Compound feed market worth $641.2 billion by 2027

Increased demand for meat is driving market growth
calendar icon 17 June 2022
clock icon 3 minute read

According to a research report published by MarketsandMarkets, the global Compound Feed Market is estimated to be valued at USD$521.3 billion in 2022. The market, however, is projected to reach USD$641.2 billion by 2027, with a CAGR of 4.2%, in terms of value between 2022 and 2027.

Some of the reasons that are driving the growth of the compound feed market are increasing demand for meat consumption in developing countries, increasing livestock farming, growing application of animal-based products in the food industry, and rising incidence of animal diseases.

Based on ingredients, the cereals segments include cereal grains and distiller dried grains with soluble, which are used to fulfil the nutritional requirement of the livestock. The consumption of cereals also depends on the cost and availability of the different cereals; for instance, in a few parts of the US and China, wheat replaces corn as the main ingredient used in poultry feed whereas, in Australia, sorghum is the main grain used in animal feed during the summer season, instead of wheat. Thus, the types and quantity of cereal grains used in farm animal diets depend on their current costs.

Based on source, the plant-based segment is projected to account for the largest market share in the compound feed market. Some of the reasons boosting the growth of this category are the increasing demand for sustainable and environmentally friendly products and easy availability. Most of the players in the market provide plant-based products considering the demand from the end-users. It is less resource-intensive and has better nutritional aspects. Most products available in the market are currently sourced from a plant, and it has its increased application in ruminant nutrition.

By form, the compound feed market is segmented into mash, pellet, crumbles, and other forms. The other forms include cubes and cakes for animals like calves, milk cows, and feedlot livestock. The modern feed is made by selecting and mixing the ingredients according to the livestock that retains nutritional values. The mash is easy to handle and store and is less expensive than pellets and crumbles.

Based on livestock, the poultry segment is projected to account for the largest share in the compound feed market. The increase in demand for poultry by-products drives the demand for healthy and quality poultry birds and thereby the demand for compound feed. Poultry is considered a universal food due to which the livestock are domesticated for commercial purposes, thus increasing the demand for compound feed.

The Asia Pacific region is one of the fastest-growing regions in terms of meat consumption, production, and developing economies are contributing to the growing demand. High demand for meat and animal by-products, issues related to livestock diseases, rising demand for processed food, and increasing disposable income are some of the factors contributing to the rising demand for compound feed in the region.

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