Liquid Feed Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The liquid feed market is estimated to register a CAGR of 5.6% during the forecast period.
Among all the animal species, poultry was being hit the hardest in the first quarter of 2020, particularly yellow-feathered broilers, as a result of the closure of the live bird market in China and other countries, since the outbreak of the disease. Facing discouraging margins and weak demand, many small- and medium-scale poultry farms are culling chickens to reduce feed costs.
Asia-Pacific accounted for a significant share overall, thus dominating the global liquid feed supplement market in 2019. The demand for liquid feed is rising due to an increase in the production of meat and meat products globally. The shift in consumption patterns towards a more protein-based diet in developing countries is further driving the overall market for liquid feed supplements.
Some of the major factors driving the market include expanding industrial livestock production, increase in meat and seafood consumption, changing demographics and food habits in emerging markets, etc.
The global liquid feed supplement market is highly fragmented, with the presence of many international players and several small players resulting in intensified competition within the industry. Some of the most notable players in the market include Archer Daniels Midland Company (ADM), BASF SE, Bundaberg Molasses, Cargill Incorporated, Dallas Keith Ltd, Land O'lakes Inc., and Ridley Corporation, among others.
Key Market TrendsIncrease in the Production of Meat and Meat ProductsThe growing demand for high-grade meat and meat products from health-conscious consumers has spurred the production of meat, hence boosting the liquid feed supplement market globally. Owing to the advantages such as better digestibility in animals, simplified and flexible addition of additives, and the possibility of fermentation, the demand for liquid feed supplements is rising rapidly to aid the production of high-quality meat. According to the OECD-FAO, agricultural total production of meat reached 330.5 million metric tons in 2018. According to its latest projection, meat production would reach 373 million metric tons by 2030 on the basis of higher profitability, especially in the first years of the outlook period as meat prices rebound post-COVID-19. Furthermore, the Economic Research Services, US Department of Agriculture, reports that the total consumption of beef in United States has increased from 57 pounds per capita in 2017 to 58.4 pounds per capita in 2020 and is projected to further rise steadily over the coming years. With vitamins, minerals, and feed additives as part of the composition, a liquid feed supplement is an emerging economical source of balanced nutrition for livestock to cater to the growth of livestock production worldwide.
Asia-Pacific Dominates the Liquid Feed Supplement MarketAsia-Pacific dominates the global market for liquid feed, accounting for more than half the share in the overall market in 2019. The Asia-Pacific region is the leading compound feed producing and consuming region in the world, thereby inflicting a direct impact on the liquid feed market. The increased scale of industrial livestock production in the region has significantly contributed to an increase in liquid feed production capacities in major economies across the region.
The countries in the region are driving the liquid feed market owing to changing consumption patterns toward more protein-based products, including meat. China is one of the fastest-growing markets, with the country's Feed Industry Association emphasizing the maintenance of minimum protein levels in livestock feed. The other liquid feed supplement markets in the region, including Vietnam, which is the second-largest pork consumer, and India, which is the most potential market for liquid feed supplements, driven by an increasing trend in the intensive farming system, are contributing to the demand for liquid feed supplements in the entire Asia-Pacific belt.
Competitive LandscapeThe liquid feed market is highly fragmented, with the presence of many international players and several small players competing with the global giants. The major companies are Archer Daniels Midland Company (ADM), BASF SE, Bundaberg Molasses, Cargill Incorporated, Dallas Keith Ltd, GrainCorp Limited, Land O'lakes, Inc., Ridley Corporation, and others. Agreements with other companies, new product launches, and investments for expansion of manufacturing units globally have been the strategies mostly adopted by these players.
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