Market Trends of Feed Processing Machinery Industry
Poultry Feed is the Significant Segment by Feed Type
Recently, poultry has emerged as one of the fastest-growing segments within the agricultural sector. Over the past two decades, the poultry sector has undergone significant structural changes. These changes can be attributed to the introduction of modern intensive production methods, genetic enhancements, improved preventive disease controls, and stringent biosecurity measures. The surge in poultry meat consumption is particularly pronounced in East and Southeast Asia and Latin America, with China and Brazil leading the charge. Over the last decade, developing countries have increased their share of global poultry meat consumption. Projections indicate that due to rising incomes, diversifying diets, and expanding markets, poultry meat production and consumption in these countries will grow at an annual rate of 3.6%. According to the OECD Agricultural Outlook, global per capita poultry meat consumption rose from 28.1 kg in 2022 to 28.5 kg in 2023. However, as global meat consumption rises, the feed industry anticipates a burgeoning demand for higher-quality meat.
As the demand for livestock products grows, significant changes are occurring on the supply side, all aimed at enhancing poultry product yields. Capital-intensive technologies have enabled industrial-style poultry production facilities to sprout across regions like North America, Europe, and Asia-Pacific, especially in land-constrained countries. The anticipated growth in poultry meat and egg production is set to propel the global poultry market. For instance, data from FAOSTAT reveals that global poultry meat production jumped from 136.4 million metric tons in 2021 to 139.2 million metric tons in 2022.
Moreover, heightened investments in Europe to bolster poultry production are further propelling market growth. In 2021, MHP, a Ukrainian poultry producer, allocated a substantial USD 41 million towards poultry production in Serbia. Similarly, Cobb Venture, another poultry producer, expanded its hatchery facility in the UK in 2021, boosting its capacity to set 1.5 million eggs. Such ongoing expansions in poultry production underscore the rising demand for premium feed, fueling the market's growth.
Asia Pacific Dominates the Global Market
In Asia, the livestock industry is an essential part of agricultural development that has grown remarkably in the last few decades. Large-scale livestock production helps meet the surging demand for livestock products. In addition, farm animals, like poultry, swine, cattle, etc., play an essential economic and social role in Asian countries. With rapid economic growth, the demand for meat protein rose significantly in Asia, especially in India, Malaysia, China, and Thailand. The growing demand for meat protein triggered meat production and consumption in the region, where the uptake of high-quality feed increased considerably and is anticipated to show a further increase. High-quality feed use in China is growing due to the country's strong demand for chicken meat. The production of chicken meat increased from 92.5 million metric tons in 2021 to 94.7 million metric tons in 2022, according to the Food and Agriculture Organization (FAO).
Further, the Asia Pacific is leading the market with the presence of the highest number of feed manufacturers and machinery suppliers. China remains the top feed producer and user of feed processing machinery due to an increase in economic growth and rapid urbanization. The major drivers for the market are increasing the concentration of domestic feed processing machinery companies, the establishment of feed mills, technology innovation, and government subsidies for mechanization as a result of the growing population. In 2024, Gold Coin China expanded its feed production capacity with the completion of a new USD 23.1 million mill in Yunnan, China. It will produce feed for swine, poultry, aquaculture, and ruminants as well as premix. Further, the poultry industry is also benefiting from government incentives to support recovery and restocking. Additionally, several leading broiler enterprises in China invested in new broiler construction projects, with a total investment of up to RMB 7.4 billion (USD 1 billion) in 2020.
