Asia Pacific Compound Feed Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Asia-Pacific compound feed market is estimated to register a CAGR of 4.2% during the forecast period.

Key Highlights

• Asia-Pacific accounted for the most extensive market and is anticipated to remain the leading consumer of compound feed in the coming years. Increasing incomes, high meat consumption, and high meat production are responsible for the region's dominance. China, Vietnam, Malesia, India, and Indonesia are the major compound feed consumers in the region.
• China and India are this region's leading markets, contributing a major part to the growing demand. China is one of the largest compound feed manufacturers in the world, accounting for half of the production in this region.
• The growing concern for the well-being of animals and government initiatives drive the Asian compound feed market. Despite this, the easy availability of raw materials, and quality control, fluctuating prices are major constraints to the compound feed market.

Asia Pacific Compound Feed Market Trends

Surge in Meat Production and Huge Demand for Meat Protein

• In Asia, the livestock industry is an essential part of agricultural development that has grown remarkably in the last few decades. Large-scale livestock production helps meet the surging demand for livestock products. In addition, farm animals, like poultry, swine, cattle, etc., play an essential economic and social role in Asian countries.
• With rapid economic growth, the demand for meat protein rose significantly in Asia, especially in India, Malaysia, China, and Thailand. The growing demand for meat protein increased meat production and consumption in the region, where the uptake of compound feed increased considerably and is anticipated to increase further during the forecasted period.
• According to the Food and Agriculture Organization (FAO), in 2021, total animal meat production increased from 145.4 million metric tons in 2018 to 152 million metric tons in 2019 to meet the increasing demand for meat consumption in countries such as India, China, and the Philippines. Therefore, the surge in meat production and demand will help increase the demand for compound feed in the region during the forecasted period.

China dominates the market

• China is one of the largest producers of compound feed globally due to the country's high demand for meat consumption and the high animal population. The presence of large-scale poultry farms in the country, the increase in the animal population, the demand for affordable animal protein, and the continued focus of poultry producers on increasing productivity through a higher feed conversion ratio (FCR) by increasing the use of compound feed are the factors that are expected to increase the demand for feed production.
• In China, consumption of poultry meat increased to 22,913 thousand metric tons in 2021 and is projected to increase to 23,311 thousand metric tons in 2028. This may lead to the growth of poultry in the country. According to Food and Agriculture Organization (FAO), poultry meat production increased to 24.6 million metric tons in 2021 from 20.6 million metric tons in 2018.
• The lingering effects of the US-China trade war could offset the plummeting trend of commercial feed prices in the country, mainly owing to the shortage in the supply of feed raw materials. Additionally, increasing the demand for meat-based products will help increase the demand for compound feed in the country.

Asia Pacific Compound Feed Industry Overview

Asia Pacific compound feed market is fragmented, with major companies holding a small part of the market share. Cargill Inc., Charoen Pokphand Foods, Archer Daniels Midland Company, Nutreco, and Alltech Inc., are some of the major players in this region. Major companies concentrated on the acquisitions of small feed mills and increasing production capacity. Some companies increased their geographic presence by expanding their sales to other regions.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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