Animal Feed Industry Growth Drivers and Challenges

The animal feed market is witnessing strong growth driven by rising demand for high-quality meat, dairy, and aquaculture products. This report provides in-depth analysis of market trends, competitive

The Future of Animal Feed: How Market Growth Will Shape Global Meat Prices

The animal feed industry is undergoing a huge transition, which may influence how much we spend for meat in the next years. With billions of dollars in planned growth, understanding what is driving this expansion allows us to predict where food prices will go.
What Does Market Growth Mean for Your Grocery Bill?

The worldwide animal feed industry is now valued at approximately USD 533.4 billion in 2024, but experts anticipate that it will increase to USD 681.8 billion by 2033. That equates to a consistent CAGR of 2.8% every year. Some studies believe it might potentially reach $1,008.8 billion by 2031, expanding at a CAGR of 4.7% each year.

Why should you care about feed prices? Simple - animal feed makes up 60-70% of what it costs to raise livestock. When feed gets more expensive, meat prices usually follow. The good news is that this steady growth suggests we won't see the wild price swings we've experienced recently. The bad news? Meat prices will likely keep creeping up gradually.

Think of it this way: better feed technology might help farmers raise animals more efficiently, which could keep some costs down. But as more people around the world want quality meat, the demand for good feed keeps pushing prices up. It's a balancing act that will probably result in slowly rising meat prices over the next decade.

Why Emerging Markets Are Driving Poultry Feed Demand

Chicken and other poultry are becoming the go-to protein choice worldwide, especially in developing countries. Poultry feed now represents 39.0% of the entire animal feed market, making it the biggest segment by far.

There are several reasons why poultry feed is booming in emerging markets. First, chicken is relatively affordable compared to beef or pork, making it accessible to growing middle-class populations in countries like India, Brazil, and parts of Southeast Asia. Second, raising chickens requires less time and money upfront than other livestock, so small-scale farmers can get started more easily.

The Asia-Pacific region perfectly shows this trend. It controls 39.2% of the global market, worth about USD 286.2 billion, and it's growing faster than anywhere else at CAGR of 5.9%. Countries across Asia are seeing explosive growth in chicken consumption as people earn more money and move to cities where fresh meat is more readily available.

This isn't just about economics - it's about changing lifestyles. As people in emerging markets become more urbanized and affluent, they're eating more protein, and chicken is often their first choice because it's affordable, versatile, and widely accepted culturally.

 

 

Why Pellets Are Taking Over Feed Manufacturing

Walk into any modern farm, and you'll likely see pellet feed rather than the traditional mash feed that farmers used decades ago. There's a good reason for this shift - pellets simply work better in almost every way.

Pellets are made by taking regular feed ingredients, adding steam and pressure, then forming them into small, hard nuggets. This process creates several advantages that farmers love. First, pellets are much easier to handle, store, and transport than loose feed. They don't separate into different components during shipping, so animals get consistent nutrition in every bite.

From a practical standpoint, pellets last longer without spoiling, which is crucial in hot climates or places where storage conditions aren't ideal. They also reduce waste because animals can't pick through them to eat only their favorite parts, leaving the rest behind.

However, the market shows that preferences vary by region. Traditional mash feed still holds about 60% of the poultry feed market, especially in cost-sensitive areas where the extra processing costs of pellets don't make economic sense. But overall, the trend is clearly moving toward pellets as farming operations become more mechanized and efficiency-focused.

How Industry Giants Are Shaping the Future

Two companies - Cargill and BASF SE - are playing a huge role in determining where the animal feed industry goes next. In January 2023, these companies extended their partnership to develop better enzyme solutions for animal feed in the US market. This might sound technical, but it's actually quite important for everyday consumers.

What these companies are doing is creating feed that helps animals digest their food better and grow more efficiently. When animals can convert feed into meat more effectively, it reduces costs and environmental impact. The partnership combines BASF's research expertise with Cargill's massive distribution network and practical farming knowledge.

This collaboration started back in October 2021, and it shows how the biggest players in the industry are working together rather than competing on everything. They're focusing on making feed more sustainable and efficient, which could help keep future price increases

What This Means for the Future

The animal feed industry's growth to USD 681.8 billion by 2033 represents more than just bigger numbers - it reflects fundamental changes in how the world produces food. As emerging markets continue developing and their populations demand more protein, the pressure on feed production will only increase.

For consumers, this likely means gradually rising meat prices, but not the dramatic spikes we've seen during supply chain disruptions. The industry is becoming more efficient and sustainable, which should help keep increases manageable.

The dominance of poultry feed reflects changing global eating habits, with more people choosing chicken over other meats. The shift toward pellet feed shows an industry focused on efficiency and reducing waste.

Key Players

The key players operating in the global animal feed market are Charoen Pokphand Foods PCL (Thailand), New Hope Liuhe Co., Ltd. (China), Cargill, Incorporated (U.S.), Brf S.A. (Brazil), Tyson Foods, Inc. (U.S.), Nutreco N.V. (Netherlands), Archer-Daniels-Midland Company (U.S.), Alltech Inc. (U.S.), ForFarmers N.V. (Netherlands), De Heus Animal Nutrition (Netherlands), Royal Agrifirm Group (Netherlands), and Guangdong HAID Group Co., Ltd. (China).

 

Download Sample Report Here @ https://www.meticulousresearch.com/download-sample-report/cp_id=5393

Contact Us:
Meticulous Research®
Email- [e-mail]
Contact Sales- [phone]
Connect with us on LinkedIn- https://www.linkedin.com/company/meticulous-research