Animal Feed Market Size & Forecast

The Animal Feed Market is projected to reach $1,008.8 billion by 2031, at a CAGR of 4.7% during the forecast period of 2024–2031. In terms of volume, the animal feed market is projected to reach 2,965 million tons by 2031, at a CAGR of 3.1% during the forecast period of 2024–2031. The growth of this market can be attributed to several factors, including the increasing commercialization of the livestock sector, the rising demand for animal-based products, and the growing focus on research & development in the animal feed sector. However, fluctuating raw material prices restrain the growth of this market. Additionally, the growing awareness about animal health is expected to generate growth opportunities for the players in this market.

Animal Feed Market Growth Drivers

Growing Commercialization of the Livestock Sector Driving the Growth of the Animal Feed Market

Increasing economic development and urbanization are driving the demand for meat, dairy, and other livestock products. To meet the rising demand for meat and other animal products, animal farming is rapidly increasing globally. Consequently, the livestock sector has become increasingly industrialized in recent years. Industrial systems have significantly improved agricultural productivity and increased meat and dairy output. Livestock populations are increasing, while at the same time, the number of farmers is decreasing, leading to much bigger herds per farm. According to projections by the Food and Agriculture Organization of the United Nations (2022), global livestock production is set to reach 1,961,400,000 heads in 2026 from 1,904,800,000 heads in 2023, an increase of 0.7% per year.

In large-scale livestock production, it becomes difficult for farmers to track and monitor animals’ health. Also, there are other issues, such as reducing the environmental impact of livestock production and ensuring optimal productivity. The industrialization of the livestock sector has resolved such issues with advanced technologies. For instance, in the animal feed industry, feed software is used for feed formulation to minimize costs and maximize profits. The software enables users to manage their feed production processes by providing them with information on ingredients, recipes, and costs. Additionally, the use of feed automation in livestock farming has gained momentum in recent years. Automated feeding systems provide daily information about feed consumption and costs. They offer various benefits to farmers, such as reducing feed waste and improving working conditions by reducing the time spent on the preparation and distribution of rations.

Large herds reared for meat and dairy products require high-quality, nutritious feed for proper growth and development, creating a strong demand for animal feed. Feed provides animals with the necessary nutrients, promotes growth and good health, and contributes to sustainable and efficient livestock production.

Thus, the increasing commercialization of the livestock sector and rising livestock populations are driving the growth of the animal feed market.

Rising Demand for Animal-based Products Increasing Livestock Production and Utilization of Animal Feed

Urbanization is driving a livestock revolution across many developing countries. Urbanization, population expansion, economic growth, and changes in consumers’ eating habits are driving a shift toward more livestock-intensive diets consisting of meat, milk, and eggs. According to the OECD-FAO Agricultural Outlook 2021–2030 report, the global consumption of meat proteins is projected to increase by 14% from 2021 to 2030, mainly driven by income and population growth. In addition, protein availability from beef, pork, poultry, and sheep meat is projected to grow by 5.9%, 13.1%, 17.8%, and 15.7%, respectively, from 2021 to 2030. Much of the increase in global meat production is expected from the U.S, Argentina, India, Mexico, Russia, and Turkey. In addition, per capita global meat consumption is expected to increase by 0.3% p.a. from 2021 to reach 35.4 kg RWE (Retail Weight Equivalent) in 2030.

Moreover, according to the Organisation for Economic Co-operation and Development and the United Nations Food and Agriculture Organization (OECD-FAO) Agricultural Outlook 2022–2031 report, global milk production is expected to increase by 1.19% per annum from 2021 to 2031, reaching 1,059.9 million tons in 2031 from 875.8 million tons in 2021. India and Pakistan are projected to account for over half of the growth in global milk production over the next ten years.

As the global demand for milk continues to rise, there is a growing need to produce more milk from fewer resources. Therefore, dairy farmers are focused on increasing milk yield and improving livestock health. Dairy animals have high nutritional requirements during lactation. High-quality feeds containing plant-based ingredients, supplements, and novel additives help increase milk production, improve milk quality, and boost immune function in dairy animals. Probiotics, prebiotics, enzymes, amino acids, vitamins, and minerals are commonly used in animal feed to improve feed digestibility, enhance nutrient absorption, and promote the growth of healthy gut bacteria.

