The animal feed market is projected to grow at a CAGR of 3.40% to reach US$442.812 billion by 2025, from US$362.323 billion in 2019. Animal feeds are referred to as those products which are responsible for improving animals’ health. The feed is given in various doses depending on the animal. Rapid urbanization and growing consumption of meat and other end products such as milk and eggs across different regions are driving the animal feed market growth opportunities during the forecast period. The feed helps in enhancing the animal's abilities by providing enriched nutrients along with the feedstuff, accelerating growth and weight gain and developing immunity. Outbursts of diseases in animals is a major factor contributing to the increasing adoption of animal feed as it enhances the health of the animals and in proper regulation of the food chain. High growth in the animal feed market is aided by the growth strategies of major players in the form of expansions and investments, which also helps in enhancing the product portfolio and reaching out to new target markets. Furthermore, the growing livestock population along with the shift from unorganized livestock farming to the organized sector is further expected to propel the market growth opportunities in the coming years. However, the high price volatility of raw materials is expected to hinder the growth of the market during the forecast period. Also, a growing shift towards the adoption of a vegan-based diet is expected to impede the growth of the animal feed market in the forecast period and in the upcoming years.
The increasing global food demand along with the growing global population is one of the major factors driving the growth of the global animal feed market in the forecast period.
According to the United Nations prediction, the global demand for food is expected to grow by over 50% by the end of 2050. To achieve this, animal food production is expected to be approximately three times (for dairy and fish) and almost double (for poultry, swine, and beef) in comparison to the current production rate. The global meat production is expected to grow around 70%, aquaculture is expected to increase by approximately 90%, and dairy production is expected to rise by around 55%. This is because of the fact that animal farming and consumption of animal protein are essential for maintaining the nutritional well-being of individuals at the global level. Hence, the market is expected to grow at a significantly sustainable rate in the forecast period. As per FAO estimates, it has been estimated that the production of animal protein is projected to increase by 1.7% (approximately) every year during the period 2010 to 2050. In 2018, the commercial feed manufacturing generated an annual turnover of more than USD400 billion (source: International Feed Industry Federation).
Asia Pacific region is expected to hold a significant market share in the forecast period.
The animal feed market in the Asia Pacific region is accounted to hold a significant market share owing to a large consumer base especially in the emerging economies of China and India. The expanding middle-class population with an increasing family income is contributing to the market growth in the forecast period. The consumers have greater spending ability for the fulfillment of their nutritional needs apart from regular diet obtained from cereals. Also, with the growing per capita disposable income, the market for animal feed is expected to surge coupled with the growing health awareness regarding the consumption of animal protein. Furthermore, animal feed plays a crucial role in the food industry, hence, with the growing food industry in the APAC region, the market for animal feed will also grow. This is due to the fact that animal feed is essential for the availability of safe, and abundant animal proteins in order to satiate a huge population base.