MARKET REPORT 70 FEED & ADDITIVE MAGAZINE January 2025 competition and create pressure on existing players to innovate and increase productivity. COMPOUND FEED PRODUCTION AND MARKET SITUATION BY ANIMAL SPECIES The global animal feed market is a dynamic and diverse industry that fulfils the nutritional needs of various animal species. Each species has specific nutritional requirements and the market has evolved to meet these needs effectively. Poultry feed, for example, is the largest segment in the global animal feed market due to the high demand for chicken and eggs, which are seen as affordable sources of protein worldwide. Growing global population, urbanisation leading to increased demand for convenient and readily available protein sources, as well as rapid expansion of poultry farming in emerging economies are the major drivers of growth in this segment. The poultry segment also ranks first in global feed production. According to forecasts in the Alltech Agri-Food Outlook 2024, broiler feed production in the poultry group increased by 3.4% to 386.33 million metric tons in 2023, while egg feed production increased slightly to 171.293 million metric tons. The largest share in broiler feed production belongs to the Asia-Pacific region with 160.67 million metric tons. It is followed by Latin America with 74.33 million metric tons and North America with 61.85 million metric tons. In layer feeds, Asia-Pacific ranked first with 80.40 million metric tons, followed by Europe with 31.40 million metric tons and Latin America with 27.16 million metric tons. Ruminant feed is an important segment in the compound feed market that caters to both beef and dairy production. Increasing consumer demand for meat and dairy products and farmers' efforts to improve meat and milk quality and efficiency are fuelling the growth of this segment. However, fluctuating prices of key feed ingredients such as corn and soybean and environmental concerns related to methane emissions from ruminant farming pose several challenges to the market growth of this feed segment. According to the Alltech report, world dairy feed production decreased by 1.12% to 127.92 million metric tons in 2023. Europe had the largest share in world dairy feed production with 40.46 million metric tons. It was followed by North America with 28.20 million metric tons and Asia-Pacific with 25.23 million metric tons. Asia-Pacific region recorded the only increase of 4.52% in dairy feed production in 2023. Cattle feed production in 2023 decreased by 3.78% compared to the previous year to 119.56 million metric tons. North America was the largest cattle feed producer with 63.25 million metric tons. It was followed by Europe with 17.54 million metric tons (down 6.84% year-on-year) and Asia-Pacific with 16.08 million metric tons. Pig feed is exhibiting significant growth in the global feed market due to increasing global pork consumption. Income growth in developing countries and increasing demand for processed meat products are among the main factors driving growth here. In global pig feed production, which reached 323.04 million metric tons in 2023, the Asia-Pacific region again stands out with 138.72 million metric tons. In this segment, Asia-Pacific region was followed by Europe with 74.85 million metric tons and North America with 62.39 million metric tons.
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