Compound Feed Market

Rising demand for sustainable feed is driving the market growth

Market CAGR for compound feed is being driven as consumers across the globe are highly concerned regarding the supply chain of feed as the impact of different feed ingredients may vary and depend highly on its origin and the way it is being produced. Also, the environmental impact of the livestock industry is becoming an important issue; hence, policymakers and retailers are turning their attention toward this industry. Therefore, farmers and feed manufacturers also focus on reducing the environmental impact both on the feed and the final protein while keeping minimum feed costs.

For instance, in December 2020, BASF and Adifo Software entered into a partnership to launch a new digital solution, Opteinics (with BESTMIX feed formulation software). This new solution would help BASF to optimize feed formulation while supporting more sustainable animal protein production.

Additionally, increased demand for appropriate livestock nutrition drives the compound feed market revenue. Livestock continues to make an important contribution to the food chain. It is seen that energy fluctuation and imbalance in the metabolic process can induce various diseases and hamper livestock performance. The major reasons include inappropriate nutrition, overeating, and lack of physical activity. Compound feed is a careful mix of ingredients that provide a proper blend of carbohydrates from cereals, fat and protein from oilseeds, and fiber, which is highly valuable in animal nutrition.

Feeding good-quality feed to animals, which includes grains like corn and barley, changes the color of carcass fat from yellow to white, which increases the chance of obtaining higher-quality meat for commercial purposes.

Furthermore, animal feed quality and safety are key factors in meeting the domestic demand for safe and high-quality foodstuffs of animal origin. Animal nutrition is key in the livestock industry and contributes significantly to nutrient-efficient livestock production. It also fosters the safety and dietary quality of animal products for human consumption by enhancing the animal health and welfare status of farm animals. Animal nutrition science also helps to reduce greenhouse gas emissions and land use linked to livestock production on a unit product base.

The increasing understanding of the health benefits of proteins on animal health has resulted in a significant demand for protein feeds such as animal protein meals, fish meals, bone meals, feather meals, blood meals, and other protein meals and feeds. Because livestock and farm animals play an important role in the food supply chain, demand for protein-rich and nutritious compound feeds is expected to rise during the forecast period. The ever increasing demand for protein-rich animal feeds to promote livestock growth at all stages of life is expected to drive the overall market.

Recent News:

In January 2023, substantial quantities of food refuse are discarded, contributing to the contamination of the urban environment. An animal feed startup based in India that has successfully converted refuse has garnered investment and knowledge collaboration from the Israeli government. Insectika Biotech Private Limited (IBPL), a start-up, has initiated a partnership with the Bhubaneswar Municipal Corporation (BMC) to utilize Micro Composting Centres as a repository for food and other moist green refuse. The organization inadvertently cultivates black soldier fly larvae on food refuse. It produces both crops and animal sustenance.

The Nigerian federal government intends to publish a National Animal Feed Policy document in an effort to resolve obstacles that impede the country's livestock industry. The government is resolute in its efforts to encourage novel methodologies for animal feed production in order to counter the obstacles that exist within the subsector. The nation's susceptibility to natural disasters and the COVID-19 pandemic have underscored the critical need for additional measures to enhance food security. Obstacles including the exorbitant expense of supplies are propelling food price increases and inflation.

Emphasizing the significance of the RAFFS project inception workshop, the profiling and launch of AWARFA-N Nigeria, and the launch of the feed and fodder assessment, it was stated that this intervention was timely and would help farmers identify fodder opportunities and solidify solutions to food security challenges.

The increasing global population is a primary driver of the Global Compound Feed Industry. As the world population is projected to reach approximately 9.7 billion by 2050, the demand for animal protein is expected to surge. This growth necessitates enhanced livestock production, which in turn drives the need for compound feed. The Global Compound Feed Industry is anticipated to reach 550.7 USD Billion in 2024, reflecting the urgent need to meet protein demands. With the population growth, the industry must adapt to produce more efficient and sustainable feed solutions to support livestock health and productivity.

The Global Compound Feed Industry is poised for substantial growth, with projections indicating a market size of 550.7 USD Billion in 2024 and an anticipated increase to 868.6 USD Billion by 2035. This growth trajectory suggests a robust demand for compound feed driven by various factors, including population growth, rising protein consumption, and technological advancements. The compound feed sector is expected to experience a CAGR of 4.23% from 2025 to 2035, reflecting the industry's adaptability to changing consumer preferences and regulatory landscapes. Charts illustrating these projections will provide a visual representation of the market's growth potential.

