By embracing trends such as precision nutrition, alternative proteins, and digital transformation, the industry can navigate its challenges while meeting the growing global demand for animal-derived products. As consumer expectations continue to evolve, the feed industry must remain agile and committed to advancing animal health, environmental stewardship, and economic resilience. The future of animal nutrition lies in sustainable, science-driven solutions that benefit animals, producers, and the planet alike.

Assistant Professor and Extension Specialist, Prestage Department of Poultry Science
North Carolina State University

Distinguished Professor and Director of Marine Aquaculture Research Center
North Carolina State University
The animal nutrition and feed industry play a pivotal role in supporting both livestock and aquaculture industries. The nutrients available in feeds are critical for the animals’ optimal growth, health, and productivity to ensure the quality of food derived from them. The global animal feed production was 1.2 billion metric tons in 2023.1 This was 0.01% or 140,000 metric tons lower than the previous year of 2022. The report pointed out that this slight decrease in production of feed was due to the more efficient use of feed, made possible by the use of intensive production systems. Animal agriculture has attracted a lot of attention, particularly in light of its role contributing to climate change. The contribution of livestock to climate change is estimated between 12-20%2, mostly in the form methane from ruminants and the carbon dioxide release from forests when cut to create pastures. However, there is a growing demand for animal protein due to continued increase in human population and rising incomes.3 The animal protein sector, which includes meat, dairy, and fish is expected to increase by 12%, 1.6%, 11.2%, respectively by 2033.4
Therefore, in order to meet both human and environmental needs, the animal feed sector will play a crucial role. This article looks at the current challenges and trends in the animal nutrition and feed industry. However, it faces numerous challenges and is undergoing rapid transformation driven by scientific innovation, regulatory changes, and market dynamics. This article delves into the key challenges and emerging trends shaping the animal nutrition and feed industry.

CHALLENGES
1. Resource scarcity and rising costs: One of the most significant challenges is the rising cost of raw materials. Ingredients such as corn, soybeans, and fishmeal, which form the bulk of animal feed, are subject to price volatility due to factors like climate change, geopolitical tensions, and increasing competition for these resources from human food and biofuel industries. Water scarcity and land degradation further exacerbate the issue, limiting the availability of resources necessary for feed crop production. Additionally, the environmental impact of over-reliance on certain feed ingredients, such as deforestation linked to soybean farming, presents sustainability challenges.
2. Balancing nutrition with affordability: Balancing optimal nutrition with affordability is a perennial challenge. Producers aim to maximize livestock performance while controlling feed costs, as feed typically represents the largest expenditure in livestock production, accounting for up to 70% of total costs. Achieving this balance requires precise formulation and the integration of cost-effective, high-quality feed ingredients. This issue can be further sub-divided into:
2a. Variability in the nutritional content of feed ingredients: In order to reduce the environmental impact of feed ingredients as well as to counter the volatility of common feed ingredients, much progress has been made in understanding the functionality and utility of alternative ingredients, particularly the use of by-products from different agricultural produce and processes. For e.g. corn and soy are the go-to ingredients for energy and protein in animal feeds. However, other non-conventional ingredients like sorghum, wheat, corn gluten meal, canola meal, dried distillers grains with solubles (DDGS), food waste, insects etc. are gaining popularity. While these ingredients may have nutritionally similar profile, the variability in nutrient content may be higher due to differences in processing parameters from where they are collected. This leads to variability in animal performance, which affects the economics of food animal industry. A way to cope with this variability is to use the alternative ingredients at lower inclusion levels.
2b. Anti-nutritional factors: Anti-nutritional factors (ANF) are plant bioactive compounds with no nutritive value5, but are crucial for plants to protect themselves from insects, diseases, herbivores, and unfavorable conditions6. The ANFs have a deleterious effect on the nutrient digestibility, leading to depressed feed efficiency and growth. For e.g. cottonseed meal (protein source) has a toxic pigment called gossypol (when occurring as free form and not protein-bound) which affects non-ruminants like pigs and poultry, peanut meals may have aflatoxins, sorghum has tannins etc., which affect the overall feed efficiency. The animals cannot fully utilize approximately 25% of the available nutrients due to the presence of ANFs in feed.7 It is important to take note of such features in ingredients and minimize these levels in feeds.
2c. Nutrient digestibility: Apart from ANFs affecting the nutrient digestibility and thus reducing the potential of nutrient utility in feeds, some ingredients may not have a nutritional profile that suits the needs of the animals. For example: rapeseed meal contains difficult-to-digest hulls and ANFs like glucosinolate, tannins, euric acid etc.; feather meal has an amino acid imbalance, palm kernel meal may impact palatability. Chitin from crustacean shells or insect exoskeletons may also lower the digestibility in animals like poultry and fish when used at higher inclusion levels.
