ISSUE FOCUS FEED & ADDITIVE MAGAZINE February 2021 33 all led to a decrease in beef consumption. The industry currently keeps struggling with these challenges. The aquaculture industry has been the area that displayed the strongest growth in this process on a global scale. This effect was seen particularly in Asia, and to some extent in Latin America and Oceania. Factors such as the perception of fishery products as healthy by consumers and the lower environmental impact compared to other areas indicate that the sector will continue to grow in the upcoming period. The pet industry has been one of the few industries to benefit from Covid-19 and imposed restrictions. The processes of lockdowns and perhaps a sense of loneliness increased people’s desire to adopt a pet. As a result, the pet food industry has recorded the largest growth in the past 3 years. Growth continued in premium pet food while growing economic difficulties led to an increase in purchasing lower-cost feeds. WHAT WILL BE THE FUTURE OF THE FEED SECTOR? According to the Compound Feed - Global Market Trajectory & Analytics report prepared by Research and Markets, the commercial value of the global feed market, which was estimated to be 446.2 billion dollars in 2020 when the Covid-19 crisis hit, is predicted to reach 594.9 billion dollars in 2027. This means that the compound annual growth rate (CAGR) between 2020-2027 will be around 4.2 percent. In the same report, it is predicted that the compound annual growth rate in grains will be 3.8 percent and with this increase, the commercial volume in grains will reach $ 184.4 billion. The market size in the USA, one of the important actors of the global feed industry, was estimated to be 128.7 billion dollars in 2020. This means that more than 28.8 percent of the global market size will be originated from the USA. China, which is the second-largest economy in the world and the most important actor in the feed and livestock sector, is expected to show a compound annual growth of 6.9 percent by 2027. China is expected to reach a market size of 105.1 billion dollars in 2027 after this growth. Japan and Canada, which are among other important geographic markets, are estimated to grow 2.5 and 3.4 percent, respectively. In Europe, Germany is projected to record around 3.1 percent compound annual growth, while the rest of the European market is estimated to reach a market rate of $ 105.1 billion by 2027. References: 1. The European Feed Manufacturers’ Federation (FEFAC), Compound feed production 2020 expected to fall by 2.2%, Press Release, November 05, 2020 2. The American Feed Industry Association (AFIA), FAQs on COVID-19’s Impact on Animal Food Industry, Dec. 10, 2020, 3. Alltech Global Feed Survey 2021 4. Research and Markets, Compound Feed - Global Market Trajectory & Analytics Report, September 2020, Global Industry Analysts, Inc 5. Markets and Markets, COVID-19 Impact on Feed Market, April 2020 The pet industry has been one of the few industries to benefit from Covid-19 and imposed restrictions. The processes of lockdowns and perhaps a sense of loneliness increased people’s desire to adopt a pet. As a result, the pet food industry has recorded the largest growth in the past 3 years.
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