Mexico Compound Feed Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Mexico Compound Feed Market Trends and Insights

Heightened Demand for Value-Added Animal Proteins

Quick-service restaurants and hotels have shifted menus toward higher protein offerings, lifting demand for premium poultry, pork, and seafood. Per-capita meat consumption has shown a significant growth in Mexico, well above the global average and a clear pull for compound feed. Industrias Bachoco’s revenue has recorded a significant growth year on year in 2025, showing how premium meat sales flow back to feed demand. Jalisco, Veracruz, and Querétaro benefit first because dense poultry clusters let millers supply specialized formulas quickly.

Expansion of Mexico’s Commercial Poultry Integrators

Large integrators such as Bachoco run in-house hatcheries, feed mills, and processing plants, locking in margins at every stage. Acquisitions and new breeder farms add capacity, as seen in the MXN 1,100 million (USD 54 million) Yucatán project that cut inter-state egg flows. Scale supports investment in near-infrared analyzers and automated dosing that smaller mills cannot match. Over time, consolidation steers feed demand toward a few well-capitalized buyers.

Government's Programa de Fomento a la Productividad Ganadera (PROGAN)-Production subsidies for feed efficiency

The Programa de Fomento Ganadero (PROGAN) Productivo pays producers who document feed-conversion gains, effectively reducing delivered ration costs^{[1]Source: Secretaría de Agricultura y Desarrollo Rural, “Programa de Fomento Ganadero 2025,” SAGARPA, gob.mx} . In 2025 the Production for Well-Being scheme disbursed MXN 15.2 billion (USD 745 million) for forage and equipment, supporting a shift from pasture to concentrate feeding. Farmers rush to qualify before funds expire, creating seasonal spikes for high-efficiency starter feeds. Uptake is strongest in Jalisco, Sonora, Puebla, and Yucatán, where supplement sales also rise fastest.

Nearshoring of United States Meat Processors Triggering Feed Demand

United States meat companies are shifting slaughter and fabrication lines to Mexican border states to capture lower labor costs and tariff advantages^{[2]Source: USDA Foreign Agricultural Service, “Grain and Feed Annual: Mexico,” fas.usda.gov} . Projects like SuKarne’s USD 580 million Lucero complex in Durango exemplify the scale, feeding 300,000 head daily and requiring 130 metric tons of feed per hour. These plants demand finishing rations that meet United States export rules on antibiotic residues and mycotoxins. Border-state mills gain from shorter grain hauls but must navigate periodic rail congestion.

Strict mycotoxin limits in NORMA Oficial Mexicana (NOM)

Mexico now enforces strict ceilings for aflatoxin and ochratoxin in feed, raising testing and certification costs by about 3% per metric ton ^{[3]Source: Servicio Nacional de Sanidad, Inocuidad y Calidad Agroalimentaria, “Normas Oficiales Mexicanas,”gob.mx}. Humid states such as Veracruz see higher rejection rates on local corn, forcing mills to blend imports or add costly binders. Export-oriented integrators demand certified mycotoxin-free rations, splitting the market into premium and commodity tiers. Millers without in-house labs face longer turnaround times and lost orders.

Biosecurity gaps raising African Swine Fever (ASF)-related insurance premiums

African Swine Fever has not entered Mexico, yet insurers lifted swine-sector premiums by up to 25% in dense production zones. Feed mills that serve hog farms must prove pathogen-free supply chains, especially for blood meal and animal proteins banned under NOM-060. Grupo KUO invested in traceability and rendering to lower risk, but independent mills shoulder higher compliance costs. In the short term, added overhead cuts profitability where feed already represents most of swine production cost.

Segment Analysis

By Ingredient: Cereals Anchor Rations While Supplements Surge

Cereals led the ingredient portfolio with 46.0% Mexico compound feed market share in 2025, anchored by corn that supplies cost-effective metabolizable energy. Supplements posted the fastest growth, advancing at a 7.8% CAGR through 2031 as millers adopt lysine, phytase, and probiotics to meet stricter mycotoxin and antibiotic-free rules. This pivot toward precision nutrition shifts value capture from bulk grains to functional additives and enlarges the Mexico compound feed market size attributed to high-margin inputs. Better feed-conversion ratios and sustainability claims help early adopters justify premium prices to integrated poultry and aquaculture buyers.

Cakes and meals, primarily soybean meal, remain the main protein source but face volatile import costs that squeeze independent mills. Distillers dried grains with solubles gain traction as a lower-priced protein alternative and already absorb 15% of United States DDGS exports to Mexico, signaling further penetration potential. Vitamins, minerals, and toxin binders round out the mix, with sales lifted by tougher enforcement of NOM-187 mycotoxin ceilings. Together, these remaining segments diversify ingredient sourcing and create niche openings for regional premix specialists that tailor formulas to local grain quality.

Note: Segment shares of all individual segments available upon report purchase

By Animal Type: Poultry Holds Sway as Aquaculture Accelerates

Poultry feed commanded 54.5% Mexico compound feed market share in 2025, reflecting dense broiler and layer clusters in Jalisco, Veracruz, and Querétaro. Aquaculture feed recorded the quickest expansion, projected to rise at an 8.9% CAGR through 2031 on the back of shrimp farms in Sinaloa and Sonora that produced 273,940 metric tons in 2024. Strong demand for export-grade shrimp drives adoption of enzyme-fortified extruded rations that lift the Mexico compound feed market size for specialty coastal products. The twin pillars of poultry scale and aquaculture momentum underscore a widening gap between commodity and high-specification diets.

Swine feed held a significant share of national demand, anchored by integrated systems in Yucatán and Sonora where biosecurity investments temper African Swine Fever risk. Ruminant diets dairy and feedlot cattle at a prominent demand benefit from government forage subsidies that encourage moves from pasture to concentrate finishing. Pet nutrition accounts for roughly limited share of tonnage yet offers the highest margins, prompting Archer-Daniels-Midland to open a USD 39 million wet pet-food plant in Morelos. These remaining segments add resilience by balancing commodity-heavy poultry volumes with value-added niches that cushion revenue during grain-price swings.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Jalisco remained the foremost hub in the Mexican compound feed market share in 2025, supported by dense broiler, layer, and cattle clusters that provide mills with scale advantages. Its proximity to import ports and central highway corridors ensures efficient grain inflows and rapid distribution of finished feed. Pacific and Gulf coastal states, including Sinaloa, Sonora, Veracruz, Campeche, and Yucatán, form the fastest-growing region, with compound feed demand projected to rise through 2031 as shrimp and tilapia farming expand. Aquaculture’s need for high-protein extruded diets lifts margins despite lower overall feed tonnage relative to inland poultry centers.

Durango leverages integrated beef complexes to anchor local feed consumption, while Veracruz and Guanajuato cater to mixed poultry and cattle bases supported by modern milling assets. Northern border states such as Sonora, Chihuahua, and Coahuila capture nearshoring-driven demand from United States meat processors yet contend with drought-linked water caps that slow new plant approvals. Southern interior states including Chiapas and Tabasco remain underpenetrated but attract fresh investment in tilapia feed lines that diversify production footprints. Together, these areas balance commodity poultry volumes with emerging niche species, smoothing national feed demand.

Regional growth now hinges on logistics, environmental constraints, and species specialization rather than sheer population density. Central states exploit rail and highway links that shrink grain hauls and lower inbound costs for imported soybean meal. Coastal zones benefit from export-oriented shrimp operations that justify premium diets, while drought-prone northern territories invest in water recycling to sustain output. These intertwined strengths are expected to keep the Mexico compound feed market on an upward trajectory as diversified regional engines offset localized risks.