Poultry Feed Market Report

The rise in poultry meat consumption is especially evident in East and Southeast Asia and Latin America, particularly in China and Brazil. Over the last decade, developing countries have consumed a larger percentage of the world's poultry meat. As per the Agriculture outlook, the poultry feed market is driven by the projected 16% rise in global poultry consumption by 2033, with 79% of this growth stemming from middle-income countries due to increasing population and income. This significant demand, influenced by a shift toward poultry meat consumption, especially in regions like China, India, Vietnam, the United States, and Brazil, underscores the crucial need for enhanced poultry feed solutions to support the expanding poultry industry. The National Chicken Council (NCC) issued its annual Chicken Wing Report on February 1, 2023, estimating that Americans to consume a record-breaking 1.45 billion chicken wings over Super Bowl LVII weekend. This figure represents a 2% rise over last year's report, which equates to 84 million extra wings.

The development of supermarkets and shopping malls supports the retailing of chilled and frozen poultry products. Moreover, government measures maintain competitively priced product supply, which boosts poultry sector expansion. The need for affordable, high-quality chicken products is always expanding as the working population and incomes rise. Consumers are ready to spend more on healthy meat products as their health awareness increases, adding to the market's expansion. However, the amino acid segment in poultry feed dominated in both volume and revenue, driven by its high protein content and superior amino acid profile. Poultry farmers are increasingly adopting soybeans to enhance feed nutrition, as amino acids significantly reduce the need for soybean meal in monogastric diets.

Regional poultry feed markets have always been strictly regulated in terms of human health and well-being and also protection of the environment. As a result, the requirements for feed additives in terms of bans and restrictions are frequently changing. Increasing broiler production and consumers' preference for fish and meat due to their lower price compared to fowl food are estimated to limit the poultry feed market's growth to some extent over the forecast period. Less consumer awareness of the product may constrain market growth for poultry feed over the forecast period. Furthermore, the growing vegan population is limiting industry growth.

In addition, avian disease outbreaks, like bird flu, disrupt feed demand due to reduced poultry populations and the need for strict biosecurity measures. Additionally, the growing popularity of alternative proteins, such as plant-based and lab-grown options, shifts consumer preferences away from poultry, diminishing feed market demand. The industry also requires significant investments in advanced technology and R&D, which can be prohibitive for smaller companies. Furthermore, ensuring feed safety and quality, particularly in preventing grain contamination, demands rigorous and costly quality control measures.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. As the biggest supplier of forages and other types of seeds for crops that are used for ground cover, GROWMARK Inc. is looking for a way to expand its operations. In January 2023, it acquired Allied Seed LLC from Idaho's Nampa location. The company specializes in producing and distributing high-quality seeds for forage grasses, turf and various cover crops in addition to offering custom production of agricultural products and seed treatment services. This acquisition will help GROWMARK meet rising demand for sustainable agriculture solutions as more than 30 million acres of land are estimated to be under cover-crops by 2030 according to predictions made in America on this subject matter.

Moreover, in January of 2023, ADM purchased the 95-acre Montgomery City Science and Technology Farm in Missouri, which was formerly owned by Novus International. The farm, equipped with a standard animal nutrition lab, grazing pastures, and housing for various livestock, will drive ADM’s advancements in poultry feed and nutritional health. The facility boasts LEED certification, solar energy, and advanced wastewater management, aligning with ADM’s sustainability goals. Research will focus on young animal models to accelerate insights into nutritional effects on the gut microbiome.

Asia poultry feed market is the major poultry feed market. A large population and rising disposable incomes are expected to drive market expansion in Asia Pacific at the fastest rate. In terms of poultry numbers and production per bird, China and India's poultry sectors have grown rapidly during the last two decades. According to the USDA, poultry production in China is expected to remain stable in 2023 at 14.3 million metric tonnes. Increased production levels are connected with the development of intensive systems with high food conversion ratios. China's feed consumption is increasing due to the country's high demand for chicken meat. Also, the poultry industry is benefiting from government subsidies to aid in recovery and restocking. Furthermore, rising per capita income, the expansion of quick-service restaurants in India and increased demand for quality poultry products have all contributed considerably to expanding demand for poultry feed in India. That will most likely increase poultry feed revenues in the country in the future.