The global Compound Feed Market is expected to grow at a high CAGR of 4.50% during the forecasting period (2021-2028).
Compound feed is a specialty feed formulation developed from various concentrate ingredients and nutritional additives. Cereals, grains, molasses, and various other agricultural by-products are the compound feed's key ingredients.
The growth of the market can be majorly attributable to the growing emphasis among livestock farmers towards precision nutritional feeding.
The rising demand for meat, eggs, and dairy resulted in increased demand for nutritional dietary formulations, thereby boosting the compound feed market's growth. According to the International Feed Industry Federation (IFIF) global feed statistics, the global compound feed production surpassed one billion tons in 2018 and was valued at USD 400 billion.
The rapid growth in ruminant and aqua farming in developing countries such as India and China drives the market growth.
The high cost of compound feeds, and self-prepared feed for animal farming hinder the market's growth. Raw materials are the principal cost constituents in compound feed accounting for nearly 80% of total production cost.
Asia Pacific evolved as the largest market for compound feed market, accounting for XX% of the global sales revenue in 2019. The large poultry, swine, and aquaculture farming activities led to the growth of the compound feed market in the region
The region topped in compound feed production, with China as the single largest producer globally. Compound feed production volume in the country reached 190 million tons in 2019, accounting for 50% of the regional production volume.
China, India, and Japan are the leading countries for compound feed in the Asia Pacific. Together, these countries accounted for nearly 80% of the regional consumption.
The increasing demand from poultry farmers towards protein feed coupled with rising interest from consumers led to compound poultry feed growth.
Asia Pacific compound feed market valued USD XX million in 2019 and is estimated to grow at a CAGR of XX% over the forecast period to reach a USD XX million by 2027
The global compound feed market is highly fragmented, with many companies operating in the industry. The large-scale demand from livestock growing farmers and promising growth potential has motivated the leading feed companies towards compound business.
However, companies such as Cargill, Nutreco, COFCO, and ForFarmers NV are witnessing significant consumer loyalty and brand recognition. Other key companies in the market include Weston Milling Animal Nutrition, Charoen Pokphand Food, and Land O'Lakes.
Most of these companies are rapidly expanding their production capacity and product portfolio to hold a considerable market share. Also, the market has witnessed few acquisitions and partnerships, representing consolidation at the top level.
However, the lack of commercial compound feed production in some underdeveloped and developing countries provides room for market expansion. Efforts to increase awareness of the benefits of compound feed in these countries will offer high growth opportunities.
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