The Total Addressable Market (TAM) for compound feed was valued at USD 519.2 billion in 2022. It is projected to reach USD 738.98 billion by 2031, growing at a CAGR of 4% during the forecast period (2023–2031).
Animals are given compound feed, a mixture of different ingredients and additives. The ingredients in compound feed, which also includes minerals, vitamins, agro-industrial byproducts, protein meals/cakes, brans, and grains, are prepared and formulated according to the specific needs of the target animal. These feeds are produced as pellets, crumbles, or cubes of various meal types. The compound feed contains corn, barley, oats, sorghum, and soybeans, among other grains. Compound feed is delicious, a good source of vitamins and minerals, and highly beneficial for animals that are pregnant or that are milk producers.
According to a recent study, cattle-fed compound feed produces more milk compared to. In the food chain for livestock, compound food has a significant impact. Along with the entire livestock & aquaculture production and supply chain, it helps protect the food supply and quality. Such feed is created to provide domestic animals and livestock with enough nutrients to improve their health. Utilizing compound feed products has several benefits, such as high meat product quality, food nutritional quality, and cost-effective nutrition enhancement. Additionally, it improves feed quality, which has several advantages for animal health.
Increase in the Number of Animals and the Demand for Animal Products
Large-scale livestock production aids in supplying the soaring demand for livestock products. Farm animals play a significant economic and social role and contribute to food production. Worldwide, many small-scale farmers still rely on livestock for their livelihoods. The livestock industry supports the livelihoods of 1.3 billion people worldwide, according to the Food and Agricultural Organization (FAO), accounting for close to 40% of global agricultural output in developed countries and 20% in developing countries. Additionally, 34% of the world's supply of food protein comes from the livestock industry. Demand for animal products has increased due to changing diets, rising incomes, and expanding populations. Animal products like milk, eggs, and meat have become more prevalent recently. As a result of the enormous demand for animal products and the surge in animal production, compound feed is, therefore, likely to increase demand.
Growing Attention to Animal Nutrition and Health
Since healthy farm animals contribute to eradicating hunger, sustainable food production, and healthy people, livestock farmers in both developed and developing countries place a high priority on enhancing the health of their livestock. Many small farmers and animal owners in developing countries rely on the sale of animal products not only as a food source but also as a source of income. To meet the domestic demand for high-quality, safe animal-derived foods, animal feed quality and safety are important considerations. The production of nutrient-efficient livestock is greatly influenced by animal nutrition, which is essential to the livestock industry. Improving the welfare and health of farm animals also promotes the safety and nutritional value of animal products for human consumption.
Changing Prices for Raw Materials and Strict Government Regulations
The global rise in raw material prices and the stricter government regulations in developed nations have a significant impact on the growth of the compound feed market. Their cost and nutritional value heavily influence the kind and quantity of feed raw materials used in animal feed. The production, nutrient content, and price of plant-based raw materials like corn, soybeans, and others are significantly impacted by changes in the weather. The standard regulations on animal feed cover imports, exports, GM crop-derived ingredients, feed hygiene, feed composition, measures relating to feeding safety, and related official controls. As a result, the feed is not authorized for marketing and use in the relevant region if any feed manufacturer does not comply with this requirement.
Growing Consumption of Animal Protein and Rising Demand for Sustainable Feed
Global consumers are very concerned about the feed supply chain because the effects of various feed ingredients can differ significantly depending on where they come from and how they are produced. Additionally, the environmental impact of the livestock industry is becoming a significant problem, so policymakers and retailers are focusing on this industry. As a result, farmers and feed manufacturers work to keep feed costs as low as possible while reducing the environmental impact of both the feed and the final protein. Worldwide demand for animal protein is rising as high-protein diets become more and more popular. The rising demand for animal proteins suggests that the importance of feed will rise in the years to come. Additionally, feed is a crucial component of animal husbandry's sustainable growth. As a result, increasing animal protein production would also increase feed production for sustainable animal production.
The market is segmented by ingredient, source, and livestock.
Based on ingredients, the global compound feed market is bifurcated into cereals, cakes & meals, and supplements.
The cereals segment is the highest contributor to the market and is expected to grow at a CAGR of 4.32% during the forecast period. Since cakes are made from oil seeds, they naturally have a high protein content. Cakes and meals made from oilseed residues have the most nitrogen, which accounts for 95% of their total nitrogen content. Additionally rich in vitamin B are these cakes. Due to its nutritive value and ease of storage, this segment will have a good market share compared to all the other segments. Due to its high nutritional value and widespread accessibility, the cereal segment is anticipated to expand in the upcoming years. Wheat, rice, and corn are the sources of cereal feed.
Based on the source, the global compound feed market is bifurcated into plant-based and animal-based.
The plant-based segment is the highest contributor to the market and is expected to grow at a CAGR of 4.53% during the forecast period. This segment is a reasonable choice, and the feed from plant-based sources contains just as much nutrition as from animal sources. During the forecast period, easy access to these products and rising environmental concerns will fuel market expansion. Compound feed is in greater demand in the European region, and crop production is used in its production. Plant-based foods are considered excellent sources of vitamins, except for D and B12. Briefly, foods based on whole grains, cereal germs, legumes, and brown rice are the primary sources of B vitamins.
Based on livestock, the global compound feed market is bifurcated into ruminants, swine, poultry, and aquaculture.
The poultry segment is the highest contributor to the market and is expected to grow at a CAGR of 4.79% during the forecast period. Growing demand for both chicken and turkey will propel the growth of this segment in the coming year if there is an increase in the rearing of poultry animals across many nations. Since poultry is an excellent source of affordable protein, the market is anticipated to expand in the upcoming years. There is a higher demand for the poultry segment because eating white meat has health benefits compared to eating red meat. The amount of feed needed and its nutritional requirements are determined by the weight and age of the poultry, as well as by their rate of growth, rate of egg production, the weather, and the amount of nutrition they forage for.
The global compound feed market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.
Asia Pacific is the most significant global compound feed market shareholder and is expected to grow at a CAGR of 4.13% during the forecast period. China, Australia, India, Japan, and the rest of Asia-Pacific are all included in the Asia-Pacific compound feed market analysis. Due to rising per capita income and increased consumption of meat and dairy products. In addition, Asia Pacific produces most of the world's milk and milk products; most of this region's dairy products come from countries like India. India has the most milk cows in the world, according to Statista. The dairy industry in Asia and the Pacific is also expanding. Gujarat Cooperative Milk Marketing Federation Ltd. is also the top milk-producing federation in India and ranks among the world's top producers of dairy products and milk. All of these factors cause the growth of the Asia pacific compound feed market.
Europe is expected to grow at a CAGR of 4.92% during the forecast period. The UK, Germany, France, Italy, Spain, and the rest of Europe are all included in Europe’s compound feed market analysis. To the rise in meat and meat-related product consumption. Spain is one of the top five meat-consuming nations in the world, with a per-capita meat consumption of about 100 Kg. The world's largest food industry is located in this area. The need for meat and dairy products is much higher than in other parts of the world. The area also consistently pursues research and development projects with the demand for higher-quality animal-based products. The demand for compound feed is anticipated to increase shortly in the region due to increased milk production and animal husbandry or slaughter.
The global compound feed market’s major key players are
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