It is seen that the North America has the high share in the world compound feed production with a production of approximately 261 million tons and a share of 20.6%. According to Alltech’s data, the feed production of the North America, which was 259 million tons in 2021, increased to 261 million tons in 2022. Growth expectations in the market vary between 1% and 5%. According to a report, the total value of the animal feed market of the region will reach USD 237.15 billion by 2029.
By Derya Yildiz
North America (US and Canada) is the third largest compound feed producer in the world after the Europe region. According to the Agri-Food Outlook 2023 report by Alltech, 261 million tons (20.6%) of world compound feed production, which was 1.266 billion tons in 2022, was realized by North America countries. The total feed production of the region, which was 259.3 million tons in 2021, reached 261.69 million tons in 2022 with an increase of 0.88%.
North America animal feed market is flourishing due to increasing demand for meat and dairy products, expansion of livestock production, adoption of advanced animal nutrition technologies, and rising awareness about the benefits of using compound feed for livestock.
FEED PRODUCTION BY COUNTRY
According to the report of Mordor Intelligence, United States dominates the North America animal feed market. The country is one of the major compound feed markets in North America. The domestic animal food manufacturing industry largely relies on the free-trade agreement with Canada and Mexico (North American Free Trade Agreement’s (NAFTA) implementation), which has allowed exports of feed ingredients, feed and pet food. This trade agreement coupled with increasing livestock industry is driving the market for animal feed. The country remains the one of the world’s largest animal feed producers and exporter as well as home of many world’s leading animal feed producers.
According to data from The American Feed Industry Association (AFIA), there are more than 5,800 animal feed manufacturing facilities in the U.S. producing more than 284 million tons of finished feed and pet food each year. The mill sizes vary tremendously from a small on-farm mixer to a modern, computerized system with few human operators making more than 1 million tons of feed each year for swine or poultry operations.
In Canada, the other major player in the region, according to the 2021 data of The Animal Nutrition Association of Canada (ANAC), 470 commercial mills across the country supply roughly 19.3 million tonnes of feed. In the country, approximately 28.9 million tonnes of feed were consumed by livestock (not including forages) in 2021. It is estimated that 96.5% of total feed is consumed by swine, beef cattle, dairy cattle and poultry.
FEED PRODUCTION BY SPECIES
Beef feeds are in the first place in compound feed production in North America on a species basis. North America, which is also the world’s largest beef feed producer, alone accounts for 57% of the world’s beef feed production, which is approximately 118.2 million tons. The region’s total beef feed production, which was 66.7 million tons in 2021, increased by 0.6% to 67.3 million tons in 2022. According to the Alltech report, the region is in its fourth straight year of declining herd population caused by drought and economic issues, but it has not affected feed production. Experts anticipate 2023 to be the tipping point, with a predicted decline of 2-3%. Additional economic pressure will be put on the American producer; the American dollar is expected to remain strong and exports are likely to decrease.
Pig feeds rank second in North America’s feed production. The pig feed production of North America, which was 63.6 million tons in 2021, decreased by 0.97% in 2022 to 62.9 million tons. According to the Alltech report, in North America, the pig feed production decreased by nearly 1% because of a reduction in pork supply, aggressive outbreaks of porcine reproductive and respiratory syndrome (PRRS), high feed and trucking costs, disruptions in trade due to shipping costs, labor shortages and input cost volatility aggravated by the invasion of Ukraine.
Broiler feeds rank third in feed production in North America. The region’s broiler feed production, which was 58.2 million tons in 2021, increased by 3.3% in 2022 to 60.1 million tons. Broiler exports were flat in 2022 but broiler production is growing slowly each year and will most likely continue at this pace, according to the Alltech report.
In the region, another important item on the basis of species is dairy feeds. The dairy feed production of the region, which was 28.7 million tons in 2021, decreased by 0.7% in 2022 to 28.5 million tons. A reduction in dairy cows slowed feed production in the U.S., where high building costs and feed costs have limited expansion, according to the Alltech report.
The total layer feed production in North America, which was 15.1 million tons in 2021, increased by 2.7% in 2022 to 15.5 million tons. According to the Alltech report, 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.
North America, which is the world’s second largest pet food producer after Europe, alone produces about 31.8% of the world’s pet food production of 35.3 million tons. The pet food production of the region, which was 10.6 million tons in 2021, increased by 5.6% in 2022 to 11.2 million tons.
North America is the world’s largest producer of equine feed. The region alone produces 46.6% of the world’s equine feed production. The region’s equine feed production, which was 3.7 million tons in 2021, increased by 0.5% in 2022 to 3.8 million tons.
In the region, aqua feed tonnage was up 2% (0.02 MMT) due to increases in fish prices, favourable weather conditions and the lifting of size restrictions, according to Alltech’s report.
COMMERCIAL VALUE OF THE MARKET AND EXPECTATIONS
There are different estimates about the size of the market and growth prospects. For example; BlueWeave Consulting, one of the leading strategic consulting and market research firms, in its recent study, estimated North America compound feed market size at USD 168.29 billion in 2022. During the forecast period between 2023 and 2029, North America compound feed market size is to grow at a robust CAGR of 5.88% reaching a value of USD 237.15 billion by 2029.