3. Environmental sustainability and carbon footprint: The feed industry has a significant environmental footprint. Greenhouse gases like carbon dioxide, methane, and nitrous oxide make up more than 50% of the emissions.8 These impacts occur through land-use changes, energy use, and transport. The increasing pressure from consumers and policymakers to have sustainable operations is pushing the industry to adopt practices that reduce GHG emissions, minimize water and energy use, and promote biodiversity. However, meeting expectations requires significant innovation and investment.
4. Antimicrobial resistance (AMR): Antibiotics are often prophylactically administered to animals through feed and water in addition to injections and topical applications, to prevent disease and promote growth (no longer generally the case in the US). The antibiotics used in food animals are expected to increase by 11.5% by 2030.9 The food animals do not absorb about 75% of the antimicrobials administered to them, which are excreted from the body via urine and faeces, which can potentially contaminate the surrounding environment.10,11 The overuse of these drugs has led to AMR, where microbes resistant to these can proliferate and cause global human and animal health crises. Governments and regulatory bodies have implemented stringent restrictions on antibiotic use in animal feed, forcing the industry to seek alternative solutions such as probiotics, prebiotics, and phytogenics.
5. Feed technology, safety and quality control: A considerable amount of data is available at the feed mills due to the use of different recipe ingredients and formulations. However, it is still challenging to apply this information in various activities related to feed production. Additionally, contamination of feed with mycotoxins, heavy metals, and pathogens poses a risk to animal health and food safety. Ensuring consistent feed quality requires rigorous testing, monitoring, and adherence to stringent safety standards. Supply chain disruptions can exacerbate these risks, especially during global crises like pandemics.
6. Specialty feeds: As food animal production systems become more sophisticated, there is growing demand for specialized feeds tailored to specific species, production stages, and performance goals. Developing these feeds requires advanced research and development capabilities, as well as access to novel ingredients and technologies. Additionally, limited availability due, inconsistent quality, higher costs as compared to standard feeds, navigating complex regulations, logistical challenges, and potential issues with finding a reliable supplier add to the challenges of the feed industry. For e.g. the micro diets needed to feed marine finfish post-hatch is a challenge in the initial weeks, wherein they feed on live micro-crustaceans like artemia. Raising artemia as prey is an expensive and labor-intensive process, with the desire to minimize or eliminate the need for live feeds with that of specialized feeds. Significant research is needed to address such demands.
7. Regulatory compliance: In an increasingly connected world, the regulatory frameworks governing animal feed vary widely across regions, adding complexity to global trade and operations. Compliance with safety standards, labeling requirements, and restrictions on certain feed additives demands significant resources.
EMERGING TRENDS
1. Precision Nutrition or Feeding: This type of feeding optimizes the supply and demand of nutrients to animals for a target performance, profitability, product characteristics and environmental outcomes, with an integrated information based system.12 Precision feeding can be a highly effective tool in enabling a reduction of feed intake per animal while maximizing individual growth rates. It enables the provision of the right amount of feed, in the right nutrient composition, at the right time, for each animal, individually. Advancements in precision feeding systems, such as automated feeders equipped with sensors, allow for real-time monitoring and adjustment of diets. By improving feed efficiency, precision nutrition can reduce costs and environmental impact while enhancing animal health and productivity.
2. Alternative Protein Sources: The search for sustainable, alternative protein sources is transforming the feed industry in its effort to have sustainable operations. Some notable innovations include:
• Insect Meal: Insects like black soldier flies and mealworms are being explored as high-protein feed ingredients. They require fewer resources to produce than traditional crops and can be reared on organic waste, contributing to circular economy models.
• Algal Products: Algae, rich in proteins, lipids, and essential fatty acids, offer potential as a sustainable feed ingredient. Microalgae can also serve as a source of omega-3 fatty acids, reducing reliance on fishmeal.
• Single-Cell Proteins (SCPs): Produced by fermenting microorganisms such as bacteria, fungi, or yeast, SCPs are gaining traction for their high nutritional value and scalability.
3. Functional Feed Additives
Functional feed additives are dietary ingredients, which are increasingly used to improve animal health, performance, product quality, and environment and economic gains. Key categories include:
• Probiotics and Prebiotics: These additives promote gut health and immunity by supporting beneficial microbial populations.
