The Animal Feed Ingredients Market is projected to expand its roots at an average CAGR of 4.0% during the forecast period. The market is likely to hold a revenue of USD 39.51 billion in 2023 while it is anticipated to cross a value of USD 60.65 billion by 2033.
The animal feed ingredient business is trending over the advent of plant-based protein that delivers high nutritional value to the animals for better performance. The different types of feed ingredients are helping the end users while launching these products at an affordable price is also increasing the competition among the key players.
FMI explains what factors work for the vendors and help end users in fulfilling the feed requirements of cattle owners. Let’s break down the benefits provided through animal feed ingredients that further expand the market size:
Enhanced Animal Health & Performance
These feed ingredients are packed with elements that the animal requires for better growth and muscle. The vendors focus on delivering better taste and aroma while not compromising the nutritional value of the products. The performance also increases, for example, the milk production of cattle increases once fed with naturally-sourced animal feed ingredients.
Limited Feed Wastage
The better utilization of the feed provided to the animal is ensured through the animal feed ingredients. This happens as the vendors provide feed that is better in taste and aroma and is liked by the animal. Thus, there is no wastage of food. This increases efficiency and helps the ranch owner in saving money.
Better Intake & Digestion
These animal feed ingredients are organically resourced and hence are easy to digest. The easy digestion helps the animals in increasing diet which further makes them healthy. This happens through the appealing taste and aroma that these feed ingredients carry. Furthermore, affordable animal feed ingredients are also lit in the end user’s pocket. New e-commerce spaces are providing discounts on animal feed and nutrients, garnering market growth.
Reduced Stress in Animals
The expanding poultry and animal ranches are commercializing their work. Thus, the animals getting depression and stress due to the food intake or lack of diet also affects the overall business. Therefore, good food helps them have a positive sensor experience.
| Attribute | Details |
|---|---|
| Animal Feed Ingredients Market CAGR (2023 to 2033) | 4.0% |
| Animal Feed Ingredients Market Size (2023) | USD 39.51 billion |
| Animal Feed Ingredients Market Size (2033) | USD 60.65 billion |
There is a rising demand for formulated feed in poultry, swine, cattle, and aquaculture (aquafeed) segments. The consumption of animal feed ingredients is predicted to expand in Asia Pacific. For animal productivity and ranch profitability, it is important to provide adequate protein in animal feed ingredients.
Also contributing to the growth of the animal feed ingredients market is the scientific evidence that animal proteins are abundant sources of nutrients and are considered whole food compared to plant and other derived proteins.
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Animal feed ingredients are essential for the proper feeding of animals. Feed ingredients also have a function to build and restore muscles and other body tissues. Animal feed protein ingredients consist of amino acids that promote enzyme and hormone secretion necessary for normal body function.
A deficiency of any amino acid can lead to animal health issues, declining efficiency, and output as a result. Animals cannot produce the amino acid and thus need to be supplied in the form of their feeding.
Rising demand for proper feed in poultry, swine, cattle, and aquaculture segments is a key growth driver for animal feed ingredients. Protein is an important nutrient in ruminant diets because it provides the ammonia required for microbial growth.
Increasing milk requirements might foster demand for cattle feed due to its high nutritional value. For animal productivity and ranch profitability, it is important to provide adequate protein to animals. These factors are anticipated to promote the overall demand for animal feed ingredients.
Consumers nowadays are likely to stay indoors and their food preferences include a multitude of healthy and plant-based snacks. Aversion to meat consumption has negatively impacted on the overall animal feed ingredients market.
Influencers and sportsmen promoting veganism lead to low consumption of animal-based diets having a huge impact on sales of animal feed ingredients. Production across companies has been disrupted on account of lockdowns and logistical restrictions across the globe.
The growing importance of feed and food safety is predicted to hamper the growth of animal feed ingredients among cautious consumers. The consumption pattern across nations has changed in a short time since coronavirus engulfed the world.
