Compound Feed Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The worldwide economic downturn has had a very limited effect on the global meat market, which has maintained its positive outlook. The highest growth for meat consumption is expected from the Asia-Pacific and South American regions because of changing diet patterns, urbanization, population, and economic growth. For example, the Chinese demand for meat continues to surpass the domestic supply, according to Agriculture and Agri-food Canada. Fish are low in fats, cholesterol, and carbohydrates. Although not very high in protein, fish also provide essential vitamins and amino acids. The demand for seafood is increasing rapidly as more and more people are becoming aware of the health benefits of fish consumption. Globally increasing population trends are also supporting the growth of the world meat and seafood market. Increasing life expectancy and limited availability of land and water resources for animal feed production, and increasing use of these resources for food and ethanol production are increasing the demand for animal feed in the global meat industry.

The demand for meat protein is rising in the Asia-Pacific region especially in China, India, Malaysia, Thailand, etc. with rapid economic growth in the region. This increased demand for meat protein has triggered meat production in the region, where uptake of compound feed has increased and is expected to show a healthy growth rate. Apart from improving nutritional value compound feed is gaining importance for their role in meat quality improvement. In the year 2019, the Indian commercial feed industry largely caters to poultry sector at around 70-75%, followed by aquaculture at 10-12%, dairy cattle at 10-15%. The country’s commercial feed production was at nearly 39 million metric tons. Poultry feed garners the highest share in the country’s feed production, accounting for nearly 24.9 million metric tons in 2019, followed by ruminants at 11.6 million metric tons, aquaculture at 2.3 million metric tons, and swine at 0.07 million metric tons. As the country holds a very minimal share in the swine population in the overall Asia-Pacific market, the African Swine Fever outbreak has not impacted the country’s feed industry. According to the Food and Agricultural Organization statistics data, in 2018, the country holds only 1.8% of the Asia-Pacific’s swine population.