Market Trends of North America Ruminant Feed Premix Industry
Rising Beef and Dairy Consumption Fuels Market Growth
North American countries are experiencing rapid urbanization and rising income levels. These economic changes have influenced dietary preferences, leading to higher per capita consumption of meat and dairy products. Growing awareness about protein-rich diets has increased the consumption of animal protein sources, which is driving the growth of the feed premix market through compound feed usage. Beef, the meat derived from cattle (bulls, heifers, or steers), is a significant red meat variety consumed in North American countries. The market offers various steak cuts, ranging from premium options like rib eye, sirloin, and tenderloin to economical choices such as hanger and skirt steak. In North American countries, particularly the United States, Canada, and Mexico, beef consumption remains high due to its nutritional value, providing essential nutrients including high-quality protein, vitamins B6 and B12, zinc, and readily bioavailable heme iron.
The Dietary Guidelines for Americans, 2020-2025 (DGA) establishes protein foods, including lean meats, as essential components of a healthy American diet. According to the United States Department of Agriculture, the United States maintains its position as the global leader in beef and veal production, reached 12.6 million metric tons in 2022, supported by a beef cattle herd of 30 million. According to the Dietary Guidelines for Americans in 2023, 12% of the American population accounts for half of the country's beef consumption daily, with men and individuals aged 50 to 65 representing the majority of this consumption group, raising both health and environmental concerns.
Milk consumption in the United States and Canada constitutes a significant portion of the national diet. According to Statistics Canada, in 2023, Quebec led milk production among Canadian provinces with 35.37 million hectoliters, followed by Ontario with 31.65 million hectoliters. Higher processor demand and low butter stocks indicate increased milk production from Canadian dairy farmers in 2024. The increasing consumption of dairy products and beef is driving cattle production in the region, consequently boosting the demand for ruminant feed premix products.
The United States Dominates the Market
The United States ruminant feed premix market is experiencing growth due to the expansion of the meat and dairy industries. The United States, a major beef exporter, exports 80% of its beef to Japan, South Korea, China, Mexico, and Canada. In 2023, according to the ITC Trade Map, United States beef and beef product exports reached USD 4.39 billion. The growth in U.S. beef exports was primarily driven by demand from South Korea and other East Asian markets. Exports to South Korea are valued at USD 0.96 billion, Japan at USD 0.90 billion, and Mexico at USD 0.78 billion. South Korea emerged as the primary destination for U.S. beef exports in 2023, accounting for 21.9% of export value, with growth primarily stemming from the retail sector. The United States - Korea Free Trade Agreement (KORUS) has reduced tariffs on U.S. beef to 10.6%, down from the pre-agreement rate of 40%. This export performance, combined with increasing domestic demand for premium meat and dairy products, has resulted in larger livestock populations. This growth in animal numbers has increased the demand for compound feed.
The growth in the ruminant population and rising demand for meat and animal products are driving the demand for feed and feed premixes. According to the Alltech Feed Survey 2023, the United States produced 24.0 million metric tons of feed for dairy cattle and 62.4 million metric tons for beef cattle. This significant feed production has expanded the market for premixes that enhance animal health and productivity. North America's varied climate, from humid subtropical conditions in the southeast to arid regions in the southwest, creates specific challenges for feed preservation. The United States Grains Council reported that the average United States total grain damage in 2023 was 0.9% higher than in 2021, mainly due to mold and heat damage. This increase in grain damage has heightened the need for antioxidants to prevent oxidation and maintain feed quality in challenging environmental conditions.
The growing concern over antibiotic resistance has led the industry to strengthen cattle health protocols, focusing on controlled antibiotic usage and enhanced disease management strategies. Feed premixes, including vitamins, amino acids, and acidifiers, enhance animal health resilience and are essential components in livestock production. The World Health Organization (WHO) recognizes antimicrobial resistance (AMR) as a primary public health threat. In response, the US Food and Drug Administration (FDA) implemented Guidance #263 in June 2023, mandating prescriptions for previously over-the-counter animal antibiotics. This regulatory change is projected to increase the demand for feed premixes, specifically amino acids and vitamins.
