Thailand Compound Feed Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Thailand Compound Feed Market Trends and Insights

Rising Demand for Animal-Based Protein

Thailand's per-capita meat consumption is increasing alongside rising disposable incomes and tourism recovery, driving steady feed demand across poultry, swine, and aquaculture segments. Poultry production is anticipated to grow due to strong demand from quick-service restaurants, while chicken exports have expanded to Japan, Europe, and Middle Eastern markets. The growing cross-border trade within the Greater Mekong Sub-region expands the customer base for livestock producers. Feed manufacturers benefit from increased volumes and demand for specialized feed formulations that improve meat quality. The country's young population supports sustained growth in protein consumption, establishing a fundamental driver for the Thailand compound feed market.

Government Incentives for Integrated Feed Mills

Thailand's Board of Investment provides eight-year tax holidays and duty exemptions for agricultural projects in the Eastern Economic Corridor that import machinery. The government established a THB 1.72 billion (USD 50 million) corn-price stabilization fund and offers low-interest loans to reduce raw material costs for feed mills. The Animal Feed Quality Control Act B.E. 2558 provides standardized licensing procedures, while the Investment Promotion Act supports research and development expenses. These government initiatives reduce investment recovery periods and encourage automation in the Thailand compound feed market.

Foreign Direct Investment in High-Density Feed Plants

Foreign direct investment (FDI) in agriculture accounted for 54% of Eastern Economic Corridor (EEC) commitments in 2023, leading to the development of high-capacity feed manufacturing facilities near ports and industrial zones^{[1]Nation Thailand, “Thailand’s EEC unlocks potential for investors with new incentives,” nationthailand.com}. Companies, including Cargill, partner with regional firms to minimize logistics costs and implement automated process controls. The availability of international financing expedites feed mill construction, increasing production capacity to meet projected demand and strengthening Thailand's position in the compound feed market.

Surge in Antibiotic-Free and Organic Feed Demand

Thailand's National Strategic Plan on Antimicrobial Resistance aims to reduce drug usage by 30%, encouraging animal feed producers to adopt natural health additives. Betagro's elimination of routine antibiotics across its annual production of 140 million birds demonstrates this industry-wide transition. Feed supplements, including probiotics, prebiotics, and organic acids, are experiencing increased adoption as they provide higher profit margins while complying with European and Japanese residue requirements. The integration of Black Soldier Fly meal enhances environmental sustainability practices, reinforcing Thailand's position as a responsible exporter in the compound feed market.

Volatile Feed Ingredients Import Prices

 The heavy reliance on Myanmar as a primary source exposes feed mills to geopolitical risks. In June 2023, a dispute over GMO imports demonstrated the vulnerability to policy changes that can disrupt raw material supplies for extended periods. Rising tariffs on agricultural inputs further impact profit margins during global price increases. These market conditions require feed manufacturers to regularly adjust their procurement and risk management strategies.

Limited Arable Land for Domestic Feed Crops

Urban development and industrial zones are reducing available cropland, especially in Central Thailand, where land prices increased significantly after the COVID-19 pandemic. While precision farming techniques have improved crop yields to partially compensate for lost agricultural area, the growing demand continues to exceed production gains. This maintains Thailand's dependence on imported soybean meal and alternative energy crops. The limited availability of agricultural land creates a fundamental constraint on the expansion of Thailand's compound feed market.

Segment Analysis

By Animal Type: Poultry Sustains Scale, Aquaculture Leads Growth

The poultry segment accounted for 46.1% of the Thailand compound feed market size in 2024. This dominance stems from vertical integration between feed production and processing facilities focused on exports. The large-scale broiler operations maintain consistent feed mill demand, providing stability despite raw material price fluctuations. The aquaculture segment, while smaller, is growing at a 6.9% CAGR, driven by shrimp farming operations requiring high-protein feed formulations that command premium prices.

Thailand's poultry feed market strength reflects the country's established position in global chicken exports, particularly to Japan and the European Union, where strict safety standards compliance is essential. The aquaculture feed segment offers higher profit margins through specialized feed formulations with functional additives that improve feed conversion efficiency and end-product quality. These market dynamics influence capacity distribution in Thailand's compound feed industry.

