Japan Animal Feed Market - Forecasts from 2023 to 2028

The Japan animal feed market is projected to witness a compound annual growth rate of 2.15% to grow to US$12,868.450 million by 2028, from US$11,090.446 million in 2021.

Several variables interact to shape the dynamics of the animal feed industry in Japan. The market for animal products, shifting consumer tastes, legal issues, economic situations, technical developments, environmental concerns, and disease outbreaks are some of the major forces at play. The market is also shaped by population changes, the effects of climate change and natural catastrophes, international trade agreements, and trade policies. Moreover, feed compositions and manufacturing methods are influenced by current research and development initiatives, health and nutrition trends, and other factors. Together, these variables affect the industry's sustainability, demand, and composition in Japan, reflecting changes in the nation's food production and consumption patterns.

According to FAS/Tokyo, with higher output in 2021 and 2022, cattle stockpiles will rise to 3.995 million metric tonnes (MT) by the end of 2023. FAS/Tokyo predicts that the output of beef in 2023 will be 490,000 MT, unchanged from 2022. The demand for food services is gradually rebounding from the demand shocks caused by COVID-19, nonetheless, some consumers are switching from beef to pork due to increased retail costs for imported beef. As per the same source, Japan will produce 1.305 million MT of pork by the end of 2023, while imports will stay the same at 1.485 million MT.

Rising consumption of meat and other animal-based products

The growth of the animal feed market in Japan has been fueled by the rising consumption of meat and other animal products. The Japanese livestock sector has grown to satisfy the growing consumer demand for meat, poultry, dairy, and associated goods. The need for animal feed has increased as a result of the increase in livestock output to maintain the animals' health, growth, and quality of product. To meet this demand, the Japanese animal feed industry developed customized feed formulas, incorporated cutting-edge technology, and addressed changing health and welfare regulations. All of these actions have helped the country's animal feed market to expand and remain sustainable.

As per the FAS, pork consumption is predicted to be almost stable in 2021 at 2.725 million MT, a small increase from 2020. A reduction in the total consumption for 2020 to 2.724 million is made because of the pandemic's weak demand for food services. Early in 2021, these patterns are anticipated to continue. Approximately half of Japan's pork supply is normally consumed at home, compared to just 40% for beef, according to industry sources. The Ministry of International Affairs and Communications (MIAC) survey data indicates that, in 2020, household consumption of pork (including gammon and sausage) increased by 8% from 2019 to 11 kg per person. Furthermore, as per GAIN, in 2020, 33 percent of household consumption was made up of beef, up three percent from the year before. Pork comprised 54% of household consumption in 2020, representing a 4% rise from the year before. In addition, 44 percent came from chicken, up four percent from 2019.

The poultry segment in Japan is anticipated to grow steadily. 

The market is set to expand at a CAGR of XX%. Feed forms an integral part of poultry diets as it helps in the development of their bones, and eggs, improves overall digestion, and also enhances the egg-laying capacity. The booming demand for protein-rich meals in Japan has bolstered chicken consumption in the country which is projected to drive the market demand and consumption of feed products to improve poultry health and end-products. According to the USDA’s “Poultry and Products Annual” report, in January 2023, chicken meat consumption in Japan stood at 2,879  thousand metric tons which represented a 0.1% increase over January 2022 consumption scale. The moderate growth is attributable to the reported HPAI cases in Japan in the winter season (From October 2022 to May 2023) which led to the culling of 18 million birds in Japan of which 93% were egg layers. However, the necessary steps taken by the government to limit the HPAI spread are expected to positively impact the poultry sector in Japan. According to the Agriculture and Livestock Industries Corporation, in the first half of 2023, chicken production witnessed 0.2% growth in comparison to the first half of 2022

Moreover, the growing disposable income and improvement in lifestyle are further expected to upsurge the chicken meat demand especially broiler in the coming years thereby, augmenting the overall poultry feed in Japan. According to the data provided by the Ministry of Agriculture, Forestry, and Fisheries, as of February 2023, the broiler chicken population in Japan witnessed a 2% year-on-year growth.

Market Key Developments

• In March 2023, to help SAS Ÿnsect, the world leader in the production of insect protein and natural insect fertilizers, (headquartered in France), enter the Japanese market, Marubeni Corporation and Ÿnsect signed a letter of intent to collaborate. To secure high-quality protein sources including cereals, cattle products, and marine goods all basic meals in Japan Marubeni is involved in a variety of trade and economic ventures, including the manufacture of aquaculture feed.
• In August 2020, BASF introduced Natuphos® E, the next generation of phytase, to the Japanese feed market. Natuphos® E, made in Germany by BASF, offers exceptional overall stability for up to ninety-eight months of shelf life, both in premix and throughout the rigorous pelleting process, up to 95°C.

Segmentation:

By Type

• Compound Feed
• Fodder & Forage

By Livestock

• Pork
• Aquatic Animals
• Cattle
• Poultry
• Others

By Raw Materials

• Corn
• Soy
• Rendered Meal
• Others