Global Animal Feed Market Forecast 2025. Although global animal feed production has not increased much in recent years, there are expectations of significant growth in market value. Even the lowest estimates indicate that the current value of the global animal feed market has exceeded 400 billion USD and will increase by more than 4% in the coming years.
1. PROJECTED MARKET GROWTH
Despite fluctuating production, the value of the global animal feed market continues to increase year by year. According to a recent report by Polaris Market Research, the value of the global animal feed market will reach $588.50 billion by 2025, up from around $564.78 billion in 2024. Forecasting a compound annual growth rate (CAGR) of 4.3% through 2034, the research firm forecasts the market to reach $859.62 billion by 2034, indicating a strong growth trajectory.
Future Market Insights’ report indicates a similar market size, but gives a higher forecast for the future. In its report, Future Market Insights puts the global animal feed market size at $530.0 billion in 2023 and forecasts the market to reach $929.0 billion by 2033.
Precedence Research, which has a slightly lower forecast than the above research firms, puts the global animal feed market size at $448.61 billion in 2023 and is estimated to be $465.65 billion by 2024. The firm believes the market could reach $705.15 billion by 2034.
Mordor Intelligence, which points to a significant increase in the figures it reports, gives a lower estimate than the other research firms. According to the company’s report, the global animal feed market, which will reach a value of USD 483.69 billion by 2025, will grow at a CAGR of 4.5% from 2025-2030 to reach a value of USD 602.76 billion.
2. FACTORS DRIVING MARKET GROWTH
Growing global population and demand for animal protein
The growing world population requires a significant increase in food production to ensure global food security. Additionally, as disposable incomes of consumers in developing countries increase, the demand for animal proteins such as meat, milk and eggs also increases. This change in both population growth and dietary preferences directly translates into higher demand for animal feed.
Technological developments in feed formulation and production
Advances in feed formulation and nutritional science have enabled the creation of highly specialized feeds tailored to the specific needs of different species, breeds and life stages of animals. This approach, known as precision nutrition, offers major advantages in terms of maximizing feed efficiency and animal performance, while also encouraging the use of custom-mixed feeds.
Automation in the feed production process is also improving production efficiency, reducing labor costs and increasing consistency in feed quality. Key trending technologies of recent years, such as artificial intelligence (AI) and machine learning, are increasingly being used to better analyze available data, optimize feed formulations accordingly and improve farm management practices.
Focus on sustainability and environmental concerns
The livestock industry is facing increasing pressure to reduce its environmental footprint. This has led to the development of more sustainable feed ingredients such as alternative protein sources such as insects, algae and plant-based proteins. On the other hand, the application of circular economy principles, such as recycling and reusing agricultural by-products as feed ingredients, is also gaining attention by reducing waste and promoting resource efficiency. The appropriate integration of all of this into animal nutrition is possible with compound feed.
Importance for animal health and welfare
The addition of prebiotics, probiotics and other functional ingredients to animal feed improves gut health, enhances immune function and reduces the dependence on antibiotics. The use of high-quality, nutritionally balanced compound feed contributes to improving the overall health, welfare and productivity of animals.
Livestock Production in Emerging Markets
Developing economies, especially in Asia Pacific, are experiencing rapid growth in livestock production. Countries such as China and India have large and growing livestock industries, driving the demand for animal feed.
Government Regulations and Subsidies
Government policies that promote sustainable livestock production, support research and development in animal nutrition, and encourage adoption of innovative farming methods can also significantly influence the growth of the market.
All these factors mean that there will be a higher demand for compound feeds, which provide significant advantages in animal health, performance, and welfare, while supporting sustainable food production, contributing to the growth of the market.
3. FACTORS LIMITING MARKET GROWTH
Raw Material Price Fluctuations
Prices of key feed ingredients such as cereals (corn, soybeans), oilseeds and fishmeal are subject to significant fluctuations due to factors such as weather conditions, geopolitical events and global supply-demand dynamics. These fluctuations can directly impact the profitability of feed manufacturers and farmers, leading to higher production costs.
Competition for Resources and Environmental Concerns
The growing demand for arable land and water resources for both food and feed production is creating a competitive environment. According to experts, this can limit the availability and affordability of key feed ingredients. In addition, the high use of resources leads to environmental concerns such as deforestation, water pollution and greenhouse gas emissions. Measures to address these concerns could increase production costs and potentially limit market growth.
Regulatory and Compliance Issues
Increasingly stringent regulations on food safety, animal welfare, and environmental sustainability could increase production costs and compliance burdens for animal feed producers.
Diseases and Pandemics
Diseases such as avian influenza and African swine fever can significantly disrupt livestock production, leading to reduced demand for animal feed and economic losses for farmers. Such outbreaks can also disrupt the supply chain of feed ingredients and finished products, thereby affecting the availability and affordability of animal feed.
Economic Recession
Economic recessions can lead to reduced consumer spending on animal protein, affecting demand for animal feed and potentially slowing market growth.
Competition from Alternative Protein Sources
The growing demand for plant-based and lab-grown meat products poses a challenge to the traditional animal feed market. As consumers shift to alternative protein sources, demand for traditional animal products and therefore animal feed may decline.
Emerging Markets and Competitive Landscape
The emergence of new technologies and competitors in the animal feed market may increase competition and put pressure on existing players to innovate and increase productivity.
(Source: Feed Additive)
