Compound Feed Market Size, Share, Opportunities, And Trends By Ingredient (Cereals, Cereal By-Products, Oil, Oilseed Meal, Supplements, Molasses, Others), By Nutrient (Antioxidants, Antibiotics, Feed Enzymes, Vitamins, Feed Acidifiers, Amino Acids, Others), By Animal Type (Swine, Poultry, Ruminants, Others), And By Geography – Forecasts From 2025 To 2030

Compound Feed Market Size:

The Compound Feed Market will reach US$614.788 million in 2030 from US$513.970 million in 2025 at a CAGR of 3.65% during the forecast period.

Compound Feed Market Highlights:

• Global meat consumption to rise 14% by 2030, boosting compound feed demand (FAO).
• Enzyme-based feed additives improve poultry nutrient absorption by 10% (IFIF, 2024).
• Circular feed ingredients gain traction, aligning with EU Green Deal goals (FEFAC, 2025).
• Aquaculture feed demand grows as fish supply hits 59% by 2030 (FAO).

Introduction to the Compound Feed Market:

The compound feed market is a cornerstone of the global agricultural industry, providing essential nutrition to livestock, poultry, aquaculture, and other animal sectors. Compound feed, a blend of raw materials and additives formulated to meet the specific nutritional needs of animals, plays a critical role in ensuring efficient animal growth, health, and productivity. As global demand for animal-derived products like meat, dairy, and eggs continues to rise, the compound feed market has become increasingly vital in supporting sustainable and efficient food production systems.

Compound feed is a scientifically formulated mixture of ingredients such as grains, protein meals, vitamins, minerals, and additives designed to optimize animal performance. Unlike traditional feed, which may consist of single ingredients like hay or grains, compound feed is tailored to meet the precise nutritional requirements of different animal species, ages, and production goals (e.g., growth, milk production, or egg-laying). The market encompasses feed for poultry, swine, cattle, aquaculture, and other animals, with applications spanning commercial farming, smallholder operations, and integrated agribusinesses.

The global compound feed market is a dynamic and rapidly evolving sector, driven by the increasing global population, rising per capita income, and shifting dietary preferences toward protein-rich foods. According to the Food and Agriculture Organization (FAO), global meat consumption is projected to increase by 14% by 2030 compared to the 2020-2022 baseline, driven largely by population growth and urbanization in developing regions. This surge in demand for animal-based products directly fuels the need for high-quality compound feed to support efficient livestock and aquaculture production.

The market is characterized by a diverse supply chain, including raw material suppliers (e.g., corn, soybean, and wheat producers), feed manufacturers, and distributors. Major players in the industry, such as integrated agribusinesses and specialized feed producers, leverage advanced technologies like precision nutrition and automated feed formulation to enhance product quality and meet regulatory standards. The market also operates within a complex regulatory framework, with governments and international bodies setting standards for feed safety, quality, and environmental sustainability.

Compound Feed Market Drivers

• Rising Demand for Animal Protein

The global population is projected to reach 8.5 billion by 2030, with significant growth in developing regions such as Asia, Africa, and Latin America. Urbanization and rising disposable incomes are driving a shift toward protein-rich diets, particularly meat, dairy, and eggs. According to the FAO, global meat consumption is expected to increase by 14% by 2030 compared to the 2020-2022 baseline, with poultry meat consumption in Asia projected to grow by 16%. This surge in demand for animal-derived products necessitates expanded production of compound feed to support efficient livestock and poultry farming. For instance, poultry, which accounts for a significant share of compound feed consumption, requires high-quality feed to achieve rapid growth and feed conversion efficiency, driving market growth.

• Advancements in Feed Technology

Innovations in feed formulation and production technologies are enhancing feed efficiency, animal health, and productivity. Precision nutrition, enabled by data analytics and IoT, allows manufacturers to tailor feed compositions to specific animal needs, optimizing nutrient uptake and reducing waste. In 2024, the International Feed Industry Federation (IFIF) reported the introduction of a new enzyme-based feed additive that improved nutrient absorption in poultry by 10%, reducing feed costs and environmental impact. Additionally, advancements in feed additives, such as probiotics, prebiotics, and phytogenics, are improving gut health and immunity in animals, further driving market demand. These technological developments enable producers to meet stringent quality standards and cater to the growing demand for high-performance feed.

