Australia Compound Feed Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Australia Compound Feed Market Trends and Insights

Rising Poultry Meat Consumption

 The rise in poultry meat consumption, from 1,376.6 metric tons in 2023 to 1,413.6 metric tons in 2024 (OECD), drives significant demand for compound feeds. In December 2023, poultry value surpassed sheep meat for the first time, reaching AUD 999.8 million (USD 667 million), reflecting a shift in protein preferences.^{[2]Source: Australian Bureau of Agricultural and Resource Economics and Sciences, “Agricultural Commodities and Trade Data,” Department of Agriculture Fisheries and Forestry, agriculture.gov.au} This growth encourages feed millers to invest in enzyme complexes and improve pellet quality, maintaining poultry’s central role in the Australian compound feed market. 

Rapid Expansion of Integrated Feed–Protein Conglomerates

Vertical integration strategies by major protein producers create captive feed demand that stabilizes market dynamics while intensifying competition for independent feed manufacturers. Inghams Group and Baiada Poultry's expansion of integrated operations guarantees feed offtake volumes, reducing market volatility but constraining growth opportunities for non-integrated players. Ridley Corporation's AUD 1.28 billion (USD 854 million) revenue in 2024 and strategic acquisition of Oceania Meat Processors demonstrate how feed companies pursue backward integration to secure protein value chains. This integration provides scale economies in feed production, buffers against grain-price volatility, and facilitates precision-nutrition programs across poultry and aquaculture. Independent feed manufacturers face tighter competition as integrated giants lock in volume and negotiate advantaged grain contracts.

Growth in Aquaculture Exports

Commercial aquaculture is shifting from boutique to industrial scale in the Northern Territory and Queensland, spurring demand for specialized high-protein aquafeeds. NSW (New South Wales) aquaculture generated AUD 90 million (USD 60 million) gross value in 2020 and is projected to represent 64% of national seafood output by 2029. Tassal’s USD 65 million Ocean Barramundi project targets 17,500 metric tons annual capacity, requiring feeds that optimize flesh quality and omega-3 profiles. Federal backing for seaweed cultivation supplies marine-derived ingredients for both livestock and aquafeeds, reinforcing a virtuous supply chain loop.

Precision-Nutrition Adoption Lowering Feed Conversion Ratios

Near-infrared sensor platforms technology and automated feeding systems enable real-time ration optimization that reduces feed waste while improving animal performance metrics. AB Vista's NIR technology processes approximately 15,000 spectra monthly, enabling rapid feed analysis and ration adjustments that traditional laboratory testing cannot match for speed and cost efficiency. Digital bunk scanners funded by Meat and Livestock Australia automate ration adjustments in feedlots, cutting waste and improving daily gain. University of Sydney trials confirm sorghum diets can reduce crude protein without sacrificing performance, trimming soybean meal import costs. These technologies collectively nudge the Australia compound feed market toward data-driven efficiency gains.

Accelerating Vegan And Flexitarian Trends

Plant-based protein adoption affects approximately 25% of Australian consumers who actively limit meat consumption, creating headwinds for livestock production and associated feed demand. This consumption pattern particularly impacts younger demographics concentrated in urban centers, where alternative protein adoption rates exceed rural areas by significant margins. Processing infrastructure gaps limit domestic plant protein development, with only one pulse fractionation factory operational through Australian Plant Proteins, constraining local alternative protein supply and maintaining import dependence. The trend creates bifurcated market dynamics where premium livestock products maintain demand while conventional production faces margin pressure from reduced per-capita consumption growth rates.

Volatility In Grain Prices Due to Climactic Swings

El Niño weather amplifies grain-price spikes that compress feed-miller margins. In 2024, GrainCorp’s 1H EBITDA slid to AUD 164 million (USD 109 million) from AUD 383 million (USD 255 million) a year earlier 2023, underscoring the profit risk associated with volume swings and weaker export opportunities. Smaller mills with limited hedging capacity feel the sharpest pinch, incentivizing ingredient diversification and contract farming. Feed manufacturers face margin compression when grain price spikes cannot be immediately passed through to livestock producers, particularly affecting smaller operators with limited hedging capabilities. Climate volatility creates strategic imperatives for supply diversification and alternative ingredient adoption to mitigate price risk exposure.

Segment Analysis

By Animal Type: Poultry Maintains Lead as Aquaculture Surges

Poultry accounted for 43.0% of Australia compound feed market share in 2024 and continues to expand on relentless domestic chicken demand growth. The Australia compound feed market size derived from poultry clearly benefits from vertically integrated majors that ensure steady offtake and formulation control. Over the forecast horizon, integrated operators will adopt enzyme-rich pellets, optimize amino acid ratios, and intensify precision feeding to protect margins. 

Aquaculture posts a 7.9% CAGR as barramundi and tuna farms scale up in Northern Territory and coastal Queensland, necessitating marine-protein-rich diets with fine-tuned lipid ratios. Feed manufacturers are partnering with seaweed producers to improve digestibility and augment omega-3 profiles. Ruminant demand remains stable despite grain-price pressure, while swine demand slows due to subdued pork consumption and heightened disease vigilance.

Note: Segment shares of all individual segments available upon report purchase

By Ingredient: Cereals Dominate while Supplements Accelerate

Cereals contributed 66.5% of the Australia compound feed market size in 2024, reflecting entrenched reliance on wheat, barley, and corn. Alternative grain uptake, led by sorghum, mitigates drought risk and constrains raw-material costs. According to the United States Department of Agriculture (USDA), Australian wheat exports reached 24.0 million metric tons in 2024, up 26% year-over-year, creating domestic supply tightness that elevates alternative grain importance for feed manufacturers ^{[3]Source: United States Department of Agriculture, “World Agricultural Production Reports,” usda.gov} .

Supplements rise at an 8.4% CAGR owing to government-funded methane-reduction initiatives and precision-nutrition programs. FutureFeed’s Asparagopsis additive drives interest in novel functional ingredients that both lift feed efficiency and curb emissions. Cakes and meals remain vital protein sources, yet soybean meal price volatility drives exploration of local canola and pulses, gradually reshaping formulation economics within the Australia compound feed market.

By Form: Pellets Hold Sway as Crumbles Gain Ground

Pellets captured 58.0% share of the Australia compound feed market in 2024 because of superior handling, reduced wastage, and better feed-conversion performance. Investment in pelleting lines and conditioners by ANDRITZ underscores sustained demand for high-throughput processing equipment. 

Crumbles expand at 7.2% CAGR as starter feeds for chicks and fingerlings emphasize digestibility and minimal feed fines. Mash continues to serve dairy and beef producers seeking rapid nutritional adjustments. The ongoing shift to automated feeding augments demand for uniform particle size distribution, reinforcing both pellet and crumble uptake in the Australia compound feed market.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Livestock production hubs in New South Wales and Queensland anchor the largest share of the Australia compound feed market, bolstered by proximity to grain origination zones and seaport infrastructure. Poultry complexes near Sydney and Brisbane absorb large volumes of high-density broiler rations. 

Victoria’s dairy heartland sustains consistent ruminant feed demand, although margin pressure encourages the use of locally mixed rations that lower delivered cost. Western Australia operates a semi-independent supply chain because of geographic isolation, necessitating higher local grain inclusion and fostering small-scale feed mills. 

Northern Territory emerges as the fastest-growing region, driven by state-backed aquaculture expansion and tropical livestock systems requiring heat-tolerant formulations. Tasmania’s premium positioning in free-range and organic production offers niche opportunities for specialized feeds with differentiated ingredient profiles. Diverse state-level biosecurity and transport rules influence sourcing choices and cost structures across the Australia compound feed market.