The increased demand for compound feed across the globe is highly hampered by the COVID-19 pandemic which has resulted in supply chain disruption restricting the product trade. This, therefore, is anticipated to continue further in case the restriction on logistics movement is extended to the third quarter of 2021.
The Asia-Pacific accounts for a major share in the market owing to the increased livestock population in the region. This is prompted by the growing demand for meat and aquaculture products, which is the major driving force behind the growth of the compound feed market. Increased awareness regarding quality meat, milk, and other dairy-related products and increased livestock production are two other factors augmenting the growth of the market studied.
Ruminants are one of the major consumers of compound feed, with a prominent share, due to the high demand for beef around the world, followed by the poultry segment. Poultry and ruminants are expected to grow at a higher rate, due to the changing dynamics of industrialization in the meat industry.
Key Market Trends
Growing Demand for Seafood and Meat Products
The worldwide economic downturn has had a very limited effect on the global meat market, which has maintained its positive outlook. The highest growth for meat consumption is expected from the Asia-Pacific and South America regions because of changing diet patterns, urbanization, population, and economic growth. For example, According to Agriculture and Agri-food Canada, the Chinese demand for meat continues to surpass the domestic supply.
Fish are low in fats, cholesterol, and carbohydrates. Although not very high in protein, fish also provide essential vitamins and amino acids. The demand for seafood is increasing rapidly as more and more people are becoming aware of the health benefits of fish consumption. Globally increasing population trends are also supporting the growth of the world meat and seafood market. Increasing life expectancy and limited availability of land and water resources for animal feed production, and increasing use of these resources for food and ethanol production are increasing the demand for animal feed in the global meat industry.
Asia Pacific Dominates the Market
The demand for meat protein is rising in the Asia-Pacific region especially in China, India, Malaysia, Thailand, etc. with rapid economic growth in the region. This increased demand for meat protein has triggered meat production in the region, where uptake of compound feed has increased and is expected to show a healthy growth rate. Apart from improving nutritional value compound feed is gaining importance for its role in meat quality improvement. In the year 2019, the Indian commercial feed industry largely caters to the poultry sector at around 70.0-75.0%, followed by aquaculture at 10.0-12.0%, dairy cattle at 10.0-15.0%. India's commercial feed production was at nearly 39.0 million metric tons during the same period.
Poultry feed garners the highest share in the countryâ€™s feed production, accounting for nearly 24.9 million metric tons in 2019, followed by ruminants at 11.6 million metric tons, aquaculture at 2.3 million metric tons, and swine at 0.07 million metric tons. As the country holds a very minimal share in the swine population in the overall Asia-Pacific market, the African Swine Fever outbreak has not impacted the countryâ€™s feed industry. According to the Food and Agricultural Organization statistics data, in 2018, the country holds only 1.8% of the Asia-Pacificâ€™s swine population. Driven by the target to improve the self-sufficiency, the region is moving toward the inclusion of alternate feed ingredients, such as feed-grade rice in the livestock feed production.
The global compound feed market is consolidated, with major players holding a significant share in the market. Charoen Pokphand Foods, Cargill Inc., Land O Lakes Purina, and ForFarmers are the major players in the market. Leading companies focused on acquiring feed mills and small manufacturing for expansion of the business in local as well as foreign markets. Some of the players have been expanding their geographical presence by acquiring or merging with the manufacturers in the foreign market. The leading companies focused on the expansion of the business across regions and setting up a new plant for increasing production capacity as well as a product line. The companies are also increasing the production capacities of their existing plants.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
For sample report please visit : https://www.statzyreports.com/report/sr496594/compound-feed-market
Public Relations Manager
Email : [email protected]
Email : [email protected]
(IN) - +918484035727
(US) - +1415-871-0483
Website : www.statzyreports.com