Feed Premix Market Size, Share & Trends Analysis Report By Form (Dry, Liquid), By Type (Antibiotics, Vitamins, Antioxidants, Amino Acids, Minerals, Other Ingredient Types), By Animal Type (Ruminant Feed, Poultry Feed, Swine Feed, Aquaculture Feed, Other Animal Feed) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global feed premix market size was valued at USD 12.6 billion in 2023 and is projected to reach USD 20.5 billion by 2032, registering a CAGR of 5.6% during the forecast period (2024-2032). The rising demand for high-value animal protein, coupled with inflation in feed ingredient prices, is driving changes in the industry, further influenced by various government initiatives aimed at addressing these challenges. The growing demand for high-value animal protein and decreasing feed conversion rates drive the global feed premix market.

Feed premix is a blend of specific intricate components, such as minerals, vitamins, and amino acids, which are incorporated into animal feeds to accelerate the growth and development of the animals. Both macro and micronutrients are present in the feed premix. Farmers are expediting their livestock's growth through feed premix, augmenting their revenue and subsequently driving up the global need for feed premix. Responding to the increasing demand for livestock, farmers are transitioning to provide High-quality feed that can expedite the growth of their cattle.

The feed premix market is expected to expand significantly due to increased demand for livestock-derived products. Moreover, the increasing feed production is expected to drive the growth of the feed premix market. Furthermore, the anticipated rise in compound feed consumption and the growing focus on animal well-being and health are expected to support the growth of the feed premix market. 

Highlights

• Dry generates the highest revenue share based on form. 
• Amino acids account for the largest market share by type.
• Poultry feed accounts for the largest market share by animal type. 

Market Dynamics

Feed premix market drivers

Increasing demand for high-value animal protein

The increasing desire for high-quality meat and dairy protein from health-conscious customers is propelling the growth of the feed premix sector. Livestock production is experiencing rapid growth in the agriculture industry. As per the United Nations Food and Agricultural Organisation, the demand for poultry meat in South Asia is estimated to surge by 725% by 2030, primarily driven by India, which is forecast to contribute to an 850% growth in demand. India has the most extensive cattle stock globally, with Brazil and China ranking second and third, respectively. In 2023, India's poultry meat consumption exceeded four million metric tons. In the United States, the average amount of poultry consumed per person was about 113.4 pounds in 2021. It is projected to rise and reach 123 pounds per person by 2032 gradually. Due to the high demand for poultry meat, farmers are now using premixes in their feed formulations to improve the nutritional quality of animal products. 

In addition, manufacturers are enhancing the quality and safety of animal feed to meet the growing demand for feed that is both safe and high in nutrients, all while ensuring cost-effectiveness. Utilizing feed premixes in animal feed leads to enhanced animal production, growth, and performance. According to the International Feed Industry Federation (IFIF), the annual global production of compound feed has exceeded 1 billion tons. In developing nations, the production growth rate exceeded that of industrialized countries.

Furthermore, the increasing need for meat, meat products, milk, and milk products that are both ecologically friendly and free from chemical residues highlights the necessity for enhanced productivity through feed premixes. As a result, this is expected to strengthen the market share of feed premix in the upcoming years.

Feed premix market restraint

Inflation in the price of feed ingredients

The global feed premix market is confronted with a substantial challenge due to the escalating cost of feed components. This problem presents an obstacle to the growth and stability of the sector. Feed premixes are crucial components in animal nutrition. They are a mixture of vitamins, minerals, amino acids, and other necessary nutrients. When these premixes are added to animal feed, they provide balanced nutrition and promote maximum health.

Nevertheless, the expenses associated with these ingredients have been consistently rising due to several variables, including volatile prices of raw materials, shifts in global supply and demand patterns, and disturbances in the agriculture industry induced by climate change and geopolitical conflicts. The increase in feed ingredient costs directly impacts the production expenses of feed premix makers, resulting in more significant operational costs and decreased profit margins.

As a result, customers, particularly livestock farmers and feed manufacturers, may have to bear the cost burden, leading to higher pricing for feed premix products. These price increases may discourage market demand, particularly in areas with little financial resources or where agriculture significantly impacts the economy. Furthermore, the fluctuation in feed component prices introduces unpredictability in the market, posing difficulties for feed premix manufacturers to predict and strategize their production and pricing approaches accurately. 

