Market Trends of Swine Feed Industry
Cereals are the Significant Segment by Ingredients Type
There has been increasing pressure on the livestock industry to meet the rising demand for meat and high-value animal protein. Population growth, rising incomes in developing nations, and urbanization have led to a surge in global livestock 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 the usage of high-quality feed like cereals, as pork is one of the most popular and widely consumed meats worldwide, majorly in Europe and Southeast Asia. For instance, according to FAOSTAT, swine meat production was 121.0 million metric tons in 2021, which increased by 122.6 million metric tons in 2023.
Cereals are the most common and widely used ingredient in swine feed worldwide. Cereals are a primary energy source, and they are used extensively in feed manufacturing. Corn, barley, and sorghum are the most common types of cereal ingredients used in the manufacturing of swine feed. Wheat and wheat gluten are the most efficient and cost-effective feed-binding ingredients. The glutinous nature of wheat makes it an excellent pelleting aid, and it often enhances pellet durability (particularly in rations), with little need for other natural binders. Byproducts and distillers’ grains are low in carbohydrates, which are required to bind pellets properly. Thus, they are less frequently used in industry. The several uses of binders in swine feed increase the demand for the same in the feed industry, thereby driving the market's growth.
Asia-Pacific Region Dominates the Market
Asia is the leading pork consumption and production market, accounting for about half of the world's production. The Asia-Pacific region is the largest market for swine feed products due to the huge pork meat consumption. Southeast Asia is the world's largest producer and exporter of pork, followed by Europe and North America. Pork meat has been consumed in the region since ancient times and is the most preferred meat due to its fat content and taste. China is the primary market for pork production, followed by Vietnam, Thailand, South Korea, Japan, and the Philippines. Japan, South Korea, and Taiwan are the saturated markets for pork consumption, while Vietnam and the Philippines are emerging markets.
China holds the topmost position in terms of compound feed consumption. Factors, such as the increasing consumption of pork, rising income among the middle-class population, and urbanization, are leading to increased consumption of pork in the country. For instance, according to the OECD, China's consumption of swine meat was 55,546.4 thousand metric tons which increased by 56,290.0 thousand metric tons in 2023. Consequently, the increased demand for meat and rising costs of raw materials for animal consumption are driving the demand for swine feed.
In Australia, marketing campaigns promoting pork as a lighter and healthier meat have spurred a rise in consumption. This surge has catalyzed the swift industrialization of pork production in the country, with many large-scale operations embracing automation. Piggeries have evolved into specialized, high-tech factory farm complexes. Consequently, this transformation has bolstered the swine feed market in Australia. Data from the Australian Bureau of Statistics in 2021 revealed a fairly uniform distribution of pigs across the mainland. Notably, Queensland boasts the nation's largest pig herd, exceeding 607,000 head, accounting for nearly 27% of Australia's total.
