The global commercial scale of the poultry feed market is estimated to be between US$ 180 and 250 billion. According to the report by Verified Market Research, the value size of the global poultry feed market was US$ 184.82 billion in 2021. The market is projected to reach US$ 256.66 billion by 2030, growing at a CAGR of 3.87% from 2023 to 2030. On the other hand, according to Agri-Food Outlook 2023 report, prepared by Alltech, global feed tonnage totalled 1.266 billion metric tons in 2022. 525.8 million tons of this is poultry feed (broiler and layer). This corresponds to about 42 percent of the total compound feed production in the world.
By Derya Yildiz
Poultry feed is used to feed ducks, turkeys, chickens, geese, and other domestic birds by farmers. Today, modern feed is prepared by carefully selecting and blending components in order to provide a highly nutritious diet that maintains the health of poultry birds while also boosting the quality of end products like meat and eggs.
The primary elements required by poultry birds for development, reproduction, maintenance, and health are minerals, vitamins, carbohydrates, proteins, and water. The majority of the energy necessary for development comes from carbohydrates and fats. Protein is also a significant source of energy for chicken birds, particularly when carbohydrate and fat intake are low.
Poultry feed is an extremely valuable feed material that can be formulated to meet all the needs of birds for health, performance and well-being.
GLOBAL POULTRY FEED PRODUCTION
According to Agri-Food Outlook 2023 report, prepared by Alltech, global feed tonnage totaled 1.266 billion metric tons in 2022. 525.8 million tons of this is poultry feed (broiler and layer). This corresponds to about 42 percent of the total compound feed production in the world. Poultry feed is also divided into two groups as broiler and layer feed. According to the data in Alltech’s report, global broiler feed production, which was 359.4 million tons in 2021, increased by 1.27% in 2022 to 363.9 million tons. Layer feed production increased by 0.31% in 2022 compared to the previous year and amounted to 161.8 million tons.
Broiler Feed Production on Regional Basis
According to the Alltech report, in 2022, while the overall tonnage in the broiler sector increased by about 1.3%, there were significant differences from country to country. Overall, feed production growth in the broiler sector was reported mainly from the Middle East, North America and Latin America. Also, according to the report, global poultry markets are expected to stay strong in 2023 but may have some price and volume swings depending on the region.
Asia-Pacific has the largest share in world broiler feed production with a production of 153.5 million tons in 2022. Broiler feed production in China, which is the largest producer in the region, decreased in 2022 and was 91.4 million tons. In China, production was affected by low market demands and high raw materials prices. In India, another major producer, higher broiler feed prices continue to challenge the industry’s margins and limit capacity growth. The total broiler feed production in the country in 2022 is 15.8 million tons. Avian influenza affected India, Japan, Korea and Vietnam in the region countries. Feed production in the Philippines increased significantly, due to a switch from pig farming to broilers because of African swine fever (ASF).
Latin America follows Asia-Pacific with 67.5 million tons in world broiler feed production. In 2022, broiler feed production in the region increased by 1.27% compared to the previous year. Brazil and Mexico, which represent most of the market for broilers in Latin America, had steady numbers from 2021 to 2022. In 2022, broiler feed production was 35.8 million tons in Brazil and 11.27 million tons in Mexico.
North America ranks third in world broiler feed production with 60.1 million tons. According to the Alltech report, in North America, broiler feed production was up over 3% and broiler exports were flat. Broiler production is growing slowly each year and will most likely continue at this pace. The USA, one of the two largest countries in the region, realized 95% of the total broiler feed production in the region with a production of 57.1 million tons.
The total broiler feed production in the Europe region in 2022 is 54.2 million tons. Poultry production in the region was significantly affected by avian influenza and the high price of raw materials and energy. As a result of this, broiler feed production in the region decreased by 1.40% in 2022 compared to the previous year.
In Africa, 13.1 million tons of broiler feed was produced in 2022. However, this production amount means a 5.9% decrease compared to the previous year. There were increases in broiler feed tonnage in some countries in the region, but those were offset by a big reduction in Kenya, where feed production dropped over 44%.
The Middle East has achieved a very serious increase of 38.7% in broiler feed production in 2022. The countries in the region, which produced 8.2 million tons of broiler feed in 2021, increased this production amount to 11.4 million tons in 2022. According to the Alltech report; in Saudi Arabia, one of the largest manufacturers in the region, local broiler production is expanding to lower the country’s dependence on chick imports.
