The global animal feed market has been growing substantially over the past decade. Animal feed refers to food given to domestic animals in the animal husbandry industry. It supplies nutrients to animals and attempts to maximize the animal's growth or production of milk, eggs, wool, or other products. Common animal feed ingredients include grains (corn, wheat, and barley), plant protein meals and cakes derived from soybeans, canola, and cottonseed, roughages such as grass hays and silage, mineral and vitamin supplements, and byproduct feedstuffs from the human food industry. The global animal feed industry is critical for supporting global meat production and the total food system. Various types of animal feed include poultry feed, cattle feed, swine feed, pet food, and aquafeed.
The animal feed market is estimated to be valued at USD 468.8 Bn in 2024 and is expected to reach USD 638.1 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031.
Key Takeaways
Key players operating in the animal feed market are Cargill, ADM, COFCO, Bunge, Louis Dreyfus, Wilmar, Beidahuang Group, Ingredion Incorporated. These companies collectively account for over 50% share of the overall market.
The growing demand for meat and other livestock products is directly influencing the demand for animal feed products. Developing regions with major livestock industries such as China and Brazil are witnessing high demand growth.
Several animal feed producers are expanding geographically to enhance their presence across lucrative growth markets. Strategic acquisitions and partnerships allow companies to diversify product portfolios and distribution networks globally.
Market drivers
The global demand for meat is the major growth driver for the animal feed industry. As meat consumption increases sharply around the world driven by rising incomes, population growth, and urbanization, more feed is needed to raise healthy livestock for meat production. The growing demand for feed ingredients like soybean meal and corn makes animal feed a highly consumption-driven market. Developing regions are exhibiting high reliance on animal-derived proteins which continue to boost feed demand positively.
The current geopolitical instability across several regions is impacting the Animal Feed Market growth. The ongoing Russia-Ukraine conflict and sanctions have disrupted global wheat and corn supply chains. Ukraine and Russia are among the largest exporters of wheat, corn, and barley used to produce animal feed. The conflict has led to a sharp rise in grain prices in the international markets. This is negatively impacting the animal feed producers as raw material costs have increased substantially. The producers are forced to raise feed prices to maintain margins. However, increased feed costs might reduce demand from livestock farmers if the high prices are sustained over a long period.
The animal feed market players need to diversify their sourcing and look beyond the Black Sea region to ensure long term supply security. Countries like the US, copyright, and Argentina can play a bigger role in meeting the shortfall from the Ukraine-Russia region. Producers also need to focus on inflating their use of alternative grains and plant-based proteins. Research on developing cost effective and high-quality feeds using agricultural byproducts and innovative plant-based ingredients can help address rising costs. Livestock associations also require supporting farmers through this challenge.
Geographically, the animal feed market in North America and Europe is among the most concentrated in terms of value. Both regions accounted for over 40% of the global market value in 2021 led by large commercial livestock sectors and advanced animal husbandry practices. However, Asia Pacific region has emerged as the fastest growing market for animal feed globally over the past few years. Increased consumption of meat and poultry along with rising awareness about livestock nutrition are driving strong demand across major countries like China and India. Southeast Asian countries are also supplementing this growth.
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