Feed premix market opportunity

Government initiatives

Due to the growing demand for chicken meat and the rising livestock industry, governments worldwide are implementing subsidies, grants, and technical support to increase productivity, strengthen infrastructure, and assure food security. Under the Poultry Entrepreneurship Development Scheme (PEDS), the Indian government provides loans, subsidies, and grants for specific activities related to poultry farming, including acquiring poultry equipment, building farm infrastructure, and buying livestock. Consequently, government officials from various nations cooperate to enhance the poultry sector, strengthening market expansion.

In addition, in March 2023, the USAID Partnership for Poultry initiative was initiated by the US Agency for International Development (USAID) in Butwal, Lumbini Province, Nepal. The event is considered a vital approach for fostering growth in the feed premix market. It successfully convened players from the agriculture sector and beyond, highlighting the importance of joint efforts for the prosperity of Nepal's poultry industry. The three-year, USD 2 Million USAID initiative, led by Shreenagar Agritech, a Nepali company, aims to enhance the chicken market system and improve the incomes of 7,000 small farmers and enterprises. The objective is to promote inclusive and sustainable private sector-driven growth. These activities are expected to drive the market's growth in the future.

Regional Analysis

The global feed premix market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia pacific dominates the global market

Asia Pacific is the most significant global feed premix market shareholder and is estimated to grow at a CAGR of 5.1% over the forecast period. According to the feed premix industry estimate, the changing livestock production scenario in the Asia Pacific is leading to a favorable outlook for the market. Furthermore, the increasing population and growing disposable incomes in the region are causing a higher demand for animal products. As a result, livestock farmers are compelled to implement more advanced nutrition practices.

In addition, the increasing demand for food that is high in protein due to the growing awareness of the significance of protein consumption is also driving market expansion, especially in China. Approximately 80-85% of fitness enthusiasts in China opted for high-protein diets, such as protein powders and shakes, as a primary energy source and to enhance muscle strength in 2021. Furthermore, per the United Nations Food and Agricultural Organization, the requirement for poultry meat in South Asia is estimated to surge by 725% by 2030, with India playing a significant role in an anticipated 850% surge in demand. India possesses the most extensive cattle stock in the world, with Brazil and China ranking second and third, respectively.

North America is anticipated to exhibit a CAGR of 5.9% over the forecast period. North America is a primary market for feed premixes since it has a large livestock industry and significant consumption of animal protein. The market has experienced consistent growth due to increasing demand for high-quality dairy, meat, and eggs and advancements in animal feeding science and technology. The feed premix market in North America offers services to several livestock businesses, including aquaculture, pets, swine, cattle, and poultry. Customized premix formulations are necessary to meet different industries' specific nutritional requirements and production techniques, considering the particular species, life stages, and production methods involved.

Europe holds a significant market share. Various crucial elements exert an effect on the European feed premix industry. The growing demand for superior animal products necessitates using nutritional supplements to improve animal health and production. Furthermore, strict restrictions regarding animal feed safety and quality promote the utilization of premixes that contain vital vitamins, minerals, and amino acids. Economic variables, such as volatility in feed ingredient pricing and disposable income, can substantially influence.

Furthermore, the market expansion is driven by enhancing the efficiency and efficacy of premix products through technical advancements in feed formulation and production methods. Collectively, these factors influence the dynamics of the feed premix industry in Europe.

Segmental Analysis

The global feed premix market is segmented based on form, type, and animal type. 

Based on the form, the market is segmented into Dry and Liquid. 

The dry segment dominated in 2023. The increasing demand for dry feed premix is driven by its convenience, long shelf life, and ability to be used with different animal feed formulations, contributing to the market's growth. Dry feed premixes provide a convenient alternative for livestock producers and feed manufacturers due to their ease of handling, storage, and ability to be blended with other feed ingredients. Furthermore, the prolonged durability of dry premixes guarantees their stability and efficacy throughout time, minimizing the likelihood of nutritional deterioration.

The liquid segment is the fastest growing. Liquid-form feed is essential for expanding the feed premix market owing to its many benefits. First and foremost, liquid premixes provide accurate and consistent nutrient dispersion, guaranteeing adequate animal nutrition. Furthermore, they optimize feed efficiency and digestion, enhancing animal performance and health. In addition, liquid premixes offer versatility in formulation, enabling modification according to specific animal needs. Liquid feed's simplicity, efficacy, and efficiency contribute considerably to expanding the feed premix market.