• Sustainability and Circular Economy Initiatives

The push for sustainable agriculture is transforming the compound feed market, with increased focus on eco-friendly feed solutions. Manufacturers are incorporating by-products like distillers’ grains, food waste, and agricultural residues into feed formulations to reduce reliance on virgin resources and minimize environmental impact. In 2025, the European Feed Manufacturers’ Federation (FEFAC) launched comprehensive guidelines promoting the use of circular feed ingredients, aligning with the European Union’s Green Deal objectives to achieve climate neutrality by 2050. These initiatives not only address environmental concerns but also reduce production costs, making sustainable feed solutions attractive to producers. The adoption of circular economy principles is particularly significant in regions with stringent environmental regulations, driving innovation in the market.

• Growth in Aquaculture

The aquaculture sector is a rapidly growing segment of the compound feed market, driven by increasing global demand for fish and seafood. The FAO estimates that aquaculture will account for 59% of global fish supply by 2030, fueled by consumer preferences for healthy, protein-rich foods. Specialized aquafeed, designed to optimize fish growth and minimize environmental pollution, is a critical driver. Recent developments include the use of alternative protein sources, such as insect meal and algae-based feeds, to reduce reliance on fishmeal. In 2025, the Global Seafood Alliance highlighted a partnership between a major feed producer and a biotech firm to develop algae-based omega-3 supplements for aquafeed, addressing sustainability concerns. The growth of aquaculture, particularly in Asia-Pacific, is a significant catalyst for the compound feed market.

Compound Feed Market Restraints:

• Raw Material Price Volatility

The prices of key feed ingredients, such as corn, soybeans, and fishmeal, are highly volatile due to factors like weather conditions, geopolitical tensions, and trade disruptions. For example, in 2024, drought conditions in South America led to a 15% increase in soybean prices, significantly impacting feed production costs, as reported by the United States Department of Agriculture (USDA). This volatility creates uncertainty for feed manufacturers, who must balance cost increases with competitive pricing. Small and medium-sized producers, in particular, face challenges in absorbing these price fluctuations, which can erode profit margins and limit market growth.

• Stringent Regulatory Constraints

The compound feed industry operates under strict regulatory frameworks governing feed safety, quality, and environmental impact. Governments and international bodies impose restrictions on the use of certain additives, such as antibiotics, to address concerns like antimicrobial resistance. According to the European Medicines Agency, in 2023, the European Union implemented tighter regulations on antibiotic use in animal feed, requiring manufacturers to reformulate products and invest in alternative solutions. Compliance with these regulations increases production costs and complexity, particularly for manufacturers operating in multiple regions with varying standards. Additionally, regulations on genetically modified organisms (GMOs) and feed additives can limit innovation and market access in certain regions.

• Environmental Concerns

The environmental footprint of feed production, particularly related to deforestation for soybean cultivation and overfishing for fishmeal, is a significant challenge. The World Resources Institute reported in 2024 that 20% of global soybean production for animal feed contributes to deforestation, raising concerns about biodiversity loss and carbon emissions. Similarly, overfishing for fishmeal production has led to declining fish stocks, prompting calls for sustainable alternatives. Public pressure and regulatory scrutiny are pushing manufacturers to adopt eco-friendly practices, such as using plant-based or lab-grown feed ingredients. However, these solutions often involve higher costs and require significant investment in research and development, posing a restraint on market growth.

• Competition from Alternative Feed Sources

The rise of alternative feed sources, such as single-cell proteins, insect-based feeds, and plant-based diets for animals, is creating competition for traditional compound feed. While these alternatives align with sustainability goals, their scalability and cost-effectiveness remain challenges. For instance, a 2025 IFIF report noted that insect-based feed, while promising, is 20-30% more expensive than conventional feed due to limited production capacity. This competition could fragment the market, particularly in regions where cost sensitivity is high, and slow the adoption of traditional compound feed in certain segments.

