The Mexico animal feed market is expected to grow at a compound annual growth rate of 4.11% over the forecast period to reach a market size of US$8.292 billion in 2025 from US$6.512 billion in 2019.
Mexico will continue to be a major importer of basic grains. In 2019/20, imports are expected to continue their modest growth to meet the growing demand for livestock feed. The United States is expected to remain Mexico’s principal supplier due to logistical advantages and existing business relationships.
Additionally, feed consumption of wheat is expected to continue to decline, reflecting the relatively higher cost of wheat compared to other alternatives such as corn. Increases in corn for feed consumption is largely explained by the changes in diet patterns and increased income and expenditure by the population on animal proteins.
At higher consumer incomes, expenditures on cereals and basic crops tend to decrease, while the expenditure for the consumption of poultry, pork and beef meats, milk, and eggs increases. For feed consumption, corn grain is fed to livestock and poultry in its original form either by itself or in combination with supplements in compound feed. The animal feed industry is expected to grow marginally in 2020, the poultry sector continues to be the major user of feed grains in Mexico which is mainly corn.
Further, the Mexican poultry industry grew significantly in 2019 and this trend is expected to continue in 2020 as per the National Union of Poultry Farmers (UNA). Moreover, feed represents notable share of the total cost of the production of broiler meat. Chicken meat and egg consumption are also increasing, due to being affordable in an increasingly price-sensitive market.
Also, because these sources of proteins are increasingly being considered as a viable and healthy alternative to beef and pork. The livestock production in the country also continues to grow because of the vertical integration of farms as well as better biosecurity measures.
In 2019, livestock exports achieved a new record, with the United States as its main trading partner. This trend is expected to continue through 2020, as steady feed prices and favorable livestock sanitary conditions prevail. Mexico’s beef exports are also expected to increase, especially to Asian markets where high-labor, added-value meat products command a price premium.
The domestic pork industry also continues to grow, as consumers lean towards more affordable animal proteins. Therefore, with such aforementioned factors that are conducive to Mexico animal feed market expansion, it is expected that this market is expected to witness healthy growth during the forecast period.
Source: ResearchAndMarkets.com
