Market Trends of Compound Feed Industry
This section covers the major market trends shaping the Compound Feed Market according to our research experts:
Growing Demand for Seafood and Meat Products
The worldwide economic downturn has had a very limited effect on the global meat market, which has maintained its positive outlook. The highest growth in meat consumption is expected from the Asia-Pacific and South American regions because of changing diet patterns, urbanization, population, and economic growth. For example, according to Agriculture and Agri-food Canada, the Chinese demand for meat continues to surpass the domestic supply. In 2020, the global production of goat meat was 16,027.6 thousand metric ton, an increase of 5.7% from 2017. This depicts the growing demand for meat. Fish are low in fats, 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 people are becoming aware of the health benefits of fish consumption. Globally increasing population trends are also supporting the growth of the global meat and seafood market. Increasing life expectancy and 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.
Asia-Pacific Dominates the Market
The demand for meat protein is rising in the Asia-Pacific region, especially in China, India, Malaysia, and Thailand, with rapid economic growth. This increased demand for meat protein has triggered meat production in the region, where uptake of compound feed has increased and is expected to show a healthy growth rate. Apart from improving nutritional value, compound feed is gaining importance for its role in meat quality improvement. In 2019, the Indian commercial feed industry largely catered to the poultry sector at around 70.0-75.0%, followed by aquaculture at 10.0-12.0% and dairy cattle at 10.0-15.0%. India's commercial feed production was at nearly 39.0 million metric ton during the same period. Poultry feed garners the highest share in the country's feed production, accounting for nearly 24.9 million metric ton in 2019, followed by ruminants at 11.6 million metric ton, aquaculture at 2.3 million metric ton, and swine at 0.07 million metric ton. As the country holds a very minimal share of the swine population in the overall Asia-Pacific market, the African Swine Fever outbreak has not impacted the country's feed industry. According to the Food and Agricultural Organization statistics data, in 2018, the country held only 1.8% of the Asia-Pacific's swine population. Driven by the target to improve self-sufficiency, the region is moving toward the inclusion of alternate feed ingredients, such as feed-grade rice, in livestock feed production.
