Market Trends of Feed Premix Industry
Increasing Demand for High-Value Animal Protein
Animal-derived food products, including meat, eggs, and milk, play a crucial role in meeting global nutrition targets, as reported by the Food and Agriculture Organization (FAO). These products provide high-quality protein, essential fatty acids, and vital nutrients such as iron, calcium, zinc, selenium, vitamin B12, and choline. Additionally, they contain bioactive compounds like carnitine, creatine, and taurine, which are important for health and development in the region. The livestock industry faces growing pressure to meet the rising demand for meat and high-value animal protein.
According to the Food and Agriculture Organization, in 2023, global poultry meat consumption reached 139.7 million metric tons, making it the most consumed meat worldwide. Pork ranked second with 122 million metric tons, followed by beef and veal at 71.9 million metric tons. The growing awareness of protein-rich diets among consumers is projected to drive increased consumption of animal protein sources. This trend is likely to stimulate market growth through the increased use of feed premixes for livestock.
A February 2024 study by the Socio-Cultural Research in Protein Transition (SCRiPT) examined protein consumption patterns in Malaysia. The research found average protein intake to be 75.2 g/day based on 24-hour dietary recall and 74.9 g/day using the Protein Diversity Indicator (PDI), suggesting adequate protein consumption overall. Protein intake varied across demographic groups, with higher levels observed among males, high-income individuals, those with higher education, and those of Chinese ethnicity. The study revealed a diverse distribution of protein sources in the Malaysian diet for 2023: meat and poultry contributed 36.2%, fish 8.8%, eggs and dairy 16.0%, and plant-based proteins 39.0%. These findings indicate potential growth in the feed premix market, as feed premixes provide essential vitamins, minerals, and nutrients necessary for optimal animal growth. Therefore, the gaining adoption of animal protein intake in the form of egg, milk, and meat will lead to demand for animal-sourced foods possibly enhancing the feed premixes market during the forecast period.
Asia-Pacific Dominates the Market
The Asia-Pacific region is the world’s largest compound feed producer. According to Alltech’s Agri-Food Outlook 2023 report, 466 thousand metric tons (36.8%) of world compound feed production, which was 1.266 billion metric tons in 2022, was apprehended by Asia-Pacific countries. In addition, animal diseases were the main factor in the region's demand for feed premixes. According to Alltech’s report, animal diseases have disrupted feed production in more than 80% of countries. Especially African swine fever (ASF) which has played a significant role in China, Indonesia, Malaysia, Myanmar, Nepal, the Philippines, Singapore, South Korea, Thailand, and Vietnam, thereby boosting the growth of the feed premixes in the market studied in coming years.
Beef meat is one of the most consumed animal products in the Asia-Pacific region. In 2022, Indonesia produced nearly 500,000 metric tons of beef cattle meat which showed an increase from the previous year. Although the production is increasing the demand for red meat in Indonesia has been steadily increasing in recent years, while the meat supply has not been able to meet it. In 2022, in Java, Indonesia’s demand for 500,430 metric tons of beef cattle and buffalo meat, was almost six times higher than in Sumatra Island. Additionally, in 2023, pigs and poultry are the main animals being fed in China, with poultry accounting for 51.6% and pigs accounting for 35.4% of livestock feeding. According to Animal Nutrition of China, Methionine is the most important limiting amino acid for chickens, while lysine is the main limiting amino acid for pigs. Due to China’s livestock-feeding economy and the need to be self-sufficient in feed amino acids, it is evident that the consumption structure of feed amino acids in China is largely influenced by methionine and lysine, with threonine and tryptophan being used as premixes.
Additionally, the government’s efforts to promote sustainable and efficient livestock production are likely to play a role in driving the market. For instance, the Indonesia-Australia Partnership on Food Security in the Red Meat and Cattle Sector is a collaborative effort between the two countries that is financed by the Australian Government. This partnership, which will continue until 2024, is a ten-year initiative that has received USD 60 thousand in funding from the Australian Government and additional contributions from other project partners. The partnership aims to promote food security and access to the global supply chain for red meat and cattle products through trade and investment. This encourages the use of animal feed enzymes, to achieve better feed conversion rates and reduce feed costs, which align with the country`s agricultural development goals. Along with this, in 2023, the Ministry of Agriculture (MOA) issued a decree regarding the "Road Map for Foot and Mouth Disease Eradication from the Territory of the Republic of Indonesia," which includes a plan to restock the dairy cattle population through the import of livestock from abroad. This raises the population of dairy cattle thereby supporting the the feed premixes market growth during the coming years.