• Celobiotics: This is a new term coined for bioactive compounds or microbial metabolites encased in dietary fiber that are released during the microbial fermentation by gut bacteria, beyond the short chain fatty acids.13 This concept has just started to be explored in humans and possibly can be used in animal feeds as well.
• Phytogenics: Plant-derived compounds, such as essential oils and tannins, are used as natural growth promoters and antimicrobial agents.
• Enzymes: Feed enzymes enhance nutrient digestibility and reduce waste, contributing to more efficient feed use.
4. Digitalization and Big Data: Digital tools are revolutionizing feed management and animal nutrition. Internet of Things (IoT) devices, sensors, and artificial intelligence (AI) enable precise tracking of feed intake, animal growth, and health parameters. Big data analytics provides insights into optimizing feed strategies, improving productivity, and predicting disease outbreaks. Blockchain technology is also gaining traction for improving traceability and transparency in the feed supply chain, addressing consumer concerns about food safety and ethical sourcing. Advanced formulation technologies that utilize the data about ingredients, their sources, application rates etc. is gaining importance to help with precise formulations along with its environmental footprint.
5. Gut Health: Gut health is increasingly being recognized as a cornerstone of animal well-being and performance. Feed strategies now emphasize supporting the gut microbiome, which plays a vital role in nutrient absorption, immunity, and disease resistance. This focus has driven demand for probiotics, prebiotics, and postbiotics, as well as innovative feed formulations that reduce gut stress. Celobiotics has the potential to influence gut health beyond the benefits of short-chain fatty acids. This concept is very recent, and should possibly be explored for its influence in food animals.
6. Climate-Resilient Feed Crops: Developing climate-resilient feed crops is essential to address the challenges posed by climate change. Breeding programs focus on improving drought tolerance, pest resistance, and nutrient density in staple feed crops like corn, sorghum, and alfalfa. Genomic tools, such as CRISPR, are accelerating these advancements.
7. Circular Economy: The industry is embracing circular economy principles to enhance sustainability. Waste streams from food processing, such as brewers’ grains, fruit pulp, and bakery waste, are repurposed into animal feed. This approach not only reduces waste but also provides cost-effective feed ingredients.
8. Plant-based and synthetic ingredients: With growing concerns over the environmental impact of traditional feed ingredients, plant-based and synthetic alternatives are gaining attention. Plant extracts like essential oil, antioxidants (like phenolic acids, flavonoids etc.), and fermentation-derived ingredients, such as synthetic amino acids and vitamins, offer consistent quality and lower resource use compared to conventional sources.
9. Animal Welfare: While the focus of animal nutrition is to make an efficient feed in a sustainable manner, animal welfare has a critical role in achieving this target. Animal producers have to pay attention to animal welfare so that they can have a healthy life and have the opportunity to make the best use of the nutrition. This will help produce better quality animal products in a cost-effective way that supports sustainability in the feed industry.
CONCLUSION
The animal nutrition and feed industry is at the crossroads of immense challenges and unprecedented opportunities. Addressing the twin imperatives of sustainability and productivity requires a holistic approach that integrates technological innovation, resource efficiency, and regulatory compliance. By embracing trends such as precision nutrition, alternative proteins, and digital transformation, the industry can navigate its challenges while meeting the growing global demand for animal-derived products. As consumer expectations continue to evolve, the feed industry must remain agile and committed to advancing animal health, environmental stewardship, and economic resilience. The future of animal nutrition lies in sustainable, science-driven solutions that benefit animals, producers, and the planet alike.
References
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About Michael Joseph
Dr. Michael Joseph earned his Ph.D. from Kansas State University in 2016. He is currently an Assistant Professor and Extension Specialist at Prestage Department of Poultry Science in the North Carolina State University. He has more than a decade of experience in various technical aspects of food processing using extrusion and other methods. His program focuses on value-addition of co-products and by-products from the agriculture and meat industry primarily using extrusion processing technology. His efforts also focus on outreach to industry and farmers to find feasible and sustainable solutions by promoting utilization of by-products.About Steven Hall
Dr. Steven G. Hall, P.E., joined NC State in 2016, where he is currently Professor and Director of the Marine Aquaculture Research Center (MARC) in the Department of Biological and Agricultural Engineering. He is a licensed engineer in New York and Louisiana, and maintains adjunct faculty status with Louisiana State University (LSU) in Baton Rouge, LA, with appointments in the LSU College of Engineering and the Louisiana Agricultural Experiment Station, the Aquacultural Research Station of the LSU AgCenter; as well as Au Sable Institute. He is also an associate faculty member of the NC State Department of Applied Ecology.