Compound Feed Market Segmentation Analysis:

• By Ingredients, Cereals will hold a major market share

Cereals, such as corn, wheat, barley, and rice, are the dominant ingredient segment in the compound feed market due to their widespread availability, cost-effectiveness, and high carbohydrate content, which provides energy for livestock, poultry, and aquaculture. Cereals account for a significant portion of feed formulations, often comprising 50-70% of the total composition, depending on the animal type and production goals. Their prominence is driven by their role as a primary energy source, supporting rapid growth and efficient feed conversion ratios (FCR).

The demand for cereals in compound feed is closely tied to global agricultural production and consumption trends. According to the FAO, global cereal production reached 2.8 billion tonnes in 2024, with corn and wheat being the most widely used in animal feed due to their high starch content and affordability. Corn, in particular, is a staple in poultry and swine feed, especially in regions like North America and Asia, where large-scale farming is prevalent. In 2024, the United States Department of Agriculture (USDA) reported that approximately 40% of U.S. corn production was directed toward animal feed, underscoring its critical role.

Recent developments highlight efforts to improve cereal-based feed efficiency. For instance, precision milling and processing techniques are being adopted to enhance the digestibility of cereals, reducing waste and improving nutrient uptake. In 2025, the International Feed Industry Federation (IFIF) noted that advanced cereal processing technologies increased feed efficiency by 8% in poultry diets. However, cereal prices are subject to volatility due to weather patterns, trade policies, and competing demands from the human food and biofuel sectors. For example, drought conditions in 2024 led to a 10% rise in global corn prices, impacting feed production costs, as reported by the USDA. Despite these challenges, cereals remain the backbone of the compound feed market due to their scalability and nutritional value.

• By Nutrients, the feed enzymes segment is growing notably

Feed enzymes are one of the largest and fastest-growing nutrient segments in the compound feed market, driven by their ability to enhance nutrient digestibility, improve feed efficiency, and reduce environmental impact. Enzymes such as phytases, proteases, and amylases break down complex nutrients like phytate, proteins, and starches, making them more bioavailable to animals. This segment is particularly significant in poultry and swine feed, where enzymes help optimize growth rates and reduce feed costs.

The adoption of feed enzymes is fueled by the need for sustainable and cost-effective feed solutions. In 2024, the IFIF reported that enzyme-based feed additives improved nutrient absorption in poultry by 10%, lowering feed requirements and reducing phosphorus excretion by up to 30%. This is critical in addressing environmental concerns, as excess phosphorus in animal waste can contribute to water pollution. Additionally, enzymes enable the use of lower-cost, less digestible ingredients, such as barley or wheat by-products, without compromising animal performance.

Regulatory support for reducing antibiotic use in animal feed has further boosted the enzyme market, as enzymes serve as a natural alternative to growth promoters. In 2023, the European Medicines Agency noted that stricter EU regulations on antibiotics increased demand for enzyme-based solutions. Innovations in enzyme technology, such as thermostable phytases that withstand high pelleting temperatures, are also driving growth. In 2025, a leading feed additive company introduced a new phytase enzyme that improved phosphorus utilization in swine by 15%, as highlighted by the IFIF. The feed enzyme segment is expected to continue its upward trajectory as producers prioritize sustainability and efficiency.

• By Feed Form, solid feeds are expected to have a large market share

Solid feed, encompassing pellets, crumbles, and mash, dominates the compound feed market due to its ease of handling, storage, and consumption compared to liquid feed. Solid feed is widely used across poultry, swine, and ruminant sectors, with pellets being the most common form due to their uniformity, reduced waste, and improved palatability. Solid feed accounts for the majority of global feed production, as it supports efficient delivery of balanced nutrients and is compatible with automated feeding systems.

