China animal feed market is projected to witness a compound annual growth rate of 4.52% to reach US$102.862 billion by 2026, from US$75.493 billion in 2019. Concerning livestock farming, hog and sow inventory are both starting at low levels, having fallen 27 % and 30 % respectively from 2019’s starting inventory. Due to robust restocking efforts in 2020 and fewer losses to African swine fever, the decline in herd inventory is estimated to reverse, and year-end 2020 inventories are forecast to grow by 9 %. Total hogs slaughtered and pork production in 2020 is both estimated to decrease further by 24 % and 20 %, respectively, from the previous year. High prices will incentivize many Chinese consumers to opt for other substitute sources of proteins. Even though traditional Chinese dishes cannot substitute beef for pork, thinly sliced beef that is well renowned for hotpot will likely witness high growth in 2020. In 2019, China’s Ministry of Agriculture and Rural Affairs (MARA) implemented a three-year mission plan for stabilizing swine production and supply. One of the key principles of this plan is to set specific production targets on a per-province level. Specific targets of slaughtered hogs to be shipped out in 2020 were set for top wine-producing provinces including Henan, Jiangxi, Hunan, and Shandong while the hog production targets are also set for hog intake provinces/municipalities. Large companies are encouraged to assist small to medium swine farms resume operation. By the end of 2019, MARA had implemented a program called “Large Agricultural Enterprises Lead 10,000 Households on Swine Farming to Alleviate Poverty” in 16 less developed cities in provinces including Hubei and Sichuan. With an investment of RMB50 billion ($7.1 billion) by 15 large agricultural enterprises, the program is expected to add 22 million slaughtered hogs per year [Source: USDA]. Therefore, with no signs of a decrease in consumption patterns and proactive government initiatives animal feed market of China is poised for a meteoric rise to satiate the incremental consumption pattern of the Chinese consumers.
The initiatives taken by MARA as per the three- year plan were to support the construction of large-scale pig farms, to provide a secure land for pig farming, to assist small and medium-sized farmers through linking, franchising, or leasing with large pig production enterprises, to promote environmental impact assessment, to strengthen the prevention and control of major animal diseases such as ASF by establishing and improving animal disease risk management systems among others. The local governments were also instructed to provide financial incentives for pig farms to get production up to a standard which further helped in the recovery from ASF. In 2020, China made robust restocking efforts due to which the decline in heard inventory reduced. China also came up with solutions to prevent an ASF outbreak in the future by devising biosecurity changes, testing, and vaccine development for the pigs. They adopted strategies such as Pulling the tooth, to control the spread of ASF. All these measures taken by the China Government resulted in the bouncing back of China’s economy and strengthening the animal feed market for the country.
| Report Metric | Details |
| Market size value in 2019 | US$75.493 billion |
| Market size value in 2026 | US$102.862 billion |
| Growth Rate | CAGR of 4.52% from 2019 to 2026 |
| Base year | 2019 |
| Forecast period | 2021–2026 |
| Forecast Unit (Value) | USD Billion |
| Segments covered | Type, Livestock, Source, Production Systems, Form, And Raw Material |
| Companies covered | Cargill, New Hope Group, Archer Daniels Midland, Alltech, BASF, Haid Group, Muyuan Foods, Tongwei Group, C.P. Pokphand Co. Ltd. |
| Customization scope | Free report customization with purchase |
Segmentation
Cargill
New Hope Group
Archer Daniels Midland
Alltech
BASF
Haid Group
Muyuan Foods
Tongwei Group
C.P. Pokphand Co. Ltd.
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