Market Trends of Liquid Feed Industry
Increase in the Demand for Meat and Aquaculture Products
- The increasing demand for high-quality meat and meat products from health-conscious consumers has driven meat production, consequently boosting the global liquid feed supplement market. The demand for liquid feed supplements is rising due to their advantages, including improved animal digestibility, flexible additive incorporation, and fermentation potential, all contributing to high-quality meat production.
- According to data from the United States Department of Agriculture (USDA), pork was the most produced meat type globally in 2023, accounting for 116.3 million metric tons. Chicken followed with 103.83 million metric tons, while beef production reached 56.96 million metric tons in the same year. Additionally, according to the Economic Research Service of the USDA, beef consumption in the United States increased from 58.9 pounds per capita in 2021 to 59.1 pounds per capita in 2022, with projections indicating a steady rise in the coming years. Liquid feed supplements, containing vitamins, minerals, and additives, support the growth of global livestock production. These supplements are emerging as an economical source of balanced nutrition for livestock due to their cost-effectiveness compared to dry feeds. This advantage stems from the inclusion of by-products from food industries, such as molasses or fats, which are cheaper and readily available. The increase in demand for meat products is driving the liquid feed usage in commercial farms.
- The demand for seafood is increasing as awareness of the health benefits of fish consumption grows. Simultaneously, factors such as increasing life expectancy, limited land and water resources for animal feed production, and the diversion of these resources to food and ethanol production are driving up the demand for animal feed in the global meat industry.
Asia-Pacific Dominates the Market
The Asia-Pacific region dominates global animal feed production and consumption, significantly impacting the liquid feed market. The expansion of industrial livestock production in the region has led to increased liquid feed production capacities in major economies. Countries in the region are propelling the liquid feed market due to shifting consumption patterns towards protein-rich products, including meat. China represents one of the fastest-growing markets, with its Feed Industry Association emphasizing the maintenance of minimum protein levels in livestock feed. Other significant markets in the region include Vietnam, the second-largest pork consumer, and India, which shows potential for liquid feed supplements due to the growing trend of intensive farming systems.
The growth of China's feed industry has attracted global compound feed players such as Archer Daniels Midland (ADM) and Cargill to expand their operations in the country. The United States Department of Agriculture (USDA) reported that China has been driving the United States sorghum exports since 2020. According to the National Sorghum Producer, a soy grower organization in the United States, the surge in demand led by China's animal feed industry was the primary reason for increased sorghum imports in China. Additionally, countries such as Southeast Asia are emerging as the major exporters of feed products. For instance, the Vietnam is emerging as a leader in the production of feed products in the region, driven by the China+1 strategy, positions it as a key destination for business relocation. Therefore, the ideal feed production environment in the region and higher animal feed requirement is driving the liquid feed market in the region.
