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  • Published On : Aug 2022
  • Code : CMI5179
  • Industry : Food and Beverages
  • Pages : 159
  • Formats :

The global compound feed market size was valued at USD 458,410.80 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 4.10% from 2022 to 2030. Increasing consumption of meat worldwide due to growing demand for food and industrialization of feed livestock sector are prime factors positively shaping growth of the compound feed market. According to the United Nations Food and Agriculture Organization (FAO) the demand for food will grow by 60% between 2010 and 2050. Moreover, the production of animal proteins is expected to grow by around 1.7% per year, with meat production projected to rise by nearly 70%, aquaculture by 90%, and dairy by 55%.

Global Compound Feed Market: Regional Insights

Based on geography, the global compound feed market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East &Africa. North America is expected to dominate the global market over the forecast period owing to the expanding feed industry market in the U.S. According to the Coherent Market Insights analysis, the US compound feed market was valued at USD 62,163.4 million in 2019 and is projected to reach USD 79,508.6 million by 2025, registering a CAGR of 4.3% during the forecast period. Moreover, key players are entering into partnership for introducing different variety of compound feed in the market. For instance, in January 2020, Micronutrients  USA (Micronutrients) and Kemin Industries (Kemin) partnered to introduce IntelliBond® VITAL 5 Cr, the world’s first nutrition package containing six essential trace minerals, to support the well-being and performance of dairy and beef cattle.

Europe is also expected to witness significant growth over the forecast period owing to the growing production of compound feed in the market. According to the European Feed Manufacturers’ Federation (FEFAC), Spain was ranked second in the total production of compound feed for farm animals in Europe, with an estimated 23.66 million metric ton of compound feed produced in 2018, as compared to 23.24 million metric ton during the previous year.

Figure 1. Global Compound Feed Market Value Share (%), By Region, 2021

Compound Feed  | Coherent Market Insights

Global Compound Feed Market Drivers:

Shifting consumer preferences towards animal-sourced food is primarily fueling growth of the compound feed market. Moreover, increasing consumption of meat, eggs, and milk due to growing awareness regarding health benefits of animal sourced protein is again contributing to market growth. Additionally, growing disposable income, especially in the developing countries, such as India and Brazil is also fostering market growth.

Increasing consumption of seafood such as fish is projected to uplift the market growth over the forecast period. According to the Coherent Market Insights analysis, Fish is sought out as a major source of protein worldwide, accounting for <10% of animal protein source in North America and Europe, and up to 26% of animal protein source in Asia and Africa, thus, processed products are being driven by high accessibility of fish protein internationally.

Global Compound Feed Market Opportunities:

The growing demand for animal products and processed meat is creating an opportunity for feed manufacturers to increase animal productivity. A rise in demand for various animal products, such as dairy products, milk, meat products, eggs, fish, and other non-food items, has led to the growth in the use of feed additives, thus, propelling growth of compound feed in the animal feed market.

The Indian feed industry is projected to expand at a prosperous growth rate, particularly due to the growing demand for animal-based protein and dairy products in the country. Despite the expanding supply-demand gap in the corn trade, the market is expected to be viewed as a potential investment hub, especially, due to the surging demand from the domestic poultry sector.

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Compound Feed Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 458,410.80 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 4.10% 2030 Value Projection: US$ 65210 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 Ingredient Type: Cereals, Cakes and Meals, By-products, Supplements
  • By Animal Type: Ruminants, Poultry, Swine, Aquaculture, Other Animal Types
Companies covered:

Charoen Pokphand Foods PCL, Cargill Inc., Land O’ Lakes Inc. (Purina Mills), Alltech Inc., Archer Daniels Midland Company, ForFarmers, United Animal Health (DeKalb Feeds), Kent Feeds, Weston Milling Animal Nutrition, and Nutreco NV

Growth Drivers:
  • Growing demand for animal-based protein
  • Industrialization of livestock sector
Restraints & Challenges:
  • Growing demand for organically sourced meat
  • Fluctuating price of raw materials

Global Compound Feed Market Trends:

The worldwide growing demand for meat, due to the high- quality protein it offer has led to the rising production of sheep meat, which increased drastically from 15,045.41 metric ton in 2018 to 15,343.43 metric ton in 2019 (OECD). Thus, to meet the feed requirement of the increasing cattle, the demand for compound feed has also rise. This is augmenting the overall compound feed revenue.

Global Compound Feed Market Restraints:

Growing demand for organically sourced meat, egg, and dairy products is expected to restrict the market growth. According to the Organic Trade Association, the sales of the US organic food market accounted for USD 45 billion in 2017, which is a 6% increase over the previous year and more than double the sales a decade ago.

Fluctuating price of raw materials such as seed and plant leaves is another key factor anticipated to curb the market growth over the forecast period. Also, cost of cereals such as barley, corn, and oats has been increasing which is again expected to negatively impact the market growth.

Figure 2. Global Compound Feed Market Value Share (%), By Ingredient, 2021

Compound Feed  | Coherent Market Insights

Global Compound Feed Market Segmentation:

The global Compound Feed market report is segmented into ingredient type, animal type, and region

Based on ingredient type, the market is segmented into Cereals, Cakes and Meals, By-products, and Supplements. Out of which, Cereals is expected to dominate the global market over the forecast period. The cereals segment of the compound feed market was valued at USD 218,226.1 million in 2019 and is projected to reach USD 281,256.4 million by 2025, registering a CAGR of 4.3% during the forecast period. Cereals are the most popular and widely used ingredient in compound feed across the world.