Thus, the rising demand for animal-based products and increasing livestock production are driving the growth of the animal feed market.

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Animal Feed Market Growth Opportunity

Growing Awareness about Animal Health Positively Influencing the Demand for Animal Feed

The growing awareness about animal health is boosting the demand for animal feed. As people become more conscious of the importance of animals’ well-being and its impact on the environment and human health, efforts are being made to promote better animal care and treatment. Zoonotic diseases, food safety concerns, environmental implications, veterinary advancements, and the need to improve livestock productivity are some of the major factors increasing peoples’ awareness about animal health.

Animal health and food safety have become major challenges for the livestock sector due to the increasing complexity of supply chains attributed to globalization and trade liberalization. The COVID-19 pandemic highlighted the dangers of zoonotic diseases (infections that can be transmitted from animals to humans). Also, there is an increasing risk of livestock diseases affecting humans, especially due to their pandemic potential, which was recently witnessed during the outbreak of a new strain of influenza, A (H1N1), containing genetic material from human, swine, and poultry viruses. Thus, there is an increased emphasis on monitoring and maintaining animal health to prevent potential disease outbreaks.

Governments worldwide are implementing increasingly stringent regulations to ensure animal welfare. There are several government programs and agencies dedicated to animal health and welfare. These programs cover areas such as animal testing, farming practices, and wildlife protection. Some of the major programs and agencies are as follows:

• In the U.S., the United States Department of Agriculture (USDA) is responsible for protecting and promoting animal health, welfare, and agricultural interests. The agency works to prevent the spread of animal diseases, regulate the import and export of animals, and oversee animal welfare laws. It also focuses on improving animal health and the quality and marketability of animal products and veterinary biologics in the U.S. The Food and Drug Administration (FDA) regulates the safety and effectiveness of animal drugs, animal feed, and pet food. It also oversees veterinary products and ensures that they meet the necessary standards.
• In India, the National Animal Disease Control Program (NADCP), launched in 2019, aims to control and eradicate important livestock diseases like Foot and Mouth Disease (FMD) and Brucellosis. The program focuses on vaccination, disease surveillance, and developing animal health infrastructure across the country. In addition, the Rashtriya Gokul Mission program, initiated in 2014, focuses on conserving and developing indigenous cattle breeds and enhancing their productivity. By conserving native breeds, the government aims to maintain genetic diversity and improve the sustainability of livestock farming.
• In Germany, the National Livestock Identification System (Herkunftssicherungs- und Informationssystem für Tiere - HIT) helps trace livestock movements. It provides information about the origins of livestock animals, which is essential for disease control and food safety.

Thus, government programs and initiatives aimed at promoting animal health and welfare are likely to continue driving the demand for animal feed.

Animal Feed Market Analysis: Key Findings

By Type: In 2024, the Compound Feed Segment to Dominate the Animal Feed Market

Based on type, the animal feed market is segmented into compound feed, feed concentrates, and roughages. In 2024, the compound feed segment is expected to account for the largest share of 71.8% of the global animal feed market. The large share of the compound feed segment is attributed to their comparatively higher price and rising demand for these formulated feed among commercial livestock farmers and pet owners to ensure appropriate nutrition for animals for faster and healthy growth because of the rising prevalence of animal diseases, the growing rate of livestock industrialization, and the high demand for quality meat and dairy products.

However, the feed concentrates segment is projected to register the highest CAGR of 5.4% during the forecast period. The rapid growth of this segment is mainly attributed to increasing demand for specialized diets for animal feed and increasing farmers' awareness about the specific nutritional needs of their animals.

