compound feed market size was valued at USD 500.9 Billion in 2022. The compound feed industry is projected to grow from USD 525.19 Billion in 2023 to USD 767.12 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.85% during the forecast period (2023 - 2032). Increasing demand for quality meat and dairy products all over the globe, the growing rate of industrialization and rising focus on the advancements and enhancements in production techniques are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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.
The compound feed market segmentation, based on ingredients, includes cereals, cereal by-products, oilseed meals, oils, molasses, supplements, and others. The cereals segment dominated the market, accounting for 35% of market revenue (183.81 Billion). In developing economies, category growth is driven as cereals are consumed in high amounts when compared with other ingredients due to their wide availability and strong nutritional profile. However, oilseed meal is the fastest-growing category as oilseed meals are a major protein source in animal diets.
The compound feed market segmentation, based on supplements, includes vitamins, antibiotics, antioxidants, amino acids, enzymes, acidifiers, and others. The amino acids category generated the most income (70.4%) due to its capacity to build immunity and encourage animal growth. It aids in controlling nail and skin problems in animals. However, vitamins are the fastest-growing category owing to rising awareness among customers regarding the advancement of fat-soluble vitamins.
The compound feed market segmentation, based on livestock, includes ruminants, swine, poultry, aquaculture, and others. The swine category generated the most income owing to the high demand for pig meat in the US, Mexico, China, and other South East Asian countries. However, poultry is the fastest-growing category due to the high demand for chicken and eggs as an inexpensive source of protein.
Figure 1: Compound Feed Market, by Livestock, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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, MRFR 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.
Compound Feed Industry Developments
January 2022: ADM opened an Aquaculture Innovation Lab at the Animal Nutrition Technology Center in Decatur, Illinois. The laboratory extends ADM's international R&D capabilities to this region, building on existing aquaculture research facilities in Brazil, Mexico, and Vietnam. The new facility expands capabilities to develop novel nutrition solutions.
September 2021: Suguna Feeds launched their cattle feed variants, MilkyBest+ and NutriBest, at their feed mill in Udumalpet, India. Both of these cattle feed variants are relatively cheaper than most brands in the Indian market while offering higher quality.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 500.9 Billion |
| Market Size 2023 | USD 525.19 Billion |
| Market Size 2032 | USD 767.12 Billion |
| Compound Annual Growth Rate (CAGR) | 4.85% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Ingredients, Supplements, Livestock and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Charoen Pokphand Foods PCL (Thailand), New Hope Group (China), Cargill, Inc. (U.S.), Land O' Lakes (U.S.), Guangdong HAID Group Co., Ltd. (China), BRF (Brazil), Tyson Foods, Inc. (U.S.), Nutreco (Netherlands), De Heus Animal Nutrition (Netherlands), and ForFarmers (Netherlands) |
| Key Market Opportunities | Increasing demand for quality meat and dairy products all over the globe |
| Key Market Dynamics | Growing assistance by the government to strengthen the agricultural sector |
Frequently Asked Questions (FAQ) :
The compound feed market size was valued at USD 500.9 Billion in 2022.
The market is projected to grow at a CAGR of 4.85% during the forecast period, 2023-2032.
North America had the largest share of the market
The key players in the market are Guangdong HAID Group Co., Ltd. (China), BRF (Brazil), Tyson Foods, Inc. (U.S.), Nutreco (Netherlands), De Heus Animal Nutrition (Netherlands), and ForFarmers (Netherlands).
The cereals category dominated the market in 2022.
The amino acid had the largest share in the market.
The swine had the largest share of the market.
Research Analyst Level II I have about two years of experience working in the consumer goods and retail industries and i am a biotech graduate.a tech-savvy analytically focused professional with a strong capabilities in identification, concept generation, and strategy evaluation. i can produce data-driven solutions while fusing unusual viewpoints with original concepts. i have been extensively working on business case studies, competitive & comparative analyses, and strategic reports. my primary areas of experience include client management, financial analysis, supply chain evaluation, market entry strategy evaluation, and estimating and forecasting market size.
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