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The compound feed market size is estimated to grow by USD 4.07 billion at a CAGR of 2.12% between 2023 and 2028. The global population is experiencing a significant increase in meat consumption, driven by factors such as rising disposable income and changing dietary preferences. This trend is leading to an expansion in livestock production, with farmers seeking to meet the growing demand for meat. The livestock sector is responding by increasing its herd sizes and improving productivity through advanced farming techniques and technology. This growth in the livestock industry is expected to continue, as consumers in both developed and developing countries continue to seek affordable and abundant sources of protein. The industry's success hinges on its ability to balance production growth with sustainability and animal welfare concerns, ensuring a responsible and ethical approach to meeting the world's increasing demand for meat.
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The market plays a crucial role in the food production chain by providing balanced diets for livestock, including ruminants, poultry, and other farm animals. Consumers demand high-quality meat, milk, and eggs, leading compound feed manufacturers to develop feed formulations with functional additives and optimal nutritional requirements from various protein sources. Livestock breeders rely on compound feed to ensure their animals receive standardized processes, ensuring optimal growth and health. Raw material prices, particularly for cereals like corn, barley, and oats, significantly impact the market. Geopolitical events, such as the Ukraine-Russia war, can disrupt supply chains and increase prices. Developing economies in the Asia Pacific region, urbanization trends, and European Union regulations drive the demand for compound feed. In the poultry sector, mash feed is popular, while ruminants require specialized formulations. Functional additives, such as vitamins and minerals, enhance animal health and productivity. Grassland degradation, animal density, early weaning, and other factors influence the nutritional requirements of livestock, driving innovation in compound feed formulations. The market faces challenges from rising raw material prices and regulatory requirements, but the demand for animal protein and the growth of the livestock sector ensure its continued expansion. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing meat production and consumption is notably driving market growth. The market experiences continuous growth due to the increasing demand for livestock products, particularly meat, from small-scale farmers and the livestock industry. The consumption of animal feed, including compound feed, is essential for animal nutrition, which in turn enhances the production of quality meat, dairy products, and other livestock industry outputs. The market's expansion is influenced by factors such as the rise in global population, leading to an increase in meat consumption, and the industrialization of production techniques. Raw materials used in compound feed production, such as cereals and protein meals, experience price fluctuations based on market conditions. For instance, cereal prices can be influenced by weather conditions, while protein meals, like soybean oil, can be affected by supply and demand dynamics.
Furthermore, regulations, including European regulations, play a significant role in the compound feed market, as they impact animal type-specific feed requirements and the use of animal by-products. Compound feed is available in both solid and liquid forms, catering to the varying needs of different animal types, including cattle, swine, poultry, and aquaculture. Feed ingredients, such as carbohydrates, fat, protein, and fiber, are carefully selected to optimize animal health and metabolic processes. Policymakers, retailers, and farmers are key stakeholders in the compound feed market, ensuring the environmental impact of production is minimized while maintaining high-quality standards. Adifo Software, Opteinics, and other livestock nutrition experts provide innovative solutions to optimize feed formulation and production, addressing energy fluctuation concerns and ensuring the most efficient use of resources. The compound feed market's future growth is expected to be driven by the continued demand for livestock products, advancements in production techniques, and the need for sustainable and efficient feed solutions. Thus, such factors are driving the growth of the market during the forecast period.
Emergence of private-label brands is the key trend in the market. The compound feed market is experiencing significant growth due to the increasing popularity of private-label brand products among small-scale farmers and the livestock industry. Retailers are increasingly manufacturing and selling their own branded animal feeds, which are priced lower than branded products. This trend has gained momentum in recent years, with major retailers expanding their private-label offerings. The demand for private-label animal feeds is driven by price-sensitive consumers in the livestock industry, including those in the cattle, swine, poultry, and aquaculture sectors. The production of compound feed involves the use of raw materials such as cereals, protein meals, and animal by-products.
Furthermore, the prices of these raw materials, particularly cereals and protein meals, can significantly impact the cost of production. Soybean oil prices also play a role in the cost of producing animal feed. Animal nutrition regulations, both in Europe and other regions, influence the type of feed ingredients used and the production techniques employed. Animal health is a primary concern in the livestock industry, and the quality of feed plays a crucial role in ensuring animal health and productivity. Feed ingredients such as carbohydrates, fat, protein, and fiber are essential for the metabolic process of animals. The energy content of feed is also important, as energy fluctuation can impact animal health and productivity. Policymakers and regulators play a key role in shaping the compound feed market through regulations on animal feed ingredients, production techniques, and environmental impact. Adifo Software and Opteinics are some of the companies that provide solutions for livestock nutrition and feed management. The compound feed market is expected to continue growing due to the increasing demand for livestock products, including quality meat and dairy products, and the ongoing industrialization of the livestock industry. Thus, such trends will shape the growth of the market during the forecast period.
Growing consumer inclination toward vegan food is the major challenge that affects the growth of the market. The market caters to the nutritional requirements of small-scale farmers and the livestock industry, producing animal feed from raw materials such as cereals, protein meals, and animal by-products. Animal nutrition plays a crucial role in the production of livestock products, including meat, dairy, and eggs. The European regulations and policymakers implement strict animal feed regulations to ensure animal health and quality meat production. Cereal prices and soybean oil prices significantly impact the compound feed market. Animal type, including cattle, swine, poultry, and aquaculture, influences the feed form, either solid or liquid. Feed ingredients like carbohydrates, fat, protein, and fiber are essential for the metabolic process of animals. Feed manufacturers use Adifo Software and Opteinics to optimize livestock nutrition and maintain energy fluctuation.