The preference for solid feed is driven by its practicality and cost-effectiveness in large-scale farming. Pelleted feed, in particular, improves feed conversion efficiency by 5-10% compared to mash, as noted by an IFIF report, due to reduced feed wastage and better nutrient absorption. Advances in pelleting technology, such as high-pressure extrusion, have further enhanced the quality of solid feed, ensuring consistent nutrient distribution and durability during transport. In 2025, the European Feed Manufacturers’ Federation (FEFAC) reported that modern pelleting systems reduced energy consumption in feed production by 12%, aligning with sustainability goals.

Solid feed’s dominance is also supported by its adaptability to diverse animal types and production systems. For example, in poultry farming, pelleted feed is tailored to different growth stages, ensuring optimal nutrition delivery. However, challenges such as high production costs for pelleting and the need for specialized equipment can limit adoption in smallholder farms, particularly in developing regions.

• By Animal Type, Poultry segment will witness significant growth

Poultry is the largest animal type segment in the compound feed market, driven by the global demand for poultry meat and eggs, which are affordable and widely consumed protein sources. The FAO projects that poultry meat consumption will increase by 16% in Asia by 2030, reflecting urbanization and rising incomes. Poultry feed, formulated for broilers, layers, and breeders, requires precise nutrient profiles to support rapid growth, egg production, and feed efficiency.

The poultry segment benefits from advancements in feed formulation, such as the use of enzymes and amino acids to optimize FCR. In 2024, the Global Poultry Trends report noted that precision nutrition in poultry feed reduced feed costs by 8% in large-scale operations. Additionally, the shift toward antibiotic-free production has driven demand for alternative additives like probiotics, which enhance gut health. In 2025, the IFIF highlighted a new probiotic feed additive that improved poultry weight gain by 7%.

The poultry feed market is also influenced by consumer preferences for sustainable and ethical products, prompting producers to adopt eco-friendly ingredients like insect meal. However, disease outbreaks, such as avian influenza, pose risks to the poultry sector, impacting feed demand, as noted by the World Organisation for Animal Health in 2024.

Compound Feed Market Geographical Outlook:

• The Asia Pacific market is growing substantially

The Asia Pacific region is the largest and fastest-growing market for compound feed, driven by its large population, rapid urbanization, and increasing demand for animal protein. Countries like China, India, Japan, Thailand, and Indonesia are key contributors, with China and India leading due to their massive livestock and poultry sectors. The FAO estimates that Asia Pacific will account for over 50% of global meat consumption by 2030.

In China, the world’s largest pork and poultry market, compound feed demand is driven by industrial-scale farming and government support for modern agriculture. In 2024, the Asian Development Bank reported that IoT-enabled feed monitoring systems improved feed efficiency in Chinese poultry farms.

System: 10% in aquaculture by 12%, as documented by the Asian Development Bank. The Asia Pacific region’s growth is further supported by rising investments in alternative protein sources, such as insect-based feed, which saw a 20% increase in production capacity in 2025, according to the IFIF.

Compound Feed Market Key Developments:

• Bovaer Methane-Reducing Feed Additive for Dairy Cows: In November 2024, Arla Foods, a major dairy cooperative, partnered with UK retailers Tesco, Aldi, and Morrisons to trial Bovaer, a methane-reducing feed additive for dairy cows. Bovaer, composed of silicon dioxide, propylene glycol, and 3-nitrooxypropanol (3-NOP), reduces methane emissions by up to 30% by inhibiting methane-producing enzymes in the cow’s rumen.
• Tyson Foods and Protix Joint Venture for Insect-Based Feed Ingredients: In October 2023, Tyson Foods, a leading global meat processor, announced a joint venture with Protix, the world’s largest insect factory, to produce insect-based proteins and lipids for use in pet food, aquaculture, and livestock feed. This development focuses on incorporating black soldier fly larvae into compound feed formulations, offering a sustainable alternative to traditional ingredients like fishmeal and soybean meal.

List of Top Compound Feed Companies:

• Cargill, Incorporated
• Alltech
• Kent Nutrition Group, Inc
• Royal De Heus
• Ballance Agri-Nutrients Ltd.

