across the country. Alfalfa is a preferred choice of farmers owing to its high nutritional value and the ease of cultivation in the fertile lands of the Midwest. For instance, according to the USDA, alfalfa hay production in 2023 reached 70.1 million metric tons, up from 64.8 million metric tons in 2022. The leading states in alfalfa production include California, Idaho, Montana, South Dakota, and Arizona.

Asia Pacific Alfalfa Hay Market Trends

On the other hand, Asia Pacific has emerged as the fastest-growing regional market for alfalfa hay globally over recent years. China leads the Asia Pacific pack and is ramping up imports significantly to supplement domestic production and meet the burgeoning demand from its massive livestock industries. Growth is being further propelled by countries like India, Vietnam, and Indonesia, as rising incomes and urbanization are translating to increasing meat consumption. The push for more sustainable and advanced animal farming techniques has also boosted demand. For instance, the Indian company SERVODAY has established an innovative plant in Chitrakoot, Uttar Pradesh, that transforms locally sourced alfalfa into fuel pellets, providing a sustainable energy alternative.

United States Alfalfa Hay Market Trends

Several factors are helping the growth of the United States alfalfa hay market. The growing demand from the dairy and livestock industries, due to the need for high-protein, healthy animal feed, is a major reason. More export deals, especially with countries in Asia and the Middle East, have also added to the market’s growth. Improvements in farming tools and methods have made it easier to produce better-quality hay and store it well. In addition, helpful government policies and growing interest in eco-friendly farming are encouraging more farmers to grow alfalfa. Together, these factors are making the market stronger at home and abroad. For instance, Bailey Farms International has expanded its alfalfa drying facilities in the U.S. to produce better-quality hay pellets. They recently signed agreements with livestock farms in the Middle East and invested in solar-powered drying systems to reduce their impact on the environment.

India Alfalfa Hay Market Trends

The growth of India’s alfalfa hay market is mainly due to the rising need for good-quality animal feed, especially in the dairy and livestock industries. As milk production increases to meet both local and export demand, farmers are choosing nutrient-rich feed like alfalfa to improve animal health and milk output. More people now understand the benefits of alfalfa’s high protein and fiber. Government support for better cattle nutrition also helps increase demand. The rise of large dairy farms and better methods for cutting and storing forage are strengthening the supply. Also, imports during dry seasons show alfalfa’s growing role in Indian farming. For instance, the state of Punjab in India is aiming to boost livestock productivity through alfalfa cultivation, highlighting its potential to address fodder scarcity and improve soil health. Such initiatives are proliferating the alfalafa hay market demand.

Market Concentration and Competitive Landscape

Alfalfa Hay Market Concentration By Players

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Alfalfa Hay Industry News

  • In April 2025, DLF's North American business segment opened specialized Product Knowledge Centers in Philomath, Oregon, and Port Hope, Ontario. These centers will highlight all products in the DLF range, including alfalfa and the latest improvements in seed development.
  • In January 2025, Norden Manufacturing introduced the Norden AlfaTed, a new reel-style tedder designed to help farmers maintain the quality of harvested alfalfa before it is baled. Compared to traditional spinning tedders, these machines offer a reliable and gentle option with faster working speeds.
  • In July 2024, Riverview LLP announced a USD 180 million, 25,000-cow dairy in North Dakota that will consume substantial alfalfa volumes.

Market Report Scope

Alfalfa Hay Market Report Coverage

Report Coverage Details
Base Year: 2024 Market Size in 2025: USD 86.46 Bn
Historical Data for: 2020 To 2024 Forecast Period: 2025 To 2032
Forecast Period 2025 to 2032 CAGR: 6.7% 2032 Value Projection: USD 136.22 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Type: Bales, Pellets, and Cubes
  • By Application: Daily Animal Feed, Poultry Feed, Horse Feed, and Others 
Companies covered:

Al Dahra ACX Global Inc., Alfalfa Monegros SL, Anderson Hay & Grain Inc., Bailey Farms, Border Valley, Coaba, Cubeit Hay Company, Glenvar Hay, Green Prairie International, Grupo Osés, Gruppo Carli, Hay USA, Haykingdom Inc., Oregon Hay Products, Inc., Los Venteros SC, M&C Hay, Legal Alfalfa Products Ltd., Riverina (Australia) Pty Ltd, SL Follen Company, and Standlee Hay Company

Growth Drivers:
  • Rising demand from the dairy industry
  • Rise of organic and natural animal feeds 
Restraints & Challenges:
  • Fluctuations in raw material supply and prices
  • Seasonal availability 

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Alfalfa Hay Market Growth Drivers

Key factors, including increasing demand from the dairy industry for cattle feed and a rising preference for organic and healthy animal feed among livestock owners, are fueling market growth. Alfalfa hay is a rich source of vitamins, minerals, and protein that helps improve immunity, digestion, and milk production in dairy animals.

