Saudi Arabia Feed Additives Market - Forecasts from 2022 to 2027

Saudi Arabia Feed Additives Market - Forecasts from 2022 to 2027

The Saudi Arabia feed additives market is expected to grow at a compound annual growth rate of 7.83% over the anticipated period to reach a market size of US$203.290 million in 2027 from US$119.949 million in 2020.

Saudi Arabia is one of the major feed additives markets in the entire Middle East region owing to the highest consumption of raw and processed meat. Growing demand for high-quality meat products in the country coupled with increased consumer spending has driven the overall market growth across the country. Moreover, initiatives taken by the Saudi Government to phase out the cultivation of water-intensive crop and livestock feeds has further boosted the market growth. For instance, the Saudi government provided around USD$1.5 billion in feed subsidies (source: USDA).

Increased demand for meat is expected to drive the market's growth over the forecast period.

One of the prime reasons supporting the growth of the market is the growing demand for meat products across the country. A shift in the dietary consumption patterns among consumers from a carbohydrate-based to a protein-based diet is increasing the demand for meat. The shifting of consumption patterns is primarily attributable to the growing urbanization, adoption of a busy lifestyle, the increasing popularity of big modern retail formats, and the presence of multinational food companies in the region, further increasing the popularity of convenience foods. The surge in per-capita income is further adding to the growing demand for imported animal food. Additionally, with a high expatriate population in the country, the demand for food has further increased resulting in increased consumption. Red meat is high in demand among these ex-pats. This rising demand for meat in Saudi Arabia is significantly contributing to the growth of the Saudi Arabian feed additives market. For instance, according to USDA estimates, the local chicken meat production in Saudi Arabia was 730,000 MT in 2019 which has increased to 750,000 MT in 2020. Chicken meat production is forecasted to rise as the Kingdom pursues a goal of 80% self-sufficiency by 2025. The rise in tourism, changing consumer trends, and growing preference for red meat is forecasted to drive the demand for meat which in turn will positively impact the growth of the Feed additives market in the country.

The players in the Saudi Arabia feed additives market are implementing various growth strategies to gain a competitive advantage over their competitors in this market.

Cargill Inc. operates in more than 40 countries and helps livestock and aquaculture farmers; feed manufacturers and distributors of all sizes deliver better animal nutrition through unparalleled research capabilities. The company has employed around 155,000 employees working every day to nourish the world in a safe, responsible, and sustainable way.

BASF SE has been investing in its business segments since 1976 and is involved in nearly all industries including agriculture, food, home & personal care, automotive, paints and coatings, and chemicals. The company is a global supplier of innovative feed additives for livestock, aquaculture, and companion animals. BASF products contribute to the overall fitness of dogs and pets and provide various range of products and solutions for their overall wellbeing.

COVID-19 Insights

The COVID-19 pandemic constrained the market potential for expansion. The robust outbreak of the virus and its exponential spread resulted in the implementation of a nationwide lockdown. Trade constraints resulted in supply chain constraints in the feed additives market, which hampered the market growth. Furthermore, demand for meat and pork was also shaken by the pandemic, owing to healthcare concerns and cautiousness, which contracted the growth of the feed additives market in the Kingdom.Segmentation

By Product Type

Antibiotics
Vitamins
Minerals
Amino Acids
Others
By Livestock
Poultry
Cattle
Others

By Form

Liquid
Dry