By Source: In 2024, the Plant-based Segment to Dominate the Animal Feed Market

Based on source, the animal feed market is segmented into plant-based, animal-based, fodder & DDGS, and novel sources. In 2024, the plant-based segment is expected to account for the largest share of 69.9% of the global animal feed market. The large market share of this segment is attributed to the abundant availability of raw materials, widespread acceptance of plant-based animal feed, and low cost of plant-based feed sources.

However, the novel sources segment is projected to register the highest CAGR of 6.0% during the forecast period of 2024–2031. The growth of this segment is attributed to the high nutritional profiles of novel sources, government approvals to integrate these innovative sources into feed products, and the need to explore new protein sources to meet the rising global demand for animal protein due to the rapid population growth.

By Form: In 2024, the Dry Feed Segment to Dominate the Animal Feed Market

Based on form, the animal feed market is segmented into dry feed and wet feed. In 2024, the dry feed segment is expected to account for the larger share of 92.7% of the global animal feed market. The large share of this segment is attributed to convenience for handling, storage & transport, and longer shelf life, less cost, nutrient stability, controlled feeding, higher nutritional density, and bulk purchase. Moreover, this segment is also expected to register the highest CAGR of 4.8% during the forecast period of 2024–2031. The rapid growth of this market is mainly attributed to increasing demand from the poultry sector and an increase in commercial livestock production.

By Animal Type: In 2024, the Poultry Segment to Dominate the Animal Feed Market

Based on animal type, the animal feed market is segmented into poultry, ruminants, swine, aquaculture, and other types. In 2024, the poultry segment is expected to account for the largest share of 32.9% of the global animal feed market. The large share of this segment is attributed to increasing demand for poultry meat-based products, lower-cost poultry meat, increasing poultry expansion projects, and a shift in customer taste toward white meat rather than red meat.

However, the aquaculture segment is projected to register the highest CAGR of 6.4% during the forecast period of 2024–2031. The rapid growth of this segment is mainly attributed to increasing aquaculture production, demand for a nutritious diet for the proper growth and development of aquaculture species, and rising consumption of fish and fish-based products.

Geographical Analysis

Asia-Pacific: Fastest Growing Market

Based on geography, the animal feed market is divided into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 39.2% of the global animal feed market. The Asia-Pacific animal feed market is estimated to be worth USD 286.2 billion in 2024. Asia-Pacific’s major market share is attributed to the increased consumption of meat and other animal products by a growing population, high milk production, the growth of the livestock farming industry in the region, and the presence of major animal feed producers in Asia-Pacific.

Additionally, this region is projected to register the highest CAGR of 5.9% during the forecast period, mainly due to growing support by the government to strengthen the agricultural sector, economic expansion, increasing focus on animal productivity, and modernization of the livestock & meat sectors.

Animal Feed Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the global animal feed market are Charoen Pokphand Foods PCL (Thailand), New Hope Liuhe Co., Ltd. (China), Cargill, Incorporated (U.S.), Brf S.A. (Brazil), Tyson Foods, Inc. (U.S.), Nutreco N.V. (Netherlands), Archer-Daniels-Midland Company (U.S.), Alltech Inc. (U.S.), ForFarmers N.V. (Netherlands), De Heus Animal Nutrition (Netherlands), Royal Agrifirm Group (Netherlands), and Guangdong HAID Group Co., Ltd. (China).

Animal Feed Industry Overview: Latest Developments from Key Industry Players

• In January 2023, De Heus Animal Nutrition (Netherlands) opened a feed factory situated in Attinguié, Ivory Coast, with an initial capacity of 120,000 MT per annum.
• In December 2021, Nutreco (Netherlands) acquired Nutrimin (Denmark) to strengthen its Trouw Nutrition business in farms in Eastern Europe and Russia.
• In September 2021, Alltech (U.S.) established a research facility in the Netherlands to expand its capacity for product development and production of aquaculture industry solutions.
• In February 2021, ForFarmers (Netherlands) acquired De Hoop Mengvoeders B.V. (Netherlands) to strengthen its position in the poultry feed sector, mainly in the Netherlands, Belgium, and Western Germany

Animal Feed Market Research Summary

Key questions answered in the animal feed market report: