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

GCC Compound Feed Market Trends and Insights

Rising Poultry Meat Consumption Per-Capita

Broiler self-sufficiency programs continue to accelerate feed uptake, with Saudi Arabia alone targeting 80% domestic chicken supply through expanded integrated farms. Balady Company’s SAR 1.14 billion (USD 304 million) facility confirms investor confidence, while feed represents 60%–70% of poultry production costs^{[1]Source: U.S. Department of Agriculture Foreign Agricultural Service, “Saudi Arabia Livestock and Products Annual,” fas.usda.gov}. Demographic growth and tourism inflows create additional institutional food-service demand, encouraging mills to optimize corn-heavy formulations that underpin stable cereal purchases. Pellet producers benefit most because automated feeders favor pelletized diets that lift feed-conversion ratios. Regional hatcheries are also upgrading genetics, reinforcing demand for nutrient-dense starter feeds that shorten grow-out cycles.

Government Food-Security Policies Supporting Local Feed Mills

UAE’s 25% feed subsidies and Saudi wheat procurement mandates of 1.5 million metric tons per year tilt economics in favor of domestic mills. Subsidies shield margins from grain swings, while preferential purchasing secures captive demand for local output. Larger integrated players deepen government ties to lock in multi-year contracts; smaller firms pivot toward organic or specialty lines to stay competitive within rigorous quality frameworks. Capital grants for silo construction further lower entry barriers for modernization, raising sector-wide efficiency. These programs collectively raise utilization rates and inject confidence for green-field and brown-field expansions across the bloc.

Advances in Precision Nutrition and Mill Automation

Near-infrared spectroscopy, cloud-based formulation tools, and automated batching together cut feed-conversion ratios by up to 8%. Early adopters gain cost leadership and brand differentiation, especially in aquaculture and dairy, where precise nutrient delivery commands premiums. Integration of real-time livestock-performance data allows mills to tweak formulations within hours, enhancing customer loyalty. Robotics in bagging and palletizing reduces labor costs and workplace injuries, while predictive maintenance powered by IoT sensors minimizes unplanned downtime. Partnerships with global tech vendors accelerate knowledge transfer and local manufacturing of advanced diets, creating a virtuous cycle of innovation.

Heightened Livestock-Health Focus Spurring Medicated Additives

Disease outbreaks have heightened demand for functional additives such as probiotics, prebiotics, and immune boosters. Producers adopt medicated feeds that comply with stricter antibiotic rules, creating an opportunity for mills with segregated lines and robust traceability protocols. Additive inclusion rates are rising in starter rations and transition diets, driving double-digit growth for premix suppliers. Regulatory agencies favor preventive nutrition, allowing mills to position higher-margin specialty blends as a cost-effective biosecurity measure. Joint ventures with veterinary pharmaceutical companies expedite product registration and broaden distribution reach. As livestock densities climb, on-farm trials demonstrating morbidity reductions further reinforce uptake.

Volatile Global Grain Prices

Corn and soybean meal comprise more than 70% of raw-material cost, exposing mills to commodity swings. Saudi soybean meal use hit 1.54 million metric tons in 2024, and currency moves amplify price shocks. Larger groups deploy hedging and storage strategies, whereas smaller producers absorb margin hits or adjust recipes with alternative proteins. Extended payment terms with livestock integrators stretch working capital during price spikes. Currency hedges and forward contracts mitigate some risk, yet sustained high prices can squeeze feed-mill margins by up to 4 percentage points.

Water-Scarcity Crop Bans Raising Import Dependence

Saudi Arabia’s ban on fodder-crop irrigation and the UAE’s phase-out of Rhodes grass shift demand toward imported hay and higher-energy compound feeds. Mills respond by boosting cereal inclusion, raising exposure to global price swings and inland freight costs. Longer supply chains stretch working-capital cycles and require larger silo buffers to prevent production gaps. Government soft-loan schemes help finance storage, but smaller firms lack collateral. Resulting cost pressure can lift finished-feed prices by up to 6% in drought years, prompting farmers to adopt precision feeding and high-moisture storage systems.

Segment Analysis

By Animal Type: Aquaculture Drives Premium Growth

Aquaculture commanded the fastest 8.9% CAGR outlook, propelled by Oman’s USD 1.2 billion development fund and coastal cage investments that generate steady call-off orders for extruded floating feeds. Poultry retained leadership with 46.0% GCC compound feed market share in 2024, underwritten by expanding broiler capacities linked to food-security mandates.

Regional diversification into finfish and shrimp lowers reliance on traditional livestock while enabling export sales to East Asian buyers. Feed manufacturers able to deliver species-specific amino-acid profiles and lipid ratios secure pricing power. In contrast, ruminant diets revolve around TMR blends tied to mega dairies, providing high-volume yet lower-margin outlets. Swine and equine formulations remain niche, serving cultural or high-end recreational segments that still value premium nutrition and traceability.

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

By Ingredient: Supplements Capture Innovation Premium

Cereals constituted 54.0% of the GCC compound feed market size in 2024, cementing corn, wheat, and barley as bulk energy carriers. Supplements, however, are projected to rise at a 9.7% CAGR, reflecting intensified focus on gut health and production efficiency.

Higher inclusion of vitamins, enzymes, and functional botanicals supports antibiotic-free targets and boosts feed-conversion metrics. Cakes and meals, especially soybean meal, underpin essential amino acids, while by-products such as wheat bran deliver cost-effective fiber and protein. Ingredient innovation, therefore, migrates value away from commodity grains toward differentiated micronutrient packages that suppliers leverage for margin uplift and customer lock-in.

By Feed Form: Extruded Technology Commands Growth

Pellets captured 61.0% GCC compound feed market share in 2024, favored for low dust, ease of handling, and reliable feed conversion in automated barns. Extruded feeds, though smaller today, are forecast to register a 10.4% CAGR as marine farming and premium livestock producers demand superior digestibility and thermal stability.

Extrusion’s ability to embed oil coatings and create slow-sinking pellets suits offshore cages combating feed loss. Upfront capital demands limit entry, allowing early movers to command pricing premiums. Mash and crumble formats persist for younger stock and cost-sensitive segments but face gradual substitution where pellet or extruded advantages outweigh cost differentials.

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

Geography Analysis

Saudi Arabia retained 57.0% of the GCC compound feed market in 2024 on the back of SAR 9 billion (USD 2.4 billion) livestock-city investments and integrated broiler capacity that now produces 80% of national chicken needs. Corn imports reaching 4.74 million metric tons certify sustained demand for energy-dense formulations. Vertically integrated majors such as ARASCO align sourcing, crushing, and distribution to ensure a stable supply within expansive desert production clusters.

The UAE followed with well-capitalized mills anchored in Dubai and Abu Dhabi industrial zones, supported by 25% feed subsidies that preserve competitiveness against importers^{[2]Source: Dubai Statistics Center, “Agriculture and Livestock,” dsc.gov.ae}. Port proximity allows quick turnover of bulk grain arrivals, while companies like Agthia leverage advanced process automation to supply both domestic barns and neighboring markets. Camel, goat, and specialty dairy segments add product diversity, prompting new camel-feed lines under the Agrivita brand.

Oman is proposed to deliver the region’s fastest 7.8% CAGR, attributable to marine aquaculture rollouts and government co-financing of coastal feed-mill infrastructure. Over 428,000 live animals entered the sultanate in 2024, reinforcing ruminant feed volumes even as marine diets scale rapidly. Qatar, Kuwait, and Bahrain round out the bloc with specialty equine and small-ruminant niches that demand consistent premium formulations and traceable supply chains.