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  • Published On : Dec 2022
  • Code : CMI5418
  • Industry : Food and Beverages
  • Pages : 124
  • Formats :

The global alfalfa hay market size was valued at USD 73 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 6.6 % from 2022 to 2030. The demand for alfalfa hay is expected to grow significantly during the next few years. This market is driven by growing meat and dairy consumption, as well as increased income levels of consumers. The livestock industry is also experiencing significant growth, and pig meat is currently the world's top meat that is consumed worldwide. Agricultural research is one of the major factors driving the alfalfa hay market growth. Water shortage and a lack of irrigation are two major factors limiting the market growth. In addition, the market will exhibit an overall positive trend owing to rising livestock feed consumption in developing economies.

Global Alfalfa Hay Market: Regional Insights

Regionally, North America is expected to dominate the global alfalfa hay market over the forecast period owing to the high production of hay in the region. For instance, according to the Coherent Market Insights analysis, some of the alfalfa hay producing states in the United States, as of 2019, are California (5,175 thousand metric ton), Idaho (4,400 thousand metric ton), Montana (3,150 thousand metric ton), and Minnesota (2,610 thousand metric ton). These account for nearly 27% of the alfalfa production in the country.

The US alfalfa hay market volume was recorded at 58,028.5 metric ton in 2019, and it is expected to reach 86,150.4 metric ton by the year 2027, witnessing a CAGR of 5.6% during the forecast period.

Asia Pacific is expected to witness fastest growth in the global market over the forecast period owing to the strong presence of dairy industry which is increasing consumption of hay. According to USDA report 2017, China recorded more than 15 million cows in the dairy industry, which consumed high-quality alfalfa hay, and the population of cattle enhanced from 82.2 million in 2015 to 83.3 million in 2017. Thus, the population is expected to rise as well as the demand for hay is likely to be more than 8 million metric ton in the future.      

Figure 1. Global Alfalfa Hay Market, By Region

Alfalfa Hay  | Coherent Market Insights

Global Alfalfa Hay Market Drivers:

Growing demand for dairy and meat products is primarily fueling growth of the alfalfa hay market. For instance, according to the Coherent Market Insights analysis, annual growth of meat production in developing countries is projected to be 2.4% and that of milk production 2.5% till 2030. This is expected to increase the developing countries share in the world meat production to 66% (247 million metric ton) and in milk production to 55% (484 million metric ton).

Increasing livestock production is again projected to foster market growth. According to the Food and Agriculture Organization (FAO), global meat consumption increased significantly over the past 40 years, particularly in developing countries. This led to an increase in the number of industrial livestock production, which is expected to boost the demand for alfalfa hay, globally. The global cattle population experienced a CAGR of 0.87% during the period 2015-2017, an increase from 288,286’000 heads to 296,618’000 heads.

Global Alfalfa Hay Market Opportunities:

Decreasing area for grazing is boosting production of alfalfa. This is projected to provide significant growth opportunities over the forecast period. According to the Coherent Market Insights analysis, the production of alfalfa has been increasing from the past years all over the world which is valued at 213,450.8 in 2019 and is expected to increase over the coming years with a CAGR of 5.8%.

The low calorie, high fiber, quality, high vitamins and minerals, and protein content of alfalfa hay makes it the most suitable hay for feeding dairy animals. Growing awareness regarding the health benefits of alfalfa hay is expected to hold potential growth opportunities for market in the near future.

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Alfalfa Hay Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 73 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 6.6 % 2030 Value Projection: US$ 131 Mn
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, cubes
  • By Application: Meat/ Dairy animal feed, Poultry feed, Horse feed, Other applications
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:
  • Growing demand for dairy and meat products
  • Increasing livestock production
Restraints & Challenges:
  • Ban on forage crop production in Saudi Arabia
  • High production of forage

Global Alfalfa Hay Market Trends:

Increasing export of hay especially in India is a growing trend for the global market. According International Trade Centre trade statistics, the exports market for alfalfa in India has increased from USD 6 thousand in 2017 to USD 181 thousand in 2019. But the imports has reduced from USD 153 thousand in 2016 to USD 12 thousand in 2019.

Growing cattle production will further favor the market growth of alfalfa hay. For instance, in Oman, the cattle population enhanced from 374,020 in 2015 to 389,130 in 2017, while it accelerated from 17,412 in 2105 to 21,675 in 2017 in Qatar, which in turn, is driving the demand and consumption of alfalfa hay.

Global Alfalfa Hay Market Restraints:

Ban on forage crop production in Saudi Arabia is projected to hamper the market growth over the forecast period. For instance, in the beginning of 2016, the Saudi Arabian government embarked upon a 3-year program to conserve water resources by greatly reducing its domestic production of alfalfa and other commodities important for dairy and livestock production.

High production of forage is another key factor expected to hinder the market growth. For example, seed variety costs can vary up to USD 30 per acre, between ‘variety not stated’ (VNS) seed to a top-yielding new variety with enhanced germplasm.

