Poultry is considered as one of the most economical sources of protein owing to which poultry products such as egg and meat are consistently witnessing growth in demand. According to the United States Department of Agriculture (USDA), the global production of chicken meat, with a growth of 2%, is likely to reach 97.8 million tons in 2019. The global poultry feed additives market is expected to reach $7,829.9 million by 2018 growing at a CAGR of 7.1% from year 2019 to 2028.
Top Driver: Robust Importance of Clean Labels Impacting Poultry Feed Market Growth
Food safety concerns and clean labelling are closely associated topics that are gaining importance worldwide. Rising demand for clean labelling in a bid to mitigate consumer mistrust owing to the increasing scandals related to poultry production, which has been observed since the past few years. In addition, ban on antibiotics in poultry feed has made it imperative for producers to use clean labels. Increasing consumer inclination towards clean labelling on the back of growing demand for GMO-free and organic poultry products is likely to impact the poultry feed space.
Rise in global population is a key factor, which is expected to boost the poultry feed market growth of the global poultry feed market. This is attributed to the fact that poultry meat demand, and subsequently meat production capacity and supply, has increased to meet the needs of the growing population. In addition, the consumption of poultry-based products has increased at a significant rate across the globe, owing to their low cost and shift of consumer preference toward white meat instead of red meat. Moreover, rise in awareness about protein intake in daily diet serves as a crucial factor for increase in global per capita meat consumption. Furthermore, strong economic growth in Asia-Pacific and MEA countries has boosted meat production and consumption in these regions, which is considerably driving the poultry feed industry growth.
Broilers to Make Crucial Contribution to Growth of Global Chicken feed Market
According to FMI, the broilers segment constitutes more than half of the overall market and will remain dominant through the forecast period. Feed intake pattern varies from one livestock to another. For instance, meat-type chickens or ‘broilers’ are often considered the most efficient terrestrial animals. They exhibit higher feed conversion ratio (FCR) therefore needing more protein and energy than layers. There are several companies supplying commercial feed suitable for broilers. Many of them have launched poultry nutrition products, particularly aimed at improving nutrient digestibility and feed conversion ratio in birds. Innovations in poultry feed witnessed in the last few years are helping the market transform and grow.
Amino acid segment emerged as the largest segment in terms of both volume and revenue in 2018 and is estimated to witness a remarkable growth rate over the coming years. The amino acid is considered as one of the most important sources of protein and, therefore, highly required in poultry nutrition. Due to high protein content, amino acid helps reduce the inclusion level of soybean meal in a monogastric animal’s diet.
Vitamins are a group of organic compounds required in small quantities for feed. Vitamins are used to regulate normal body functions, reproduction, and growth, which makes them an important additive. They can be broadly categorized into two different groups, namely water-soluble and fat-soluble vitamins. Ethoxyquin is one of the majorly used synthetic antioxidants. It is also one of the economic antioxidants and has high preservative capabilities owing to which it is used in canned pet foods. However, the demand for such antioxidant has decreased in the recent past owing to negative consumer perceptions and side effects regarding synthetic antioxidants. Broilers to Continue Exhibiting Higher Consumption of Poultry Feed
Rising presence of a huge population and increasing disposable incomes to Benefit Asia-Pacific Market
Asia Pacific was the largest in 2018 with a market volume share of 34.8%. The presence of a huge population and increasing disposable incomes are likely to trigger the market growth at the fastest rate in Asia Pacific. Asia Pacific led by emerging economies such as China, India, and Malaysia has a competitive edge over other regions on account of the abundant availability of low-cost labor and agricultural land. The region is likely to advance at the fastest rate, in terms of both volume and revenue, over the forecast period owing to the huge population and increasing disposable incomes of consumers.
In the U.S., nearly thirty-five companies (federally inspected) are engaged in raising and processing of chicken. These companies are vertically integrated throughout the poultry value chain, which helps them ensure the quality of the product. The European poultry feed industry is driven by innovation and highly regulated.
Also, conventionally, the European market has been highly regulated in terms of human health and well-being as well as the environment. This results in regular changes in the guidelines for feed additives in terms of bans and restrictions. Increasing broiler production in Europe and consumers’ preference for poultry products owing to their economic prices in comparison to other substitutes are likely to develop the market across the region over the forecast period. Spain emerged as a major demand driver for the European market.
Players to Focus on Expanding Applications in Growth of Global Chicken feed Market
The poultry feed market report includes a dashboard view of the competition landscape providing detailed assessment on major companies involved in poultry feed production. The report has profiled key players including but not limited to Cargill Inc., For Farmers N.V., BASF SE and Associated British Foods Plc.
Cargill Inc.: has recently acquired a feed mill in Thailand that is a joint venture between Thai-Denmark Swine Breeding Co. Ltd and Sri Thai Foods and Beverages Co. Ltd. With this acquisition, the plant would produce poultry feed for Cargill’s customer base in Thailand. Moreover, this can be considered as a significant step toward CSR (Corporate Social Responsibility) initiated by Cargill Inc. as the large land footprint has resulted in increasing job opportunities for Thai people in poultry feed production.
Collaboration between poultry feed manufacturers and ERP suppliers to regulate poultry feed management is another prevailing trend in the market.
For instance,; on 12th July 2018, PoultryPlus – a ForFarmers N.V. Subsidiary – signed a collaboration with Poultry Plan. This collaboration is intended towards improving poultry feed productivity, particularly broiler stock, in turn facilitating enhanced profitability and reduced downtime.
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