Compound Feed Market Scope:

Report Metric	Details
Compound Feed Market Size in 2025	US$513.970 million
Compound Feed Market Size in 2030	US$614.788 million
Growth Rate	CAGR of 3.65%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Ingredients Nutrients Feed Form Animal Type Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Compound Feed Market	Archer Daniels Midland Company Nutreco N.V. Cargill, Incorporated Charoen Pokphand Foods Public Company Limited Alltech
Customization Scope	Free report customization with purchase

 

Compound Feed Market Segmentation:

The compound feed market is analysed by ingredients into the following:

• Cereals
• Cereal's by-product
• Oil
• Oilseed meal
• Supplements
• Molasses
• Others

Compound Feed Market Segmentation by Nutrients:

Feed enzymes is one of the largest market segments. The report analysed the compound feed market into different services as below:

• Antioxidants
• Antibiotics
• Feed Enzymes
• Vitamins
• Feed Acidifiers
• Amino Acids
• Others

Compound Feed Market Segmentation by Feed Form:

• Solid
• Liquid

Compound Feed Market Segmentation by Animal Type:

The report analysed the compound feed market for 4 animal type segments as following:

• Swine
• Poultry
• Ruminants
• Others

Compound Feed Market Segmentation by regions:

The study also analysed the Compound Feed Market into the following regions, with country level forecasts and analysis as below:

• North America (US, Canada and Mexico)
• South America (Brazil, Argentina, and Rest of South America)
• Europe (Germany, UK, France, Spain and Rest of Europe)
• Middle East and Africa (Saudi Arabia, UAE and Rest of Middle East and Africa)
• Asia Pacific (China, Japan, India, South Korea, Thailand, Indonesia, and Others)

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1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK

5. COMPOUND FEED MARKET BY INGREDIENTS

5.1. Introduction

5.2. Cereals

5.3. Cereal’s by-product

5.4. Oil

5.5. Oilseed meal

5.6. Supplements

5.7. Molasses

5.8. Others

6. COMPOUND FEED MARKET BY NUTRIENTS

6.1. Introduction

6.2. Antioxidants

6.3. Antibiotics

6.4. Feed Enzymes

6.5. Vitamins

6.6. Feed Acidifiers

6.7. Amino Acids

6.8. Others

7. COMPOUND FEED MARKET BY FEED FORM

7.1. Introduction

7.2. Solid

7.3. Liquid

8. COMPOUND FEED MARKET BY ANIMAL TYPE

8.1. Introduction

8.2. Swine

8.3. Poultry

8.4. Ruminants

9.5. Others

9. COMPOUND FEED MARKET BY GEOGRAPHY8

9.1. Introduction

9.2. North America

9.2.1. USA

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. United Kingdom

9.4.2. Germany

9.4.3. France

9.4.4. Italy

9.4.5. Spain

9.4.6. Others

9.5. Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Others

9.6. Asia Pacific

9.6.1. China

9.6.2. Japan

9.6.3. India

9.6.4. South Korea

9.6.5. Taiwan

9.6.6. Thailand

9.6.7. Indosneisa

9.6.8. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Archer Daniels Midland Company

11.2. Nutreco N.V.

11.3. Cargill, Incorporated

11.4. Charoen Pokphand Foods Public Company Limited 

11.5. Alltech

11.6. Kent Nutrition Group, Inc

11.7. Royal De Heus

11.8. Ballance Agri-Nutrients Ltd.

11.9. ForFarmers.

11.10. Purina Animal Nutrition LLC.

12. APPENDIX

12.1. Currency 

12.2. Assumptions

12.3. Base and Forecast Years Timeline

12.4. Key benefits for the stakeholders

12.5. Research Methodology 

12.6. Abbreviations

Archer Daniels Midland Company

Nutreco N.V.

Cargill, Incorporated

Charoen Pokphand Foods Public Company Limited 

Alltech

Kent Nutrition Group, Inc

Royal De Heus

Ballance Agri-Nutrients Ltd.

ForFarmers.

Purina Animal Nutrition LLC.