High production of feed products is directly correlated with an increase in the production of greenhouse gas creating a negative effect on climate. The outbreak of various diseases in animal wet markets has also led to low consumption of animal feed ingredients. The culmination of these factors may restrain the market’s growth to a certain extent.
| Countries | Revenue Share % (2023) |
|---|---|
| The United States | 27.3% |
| Germany | 3.7% |
| Japan | 4.9% |
| Australia | 2.4% |
| Countries | CAGR % (2023 to 2033) |
|---|---|
| China | 3.6% |
| India | 24.0% |
| The United Kingdom | 2.5% |
The market for animal feed ingredients is projected to expand in Asia Pacific and is poised to surpass USD 90 billion by the end of 2027. This regional growth is owing to high investments in livestock and animal farming supported by financial assistance through government subsidies, price support, and schemes.
The population in North America exhibits a strong preference for animal-based protein supplements. Latin America exports a significant proportion of protein-rich animal feed, which is projected to enable growth in the region. The United States held a market share of 27.3% in 2022. The growth is attributed to the expanding poultry business along with the new product launches with high nutritional animal feed ingredients.
In the Middle East, the market is likely to gain from increasing imports of animal-based proteins. In Europe, there is a change in consumer preference from animal-based ingredients to plant-based ingredients, in a bid to protect the environment and minimize animal farming, which may lead to relatively slow growth in the region.
North America holds a notable share in the production and consumption of feed ingredients owing to the presence of key cattle farms in the region.
The animal feed protein ingredients market from oilseed meals was about USD 125 billion in 2020 and is about to witness significant gains over the forecast period.
Oilseed meal comes under plant-based protein supplement, produced as a by-product from canola, cottonseeds, soybean, and sunflower oil extractions. Furthermore, it is highly used in poultry, swine, cattle, and chicken feeds as it is proven to increase feed intake as well as provide energy, productivity, and efficiency.
Soybean meals may witness strong gains in animal feed ingredients owing to their cost-effective nature along with high protein content balancing good amino acid contents, low fiber, and high energy. It does have a high amount of estrogen which has had no adverse impacts so far.
Around 70% of the total soybean animal feed ingredients are used in livestock feeding. The amino acid profile of a soybean meal is similar to a fish meal and hence is an effective substitute with high protein.
The poultry livestock feeds ingredients segment crossed USD 80 billion in the year 2020. Protein-rich feed is used for poultry production due to the high vitality of protein as it is one of the key constituents in the body.
Broilers have a huge requirement for dietary protein, driving the animal feed protein ingredients market to enhance broiler performances during the forecast period. The consumption of poultry products has risen in recent years owing to the rising demand for eggs and chicken among gym enthusiasts.
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The animal feed ingredients industry is fragmented and competitive and includes various players such as Dupont, Mosaic Company, Burcon Nutrascience Corporation ADM, Alltech, Hamlet Proteins, DSM, CHS, J.R Simplot Co., BRF, CropEnergies AG, Imcopa Food Ingredients B.V, Cargill, Catalysta, Titan Biotech, A Constantino, GRF Ingredients, Sojaprotein, Evershining Ingredients Company, Darling Ingredients, Sojaprotein, Green Labs LLC., Grain Millers and CJ Cheiljedang Corporation.
These companies mainly focus on innovative product launches and research owing to the rising demand for animal feed protein ingredients to enhance their existing customer base. Strategic partnerships and manufacturing alliances are key growth drivers for animal feed ingredients.
Market Developments
Dupont, Mosaic Company, and Cargill are key players.
The market is forecast to register a CAGR of 4.0% through 2033.
Oilseed meals are the key segment on the basis of product type.
North America will likely witness higher growth in the forecast period.
The market is estimated to secure a valuation of USD 39.51 billion in 2023.
The United States held 27.3% of the global market share in 2022.
| Estimated Size (2025E) | USD 113.1 Billion |
|---|---|
| Projected Value (2035F) | USD 199.0 Billion |
| Value-based CAGR (2025 to 2035) | 7.1% |
| Market Size Value (2023) | USD 23.4 billion |
|---|---|
| Market Size Value (2033) | USD 44.7 billion |
| Market Growth Rate (2023 to 2033) | 6.7% |
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