The South Korean animal feed market is projected to grow at a CAGR of 2.22%, from US$6,201.887 million in 2020 to US$7,233.155 million in 2027.
South Korea is the 11th largest economy in the world with a national GDP of $1.6 trillion and a per capita GNI of $31,355 in 2018. Over 90 % of Koreans live in urban areas. Korean consumers maintain a strong demand for a healthy diet, diversified choices, and new tastes. While domestic production meets 45% of Korean food and agricultural needs, the country relies heavily on imports to fulfil total demand.
Korea maintains a strong food processing industry that manufactures a wide variety of processed foods, beverages, and additives. Korean food processing companies rely heavily on imported commodities and ingredient products. Korean consumers place more emphasis on convenience and value. At the same time, the fast expansion of online retailers will force conventional retail channels to restructure space and product strategies to attract consumer traffic [Source: USDA]. South Korea is currently witnessing a surge in the bakery and confectionary segment because of a myriad of factors, such as the growing awareness of consumers about various products that originate from the western hemisphere. Furthermore, the middle-income segment with the availability of disposable income has also created an increasing demand for more food preparation options outside the confines of one’s home. South Korea has one of the most developed economies in the APAC region. Therefore, the demand for meat consumption necessitates the sustainable maintenance of livestock farming that naturally creates a conducive environment for south Korean animal feed market growth during the forecast period.
The manufacturing and process capabilities of the South Korean agricultural section are well developed and technologically advanced.
Cattle production numbers in recent years are projected to continue to increase as farmers try to take advantage of high cattle prices. Farmers are also inclined to retain their cow stock to increase their herd size, as evidenced by the fact that cow slaughter dropped to 46.3 % of total cattle slaughter during the first 6 months of 2019, compared to 49.6 % during the same period in 2018 (Source: FAO and USDA). It is also estimated that the number of Hanwoo, the native Korean cattle, is estimated to increase by 2022. Moreover, the larger supply of domestic pork in 2019 supported the price competitiveness of Korean pork compared to Hanwoo beef and other proteins [Source: USDA]. Therefore, with a lot of certitude, the conditions prevailing in the livestock sector are favourable for a meteoric rise in the South Korean animal feed market during the forecast period.
Key Developments in the Market
|Market Size Value in 2020||US$6,201.887 million|
|Market Size Value in 2027||US$7,233.155 million|
|Growth Rate||CAGR of 2.22% from 2020 to 2027|
|Forecast Unit (Value)||USD Million|
|Segments Covered||Type, Livestock, And Raw Material|
|Companies Covered||Cargill, Kemin Industries, Inc., Novus International, BASF SE, J.R. Simplot Company, Archer Daniels Midland Company, Royal DSM N.V., Alltech|
|Customization Scope||Free report customization with purchase|
J.R. Simplot Company
Archer Daniels Midland Company
Royal DSM N.V.
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