The report by Market Data Forecast states that the market was worth USD 119.77 billion in 2021 and estimated to be growing at a CAGR of 1.30%, to reach USD 127.76 billion by 2026.
Research And Markets, one of the leading research companies, estimates the market value of the North American animal feed market at USD 74.862 billion in 2020 in its report. The research company forecasts that the market will reach USD 93.534 billion in 2027 with a 3.23% CAGR.
MARKET DRIVERS & RESTRICTIONS
Consumer demands are the main trend-setting factor in North America, as in many other regions. According to the report of Mordor Intelligence, especially growing demand for animal-based products is driving the market. The research company report includes the following information: The demand for higher-value and quality foods, such as meat, eggs, and milk is increasing in the region. The increase in demand for these products and other non-food items, has led to the growth in the usage of feed additives, thereby, boosting the compound feed in the growth of the animal feed market. In Canada, the commercial chicken and turkey meat production totalled 1.43 billion kilograms in 2018. The demand for poultry and egg products is growing. Over the last five years, food availability increased annually on average by 2.3% for chicken, 1.4% for turkey, and 2.5% for eggs.
According to the report of BlueWeave Consulting, growing emphasis on sustainable and organic feed components, fuelled by customer demand for ecologically friendly and healthier goods, is a major factor behind the expansion of the North America compound feed market. To improve efficiency and quality, there was a noticeable increase in the use of technology in feed production and management. Also, the market witnessed a rise in the amount of money spent on R&D to create novel feed formulations that enhance animal performance and health. To fulfil the changing needs of the agricultural and animal industries, the North America compound feed market is generally observing a shift towards more sustainable, technologically sophisticated, and nutritionally optimized products.
Some of the major players:
ADM Animal Nutrition
Alltech
Cal-Maine Foods
Cargill Inc
Hueber Feed
ForFarmers B.V
Hillandale Farms
Hi-Pro Feeds
J.D. Heiskell & CO
Kent Nutrition Group
Koch Foods
Land o’ lakes, Inc
Mountaire Farms
Nutreco
OSI Group
Peco Foods
Perdue Farms
Prestage Farms
Purina Animal Nutrition
Rose Acre Farms
Sanderson Farms
Smithfield Foods
Tyson Foods
Versova Holdings
Wayne-Sanderson Farms
Pointing out in its report that the market is developing at a significant rate due to the increase in the livestock population, Market Data Forecast, like many other research companies, remarks that consumer demands are the driving force of the market. However, the report also mentions that increasing costs of raw materials and operations are the major restraining factors for this market.
NORTH AMERICA FEED INDUSTRY
North America is one of the largest regions in the world in terms of the presence of feed mills. According to 2022 data, 6,300 of the 28,156 feed mills in the world are located in this region. This number was announced as 6.280 for the previous year. In other words, between 2021 and 2022, it is seen that 20 new factories started operating.
However, as consolidation continues, the number of feed mills continues to decrease and output by large feed mills continues to rise, according to the Alltech’s report.
On the other hand, North American compound feed market is highly competitive with the presence of many local and international players who are operating in this region. According to the report of Mordor Intelligence, some of the players have been expanding their geographical presence by acquiring or merging with the manufacturers in the foreign market. The leading companies focuses on the expansion of the business across regions and setting up a new plant for increasing production capacity as well as a product line. The companies are also increasing production capacities of their existing plants.
References:
1. 2023 Alltech Agri-Food Outlook, https://www.alltech.com/agri-food-outlook
2. Mordor Intelligence, North America Compound Feed Market Size & Share Analysis – Growth Trends & Forecasts (2023 – 2028), https://www.mordorintelligence.com/industry-reports/north-american-compound-feed-market-industry
3. Blueweave Consulting, North America Compound Feed Market, By Ingredient ; By Livestock ; By Form ; By Source ; By Country, Competitive Landscape & Forecast, 2019-2029; August 11, 2023; https://www.blueweaveconsulting.com/report/north-america-compound-feed-market
4. Market Data Forecast; North America Compound Feed Market Research Report – Industry Analysis, COVID Impact, Size, Share, Growth, Trends, And Forecasts | 2022 to 2027; March, 2023; https://www.marketdataforecast.com/market-reports/north-america-compound-feed-market
5. Research And Markets, North America Animal Feed Market – Forecasts from 2022 to 2027; May 2022; https://www.researchandmarkets.com/reports/5602445/north-america-animal-feed-market-forecasts
6. The American Feed Industry Association (AFIA), Feed Industry Statistics, https://www.afia.org/feedfacts/feed-industry-stats/
7. The Animal Nutrition Association of Canada (ANAC), Canadian Livestock Feed Consumption, 2021 Estimates, https://www.anacan.org/feed-industry/public-resources/canadian-livestock-feed-consumption/
