The South American animal feed market is projected to grow at a CAGR of 3.82% during the forecast period to reach US$39.915 billion by 2027, from US$30.697 billion in 2020.
Compound feed is a combination of different products of vegetable or animal origin, clean or retained, intended for dietary modifications of domestic animals. Healthy animals require an adequate amount of carbohydrates and proteins, as well as the required minerals and vitamins. Carbohydrates are the primary source of energy and the most abundant component of animal feed, followed by plant proteins and animal protein sources. In today's agricultural production, farm animals' nutrient requirements can be fulfilled entirely by natural forage and fodder, or they can be supplemented with concentrated, controlled food supplements. Compound feed nutritional quality is influenced not only by nutrient content, but also by hygiene, digestibility, and effect on intestinal health. Good animal feed intake is critical to animal health and wellbeing, as well as the manufacturing of safe and high-quality animal-derived products. The increased supply of animal-derived proteins is expected to result in increased livestock production, primarily through the use of industrial composite feed. This has resulted in increased use of selected feed grains and forage seeds, fertilisers and pesticides, as well as innovative and unique materials in feed production, such as biofuel by-products and a variety of other different agricultural by-products. Numerous contamination incidents in recent years have drawn attention to the importance of guaranteeing feed safety as well as the need to prevent and reduce the existence of old and new hazards such as dioxin, aflatoxins, and other undesirable substances.
The ban on the use of antibiotics as growth promoters and antimicrobials, combined with the increasing frequency of meat-related infectious diseases such as bird flu, swine flu, and others, is driving demand for high-quality, safe processed meat, which is expected to drive the region's animal feed market. Furthermore, rapid urbanization, market growth for processed foods, and the use of livestock feed ingredients to improve feed usage are expected to drive growth for animal feed in South America during the forecast period. Animal feed is the food offered to domestic animals, particularly livestock. Cattle feed is a critical component in livestock farming, accounting for more than half of the cost of raising animals. Farmers generally attempt to reduce the cost of this food by replenishing costly feeds with alternatives such as food waste such as spent grain from beer brewing. One of the most important factors which are expected to determine the future of the animal feed industry is animal welfare. Animal welfare is heavily reliant on a well-balanced, nutritious diet. The livestock feed industry is diversifying into feed-acidifiers, feed-enzymes, feed-antibiotics, and feed-microbial markets. The demand for these trends coincides with an increase in meat protein intake and a greater emphasis on the best ingredients is predicted to grow the market for animal feed in the region.
As the COVID 19 pandemic spreads, it has hampered the SAM region's animal feed market. All major countries in the SAM region have been placed on lockdown. Isolation and social distancing policies have been implemented in many South American countries where the newest strain of the coronavirus has made a significant impact. The decrease in the manufacturing goods and commodity markets is expected to stifle the growth of the animal feed market. According to IFIF, Brazil is in the fourth position, accounting for 7% of total animal feed produced globally.
South America's demand for animal feed is expected to steadily increase, owing primarily to the rising population, growing household consumption of meat and fisheries products, and growing consumer spending levels. It is expected that Brazil is in the first position owing to 7% of feed production of animal feed according to IFIF followed by Argentina, which is predicted to grow over the forecasted period owing to the highest production and manufacturing units of animal feed in the region. With the constant growth of the poultry and organic meat markets, the market for sustainably grown feed is expected to grow. Furthermore, new technological advancements and new possibilities in the meat processing industry have increased exponentially and are expected to elevate South America to the status of an important market with the potential for further expansion.
|Market size value in 2020||US$30.697 billion|
|Market size value in 2027||US$39.915 billion|
|Growth Rate||CAGR of 3.82% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Livestock, Raw Materials, Production Systems, And Country|
|Regions covered||Brazil, Argentina, Colombia, Chile, Peru, Others|
|Companies covered||Tyson Foods, Alltech, Cargill, Incorporated, Purina Animal Nutrition (Land O’lakes, Basf Se, Hi-pro Feeds, Kent Nutrition Group, Archer Daniels Midland, De Heus|
|Customization scope||Free report customization with purchase|
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Segmentation
4.2. Market Drivers
4.3. Market Restraints
4.4. Porter’s Five Force Analysis
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Power of Buyers
4.4.3. Threat of New Entrants
4.4.4. Threat of Substitutes
4.4.5. Competitive Rivalry in the Industry
4.5. Value Chain Analysis
5. South America Animal Feed Market by Type
5.3. Compound Feed
6. South America Animal Feed Market by Livestock
6.2. Aquatic Animals
7. South America Animal Feed Market by Raw Material
7.3. Rendered Meal
8. South America Animal Feed Market by Production Systems
8.2. Commercial Mills
9. South America Animal Feed Market by Country
10. Competitive Intelligence
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrative
10.3. Mergers, Acquisition, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. Company Profiles
11.1. Tyson Foods
11.3. Cargill, Incorporated
11.4. Purina Animal Nutrition (Land O’Lakes)
11.5. BASF SE
11.6. Hi-Pro Feeds
11.7. Kent Nutrition Group
11.8. Archer Daniels Midland
11.9. De Heus
Purina Animal Nutrition (Land O’Lakes)
Kent Nutrition Group
Archer Daniels Midland
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