In Oceania, which produced 4 million tons of chicken feed in 2022, production increased by 2% compared to the previous year.
Layer Feed Production on Regional Basis
According to Alltech Agri-Food Outlook 2023 report, avian influenza, other diseases and the high costs of raw materials affected the layer sector in many markets, especially in Asia, Europe and Africa. On the other hand, growth in the sector was boosted due to bigger challenges in other sectors that led to increased demand for eggs. Overall, layer-sector feed production increased by just one-third of 1%.
Asia-Pacific is the largest producer of layer feed with 75.9 million tons. However, total layer feed production in the region decreased by 0.7% in 2022. In China, the largest producer in the region, layer feed production was 30.5 million tons. According to the report of Alltech, although the 2022 price for eggs was relatively high in China, the feed material cost (maize and soybean meal) was prohibitive to layer production. The number of laying hens in stock in 2022 decreased significantly compared with 2021. Layer feed tonnage was down 3%, or a reduction of 1 million tons. In the Philippines, layer feed production increased by 0.734 million tons— or 28% — because ASF prompted conversions from swine production to layer and broiler farms. India, which produced 11.8 million tons of layer feed in 2022, reported an 8% decrease in layer feed tonnage because many small layer farms shut down.
In Europe, which ranks second in world layer feed production with 30.7 million tons, the production in 2022 decreased by 1% compared to the previous year. According to the Alltech’s report, Europe witnessed a tight poultry market with a strong price. Poultry production is expected to drop, keeping prices high, because of ongoing avian influenza pressure and high input cost. For UK poultry, declining self-sufficiency is expected to continue in 2023, with a slight increase in imports from the Netherlands, Poland and Thailand.
Europe is followed by Latin America, which produced 24.5 million tons of layer feed by increasing its production by 3% in 2022. Mexico was the largest layer feed producer in Latin America with a production amount of 7.9 million tons in 2022. It is followed by Brazil with 6.9 million tons. In the country, the rise of the raw materials prices and the slow increase of final prices put the egg industry in a difficult situation. Demand was slower and prices were higher. In 2021, there was a decrease in the number of breeders, which continued to affect the industry in 2022, but a recovery is expected by the end of 2023. Feed value increased because countries such as Argentina increased egg production.
The amount of layer feed produced in the North America region in 2022 is 15.5 million tons. The total layer feed production of the region increased by 2.7% in 2022 compared to the previous year. Layer feed production of the USA, the main actor in the region, was 14 million tons in the same period. Layers were more affected by avian influenza than any other poultry species in the U.S in 2022. More than 57 million commercial birds in the U.S. were affected, mostly layers and turkeys.
Layer feed production in Africa decreased by 3.4% in 2022 to 9.2 million tons. Kenya reported a 42.5% (0.3 million tons) reduction in layer feed tonnage because of high production costs. Over 40 layer producers have closed their operations there in recent months.
In Middle East, layer feed production increased nearly 8% in 2022 to 4.9 million tons.
Finally in Oceania, layer feed production climbed nearly 3%, with nearly every country increasing in feed tonnage.
MARKET GROWTH EXPECTATIONS
There are different forecasts of the global commercial scale of the poultry feed market. For example, according to Global Poultry Feed Market report by Verified Market Research, poultry feed market size was valued at US$ 184.82 billion in 2021 and is projected to reach US$ 256.66 billion by 2030, growing at a CAGR of 3.87% from 2023 to 2030.
Precedence Research also makes similar predictions. According to the company’s report, the global poultry feed market was estimated at US$ 185.67 billion in 2021 and it is expected to hit US$ 264.6 billion by 2030, growing at a registered CAGR of around 4.5% from 2022 to 2030.
Data Bridge Market Research points to much higher market sizes and growth rates compared to the other two research companies. According to the company’s report, the poultry feed market, which was valued at US$ 256.93 billion in 2021, is expected to reach a value of US$ 373.86 billion by 2029, at a CAGR of 4.80% during the forecast period 2022-2029.
Some of the major players:
AB Agri
ADM Animal Nutrition
AFGRI Animal Feeds
Alltech Inc.
Avril Group
BRF SA
Cal-Maine Foods
Cargill Inc.
Charoen Pokphand Foods (CP)
Cherkizovo Group
De Heus Animal Nutrition
DLG Group
East Hope Group
ForFarmers
GreenFeed
Haid Group
Hi-Pro Feeds Inc.
J.D. Heiskell & Co.
