Global Poultry Feed Market Analysis

Poultry Feed Market (Global, 2024)

Introduction

The poultry feed market is an important component of the global agricultural market, driven by the rising demand for poultry products such as meat and eggs. In this market, the demand for high-quality feeds that promote the growth and health of poultry is also growing. This market is characterized by a wide variety of feeds, such as conventional, organic, and special feeds, which are designed to meet the nutritional needs of different poultry species. In addition, advances in feed technology and the development of sustainable practices have also influenced the market, and the industry is now striving to achieve the dual goals of increasing feed efficiency and reducing the impact on the environment. The combination of these factors, along with the development of regulations and market dynamics, brings about both challenges and opportunities for poultry feed producers, suppliers, and consumers.

PESTLE Analysis

Political

In 2024, the poultry feed market is influenced by a variety of political factors, such as the government's policies on agricultural and food security. For example, the United States government has allocated about $ 1.5 billion to support the sustainable development of agriculture, including the promotion of feed efficiency and reduction of poultry feed loss. Furthermore, trade agreements such as the United States-Mexico-Canada Agreement (USMCA) have a significant impact on the import and export of poultry feed, which will affect the market's competitiveness and price strategy.

Economic

The market for poultry feeds in 2024 is characterized by fluctuating commodity prices and changing inflation rates. The average price of corn, the main component of poultry feeds, is expected to be around 5.50 francs a bushel, depending on the domestic and foreign supply and demand. In addition, the world rate of inflation, which is expected to be 3.2%, will influence the cost of production and, therefore, the price of poultry feeds, since the manufacturers' operating costs will increase.

Social

In 2024, the general trend is towards a greater preference for organic and non-GMO poultry products, which will lead to a greater demand for specialised poultry feeds. Around a quarter of American consumers are willing to pay a higher price for organic poultry, which is leading to a change in feed formulations. Also, the growing awareness of animal welfare is making producers seek feeds that are in line with ethical farming practices, and this is also having an effect on the formulation of feeds.

Technological

In the feed for poultry, technological progress is playing an important role, especially in the formulation of feeds and the development of production processes. Until 2024, the precision feeding of poultry will be increasingly used. About 15% of the farms will use smart feeding systems to optimize the feed efficiency and reduce the loss of feed. Artificial intelligence is expected to lead to improved nutrient profiles and thus higher growth rates in poultry.

Legal

In 2024, legal factors affecting the poultry feed market include the tightening of regulations on the safety and labeling of feed. The new guidelines of the U.S. Food and Drug Administration on the traceability of feed ingredients, which must be traceable to a single origin, will force the manufacturers to change their suppliers and labels. The cost of the system of traceability and documentation will increase the operating costs of feed producers by 2%.

Environmental

The poultry feed market is becoming increasingly sensitive to the environment, especially in terms of sustainability and carbon footprint. In 2024, the poultry industry will be required to reduce its greenhouse gas emissions by at least 30 per cent by 2030. The development of alternative feed ingredients, such as insect protein, which is expected to represent five per cent of the total feed market by 2025, is thus related to the need to minimize the environmental impact while maintaining the same production efficiency.

Porter's Five Forces

Threat of New Entrants

The poultry feed market is characterized by a moderate barrier to entry. These include the need for substantial capital investment in production facilities and compliance with regulatory requirements. However, the growing demand for poultry products may attract new players, thereby increasing competition.

Bargaining Power of Suppliers

Suppliers of the raw materials of the poultry feed, such as corn and soya, have considerable power, as they are few in number and their products are essential to the composition of the diet. The prices they fix for their products are a source of uncertainty for the feed producers, and if they are forced to pay higher prices, the feed producers may suffer a decline in their profits.

Bargaining Power of Buyers

The poultry buyers, the dealers and the poultry producers, have a moderate bargaining power as they can choose from a number of suppliers. However, the need for high-quality feed and the possibility of long-term contracts may limit their power to bargain.

Threat of Substitutes

The threat of substitutes in the market for poultry feed is low because there are few alternatives that can provide the same nutritional value and efficiency for poultry production. There are, however, some alternative feedstuffs that are not widely used because of their cost and availability.

Competitive Rivalry

The poultry feed market is highly competitive, with many established players vying for market share. The competition is fierce, with companies competing on price, quality and innovation, which drives them to adopt aggressive marketing strategies and develop new products.

SWOT Analysis

Strengths

• High demand for poultry products globally, driving feed consumption.
• Established supply chains and distribution networks.
• Advancements in feed formulation technology improving nutritional value.

Weaknesses

• Dependence on fluctuating raw material prices, impacting profit margins.
• Limited awareness of sustainable feed options among some producers.
• Potential regulatory challenges related to feed safety and quality.

Opportunities

• Growing trend towards organic and non-GMO poultry feed.
• Expansion into emerging markets with increasing poultry consumption.
• Innovation in feed additives to enhance growth and health of poultry.

Threats

• Rising competition from alternative protein sources.
• Impact of climate change on feed ingredient availability.
• Economic downturns affecting consumer spending on poultry products.

Summary

The Poultry Feeds Market in 2024 is characterized by a strong demand, owing to the high consumption of poultry products worldwide and the technological developments in the feed industry. However, the market is faced with the challenges of high volatility in the price of raw materials and the regulatory framework. Opportunities include the increasing preference for organic feed and the expansion of the market to new regions. Threats include the competition from alternative sources of protein and the adverse effects of climate change. Strategically, innovation and sustainability will be crucial for the market players to navigate the aforementioned market trends.