Global Animal Feed Market Expected to Reach $1 Trillion by 2031: Key Growth Factors, Trends, and Innovations
The global animal feed market is witnessing an impressive growth trajectory, with projections indicating it will exceed $1 trillion by 2031. According to the latest report from Meticulous Research®, the market is expected to reach $1,008.8 billion by 2031, growing at a CAGR of 4.7% from 2024 to 2031. By volume, the market is set to achieve 2,965 million tons, with a CAGR of 3.1% during this period.
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This anticipated growth is underpinned by significant factors such as increased commercialization within the livestock industry, rising demand for high-quality animal-based products, and growing investments in R&D to enhance animal nutrition. While fluctuations in raw material costs present challenges, the overall market outlook is positive, as heightened awareness around animal health continues to drive demand for advanced feed products.
In this blog, we explore the key factors shaping this dynamic market, from evolving consumer preferences to innovations in feed sources, highlighting why the animal feed industry is poised for sustained growth over the next decade.
The Importance of Animal Feed Market Growth
1. Increasing Commercialization of Livestock Farming
Commercial livestock farming has become a cornerstone of the agricultural sector. As urban populations grow and demand for protein-rich foods rises, farmers and producers are turning to advanced feed solutions to ensure livestock meet stringent nutritional requirements. The shift towards larger, more commercialized farming operations is helping drive the animal feed market forward, particularly as consumers demand high-quality meat, dairy, and poultry products.
2. Rising Demand for Animal-Based Products
Consumer preferences are evolving rapidly, with a steady increase in demand for animal-based products across the globe. This demand, driven by a growing middle class and increased focus on protein-rich diets, has led to a corresponding rise in the need for high-quality animal feed. As a result, feed manufacturers are investing heavily in nutritional research to develop feeds that optimize animal health and productivity.
3. Focus on Research & Development
R&D has become a critical component of the animal feed industry, with companies investing in new formulations to address health and sustainability concerns. The focus on R&D is not only enhancing the quality of feed but also contributing to the creation of feeds tailored to specific animals and conditions. With advancements in feed formulations, livestock producers can now access feed products that offer balanced nutrition and promote optimal animal growth and well-being.
Market Segmentation: Exploring Key Categories
The global animal feed market is segmented by type, source, form, animal type, and geography. Here’s a look at each segment and its projected growth trajectory:
By Type: Compound Feed Holds the Largest Market Share
Within the animal feed market, compound feed is expected to dominate with a projected 71.8% market share by 2024. Compound feeds are designed to offer balanced nutrition and are popular among commercial livestock farmers and pet owners. This demand is primarily driven by the growing prevalence of animal diseases, the expansion of the livestock industry, and the high demand for premium meat and dairy products.
Interestingly, while compound feed remains dominant, the feed concentrates segment is projected to grow the fastest, with a CAGR of 5.4% over the forecast period. Feed concentrates are nutrient-dense, making them increasingly popular as farmers seek more efficient feeding options to support livestock health.
By Source: Plant-Based Feed Leads, but Novel Sources Gain Traction
Plant-based feed continues to hold the largest share of the market, capturing 69.9% in 2024. This segment benefits from the cost-effectiveness of plant-based ingredients and their wide acceptance across regions. Plant-based feed also offers environmental benefits, making it a popular choice for producers and consumers focused on sustainability.
However, the "novel sources" segment—comprising new protein sources like insect-based and algae-based feeds—is emerging rapidly, expected to grow at a CAGR of 6.0%. Novel sources offer high nutritional value, and governments globally are approving these innovative solutions, recognizing their potential to meet rising protein demands sustainably.
By Form: Dry Feed as the Preferred Option
In terms of feed form, dry feed holds a significant lead, accounting for 92.7% of the market in 2024. This dominance is due to several practical advantages, including longer shelf life, easy handling, and stability of nutrients. Additionally, dry feed’s lower cost and nutrient density make it a preferred option for both small and large livestock operations. The segment is expected to grow at a CAGR of 4.8% through 2031, with poultry farming playing a pivotal role in this growth.
By Animal Type: Poultry Segment Leads the Pack
Among animal types, the poultry segment is expected to secure 32.9% of the market share in 2024. Poultry products are among the most consumed animal-based products globally, driven by consumer preferences for leaner meats and affordable prices. The growth in poultry consumption, along with rising investments in poultry operations, has solidified the poultry segment’s dominance within the animal feed market.
Regional Outlook: Asia-Pacific as a Key Player
Geographically, the Asia-Pacific region is anticipated to account for the largest share of the animal feed market by 2024, capturing 39.2% of the total market. Factors driving this growth include increased meat consumption by a growing population, high milk production, the expansion of livestock farming, and the presence of major feed producers in the region. Valued at approximately $286.2 billion, Asia-Pacific’s prominence in the animal feed market reflects the region’s significant demand for animal products and the continued industrialization of livestock farming.
Key Industry Players Driving Market Innovation
Several leading companies are actively shaping the future of the animal feed industry. These include:
- Charoen Pokphand Foods PCL (Thailand)
- New Hope Liuhe Co., Ltd. (China)
- Cargill, Incorporated (U.S.)
- Tyson Foods, Inc. (U.S.)
- Nutreco N.V. (Netherlands)
Each of these key players brings unique strengths, from advanced feed formulations to strategic investments in R&D. Their efforts in addressing challenges, such as rising raw material costs, while exploring new feed ingredients and formulations, are essential for the sustainable growth of the global animal feed market.
About Meticulous Research®
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