Market Trends of Poultry Feed Premix Industry
Increasing Demand for High-Value Animal Protein
There has been increasing pressure on the poultry industry to meet the increasing demand for meat and high-value animal protein. Population growth, rising incomes in developing nations, and urbanization have led to a surge in global poultry production. With greater awareness among the population regarding the importance of protein-rich diets, an increase in the consumption of animal protein sources is anticipated to fuel the growth of the market through usage in premixes for poultry such as chickens, ducks, and turkeys, which are one of the most popular and widely consumed meats worldwide, majorly in Europe and Southeast Asia.
Furthermore, with the rise in meat consumption across the world, the feed premixes industry is estimated to witness a huge demand for better quality meat. According to the FAO, global poultry meat production reached 138 metric tons in 2022, or 0.77% greater than the previous year's value, and consumption reached 137.5 metric tons, or 0.73% more than the previous year.
Additionally, due to a decline in the prices of meat and meat products, developing countries are embarking on high-quantity meat consumption at much lower levels of gross domestic product than the industrialized countries 2-3 decades ago. Urbanization also contributes actively to the increased demand for poultry meat. Compared to the diet in rural areas, cities have varied diets rich in animal proteins and fats. Therefore, premixes are an important part of the expanding swine meat production industry. They help in improving the rate of weight gain, disease prevention, and conversion in poultry, thus, enhancing the quality of meat production. The demand for low-cost meat with a greater nutritional value is a driving factor in the market.
According to a report by the Department of Animal Husbandry and Dairying India, poultry production in India has taken a big leap in the previous four decades, transitioning from traditional agricultural techniques to a commercial production system using cutting-edge technology. According to the 20th Livestock Census, the country's total poultry population is 885.7 million, and meat output is approximately 4.95 million metric tons in 2022. This shift towards large-scale, technologically advanced poultry farming has increased the demand for poultry feed premix, making it a crucial component of the industry’s growth. Hence, the demand for poultry feed premix is likely to increase owing to the surge in meat consumption and the huge demand for animal protein in the forecast period.
Asia-Pacific Leads the Global Market
Asia-Pacific holds the largest share of the global poultry feed premix market. The region's vast population and increasing disposable incomes are driving rapid market growth. Over the past two decades, China and India have experienced significant expansion in their poultry sectors, both in terms of bird numbers and output per bird. This growth is closely linked to the adoption of intensive farming systems, which utilize high food conversion ratios.
China's poultry feed premix usage is increasing due to strong demand for chicken meat. According to USDA data, chicken meat consumption in China rose from 14,401 thousand metric tons in 2022 to 15,002 thousand metric tons in 2023. The country's major poultry feed and feed additives production areas for poultry are concentrated in Henan, Shandong, Guangdong, and Sichuan, strategically located near raw materials and poultry farms.
Investments in the poultry feed premix sector across Asian countries are contributing to market growth. For example, in January 2024, San Miguel, a leading commercial feed producer in the Philippines, announced plans to invest PHP21 billion (USD 384 million) in the country's poultry feed, premix, additives, and poultry sector, including the establishment of 12 new poultry feed facilities. In India, factors such as rising per capita income, expansion of quick-service restaurants, and increasing demand for quality poultry products have significantly boosted the demand for poultry feed premix. These trends are anticipated to accelerate poultry feed premix sales in the country in the coming years.
The demand for poultry feed premix remains high in emerging economies of Asia-Pacific, particularly in China and India. This trend is driving the use of higher-quality feed for a growing poultry population. Notably, Asia-Pacific accounts for two-thirds of the increase in global poultry meat production, further underlining the region's importance in the poultry feed premix market.