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

By Ingredient: Cereals Anchor Cost Base while Supplements Accelerate

Cereals account for 51% of the Thailand compound feed market share in 2024, supported by domestic maize and cassava production that protects feed mills from external price fluctuations. The established bulk handling infrastructure and favorable tariff policies for local crops maintain high cereal inclusion rates in standard feed formulations. 

The supplements segment, growing at a 7.1% CAGR, reflects the industry's transition toward antibiotic-free production. Feed manufacturers incorporate probiotics, yeast derivatives, and organic acids at premium prices to meet export requirements for residue-free products. The emergence of insect-derived proteins, particularly Black Soldier Fly meal, expands the supplement options and contributes to the growth of the Thailand compound feed market.

By Feed Form: Pellets Dominate, Crumbles Gain Traction

Pellets constituted 47.2% of the Thailand compound feed market size in 2024. This dominance stems from their storage efficiency, minimal dust generation, and compatibility with automated dispensing systems. The standardized pellet production lines enable energy recovery through biomass boilers in modernized mills.

The crumbles segment is growing at a 7.2% CAGR, primarily serving young birds and juvenile aquatic species that require smaller particle sizes for better digestion. Mills are investing in post-pellet coolers and rollers to produce multiple feed forms without duplicating entire production facilities, a strategy gaining momentum in the Thailand compound feed market. Mash maintains its position in traditional farming operations and specific applications where mixing flexibility provides formulation advantages, though its market share decreases due to pelleted alternatives offering better handling and storage characteristics.

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

By Production Stage: Grower Feeds Rule Volume, Starter Feeds Drive Innovation

Grower formulas held 39.3% of the Thailand compound feed market share in 2024, primarily due to extended feeding cycles and large ration sizes. The ability to source bulk ingredients at scale maintains cost competitiveness for this growth stage. Starter feeds, growing at an 8.1% CAGR, incorporate concentrated nutrients and specialized additives that influence lifetime productivity. Precise micro-dosing systems enable accurate vitamin and mineral delivery, enhancing early immune development and decreasing antibiotic usage.

Finisher feeds cater to mature animals approaching market weight, with specific nutritional profiles that enhance meat quality and feed conversion efficiency in the final production phase. Government breeding programs that target improved growth rates and disease resistance increase the demand for starter feeds. These feeds maximize the genetic potential of enhanced livestock varieties, particularly in poultry and aquaculture sectors. The high margins in this segment support continuous research and development within the Thailand compound feed market.

Geography Analysis

Central Thailand maintained a significant share in the Thailand compound feed market in 2024, benefiting from port access, highway networks, and concentrated export-oriented poultry processors. The region's growth continues through government tax incentives under the Eastern Economic Corridor, supporting the expansion of high-capacity plants. The region's significance is enhanced by Thailand's position as the 14th largest destination for U.S. agricultural exports, which reached USD 1.2 billion in 2023, generating demand for feed ingredients and finished products through Central Thailand's logistics networks^{[2]U.S. Department of Agriculture, “Thailand – February 2025,” fas.usda.gov}. Companies including CP Foods maintain substantial research and development operations in the region, facilitating technology adoption across their national operations.

The Southern region demonstrates impressive growth through 2030, primarily due to intensive shrimp farming in coastal areas. Thai Union Feedmill's operations in Samut Sakhon and Songkhla, situated near ports, facilitate the efficient distribution of specialized aquafeeds across ASEAN (Association of Southeast Asian Nations). While excess capacity in shrimp feed production affects profit margins, it promotes innovation in digestive enhancers and disease-resistant formulations.

Northern Thailand's market growth stems from dairy sector expansion and livestock trade with Laos and Myanmar. Annual cattle population growth of 8% increases demand for dairy and beef feed formulations requiring specific protein-energy ratios. Betagro's Lampang facility, with a capacity of 50,000 birds per day, indicates regional growth potential and contributes to increased feed requirements in the Thailand compound feed market.