Furthermore, retailers and farmers source feed ingredients from various suppliers to ensure the best quality and price. The environmental impact of animal agriculture is a growing concern, leading to the exploration of alternative feed sources and production techniques. The compound feed market faces challenges such as raw material availability, price volatility, and regulatory compliance. However, advancements in technology and research in animal nutrition continue to drive innovation and growth in the industry. The market is expected to witness significant growth due to the increasing demand for animal products and the need to maintain animal health and productivity. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alltech Inc. - The company offers compound feeds for dairy cows, beef cattle, poultry, pig, and equine.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Poultry feed segment is estimated to witness significant growth during the forecast period. The Compound Feed Market plays a crucial role in the livestock industry by providing essential Animal feed for various Animal types, including Cattle, Swine, Poultry, and Aquaculture. Animal nutrition is a significant aspect of the industry, and compound feed is an integral part of it. Raw materials such as cereals, Protein meals, and Animal by-products are used to produce feed in both solid and liquid forms.
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The Poultry feed segment was the largest segment and was valued at USD 26.20 billion in 2018. Cereal prices and Soybean oil prices significantly impact the cost of feed production. Regulations, such as those in Europe, influence the production techniques and ingredients used in Animal feed. Policymakers and retailers work closely with Farmers to ensure the quality of Meat, Dairy products, and other Livestock products. Animal health is a primary concern, and feed ingredients like Carbohydrates, Fat, Protein, and Fiber are carefully selected to meet the nutritional requirements of different Animal types. Energy fluctuation and Metabolic processes are essential factors in Animal nutrition, and feed formulations are designed to optimize these processes. Adifo Software and Opteinics are examples of advanced tools used in Livestock nutrition to manage feed formulation and production. Environmental impact is a growing concern, and sustainable feed production techniques are being adopted to minimize the industry's carbon footprint. The Compound Feed Market is an essential component of the Industrialization of the Livestock industry, and its role will continue to evolve as production techniques and Animal nutrition requirements change.
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North America is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The compound feed market plays a crucial role in the food production chain by supplying balanced diets to livestock, ensuring optimal growth and productivity. Consumers rely on compound feed manufacturers to provide nutrient-rich formulations containing functional additives and protein sources for various livestock species, including ruminants and poultry. Livestock breeders require standardized processes to meet animals' nutritional requirements, with raw material prices influencing formulations, particularly cereals such as corn, barley, and oats. The Ukraine-Russia war and developing economies impact cereal crops availability and prices. In the livestock sector, animal density, early weaning, and European Union regulations influence compound feed production. Cereal crops and poultry-related compound feed dominate the market, with the Asia Pacific region and urbanization trend driving demand. Feed manufacturers cater to animals producing milk, eggs, and other livestock products, ensuring animal protein and animal husbandry practices remain efficient.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Compound Feed Market in Vietnam by Production Type and Product Type - Forecast and Analysis
Compound Feed Market in Mexico by Product - Forecast and Analysis
Animal Feed Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Brazil, Russia, Spain - Size and Forecast
The market plays a crucial role in the food production chain by catering to the nutritional requirements of various livestock species, including ruminants and poultry. Consumers demand high-quality meat, milk, and eggs, which necessitates the use of compound feeds formulated with precise nutrient content. Compound feed manufacturers employ standardized processes to create balanced diets using protein sources like soybean meal, fish meal, and animal by-products. Functional additives, such as vitamins, minerals, and enzymes, are incorporated to enhance the feed's efficacy and promote animal health. Raw material prices, particularly for cereals like corn, barley, and oats, significantly impact the market. Geopolitical events, such as the Ukraine-Russia war, can disrupt the supply chain and lead to price volatility.
Furthermore, developing economies, urbanization trends, and the growing livestock sector in the Asia Pacific region are driving the demand for compound feed, particularly for poultry-related products. Livestock breeders aim to optimize animal density and practice early weaning to reduce production costs, further fueling the market's growth. European Union regulations mandate strict standards for compound feed, ensuring animal welfare and food safety. Cereal crops, such as corn and barley, are essential raw materials for compound feed production. The market's future looks promising, as the demand for milk, eggs, and livestock products continues to rise. Feed manufacturers are continually innovating to create efficient and cost-effective compound feed solutions. The market's growth is underpinned by the need for animal protein in the animal husbandry sector and the quest for sustainable and high-performing feed formulations.
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Market Scope |
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Report Coverage |
Details |
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Page number |
143 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 2.12% |
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Market growth 2024-2028 |
USD 4.07 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.06 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 43% |
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Key countries |
US, UK, China, Canada, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alltech Inc., Arabian Agricultural Services Co., Archer Daniels Midland Co., Associated British Foods Plc, BRF SA, Cargill Inc., Charoen Pokphand Foods PCL, De Heus Voeders BV, Elanco Animal Health Inc., Feed One Co. Ltd., ForFarmers NV, Godrej Agrovet Ltd., Guangdong Haid Group Co. Ltd., Hueber Feed, LLC., Kent Nutrition Group Inc., Land O Lakes Inc., New Hope Group., NOR-FEED, Nutreco N.V., Tyson Foods Inc., and Weston Milling |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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