In 2016, the global compound feed crossed over 1 billion ton of production. This marked an increase of about 3.7% compared to the previous year. However, the number of feed mills saw a decline of 7%. The market value in 2016 was valued at USD 459.97 billion and is expected to reach USD XX billion by 2022, registering a CAGR of XX %. The increased domestic demand for compound feed is augmented, owing to the increasing middle-class incomes in emerging economies and demographic factors that include the double-income families and strong economies in, both, developed and developing countries.
Poultry feed sector was expected to perform well in 2016, however, the avian influenza outbreak at the end of the year impacted the production in Europe. Cereals and soybeans are the important ingredients for the compound feed industry. The demand for soybean and soybean products is increasing at a rate of 4% every year. Although the increasing cost of raw materials is restricting the compound feed market growth, further driving the feed additives market. The rising organic meat demand has created an opportunity in the organic feed industry.
The intensification of livestock production and growing awareness about nutrient requirements have increased dependency on commercially manufactured compound feed. The price of manufactured compound feed that varies widely with the region, ranges from a few hundred dollars to over USD 1000/ton, depending on the species being fed. Over the last decade, the compound feed prices have almost doubled from 2006 to 2013. Therefore, the increasing costs of ingredients, shortfalls in local supplies and rising oil prices are expected to sustain this price trend, constraining farmers from using commercial compound feed, especially with the falling market prices of meat and dairy products. In almost all regions of the world, increase in the raw material costs for commercially manufactured and on-farm feeds resulted in an increase in feed prices, from 20 to 40 %, thus, forcing farmers to adopt alternative strategies to secure feed.
China is the largest producer of compound feed, followed by the United States. India and Japan are the other prime producers of compound feed from the Asia-Pacific region. Further, Spain, Russia, Germany and France are the four major compound feed manufacturers in Europe and together, occupy a market share of approximately 44%. Brazil is the largest producer of compound feed in the Latin America region and accounts for around 44% of the market volume. Mexico is another Latin American country, which is a leading manufacturer in the compound feed market.
Our report on global compound feed market covers: