North America Animal Feed Market - Forecasts from 2024 to 2029

The North America animal feed market is expected to grow at a CAGR of 3.98% from US$78.636 billion in 2022 to US$103.315 billion in 2029.

For cattle, animal feed is a vital source of nutrition. Essential nutrients are required for animal growth and survival, just as they are for humans. The market value of animal feed has risen in tandem with increased meat, dairy, and poultry consumption. Depending on the animal, different feed doses are given. Protein-based meals, hay plants, mixed plant feeds, husk, pasture grasses, sugar beet pulp, and a variety of additional animal feeds are available on the market. Animal feed makers adhere to strict food safety regulations. The animal feed market in North America is divided into five categories: type, livestock, raw materials, manufacturing systems, and country.

Market Drivers

Increased demand for meat products are driving the North American animal feed market growth.

The United States boasts the world's largest fed-cattle sector and is the world's greatest beef producer, particularly high-quality, grain-fed beef for domestic and international consumption. Milk is produced in all 50 states, with the West and North producing the most. Producer cooperatives are common among dairy farms, which are primarily family-owned and operated. The poultry industry in the United States is the world's largest producer and exporter of poultry meat, as well as a major egg producer. Beef is a key staple in Canadian diets, as per the Dalhousie survey 65% of Canadians consider themselves regular beef eaters, meaning they consume beef at least once a week. Alberta has the highest proportion of beef eaters, at 73%.

Booming dairy products consumption has propelled the market growth.

In the region, demand for higher-value and higher-quality items such as eggs, and milk is increasing which has resulted in an increase in the use of feed additives, which has boosted compound feed in the animal feed market. As per USDA, livestock and poultry account for more than half of all agricultural cash receipts in the United States, with annual revenues frequently reaching $100 billion. Mexican processors are gradually increasing their exports of these goods. In addition, the country continues to be the world's largest consumer of eggs and egg products, and demand for eggs and egg products is expected to rise as consumers react to rising meat prices. Due to the increasing demand for inexpensive protein, egg consumption is expected to reach 25.23 kg per capita in 2022, up 3% from 2021. Due to continuous growth in domestic demand, improved layer hen genetics, and investments in egg production technology and management methods, egg output is predicted to increase to 3.19 million mt, up 3% from 2021. These factors are expected to fuel the market expansion of animal feed in the region during the forecast period.

The United States is expected to hold a significant share in the North American animal feed market

According to a USDA GAINS report, the chicken output in Mexico is expected to increase due to increased domestic demand, more substantial local pricing power as long-standing tariff-rate-quota allocations lapse, and somewhat less unpredictable feed prices of 875,000 mt in 2022, up 1.7 percent from 2021. On increasing US demand for heat-treated ready-to-eat and ready-to-cook products, chicken exports are predicted to increase by approximately 17% to 8,000 mt in 2022. In addition, the domestic animal feed manufacturing industry is heavily reliant on the adoption of the North American Free Trade Agreement (NAFTA), which allows for the export of feed ingredients, feed, and pet food. The market for animal feed is being driven by this trade agreement and the growing livestock industry.

Key Developments

• In March 2023: Danisco Animal Nutrition & Health launched “Axtra® PRIME” in US to improve the overall digestion and gut health of piglets. The feed solution specifically targets challenges faced by piglets in their nutrition intake during their early age.

Segmentation:

By Type

• Fodder
• Forage
• Compound Feed

By Livestock

• Swine
• Aquatic Animals
• Cattle
• Poultry
• Others

By Raw Materials

• Soya
• Corn
• Rendered Meal
• Others

By Production Systems

• Integrated
• Commercial mills

By Country

• USA
• Canada
• Mexico
• Others