Japfa Ltd.
JBS S.A.
Kent Nutrition Group
Land O Lakes Inc.
Marubeni Nisshin Feed Co.
MHP
Neovia Group
New Hope Group
Nutreco NV
Perdue Farms Inc.
Royal Agrifirm Group
Sanderson Farm Inc.
Southern States Cooperative
Twins Group – Shuangbaotai
Tyson Foods Inc.
Wayne-Sanderson Farms
Yuetai Group
MARKET DRIVERS & RESTRICTIONS
According to the report by Research and Markets, the poultry sector is one of the fastest-growing meat sectors, owing to the increase in poultry meat consumption. Factors such as population, real income growth, price of poultry meat, which is relatively cheaper than other meat, and changes in dietary preferences of consumers are influencing the per capita consumption of poultry meat across the globe. According to OCED Agricultural Outlook, 2020, the per capita consumption of poultry meat in the world increased from 13.86 in 2017 to 13.92 in 2020. The increased average income and the steady economic growth in countries have caused a shift in the consumer preference towards protein-filled diet, which in turn resulted in increased the demand for poultry meat. Increasing the productivity of poultry is critical to feeding the growing global population and meeting the growing consumer demand. All these is expected to fuel the market growth of poultry feed during the forecast period 2023-2028. This is an important opportunity for the poultry feed market. However, high feed prices are acting as a restraint to the poultry feed market.
In its report, Data Bridge Market Research highlights the increasing focus on animal health and the growing demand for organic meat. According to the report, concerns about food safety have boosted the demand for high-quality chicken feed to assure the safety of meat. Another factor driving the growth of the poultry feed market is growing farm owner knowledge of the need of keeping a healthy animal diet. As a result, they are shifting from regular chicken feed to functional and premium variations that assist strengthen the animals’ resistance to enzootic diseases while also minimizing the danger of metabolic problems, acidosis, injuries, and infections.
Also, Data Bridge Market Research analyses that high raw material prices and an increasing number of restrictions and regulatory bans will act as market restraints for the growth of poultry feed during the forecast period of 2022 to 2029. Less product awareness will act as a restraint further challenging the growth of the poultry feed market during the forecast period.
Precedence Research points out similar things about market drivers and constraints in its report. According to the report, due to growing number of diseases and infections, the animals are more vulnerable to the ailments. Thus, this factor is driving demand for poultry feed in the global market. The factors such as raw material price volatility as well as environmental concerns are expected to stymie the global poultry feed market’s expansion throughout the projection period.
MARKET STATUS BASED BY REGION
According to the report by Research and Markets, Asia-Pacific dominates the global poultry feed market. The poultry sector in China and India experienced vigorous growth over the past two decades in terms of poultry numbers and the level of output per bird. Higher levels of production are associated with the spread of intensive systems in which food conversion ratios are high. As a result of the growth in the industry, the demand for poultry feed continues to be high in emerging economies of Asia-Pacific in countries like China and India. The production data we compiled from Alltech’s report also supports this.
In its regional assessment of the poultry feed market, Precedence Research also mentions the potential of the North American region, apart from Asia-Pacific. According to the company’s report, North America is expected to develop at the fastest rate during the forecast period 2022-2030. The North American companies are engaged in meat and chicken-based ingredients processing. The North America poultry feed market is being driven by factors such as growing government initiatives, stringent government regulations, and high investments by government bodies. The poultry feed market in North America region is expected to grow due to rising broiler production in the region and customers’ preference for poultry products due to their lower prices when compared to other alternatives.
Resources:
1. Alltech, Agri-Food Outlook 2022 & 2023, https://www.alltech.com/agri-food-outlook/
2. Research and Markets, Poultry Feed Market – Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028), April 2023, https://www.researchandmarkets.com/reports/5572756/poultry-feed-market-growth-trends-covid-19
3. Verified Market Research, Global Poultry Feed Market Size By Product (Complete Feed, Premix Feed), By Application (Ducks, Chicken), By Geographic Scope And Forecast, Published Date: Apr 2023, https://www.verifiedmarketresearch.com/product/poultry-feed-market/
4. Data Bridge Market Research, Global Poultry Feed Market – Industry Trends and Forecast to 2029, May 2022, https://www.databridgemarketresearch.com/reports/global-poultry-feed-market
5. Precedence Research, Poultry Feed Market – Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030, Published: May 2022, https://www.precedenceresearch.com/poultry-feed-market
