Feed Phosphate Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Market Overview

The feed phosphate market is projected to register a CAGR of 4.5% during the forecast period (2022-2027).

As the respective governments worldwide implemented stay-at-home orders, many farmers resorted to panic buying in anticipation of potential shortages. Several concerns, such as reduced or delayed deliveries and employees contracting COVID-19, compelled farmers to stock their animal feed supplies. Key stakeholders in the livestock feed market are worried about the lack of raw materials for manufacturing feed phosphates.

The main driving factor is the growing consumption of meat worldwide. Poultry meat consumption increased by 76.6% per kilo per capita and pig meat by 19.7%. The major leap in consumption is mainly by the middle-class population due to increasing disposable income. Livestock development by government organizations helped promote animal husbandry among the population, especially among the poorer sections, by emphasizing the importance of animal nutrition in animal welfare. Industrialization of the meat industry, specifically the poultry and pork segments, has been an important contributor to the feed phosphate industry, with rapid growth in the consumption of lean meat due to increased awareness of its health benefits.

The rising cost of raw materials and the global scarcity of phosphate reserves, as it is a non-renewable resource, are restraining the market. Opportunities that affect the dynamics of this industry include increasing demand for natural feed products and substitutes such as phytase being used in the manufacture of animal feed as blends to decrease the high cost of manufacture. Many companies also invested in R&D for the sustainable use of phosphate.

Scope of the Report

Feed phosphates are added to animal feed to improve the nutrient content, optimize animal performance, and enhance feed digestibility and health maintenance. They also help promote growth during the various stages of the life cycle, develop fertility in animals, and act as the best calcium source for bone and skeleton development. The feed phosphate market report is segmented by feed type, livestock type, and geography. The report offers the market size and forecasts in terms of value in USD thousand for all the above segments.

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Key Market Trends

Increasing Industrial Livestock Production

The growing demand for livestock products has been driving significant changes on the supply side that are aimed at improving livestock product yields. New capital-intensive technologies have made poultry and pig meat production in industrial-style production facilities possible across regions, such as North America, Europe, and Asia-Pacific, especially in countries where land is limited. According to the Food and Agriculture Organisation (FAO), the global cattle population has witnessed an upward trend over the past four years. In 2017, the livestock population for animals such as cattle was 1.7 billion, which increased to 1.8 billion in 2020, demonstrating that cattle production is rising to meet the accelerating demand for meat. Similarly, the poultry and sheep stocks significantly increased during the study period. Thus, the inflating demand for meat is expected to boost the need for feed phosphates during the forecast period. The meat production industry witnessed an upward trend in the recent past, especially in developed countries, such as the United States and European countries, with reduced land usage. This factor boosts livestock and meat production, thus accelerating the demand for feed additives for the growing livestock population in these countries.

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