Market Trends of Europe Ruminant Feed Industry
Dairy Cattle Dominates the Market
European nations are among the world's leading consumers of meat and dairy products. In 2023, the average European consumed 10.2 kilograms of beef. In 2022, the European Union consumed about 6.4 million metric tons of beef and veal, ranking fourth globally. Additionally, Statistisches Bundesamt reported that Germany's per capita milk consumption increased from 24.7 kg in 2022 to 24.9 kg in 2023. This growing demand for meat and dairy has driven an increase in cattle farming across Europe. However, the same data shows a slight decline in the cattle population, from 10.99 million in 2022 to 10.94 million in 2023. The rising demand for milk and meat products, coupled with the decreasing cattle population, highlights the need for more efficient feed strategies to boost production, thereby supporting market growth.
By 2050, projections indicate a 70% increase in Europe's livestock numbers, all of which will require feeding. At the same time, the EU is placing greater emphasis on sustainability in agriculture, driven by consumer demand for environmentally responsible practices and stricter environmental regulations. This includes reducing the carbon footprint of animal farming, using sustainable feed ingredients, and minimizing feed waste. Consequently, many companies are innovating in the cattle feed sector, driving its growth. For example, the A LIFE project, LIFE ECOFFEED, is converting wet Spent Coffee Grounds (SCG) into livestock feed, traditionally made from imported soybeans, which have a significant environmental impact. Interestingly, cows consuming wet SCG, which contains caffeine, show a 20% reduction in methane emissions. Therefore, the increasing demand for cattle products and innovations in the cattle feed industry are expected to drive market growth during the forecast period.
Spain Dominates the Market
The ruminant feed market in the European Union is dominated by Spain, Germany, and France. Increased meat consumption in these countries drives the demand for ruminant feed. According to Spain's Ministry of Agriculture, Food and Environment, annual per capita beef consumption increased from 3.83 kg in 2022 to 3.89 kg in 2023. This rise in consumption necessitates higher production, which in turn supports the ruminant feed market.
Spain produced 37.5 million tons of feed in 2022, as per the Ministry of Agriculture, Fisheries and Food, Spain. Despite a 2.6% decline in the prodcuction from 2021, Spain maintained its position as the EU's leading feed manufacturer, a fact corroborated by industry publications. By species, pig feed accounted for 48.49% of total production, followed by cattle feed at 20.74%, highlighting the strength of the ruminant feed market.
Furthermore, the supportive initiatives by the animal nutrition producers aid the market growth. VEOS Group, an animal protein ingredients producer, in 2021 opened a new protein plant in Monzon, Spain, in partnership with Vall Companys. Such initiatives enhance production, supporting market growth in the forecast period. Consequently, the combination of high ruminant feed production, increasing meat consumption, and supportive initiatives drives market growth.