The rising consumer preference for animal protein is significantly influencing the Global Compound Feed Industry. As diets shift towards higher protein intake, particularly in developing nations, the demand for poultry, beef, and dairy products increases. This trend is expected to propel the market to an estimated 868.6 USD Billion by 2035. The Global Compound Feed Industry must respond by innovating feed formulations that enhance growth rates and feed conversion efficiency. Additionally, the emphasis on quality and safety in animal feed is likely to drive investments in research and development, further shaping the industry's landscape.

The Global Compound Feed Industry is shaped by evolving regulatory frameworks and standards aimed at ensuring food safety and animal welfare. Governments worldwide are implementing stricter regulations regarding feed quality, safety, and environmental impacts. Compliance with these regulations is essential for market players, as non-compliance can lead to significant penalties and loss of market access. As the industry adapts to these regulatory changes, it is likely to see increased investments in quality assurance and traceability systems. This focus on compliance not only enhances consumer trust but also drives innovation in feed production practices.

Sustainability has emerged as a crucial driver for the Global Compound Feed Industry. Increasing awareness of environmental issues related to livestock production, such as greenhouse gas emissions and resource depletion, is prompting stakeholders to seek sustainable feed solutions. The industry is responding by developing eco-friendly feed ingredients and practices that minimize ecological footprints. This shift is likely to influence market dynamics significantly, as consumers and regulatory bodies demand more sustainable practices. The focus on sustainability may also lead to new market opportunities, as companies innovate to meet these evolving expectations.

Technological innovations in feed production processes are transforming the Global Compound Feed Industry. Advances such as precision nutrition, feed additives, and automated manufacturing systems are enhancing feed efficiency and nutritional value. These technologies enable producers to optimize feed formulations, thereby improving animal health and reducing waste. As a result, the industry is expected to grow at a CAGR of 4.23% from 2025 to 2035. The integration of technology not only boosts productivity but also aligns with sustainability goals, as more efficient feed use can lead to lower environmental impacts associated with livestock farming.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American compound feed market will dominate owing to the existence of an abundant livestock population along with the existence of different agricultural economies. Major players are likely to develop their poultry feed portfolio owing to consumers' shifting preferences for meat consumption. Further, the US compound feed market held the largest market share, and the Canadian compound feed market was the fastest-growing market in the North American region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Compound Feed Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's compound feed market accounts for the second-largest market share due to the rising health consciousness among consumers and the growing per capita meat consumption in the region. Further, the German compound feed market held the largest market share, and the UK compound feed market was the fastest-growing market in the European region.

The Asia-Pacific compound feed market is expected to grow at the fastest CAGR from 2023 to 2032. This is owing to the rise in human population in countries including China and India and the increasing demand for meat protein, resulting in escalating animal farming practices that will boost the market growth in this region. Moreover, China’s compound feed market held the largest market share, and the Indian compound feed market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the compound feed market grow even more. Market participants are also undertaking numerous strategic activities to expand their footprint, with important market developments such as contractual agreements, new product launches, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the compound feed industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the compound feed industry to benefit clients and increase the market sector. Major players in the compound feed market, including Charoen Pokphand Foods PCL (Thailand), New Hope Group (China), Cargill, Inc. (U.S.), Land O' Lakes (U.S.), Guangdong HAID Group Co., Ltd. (China), and others, are attempting to increase market demand by investing in research and development operations.

Cargill Inc is an agribusiness company providing products and services in food, financial, agricultural, industrial and risk management. It carries out the marketing, processing, and distribution of grains, oilseeds, sugar, meat, other food products, and cotton. It also manufactures natural ingredients for the personal care industry, pet food, animal feed and bio-industrial products. The company provides technical support, data asset solutions, transportation and logistics, risk management, and marketing services. In addition, the company produces and distributes starch and starch sweeteners, fuel ethanol and biodiesel.

Cargill markets its feed and pet food products under several brands, including Nutrena, Provimi, Cargill, EWOS, Diamond V and Purina. In April 2022, Cargill and Intelia entered into a strategic partnership to expand broiler performance via a new precision management tool. The data from this digital platform would help maximize bird health and well-being, operational performance, and efficiency.

Alltech Inc is an animal health and nutrition company. It provides natural nutritional products, solutions, technical information, and help to the animal nutrition and feed industry. The firm's product and service portfolio comprises yeast cultures and extracts, enzymes, organic minerals, biologically active proteins, flavors and direct-fed microbials for the treatment of mastitis, health and immunity problems. The products find application in productivity, animal reproduction and fertility in pigs, poultry, equine, aquaculture products, dairy cow and others. It has bioscience centers in the US.

In May 2021, Alltech recently introduced a new line of Lifeforce TM, premium equine complements, to the market. Supported by more than 40 years of scientific research and formulated with field-proven technologies, these supplements have been created to meet the requirements of modern horses throughout their lives, from interpretation to recreation.