Market Trends of Europe Compound Feed Industry
Poultry Meat is the Significant Segment by Animal Type
Meat products are proliferating due to the increasing health concern driving commercial livestock production. According to the Food and Agriculture Organisation((FAO), Spain's poultry consumption has increased at an average annual rate of 6% over the last ten years, with an acceleration of 8% in the last three years. Spain produced 1,561,250 metric tons of poultry meat in 2022, up by 1.5% from the previous year. Spain has slowly increased its production of organic chicken and slow-growth chicken, which is anticipated to drive the compound feed market in this country. In response to the growing popularity of ready-to-eat and ready-to-cook chicken over raw chicken meat, the industry has restructured to focus on producing value-added chicken products.
Likewise, according to the Organization for Economic Co-operation and Development (OECD), poultry ranks as the top meat choice in Russia, with pork trailing closely behind. In 2020, Russia's consumption of poultry meat stood at 4,491.3 thousand metric tons, which increased to 4,568.3 thousand metric tons by 2023, as per the Organization for Economic Co-operation and Development (OECD). The surge in poultry meat consumption can be attributed to advertising and promotions positioning British poultry as a convenient and healthy midweek supper. This trend is likely to further boost the animal feed industry.
Besides, Italy is one of the largest poultry feed markets and is one of the most important poultry meat consumer in the Europe. The per capita consumption of poultry meat in Italy has increased rapidly, as it is actively considered an important source of nutrition/protein by consumers, thus, resulting in increased production of poultry meat products. According to the EU Commission, per capita consumption of poultry meat in Italy was 20.3 kg in 2019, which increase by 20.8 kg in 2022. According to the Alltech Feed Survey, the country’s total production of feed was valued at 14.6 million metric tons in 2021, with poultry accounting for approximately 12.1% of the total feed production. As a result, the booming poultry feed production along with the increasing inclining toward high-quality poultry meat products are likely to give a boost to the compound feed market in Italy during the forecast period.
Spain Dominates the Market
The rising commercial production of livestock has led to an increase in the export market, as there is a growing demand for animal products such as meat, milk, and eggs in other countries. According to the International Trade Center (ITC) Trade, in 2023, the export market value for meat in Spain reached USD 2,098,448 thousand, primarily due to heightened demand from the Netherlands, Poland, Germany, and France.
Spain is one of the world's fourth-largest pork producers known for its high-quality ham and other cured meat products. According to FAOSTAT, in 2020, pork production in Spain was 5.0 million metric tons which increased to 5.1 million metric tons in 2022. Other popular meat exports from Spain include beef, poultry, and lamb. The Spanish meat industry, and in particular, the pig production industry, has made significant strides in modernizing and automating production processes. This has led to increased efficiency, productivity, and cost-effectiveness, making the industry one of the most advanced in Europe. This calls for a heightened demand for Spanish meat in Europe and worldwide.
Besides, the feed industry in Spain employs 11,700 people across over 800 feed businesses. The country's expanding compound feed business has pushed global giants to bolster their presence in the Spanish market. Furthermore, the market has been pushed by technical advancements in the animal feed business. Many feed mills in Spain are small or medium-sized, with a diverse range of livestock activities spread around the country. Two-thirds of the members produce feed and cattle for export with outstanding quality feed. Moreover, Spain is a significant exporter, particularly to Asian countries, such as China, Korea, and the Philippines.
