Market Trends of indonesia feed additives Industry
High consumption of eggs is leading to growth in the poultry production to meet the increased demand for poultry products
- The poultry industry in Indonesia experienced both growth and decline in recent years. Due to the religious ban on consuming pork, chicken meat has become a major source of animal protein in the country, leading to an increase in poultry production. From 2017 to 2022, poultry chicken production in the country increased by 7.7%, reaching a record high of 3.7 billion bird count in 2022.
- However, the poultry industry faced a setback in 2020 when poultry production decreased by 6.2% from the previous year due to the farming ministry's orders for poultry breeders to cull down 4.4 million chickens and cut the number of hatching eggs by 7 million per week to control a slump in poultry prices.
- Despite the challenges, egg consumption in the country continues to rise due to changing diets and a search for lower-cost protein, leading to a shift in egg consumption. This factor is expected to drive the growth of layer production, thereby increasing the layer feed additives value by 44.3% from 2023 to USD 182.4 million in 2029. These additives play a significant role in increasing the productivity of eggs.
- Indonesian poultry production is expected to improve due to increasing consumption. For instance, the per capita poultry meat consumption increased by 7.1% from 2017 to 8.21 kg in 2022, and it is projected to reach 9.01 kg in 2027 due to the rising demand for animal protein.
- The increasing export demand is also creating opportunities for expanding poultry production. Indonesia hopes to export chicken to Singapore to fill the gap vacated by Malaysia’s poultry export ban. This rising per capita poultry consumption, increasing production of poultry, and opportunities from export are expected to fuel the growth of the market studied during the forecast period.
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Expansion of fish farms and government policies to support infrastructure and technology are some of the factors helping in increasing the aqua population and feed production
- Indonesia is one of the largest aquaculture producers in the world, with approximately 2.5 million farmers involved in the industry. The country witnessed a 35% increase in aquaculture feed production since 2017, reaching 1.7 million metric tons in 2022 due to the growth of aquaculture and fisheries and an increase in per capita consumption of aquaculture products. The Indonesian government played a crucial role in expanding the aquaculture sector and drafting robust policies to support infrastructure, entrepreneurship, technology, environmental concerns, and production systems.
- Fish held the largest share of the various aquaculture feeds, accounting for 85.2% in 2022 due to the increasing awareness of the benefits of fish in the human diet, high demand in the international market, the expansion of the retail sector, and the presence of numerous fish farms throughout the country. Most fish farms are located in Central Java.
- Shrimp accounted for 7.0% of the aquaculture feed market in 2022, as it is the second most consumed aquatic animal due to the rise in demand for seafood and its high protein content. The profit margin for shrimp is higher than other commodities, such as catfish, at 15%. To increase productivity and performance, shrimp farmers are focusing on health and nutrition management practices.
- Factors such as the growing awareness about the benefits of compound feed consumption, government policies, increasing demand for fish and seafood, and rising feed production of aquaculture are expected to drive the growth of the feed additives market during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Government support to investors for cattle breeding and higher demand for dairy products is driving the demand for ruminants production
- Increasing the demand for poultry feed as the poultry population increased due to high demand for poultry meat especially chicken meat and expansion of poultry farms
- The compound feed for swine is expected to increase due to increasing swine production for meeting the increased demand for pork but African Swine Fever (ASF) had a negative impact on the pig feed
- Swine production is lower in the country due to religious factors but producers are exporting the beef which is increasing its population
- Ruminants feed production is increasing as there is high demand for diary products but it was affected by decreasing ruminants population due to Lumpy Skin Disease (LSD) and other foot diseases