Figure 2. Global Alfalfa Hay Market, By Application

Alfalfa Hay  | Coherent Market Insights

Global Alfalfa Hay Market Segmentation:

The global alfalfa hay market report is segmented into type, application, and geography

Based on type, the market is segmented into bales, pellets, and cubes. Out of which, Pellets is expected to dominate the global market over the forecast period as they are highly nutritious feed. Moreover, they are rich in vitamins and minerals, which are especially necessary in hot or humid climates. The pellets segment of the alfalfa hay volume marked at 88,214.0 thousand metric ton in 2020, and it is projected to reach 1, 33,542.3 thousand metric ton by 2027, witnessing a CAGR of 5.9%, during the forecast period.

Cubes segment is also expected to witness significant growth in the near future. They are used to feed horse. The cubes segment of the alfalfa hay volume marked at 36,280.4 thousand metric ton in 2020, and it is projected to reach 51.075.2 thousand metric ton by 2027, witnessing a CAGR of 4.8%, during the forecast period.

Based on application, the market is segmented into Meat/ Dairy animal feed, Poultry feed, Horse feed, and other applications. Out of which, Meat/ Dairy animal feed is expected to dominate the global market over the forecast period and this is attributed to the nearly 80% of the alfalfa hay is utilized by the cattle animals or meat/dairy animal feed segment. Increasing meat production worldwide is also fueling segment growth. According to Food and Agriculture Organization statistics, the meat production has increased from 36, 76,366 tons in 2016 to 37, 83,441 in 2018 and the milk production has increased from 812.29 million tons in 2016 to 843.03 million tons in 2018. The increased production of meat and dairy can be attributed to the higher livestock farming.

Poultry feed segment is also expected to witness significant growth in the near future owing to the growing demand for poultry meat due to changing lifestyle of consumers. The poultry feed segment of the alfalfa hay volume marked at 25,191.0 thousand metric ton in 2020, and it is projected to reach 35,633.9 thousand metric ton by 2027, witnessing a CAGR of 4.7%, during the forecast period.

Global Alfalfa Hay Market: Key Developments

In April 2017, Anderson Hay & Grain Co., Inc., the number one hay exporter from the USA, entered a joint venture (JV) with Agthia Group, the market leader for animal feed in the UAE. A new company is being formed, which is primarily involved in importing Anderson’s premium forage products from the USA, to be distributed in the UAE and the GCC. The products will be sold under the new JV product brand, Agrivita Marabe.

Global Alfalfa Hay Market: Key Companies Insights

The global alfalfa hay market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global alfalfa hay market are 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

*Definition: Alfalfa hay is a popular feed source for animals and is highly nutritious. It is high in protein and fiber and is free of harmful components. In addition, it is palatable, which makes it ideal for animal consumption. It is cultivated in many countries worldwide, and can be harvested several times each year.

Alfalfa, also known as lucerne, is a legume crop that grows in the legume family Fabaceae. It is a major forage crop in many countries, and is used in many applications, including hay and silage. Alfalfa hay contains high amounts of protein, calcium, and vitamins. It is also a great source of energy. Because alfalfa is a legume, its roots work with bacteria in the soil to convert nitrogen in the air into plant protein. These nutrients make alfalfa a superior feed for animals.

Market Dynamics:

The global alfalfa hay market is growing on the account of increasing population and increasing livestock numbers.  The increased awareness of the importance of high-quality forage will fuel industry expansion in the coming years. The growing use of alfalfa hay by farmers will also lower transportation costs and environmental risks. As the demand for meat and dairy products continues to rise, the market for alfalfa hay will continue to grow. Growth in the dairy industry is further fueled by a number of factors, including increasing urbanization and population.

However, the market has experience some disruptions in 2020 due to the COVID-19 outbreak, which disrupted the supply chain in the industry. As a result, uncertainty in the industry was felt across various sectors.

Key features of the study:

  • This report provides in-depth analysis of the global alfalfa hay market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2022–2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global alfalfa hay market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include 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
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global alfalfa hay market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global alfalfa hay market

Detailed Segmentation:

  • Global Alfalfa Hay Market, By Type
    • Bales
    • Pellets
    • Cubes
  • Global Alfalfa Hay Market, By Application
    • Meat/ Dairy animal feed
    • Poultry feed
    • Horse feed
    • Other applications
  • Global Alfalfa Hay Market, By Geography
    • North America
    • Europe
    • Asia-pacific
    • South America
    • Middle east & Africa
  • Company Profiles
    • 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
    • Standlee Hay Company

Frequently Asked Questions

The global alfalfa hay market size is estimated to be valued at US$ 73 Million in 2021 and is expected to exhibit a CAGR of 6.6 % between 2022 and 2030.
Growing demand for dairy and meat products and increasing livestock production are fuelling market.
The Meat/Dairy Animal Feed Application segment is the leading component segment in the market.
Ban on forage crop production in Saudi Arabia and high production of forage are the major factors restraining market.
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

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