Top 5 Companies in the Global Compound Feed Market: Key Trends, Growth Prospects and Challenges
RELEASE DATE: Feb 2025 Author: Spherical Insights Request Free Sample
What is a Compound Feed?
The industry that creates and markets processed animal feed composed of a blend of different ingredients, including grains, oilseeds, vitamins, minerals, and additives, to promote the development, well-being, and productivity of farm animals, poultry, livestock, and aquaculture is known as the compound feed market. Compound feed, which is designed to give animals a balanced diet, is a blend of different raw materials, including grains, cereals, soybean meal, and other vital components like vitamins and minerals. The growing demand for meat, dairy products, and other animal-based meals is driving the compound feed market expansion. Compound feed helps meet the growing demand for animal protein and enables intensive livestock production.
Growth Prospects in the Compound Feed Market
1. Rising Global Demand for Animal Protein
Animal feed, food and beverage, cosmetics, and pharmaceuticals are few of the industries that use animal protein. Consumption of animal proteins, including dairy protein, has increased as a result of consumers looking for high-quality sources of animal protein to satisfy their daily nutritional demands. The growing use of animal protein in functional foods and beverages, medicinal items, and dietary supplements is driving animal protein. For instance, in January 2023, the collaboration between BASF and Cargill expanded to offer high-performance solutions to US animal protein producers.
2. Increasing Attention to Nutrition and Animal Health is Promoting Growth
Improving the health of farm animals is the primary objective for livestock farmers in both rich and developing countries since healthy animal’s help end hunger, provide food sustainably, and produce healthy humans. Many small farmers and animal owners in developing nations rely on animal products as a source of profits in addition to food.
Global Expansion of the Compound Feed Market
The Global Compound Feed Market size was valued at USD 513.7 billion in 2022 and is projected to USD 781.3 billion by 2032, exhibiting a CAGR of 4.2% during the forecast period 2022-2032. The top companies in the global compound feed market include Cargill, Inc., Archer Daniels Midland Company (ADM), Charoen Pokphand Foods PCL, New Hope Group, Nutreco N.V., Land O'Lakes, Inc., Alltech, De Heus Animal Nutrition, and ForFarmers N.V.
Challenges in the Compound Feed Market
1. Strict rules and regulations
Manufacturers must meet the regulations pertaining to the product's negative environmental effects as well as its safety and health for animals. Further, they must submit the necessary paperwork for clearance from the relevant regulatory agency, which raises the total cost of production. Manufacturers of complex feed encounter challenges as an effect of these parameters.
Trends in the Compound Feed Market
1. Growing Need for Healthy Feed and Increasing Animal Protein Use to Promote Growth
The growing popularity of high-protein diets is driving the demand for animal protein worldwide. The rising demand for animal proteins suggests that feed is expected to play a bigger part in the years to come. Further, feed is a crucial element in animal husbandry's sustainable growth. As a result, increasing the production of animal protein would also increase the production of feed to maintain animal production.
2. Digitalization and Smart Feed Manufacturing
Digital technology integration in feed production is transforming the sector. Manufacturers are lowering costs, increasing feed quality control, and improving operating efficiency with the use of automation, IoT (Internet of Things), and digital monitoring systems. Further, these technologies allow for real-time feed production tracking, which increases responsiveness and flexibility. For instance, in March 2021, Adifo and BASF launched a new digital product for the value chain of livestock production that incorporates sustainability analytics into Adifo's BESTMIX feed formulation software, which is driven by BASF's Opteinics project.
List of Key Companies in the Compound Feed Market
- New Hope Group
- Land O’Lakes
- Cargill, Inc.
- Alltech, Inc.
- Feed One Co.
- Tyson Foods, Inc
- Charoen Pokphand Foods
- Weston Milling Group
- ADM
- Nutreco N.V.
Top 5 Players in the Compound Feed Market
1. Cargill, Inc.
Headquarters: United States of America
Cargill Inc. (Cargill) is an agricultural enterprise. The business offers goods and services related to risk management, food, financial products, agriculture, and industry. In addition to cotton, the company markets, processes, and distributes grains, oilseeds, sugar, meat, and other food items. Moreover, the company produces pet food, animal feed, bio-industrial products, and natural components for the personal care sector. Cargill offers marketing services, risk management services, logistics and transportation services, data asset solutions, and technical assistance. The company also manufactures and sells fuel ethanol, biodiesel, and starch and starch sweeteners. It sells pet food and feed products under several brands, such as Purina, Diamond V, Cargill, EWOS, Provimi, and Nutrena.
2. Archer Daniels Midland
Headquarters: Chicago, Illinois, United States
Archer Daniels Midland Co. (ADM) manufactures, processes, ships, stores, and sells commodities, ingredients, and agricultural goods. The company manufactures products using oilseeds, corn, wheat, and other agricultural commodities, as well as ingredients for food and beverages. Natural flavors and colors, nutritional and health goods, vegetable oils, corn sweeteners, flour, animal feed, and biofuels are all part of ADM's product line. Using its global grain elevator and transportation network, the corporation stores, cleans, and delivers agricultural commodities like oilseeds, corn, wheat, milo, oats, barley, and other products made from these inputs.
3. Charoen Pokphand Foods
Headquarters: Bangkok, Thailand
The company Charoen Pokphand Foods Public Co Ltd (CPF) supplies food and agro-industrial goods. Animal feed production and distribution, fish and animal breeding (including swine, broiler, layer, duck, shrimp, and fish), meat processing, and the creation and marketing of processed food items are the company's main operations. The range of products offered by CPF includes processed meats, semi-cooked and cooked food items, live animals, and processed food items. The corporation operates in the following countries: Cambodia, the Philippines, Malaysia, Laos, Belgium, Sri Lanka, Poland, Vietnam, Taiwan, Thailand, the United States, India, Turkey, Russia, and the United Kingdom. CPF's main office is in Bangkok, Thailand.
4. New Hope Group
Headquarters: Brisbane, Australia
A private company, New Hope Group Co., Ltd. is primarily involved in the food and modern agricultural industries. Mr. Liu Yonghao, a well-known private entrepreneur, started it in 1982. New Hope Group, which has struggled with the reform wave, now possesses the world's second-largest feed production capacity, China's first, and China's first poultry processing capacity. The company is one of China's biggest integrated meat, egg, and milk suppliers.
5. Nutreco
Headquarters: Amersfoort, Netherlands
Nutreco N.V. was founded in 1994. A variety of nutritional products for fish and shrimp, as well as for poultry, pigs, ruminants, companion animals, and other livestock species, are manufactured and distributed globally by Nutreco N.V. Compound Feed & Meat Iberia, Fish Feed, and Animal Nutrition are the three business divisions of the corporation. The Fish Feed division manufactures and distributes feed for a variety of fish and shrimp species from hatching to harvest. Products from this area are marketed under the Skretting, Protec, Optiline Premium, and MicroBalance names. The Compound Feed & Meat Iberia segment mainly deals in the trading of ruminants, pigs, and poultry in addition to providing feed solutions, processing poultry products, and pig farming.
Conclusion
The growing demand for animal-based proteins as a result of population expansion and rising income levels is driving the compound feed market, which is essential to the worldwide food and agriculture industries. The market has significant growth potential, but it also confronts obstacles such as supply chain interruptions, regulatory compliance, and fluctuations in raw material prices. Technological developments and sustainability are major factors influencing the sector, with an increasing focus on environmentally friendly methods and substitute protein sources. Businesses in the industry must adjust through efficiency and innovation as consumer preferences change, guaranteeing high-quality, sustainable feed solutions to satisfy regulatory requirements and worldwide demand.
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