The market is segmented based on type into Vitamins, Minerals, Amino Acids, and Antibiotics.

The Amino acids segment dominated in 2023. Amino acids, the essential components of proteins, play a crucial role in animal physiological processes, including growth, development, reproduction, immunology, and metabolism. Some amino acids, known as essential amino acids, are not produced by mammals internally and must be obtained from their food. Furthermore, feed premixes containing supplemented amino acids are specifically formulated to supplement animals with additional amino acids that may be deficient or limited in conventional feed ingredients. These could include non-essential amino acids such as glutamine, glycine, and serine and essential amino acids like lysine, methionine, threonine, tryptophan, and valine.

The vitamin premix segment is the fastest growing due to the growing demand for vitamin-fortified feed from the expanding number of commercial animal farms. The vitamin premixes sub-segment is projected to expand globally due to its crucial role in enhancing livestock growth and strengthening animal immune systems.

The antibiotics segment is the second largest. The use of antibiotics in feed premixes is crucial for the expansion of the market. Antibiotics added to feed premixes act as growth promoters, improving the efficiency of feed utilization and the performance of animals, ultimately leading to increased profitability for farmers. In addition, they have a role in preventing and managing animal diseases, leading to lower death rates and better general health. Moreover, including antibiotics in feed premixes enhances the development of superior animal products, satisfying the growing global need for protein-rich food. Nevertheless, worries about antibiotic resistance and legislative limitations could influence market conditions, thereby requiring the creation of alternate methods for maintaining sustainable animal production.

Based on the animal type, the market is segmented into Ruminant Feed, Poultry Feed, Swine Feed, Aquaculture Feed, and Other Animal Feed.

The poultry feed segment dominated in 2023. The rapid expansion of the chicken business and the desire for enhanced production efficiency are significant catalysts for growth. Furthermore, the poultry industry, particularly in broiler and layer production, is seeing substantial growth to satisfy the increasing worldwide need for cost-effective and protein-packed meat and eggs.

Furthermore, government authorities in different countries are implementing measures such as providing subsidies and low-interest loans to poultry farmers. This is having a good effect on the outlook of the feed premix industry. Under the Poultry Entrepreneurship Development Scheme (PEDS), the Indian government provides loans, subsidies, and grants for tasks like acquiring poultry equipment, building farm infrastructure, and buying livestock. Consequently, there is an increasing need for customized feed premixes designed exclusively for poultry to meet the sector's distinct nutritional needs, promoting optimal development, egg laying, and overall well-being.

The ruminants segment is the fastest growing due to the growing use of vitamins and minerals in commercial feed products. These pointers contribute to the feed premix market trends for the entire forecast period.

The aquaculture feed segment is the second largest. Aquaculture feed is crucial in stimulating the expansion of the feed premix market. With the ongoing growth of the aquaculture business to meet the worldwide need for protein, there is a more significant requirement for specific feed formulas. The increasing consumer demand for seafood and the declining availability of wild fish highlight the need for aquaculture feed to maintain production. Hence, the growing utilization of sophisticated feed formulations and technology in aquaculture creates substantial prospects for growth in the feed premix market.

Recent Developments

• December 2023– Avitech Nutrition introduced NanoSel, a nano-sized form of Selenium designed explicitly for the animal feed industry. NanoSel refers to a form of Selenium that has been reduced to a tiny size on the nanoscale. NanoSel is a dietary source of Selenium that is highly bioavailable, stable, and safe. The substance is characterized by its unrestricted movement, absence of dust, and effortless blending. NanoSel improves immunological response, antioxidant defense, hormone metabolism, cell proliferation, and meat quality, among other benefits. NanoSel is the best option for delivering Selenium in animal diets due to its comprehensive safety margin and high antioxidant enzyme activity.
• April 2024– Evonik will showcase the advantages of its amino acids portfolio in terms of supply reliability and environmental friendliness and introduce its newest offerings and solutions for animal nutrition at the China Feed Industry Expo 2024. At an industrial show in China, the business will debut its latest joint venture, Evonik Vland Biotech, specializing in animal gut health and functional additive solutions.