Domestic birds raised for meat, eggs, manure and feathers are poultry. Duck, geese, duck, turkey, and other birds are included in poultry. Poultry farming is the domestication of meat, eggs and manure for high yields of poultry. Poultry agriculture may be carried out either as family poultry or as industrial poultry farming. Due to high nutritious feedstock with high productivity, poultry feed is an evolving sector gaining enormous importance. Meat and eggs are rich in protein and water and are 5% fat. Increasing health-conscious nature among young generations has led to a high level of protein use through poultry products, which stimulates poultry market growth. In exchange, this supports the market demand for poultry feed. Because of high profit, the poultry feed market is powered by increased poultry business in emerging economies.
The global poultry feed market valued USD XX million in 2020 and is forecasted to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029)
Increasing demand for poultry feed products
The poultry sector is one of the fastest-growing meat sectors, owing to the increase in poultry meat consumption. To feed the rising global population, increasing the productivity of poultry is important. The global poultry meat production is growing, with two-thirds of the increase originating in the Asia-Pacific region. The consumption of poultry meat in the United States is also increasing since it is considered a convenient product that is readily available on the market. An increasing trend on the global front is poultry meat, which grew from 119,205.21 metric tonnes in 2018 to 120,884.63 metric tonnes in 2019 (OECD, 2020). To meet the basic feed requirements, the demand for compound feed is therefore expected to increase over the forecast period. Hence, due to the increasing demand for poultry feed products, the poultry feed market is expected to grow during the forecast period.
In addition, poultry farmers are currently concentrating on improving the nutrition of poultry birds, such as broilers, ducks, turkeys, and layers. They are gradually adding feed additives to improve efficiency and ensure improved quality. In addition to improving poultry production, the use of feed additives can make them healthier and more nutritious for human consumption. With the launch of feed additives by some of the leading firms, the poultry feed market will face greater opportunities for growth in the forecast period.
However, outbreaks of poultry diseases such as avian influenza, Colibacillosis, and Mycoplasmosis pose a significant threat to the feed industry. The unbridled spread of these diseases has had a negative impact on the production of poultry, thus hampering the market for poultry feed. Over 4, 00,000 chickens and turkeys were killed in 2016 by poultry disease outbreaks in the U.S. It was not contained in poultry but affected more than 180 individuals who had come into contact with the disease-carrying chicken with salmonella. Although manufacturers continue to reel under the threat of imminent outbreaks, increasing production costs have intensified their woes. Corn and soybean meal prices have seen a threefold increase in the last few years. With maize and soybeans traditionally accounting for 90% of poultry feed, increasing prices are pushing farmers to search for alternative sources.
Broilers exhibit higher consumption of poultry feed.
The global poultry feed market has been segmented by animal type layer, broiler, turkey and others. The broiler segment is expected to grow at a CAGR of XX% during the forecast period. The increased demand for chicken meat due to the content of protein has emerged as an important driving factor for the growth of the market. Broilers are specifically raised for meat production. Increasing demand for chicken meat, due to the low-cost presence of protein-rich content, is causing broiler farming to grow. One of the most significant variables in broiler farming is proper nutrition. 13 vitamins, one essential fatty acid, 13 amino acids, 14-16 minerals and a source of energy for balanced nutrition are required for the broiler.
Asia Pacific is the largest market for poultry feed with a share of nearly XX% in global sales value in 2020
By geography, Asia Pacific is expected to dominate the global poultry feed market. Over the past two decades, the poultry sector in China has experienced vigorous growth, both in terms of poultry numbers and the level of output per bird. According to FAO, annual meat consumption in China alone is predicted to increase from about 50 kg per capita today to approximately 70 kg per capita by 2030. The spread of intensive systems in which food conversion ratios are high is associated with higher levels of production. The production of poultry increased its share of the total livestock production of China, increasing much faster than the production of pork. The demand for poultry feed in the developing Asia-Pacific economies continues to be strong. Countries such as China and India are increasing their preference for meat from broilers. This contributes to the growing use of high-quality feed for higher populations of poultry.
The global poultry feed market is fragmented with the presence of several players across various regions. The most active companies across the globe are Chareon Pokphand Foods, Cargill Inc, Alltech Inc, Archer Daniels Midland, and De Heus B.V. among others. The leading companies are focused on acquiring feed mills and small manufacturing facilities for the expansion of their businesses, in both domestic and international markets. For instance, in March 2019, DuPont launched poultry feed supplement SYNCRA to maximize nutrient digestibility in poultry production. In October 2019, Cargill has launched a Feeding intelligence platform that provides resources for farmers on the latest intelligent animal production practices and is aimed at helping them navigate and improve their operations across all species. In May 2018, Alltech launched a poultry feed additive named Viligen which contains a range of unique scientifically-backed ingredients to promote gastrointestinal tissue growth and activity.
COVID-19 Impact: Supply chain disruptions to have a negative impact on the market
Restrictions on manufacturing activities due to the advent of the COVID-19 pandemic shall cause a slump in the supply of feed, as well as its additives. The poultry industry is battling rumours of coronavirus spreading through the consumption of meat and meat products. In some regions, lockdowns have been announced to control the coronavirus pandemic, which has been impacting the movement of vehicles carrying livestock, feed, and feed ingredients. On the other hand, raw material price volatility is a major challenge faced by feed manufacturers worldwide during COVID-19. The global export for beef and chicken meat trade has been reduced due to the emerging threats from the spread of the COVID-19 pandemic. In addition, economic growth in 2020 and the effect of the pandemic on consumers would dampen demand for animal protein, thus affecting the market for poultry feed.
The COVID-19 pandemic and restrictions aiming to contain it, have led to the shutdown of poultry feed companies across the globe in the initial phase, which in turn, resulted in the shortage of feed for livestock farmers. Hence the initial Covid-19 lockdown caused disruptions in the logistics system has affected the supply of poultry feed across the globe. However, the poultry feed market growth is expected to increase in the later phases, due to exemptions from lockdown restrictions and an increase in poultry meat consumption.
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