Market Trends of India Compound Feed Industry
Rising Consumption of Meat and Dairy Products
In terms of absolute numbers, India has the world's largest live cattle herd, followed by Brazil and China. The national cow herd consists of bovine dairy cattle and Asian domestic water buffalo, both of which contribute significantly to the compound feed market's growth. According to the United States Department of Agriculture, in 2023, the cattle population in India reached 307.5 million. The increase is owed to government initiatives that have complemented the cattle industry as well as the compound feed industry's developments.
The cultural significance of cattle in India, particularly in Hinduism where bovine animals are considered sacred, further drives the compound feed market. Since cattle are predominantly reared for their milk, the demand for milk directly influences the need for quality feed. According to the Department of Animal Husbandry & Dairying, India's per capita milk consumption in 2023 was 459 g/day which was 427g/day in 2021. Hence, increasing demand for milk is anticipated to benefit the market for compound feed during the forecast period. Apart from rearing cattle for milk, some parts of India, such as Assam, Kerala, and certain parts of south India, have seen beef consumption gradually increase.
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 high-quality compound feed, making it a crucial component of the industry’s growth. Together, the expanding cattle and poultry industries in India are key drivers of the compound feed market’s growth, supported by the rising consumption trends.
Poultry Feed Segment Dominates the Market
The poultry feed segment holds a dominant position in the Indian compound feed market, driven by the critical role that poultry plays in the country’s food supply. Poultry farming is essential in India, not only as a source of meat but also for its contribution to the country's egg production, both of which are significant to the nation's nutritional and economic landscape.
India is one of the largest producers of poultry meat and eggs globally, with poultry farming evolving from traditional backyard practices to highly organized commercial enterprises. This transformation has significantly increased the demand for high-quality poultry feed, which is crucial for ensuring the health and productivity of birds. For instance, according to the Agricultural & Processed Food Products Export Development Authority (APEDA), India produced 138.38 billion eggs during 2022-2023. Also, India's poultry meat consumption reached 4.41 million metric tons in 2023, an increase of 0.16 million metric tons from the previous year, positioning India as one of the leading players in the global poultry market. The consistency and quality of egg and meat production depend significantly on the availability of high-quality feed, which is designed to support the nutritional needs of poultry birds. The increasing demand for eggs and meat, both domestically and internationally, continues to drive the growth of the poultry feed segment, making it a vital component of India’s compound feed market.
The importance of poultry in India extends beyond nutrition; it also plays a crucial role in rural development and employment. Poultry farming provides livelihoods for millions of people across the country, particularly in rural areas where it serves as a significant source of income. The expansion of the poultry industry, therefore, not only boosts meat and egg production but also contributes to the economic well-being of rural communities. For instance, in July 2023, Amul Dairy, an Indian dairy cooperative, expanded its operations by launching poultry feed production lines. This move aimed to enhance Amul's poultry feed production capabilities across multiple regions in India. Hence, with a huge demand for poultry meat and eggs and growing Government initiatives, the poultry feed segment is anticipated to grow more during the forecast period.