Cakes and meals segment is also expected to witness significant growth in the near future. The cakes and meals segment of the compound feed market was valued at USD 119,431.6 million in 2019 and is projected to reach USD 150,637.1 million by 2025, registering a CAGR of 3.8% during the forecast period.

Based on animal type, the market is segmented into Ruminants, Poultry, Swine, Aquaculture, and Supplements. Out of which, Ruminants is expected to dominate the global market. The ruminant's segment of the market was valued at USD 86,061.0 million in 2019 and is projected to reach USD 108,253.0 million by 2025, registering a CAGR of 3.8% during the forecast period. The segment is expected to witness strong growth on the account of the increasing demand for beef and dairy products across the globe.

Poultry segment is also expected to witness significant growth in the near future. The poultry segment of the market was valued at USD 203,736.2 million in 2019 and is projected to reach USD 261,014.9 million by 2025, registering a CAGR of 4.2% during the forecast period. Economic Research Services, USDA, projects the per capita consumption of poultry to rise to 111.8 kilogram per capita in 2028 from 108.6 kilogram per capita in 2017.

Global Compound Feed Market: Key Developments

  1. In October 2019, Cargill introduced  Feeding  Intelligence,  a  new platform aimed at helping animal farmers navigate the  changing  food  production  landscape,  while raising awareness of their role as everyday heroes. Feeding Intelligence provides resources for farmers on the latest intelligent animal production practices, aimed at helping them improve their operations across all species.
  2. In January 2020, Alltech Coppens, an aqua nutrition specialist and a subsidiary of Alltech, launched an improved range of innovative starter feeds for trout. Backed by extensive research at Alltech Coppens Aqua Centre (ACAC), TOP fry feed is shown to provide key nutrients while also improving the water quality. TOP fry feed has an optimized ratio between digestible protein and digestible energy (DP: DE). It provides better performance, higher protein utilization, and lower ammonia excretion, leading to improved feed efficiency and better water quality.
  3. In August 2019, The ForFarmers feed          mill in  Exeter              has undergone a significant rebuild            and restructuring process over the last two years, in order, to increase the mill’s output capacity from 140,000 to 300,000 ton of animal feed a year.

Global Compound Feed Market: Key Companies Insights

The global compound feed 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 compound feed market are;

Charoen Pokphand Foods PCL, Cargill Inc., Land O’ Lakes Inc. (Purina Mills), Alltech Inc., Archer Daniels Midland Company, ForFarmers, United Animal Health (DeKalb Feeds), Kent Feeds, Weston Milling Animal Nutrition, and Nutreco NV

*Definition: Compounded feeds are a vital part of the animal nutrition industry, producing more than 1 billion tons annually. Livestock convert compound feed into animal protein and milk, supplying about one third of the world's protein. This number varies widely, however, based on different regional consumption patterns and time periods. Animal protein provides a vital source of nutrients for a growing global population. Agricultural growers and industrial processors generate raw materials for compound feeds.

The term "compound feed" describes a variety of ingredients used in a mix to provide balanced nutrition to livestock. These materials may come from inorganic sources, plant sources, or industrial processing. Common raw materials used for this type of feed include soybean, corn, wheat, barley, and sorghum. Many additives such as vitamins, minerals, and amino acids are also blended in. These ingredients are essential for the proper functioning of livestock.

Market Dynamics:

Growing demand for the higher value and quality foods, such as eggs, meat, and milk is primarily fueling growth of the global compound feed market. According to a survey conducted by OECD-FAO, meat production increased from 317.17 million metric tons in 2016 to 327 million metric tons in 2018.  Increasing consumption of fish and its products across the world is again fostering market growth. Moreover, the industrialization of livestock sector is further projected to propel market growth.

On the contrary, the growing demand for organically sourced meat, eggs, and dairy products is expected to act as restraining factor for the global compound feed market.

Key features of the study:

  • This report provides in-depth analysis of the global compound feed 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 compound feed 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 Charoen Pokphand Foods PCL, Cargill Inc., Land O’ Lakes Inc. (Purina Mills), Alltech Inc., Archer Daniels Midland Company, ForFarmers, United Animal Health (DeKalb Feeds), Kent Feeds, Weston Milling Animal Nutrition, and Nutreco NV
  • 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 compound feed 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 compound feed market

Detailed Segmentation:

  • Global Compound Feed Market, By Ingredient Type:
    • Cereals
    • Cakes and Meals
    • By-products
    • Supplements
  • Global Compound Feed Market, By Animal Type:
    • Ruminants
    • Poultry
    • Swine
    • Aquaculture
    • Other Animal Types
  • Global Compound Feed Market, By Geography:
    • North America
    • Europe
    • Asia-Pacific
    • South America
    • Africa

Frequently Asked Questions

The global Compound Feed market size is estimated to be valued at US$ 458,410.80 Million in 2021 and is expected to exhibit a CAGR of 4.10% between 2022 and 2030.
Growing demand for animal-based protein and industrialization of livestock sector are fuelling the growth of the market.
The Cereals ingredient segment is the leading component segment in the market.
Growing demand for organically sourced meat and fluctuating price of raw materials are the major factors restraining growth of the market.
The the major players operating in the market are Charoen Pokphand Foods PCL, Cargill Inc., Land O’ Lakes Inc. (Purina Mills), Alltech Inc., Archer Daniels Midland Company, ForFarmers, United Animal Health (DeKalb Feeds), Kent Feeds, Weston Milling Animal Nutrition, and Nutreco NV

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