Growth is particularly high in emerging countries such as China, India, and Brazil because of increasing income levels and rising per capita meat consumption. Some major drivers of the compound feed industry identified in this report are rise in the global meat consumption, increasing awareness towards meat quality and safety, increasing mass production of meat, and recent livestock disease outbreaks. Major restraints identified in this report are regulatory structure and intervention and rising raw material costs. The Asia-Pacific region is driving the growth and is expected to hold 41% of the global market revenue by 2020. The Asia-Pacific market is expected to have a high CAGR of 3.1% due to increasing demand for meat products in the region and rising domestic meat production, especially in China, India, Malaysia, Japan, and Singapore.
Source: Mordor Intelligence Analysis
Increased Awareness Regarding Quality Meat and Milk Products
Food safety has become an important issue for many governments around the world, especially in North America and Europe. Consumers around the world are now more aware and informed and giving importance to the extrinsic quality attributes of the meat they consume. Certain pathogenic and parasitic contaminations in meat products, such as salmonella, listeria, and E. coli, along with various disease outbreaks in livestock animals, such as swine flu and foot and mouth disease in the past decade, have raised concerns over meat quality and safety. For instance, in January 2011, a meat quality issue arose in Germany, where a cancer causing dioxin was found in meat products. Taking safety steps, many countries, including South Korea and Slovakia, banned pork imports from Germany due to the health risks involved. The use of compound feed with feed additives such as antibiotics, enzymes, and vitamins provides balanced nutrition to the animals and protects them against such harmful environmental influences.
Regulatory issues are the biggest constraints in the compound feed industry. Animal feed production comes under feedstuff regulations in most countries. Regulatory framework is increasingly getting stringent, such as in the year 2006 in EU and in 2009 in the United States, when the use of antibiotics as growth promoters in animals was banned. Europe had also imposed a ban on the use of animal proteins in aqua feed.
Many countries, including China, Thailand, and Vietnam, that export fish to Europe and the United States, do not have such regulations against the use of antibiotics or animal proteins in feed. Such disparities in regulations have adverse effects on the global fish and aquafeed trade, especially between developed and developing economies. Producers of feed and feed additives are required to follow strict regulations related to regional and national health and safety for their products to get approval in developed nations. This ultimately affects the cost of the final products. Such regulatory initiatives are posing challenges for existing feed products and are increasing the cost of new feed development.
Key Developments in the Market:
- March 2018: ForFarmers sees a large volume growth in compound feed sales, up 3% in 2017 from 2016.
- October 2017: Cargill strengthens animal nutrition business with an agreement to acquire Integral Animal Nutrition of Brazil.
Major Players include - Charoen Pokphand, Cargill Inc., Land O Lakes Purina, Alltech Inc., and Archer Daniels Midland, among others.
Reasons to Purchase the Report
- Study on the adoption of ruminant feed in developing regions and its effects on the global feed industry
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- Study on the players expected to dominate the market during the forecast period
- Study on the region expected to witness fastest growth during the forecast period
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3 month analyst support, along with the Market Estimate sheet (in Excel)
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1.1 Study Deliverables
1.2 General Study Assumptions
2. Research Methodology
2.2 Analysis Methodology
2.3 Study Assumptions
3. Executive Summary
4. Market Overview and Technology Trends
4.1 Current Market Scenario
4.2 Technology Trends
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Threat of Substitutes
4.3.3 Bargaining Power of Suppliers
4.3.4 Bargaining Power of Buyers
4.3.5 Intensity of Competitive Rivalry
5. Market Dynamics
6. Global Ruminant Feed Market Segmentation, by Type
6.4 Amino Acids
7. Global Ruminant Feed Market Segmentation, by Geography
7.1 North America
7.1.1 United States
7.1.4 Rest of North America
7.2.2 United Kingdom
7.2.6 Rest of Europe
7.3.4 Rest of Asia-Pacific
7.4 South America
7.4.3 Rest of South America
7.5 Middle East & Africa
7.5.1 Saudi Arabia
7.5.2 South Africa
7.5.3 Rest of Middle East & Africa
8. Competitive Landscape
8.2 Market Share Analysis
9. Company Profiles
9.1 Cargill Inc.
9.2 Land O Lakes Feed
9.3 DBN Group
9.4 Archer Daniels Midland
9.6 For Farmers
9.7 DLG Group
9.8 DSM NV
9.9 De Heus
9.10 Lallemand Animal Nutrition