Additionally, growing awareness among consumers about the benefits of alfalfa hay has encouraged livestock farmers and feed producers to incorporate alfalfa into compound cattle feed, which, in turn, is boosting global demand for alfalfa hay. Moreover, the expansion of organic farming and rising consumption of organic dairy products have surged the demand for organic alfalfa hay over the recent years. However, the high cost of production and fluctuations in seasonal harvest may hamper the market growth during the forecast period.

Rising Demand from the Dairy Industry

The global dairy industry has been growing substantially over the past few decades, driven by rising incomes in developing countries and changing dietary habits. Alfalfa hay is one of the most preferred and nutritious feeds for dairy cows as it is highly digestible and contains important nutrients like proteins, vitamins, and minerals. Alfalfa hay helps improve milk production in cows by increasing dry matter intake and boosting cow health.

With more people consuming dairy products worldwide, dairy farmers are expanding their operations and livestock numbers to cater to the growing demand. This has created a strong demand for high-quality animal feeds like alfalfa hay across major dairy animal rearing regions. Regions with large dairy sectors like North America, Europe, and the Asia Pacific are major markets for alfalfa hay. Considering the projected continued growth of the dairy industry in the coming years, supported by growing populations and consumer incomes, the demand for alfalfa hay from dairy farms is expected to rise at an even faster pace.

Opportunities: Rising demand for animal feed from the expanding meat and dairy industries

The expanding meat and dairy industries across the globe are creating a rising demand for animal feed, which can prove to be a great opportunity for the Global Alfalfa Hay Market. Countries like China, Brazil, and the USA, which are the top producers and consumers of meat, have been witnessing a constant rise in consumption of poultry, pork, and beef over the past few years.

Alfalfa hay is one of the most nutritious and high-quality forages for animal feed due to its high protein, vitamins, and mineral content. It is a preferred choice of feed for dairy cattle and other livestock to boost their milk production. With burgeoning meat and dairy demand, farmers are under increasing pressure to ramp up livestock production through optimized animal nutrition, which is driving the alfalfa hay market demand. As per data from the Food and Agriculture Organization, production of bovine meat has increased from 62 million tons in 2010 to 80 million tons in 2020 globally. Similarly, milk production has risen from 581 million tons in 2010 to 843 million tons in 2020. Such rise in production is proliferating the alfalfa market share.

Analyst Opinion (Expert Opinion)

  • Alfalfa hay remains the top choice for dairy, beef, and horse feed due to its high protein content and strong nutritional value, measured by a Relative Feed Value (RFV) often above 150 for top-quality grades. This leads to clear performance benefits; for example, dairy farms using high-RFV alfalfa report up to 8% more milk per lactation cycle. However, poor practices during harvesting, drying, or storage—especially in countries like India and Argentina- often lead to lower quality, damaging buyer trust. Unlike corn silage, which is more uniform, alfalfa hay faces quality variations and lacks clear grading systems that buyers can rely on.
  • Unstable Exports and Water Use Issues Are Major Risks. The U.S., the world’s largest exporter of alfalfa, sent over 2.7 million metric tons to China in 2023, showing a 15% increase from the previous year. But this success is under threat from political tensions and environmental concerns. Key producing states like California and Arizona (over 60% of U.S. exports) are being questioned for how much water alfalfa uses—about 1.6 million gallons per acre every year. With growing pressure from environmental groups and new rules on foreign-owned farmland (such as in Arizona), the future of alfalfa exports is uncertain.
  • Technology and Verified Quality Will Drive the Next Wave of Growth. Buyers, especially from profitable dairy markets in the Middle East and Southeast Asia, now demand proof of quality. Companies using tools like near-infrared (NIRS) testing, QR-coded bale tracking, and digital inventory systems are winning long-term contracts. For example, Anderson Hay & Grain in Washington earns over 20% higher prices for hay that comes with lab-tested nutrient scores and cutting-time records. This shows a clear trend: the market is moving from bulk buying to trusted, verified supply chains, and traditional sellers will fall behind unless they modernize.

Market Segmentation

  • Type Insights (Revenue, USD Bn & KT, 2020 - 2032)
    • Bales
    • Pellets
    • Cubes
  • Application Insights (Revenue, USD Bn & KT, 2020 - 2032)
    • Daily Animal Feed
    • Poultry Feed
    • Horse Feed
    • Others
  • Regional Insights (Revenue, USD Bn & KT, 2020 - 2032)
    • North America
      • U.S.
      • Canada
    • Latin America
      • Brazil
      • Argentina
      • Mexico
      • Rest of Latin America
    • Europe
      • Germany
      • U.K.
      • Spain
      • France
      • Italy
      • Russia
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • Australia
      • South Korea
      • ASEAN
      • Rest of Asia Pacific
    • Middle East & Africa
      • GCC Countries
      • Israel
      • Rest of Middle East & Africa

Interviews from the Following Stakeholders
Stakeholders

Interviews were conducted with livestock nutritionists, forage agronomists, dairy farm operators, feedlot managers, veterinary consultants, hay exporters, custom harvesters, animal husbandry experts, feed procurement heads, agricultural input distributors, silage specialists, rural cooperative heads, and farm equipment suppliers. These stakeholders provided insights into alfalfa hay’s cultivation practices, quality parameters, supply chain dynamics, pricing volatility, and its role in animal productivity across dairy, beef, and equine sectors.

Databases

  • USDA National Agricultural Statistics Service (NASS)
  • FAOSTAT
  • Eurostat
  • Indian Council of Agricultural Research (ICAR)
  • China Forage Industry Association
  • World Bank Open Data
  • NABARD
  • Trade Map (ITC)
  • AgriFutures Australia
  • Alberta Agriculture and Forestry
  • National Dairy Development Board (NDDB) – India-specific feed formulations and forage gaps

Magazines

  • Hay & Forage Grower
  • Feed Navigator
  • Progressive Dairyman
  • Dairy Global
  • The Cattle Site
  • Livestock & Feed Business
  • AgriBusiness Global
  • Forage News
  • Animal Nutrition Insight
  • Krishi Jagran – Fodder and Dairy Section
  • Rural Marketing – Agriculture Input Focus
  • Agri Times – Livestock and Dairy Feed Section

Journals

  • Journal of Animal Science
  • Grass and Forage Science
  • Animal Feed Science and Technology
  • Journal of Dairy Science
  • Agronomy Journal – Forage Crop Management
  • Crop Science – Alfalfa Breeding Studies
  • Journal of Equine Veterinary Science
  • Asian-Australasian Journal of Animal Sciences
  • Indian Journal of Animal Nutrition
  • Livestock Science
  • Rangeland Ecology & Management

Newspapers

  • The Hindu BusinessLine – Agribusiness and Rural Economy
  • Financial Express – Agriculture and Feed Input Coverage
  • Mint – Farm Economy and Dairy Sector Focus
  • Times of India – Fodder Shortage and Livestock News
  • The Economic Times – Agritech and Feed Supply Chain Developments
  • Reuters AgriNews – Global Feed Commodities Trends
  • The Western Producer – Canada Forage and Hay Exports
  • The Wall Street Journal – U.S. Agricultural Exports and Trade Policy
  • China Daily – Agriculture and Feed Import Reports

Associations

  • National Alfalfa & Forage Alliance (NAFA – USA)
  • Forage Seed Canada
  • All India Fodder Farmers’ Association (AIFEA)
  • American Forage & Grassland Council (AFGC)
  • Dairy Farmers of America
  • Confederation of Indian Industry – Agriculture Division
  • European Alfalfa Processors Association (CEPA)
  • Indian Society of Agronomy – Forage Crop Chapter
  • Global Hay Exporters Association
  • United States Forage Export Council
  • Indian Dairy Association (IDA)

Public Domain Sources

  • Ministry of Agriculture & Farmers Welfare (India) – Fodder policies and subsidies
  • U.S. Department of Agriculture (USDA) – Crop reports, hay pricing, and forage programs
  • European Commission – CAP measures for forage production
  • China’s Ministry of Agriculture and Rural Affairs – Feed import licensing and subsidy programs
  • World Organization for Animal Health (WOAH) – Feed biosecurity and livestock nutrition
  • OECD-FAO Agricultural Outlook – Global livestock feed trends
  • National Forage Research Program (India) – High-yield alfalfa varieties and climate studies
  • National Dairy Development Board (NDDB) – Fodder atlas and feed demand estimation
  • Indian Meteorological Department – Climate impact on forage crop cycles
  • NABARD – Sectoral reports on fodder financing and allied livestock industries

Proprietary Elements

  • CMI Data Analytics Tool, and the Proprietary CMI Existing Repository of information for the last 8 years.

*Definition: The global alfalfa hay market involves the production, marketing, and sale of alfalfa hay on an international scale. It deals with alfalfa hay harvested from fields across multiple countries that is then processed, packaged, and distributed globally to markets for use as livestock feed. Key players in this market export and import alfalfa hay between regions to meet the growing worldwide demand from dairy farmers and cattle ranchers seeking a high-quality forage crop to feed their dairy cows and cattle herds.

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About Author

Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.

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Frequently Asked Questions

The Alfalfa Hay Market is estimated to be valued at USD 86.46 Bn in 2025, and is expected to reach USD 136.22 Bn by 2032.

The CAGR of the Alfalfa Hay Market is projected to be 6.7% from 2025 to 2032.

Rising demand from the dairy industry and the rise of organic and natural animal feeds are the major factors driving the growth of the global alfalfa hay market.

Fluctuations in raw material supply and prices, and seasonal availability are the major factors hampering the growth of the global alfalfa hay market.

In terms of type, pellets are estimated to dominate the market revenue share in 2025.

Al Dahra ACX Global Inc., Alfalfa Monegros SL, Anderson Hay & Grain Inc., Bailey Farms, Border Valley, Coaba, Cubeit Hay Company, Glenvar Hay, Green Prairie International, Grupo Osés, Gruppo Carli, Hay USA, Haykingdom Inc., Oregon Hay Products, Inc., Los Venteros SC, M&C Hay, Legal Alfalfa Products Ltd., Riverina (Australia) Pty Ltd, SL Follen Company, and Standlee Hay Company are the major players.

North America is expected to lead the global alfalfa hay market.

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