Alfalfa Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
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Alfalfa Market Analysis
The Alfalfa Market size was valued at USD 22.81 billion in 2022, and is expected to reach USD 32.35 billion by 2028, growing at a CAGR of 6.03% during the forecast period (2023-2028).
- Over the long term, the demand from commercial dairy operators for alfalfa is anticipated to increase due to the increase in investment in huge-scale dairy operations during the forecast period. The major factors influencing the alfalfa market include the increasing demand for quality hay for livestock and cattle population, prices of alfalfa, and price trends in alternative feed and forage.
- The use of alfalfa has become critical to poultry feed, followed by animal feed in recent years due to its importance for crude protein content. Dependence on alfalfa for animal feed may continue to drive the alfalfa hay market over the forecast period. Alfalfa is known for its tolerance to drought, heat, and cold, with higher productivity.
- North America is projected to be the largest market for alfalfa. China, the United Arab Emirates, and Saudi Arabia are the major importers of alfalfa hay from the United States. The United States and Spain are the major exporters of alfalfa globally. The increasing demand for dairy and animal products, shrinking of the land for grazing animals, and growth in high-yielding cattle, bred cattle demand for feed is driving the alfalfa market globally.
Alfalfa Industry Segmentation
Alfalfa is also known as Lucerne and Medicago Sativa. It is cultivated as an important forage crop used for grazing, hay, and silage, as well as a green manure and cover crop. The alfalfa market is segmented by Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).
The report offers production analysis (volume), consumption analysis (value and volume), import market analysis (value and volume), export market analysis (value and volume), and price trend analysis.
The report offers market size and forecasts in terms of value(USD million) and volume (metric ton) for all the above segments.
|Geography (Production Analysis by Volume, Consumption Analysis by Volume and Value, Import Analysis by Volume and Value, Export Analysis by Volume and Value, and Price Trend Analysis)|
Alfalfa Market Trends
This section covers the major market trends shaping the Alfalfa Market according to our research experts:
Increasing Demand from the Dairy and Meat Sector
- Livestock is a major factor responsible for the growth of the global alfalfa market. The annual growth of meat production in developing countries is projected to be 2.4%, and that of milk production at 2.5% by 2030. This is expected to increase the developing countries' share in the world's meat production to 66% (247 million metric tons) and in milk production to 55% (484 million metric tons). The livestock sector has been pressured to meet the increasing demand for high-value animal protein.
- The demand for alfalfa is increasing significantly in China and is driven because of changing production practices in the Chinese dairy industry. This is due to the increasing number of cows raised by modern dairy farmers who prefer using imported hay and commercial feeds.
- The Chinese government is focusing on boosting the domestic production of alfalfa to meet its high demand. The dairy sector is boosting the demand for alfalfa in China. According to Food and Agriculture Organization (FAO), the country had about 66.2 million milk animals in 2021, an increase of 9.2% since 2018. The continual increase in the number of cattle during 2018-2021 and the increasing demand for quality animal feed are expected to boost the demand for alfalfa over the forecast period.
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Asia-Pacific Dominates the Market
- With the expansion of the dairy industry in recent years, demand for forages continues to increase. The demand for alfalfa hay in major markets like China and Japan is growing steadily.
- The government initiatives to boost alfalfa production are propelling the market's growth. For instance, China's Ministry of Agriculture issued the National Alfalfa Industry Development Plan (2016-2020) to boost production. This plan aimed to produce 5.4 million tons of alfalfa by 2020. The development plan increased the alfalfa acreage in the country by 6.3% in 2022 compared to 2016. In the region, livestock farming has been accelerated by the increased demand for dairy and meat among consumers.
- China, Japan, and South Korea are the most important destinations for alfalfa hays, which have been major export targets for the United States. In 2021, the Ministry of Agriculture, Forestry, and Fisheries (MAFF) estimated domestic production of forage products accounted for 77% of demand in Japan. Therefore, the country's imports have been growing. In 2018, Japan imported 25254 metric tons of alfalfa meal and pellets, which will increase to 28227 metric tons in 2021.
- The changing lifestyle of consumers, along with the shift to increased consumption of meat on account of its nutritional value, has improved the scope of livestock farming and thereby enabled the growth of the alfalfa market. Thus, the government initiatives, coupled with the demand from the livestock sector, are driving the growth of the market studied in the Asia-Pacific region.
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Alfalfa Market News
- October 2021: Forage Genetics International (Land O' Lakes) received patent approval on a native DNA sequence for resistance to anthracnose race 5 in alfalfa. It is expected to benefit the farmers by preventing defoliation and can save yield losses of up to 25-30%.
- January 2020: As China's livestock sector increased, its need for quality feed and feed ingredients increased. Under the United States and China Economic and Trade Agreement, alfalfa hay and pellets were given market access to the United States to sell their products in China.
Alfalfa Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain / Supply Chain Analysis
5. MARKET SEGMENTATION
5.1 Geography (Production Analysis by Volume, Consumption Analysis by Volume and Value, Import Analysis by Volume and Value, Export Analysis by Volume and Value, and Price Trend Analysis)
5.1.1 North America
220.127.116.11 United States
18.104.22.168 South Korea
5.1.4 South America
5.1.5 Middle-East and Africa
22.214.171.124 South Africa
126.96.36.199 Saudi Arabia
188.8.131.52 United Arab Emirates
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
Alfalfa Market Research FAQs
What is the study period of this market?
The Alfalfa Market is studied from 2018 - 2028.
What is the growth rate of Alfalfa Market?
The Alfalfa Market is growing at a CAGR of 6.03% over the next 5 years.
What is Alfalfa Market size?
The Alfalfa Market is expected to reach USD 30.4 Billion in 2023 and grow at a CAGR of 6.03% to reach USD 32.35 Billion by 2028.
Which region has highest growth rate in Alfalfa Market?
Asia-Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Alfalfa Market?
North America holds highest share in 2022.
Alfalfa Industry Report
Statistics for the 2023 Alfalfa market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Alfalfa analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.