The global compound Feed market is forecasted to register a significant CAGR of 4.76% during the forecast period.
Source: International Feed Industry Federation
The Global consumption of meat products rose at a CAGR of 2.67% during the period of 2012 to 2017. 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 in the Asia-Pacific and Latin American regions because of changing diet patterns, urbanization, population, and economic growth.
Fish is low in fat, cholesterol, and carbohydrates. Although not very high in protein, fish also provides 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 growth of the world meat and seafood market. Increasing life expectancy, 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.
Countries, such as India, China, Brazil, and Russia are among world’s fastest growing economies; rise in per capita income is expected to shift dietary preferences towards protein rich diets. However, meat consumption patterns will remain significantly different in various parts of the world, because of cultural, religious, and other consumer preference factors in different countries.
Increasing consumption of meat, as well as a rise in consumer awareness regarding the benefits of organic food has led to increased demand for organic feed. While the demand for organic feed is strong, there are not enough organic crops to meet the demand. Conventional feed, which includes a minute proportion of vitamins, hormones, and other additives, along with ingredients, increases yield, and minimize livestock production cost. However, more number of quality conscious consumers are demanding environmentally safe and chemical residue free meat, meat products, milk & milk products. The market for organic feed is expected to grow with the continuous expansion of organic meat and poultry market, as feed is the major input in livestock farming. Along with the meat industry, the organic dairy industry also demands organic feed. The current organic livestock farming system relies on organic crops, organic grass, and organic pastures. However, organic raw materials in feed do not ensure increased productivity of livestock. The prospect of successful organic food export industry is the major driving factor for organic livestock farming and organic feed industry, in developing countries. Exports of organic meat, from Asian and South American countries to North America and Europe, have grown steadily during the last five years. Priced at nearly twice the cost of conventional feed, organic feed is far from competitive even with organic food and products being sold at higher prices to the consumer.
Major Players: Cargill Inc., Land O Lakes Purina, Alltech Inc., Archer Daniels Midland, Forfarmers, among others.