South America Feed Premix Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 14.5 Billion |
| Market Size (2029) | USD 17.80 Billion |
| CAGR (2024 - 2029) | 4.20 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Feed Premix Market Analysis
The South America Feed Premix Market size is estimated at USD 14.5 billion in 2024, and is expected to reach USD 17.80 billion by 2029, at a CAGR of 4.20% during the forecast period (2024-2029).
The South American feed premix market is growing due to increasing demand for high-value animal protein and the need for improved feed conversion rates. Feed premixes enhance the nutritional content of animal feed, making them vital for livestock production. The market's expansion is further supported by increased production of compound feed, as premixes are essential components in enhancing feed nutritional content.
The increasing demand for livestock products is driving supply-side changes focused on improving product yields. Industrial-style production facilities using capital-intensive technologies have enabled efficient meat production in countries like Brazil and Argentina, particularly where land availability is limited. According to the Brazilian Institute of Geography and Statistics, Brazil produced 8.91 million metric tons of beef in 2023, an 11.2% increase from 2022. Brazil holds the position of the world's largest beef exporter, accounting for nearly 30% of global beef exports in 2022, as reported by the Brazilian Beef Exporters Association (ABIEC). As cattle production continues to expand to meet the growing meat demand, the market for feed premix is anticipated to grow during the forecast period.
South American countries are experiencing increased urbanization and rising income levels. These economic changes have influenced dietary preferences, leading to higher per capita consumption of meat and seafood. According to the United States Department of Agriculture, Argentina's chicken meat consumption reached 2.15 million metric tons in 2022, a 1.8 percent increase from the previous year. Growing awareness about protein-rich diets has driven the consumption of animal protein sources. This trend is projected to increase the demand for feed premix through its application in compound feed production.
The South American feed premix market is driven by government initiatives that support animal production and food safety standards. Brazil and Argentina's governments implement policies to strengthen the livestock sector and encourage the adoption of feed premixes. In Brazil, the Ministry of Agriculture, Livestock, and Food Supply (MAPA) oversees the animal feed regulatory framework, including feed premix regulations and enzyme evaluations at federal and state levels. The regulatory process has evolved to delegate certain responsibilities to state authorities for enhanced local oversight.
South America Feed Premix Market Trends
Growing Compound Feed Industry Fuels Feed Premix Market Growth
Brazil, as South America's largest compound feed producer and the world's third-largest feed manufacturer, maintains its position through abundant raw materials, extensive geographical area, and high domestic meat consumption. The country's total feed production increased from 81.2 million metric tons in 2021 to 81.9 million metric tons in 2022, according to the AllTech feed survey. The growth in industrial meat and dairy production has driven increased demand for high-quality compound feed and feed premix from the livestock industry.
The increasing demand for high-quality compound feed from the livestock industry, driven by expanded industrial production of meat and dairy products, has led to higher consumption of compound feed. The rising demand for premium animal products, including meat, milk, and eggs, is driving the growth of feed premixes. These premixes enable livestock producers to maintain animal health and productivity, ensuring high-quality output. According to the Food and Agriculture Organization, Argentina's per capita consumption of beef and veal reached 34.39 kilograms in 2023, showing a one percent increase from the previous year. This growth in meat consumption increases the demand for compound feed, as livestock require nutritionally balanced diets for optimal growth and health. Feed manufacturers incorporate premixes to enhance feed nutritional content, which improves animal health, immunity, and reproductive performance, contributing to market expansion.
Additionally, the use of premixes streamlines the feed formulation process, improving efficiency and minimizing error risks. This ensures livestock receives specific nutrients required at various growth and production stages. The integration of compound feed and feed premixes enables efficient livestock production, helping producers meet the increasing demand for quality meat products while maintaining optimal animal health and productivity.
Brazil Dominates the Market
The Brazilian feed premix market is expanding due to increased meat consumption, exports, and growing awareness of meat and dairy product quality. The industrialization of meat production has increased the demand for feed premix in Brazil. According to the Food and Agriculture Organization in 2023, poultry remains the most consumed meat in Brazil, with per capita consumption at 29.26 kg, followed by beef and veal at 19.18 kg, and pork at 13.98 kg. This high meat consumption necessitates efficient, high-quality animal feed, including compound feed and feed premixes, to maintain livestock health and productivity while meeting domestic and international market standards.
Besides, the Brazilian Central Bank (BCB) projects a moderate economic outlook for 2023 with a GDP growth of 2.56 percent and an inflation rate of 4.92 percent. Social aid programs targeting the most vulnerable segments of the population and a rise in the minimum wage are poised to bolster domestic meat consumption. These economic enhancements have notably uplifted the purchasing power of many Brazilians, leading to a surge in chicken meat consumption. Chicken, being the predominant animal protein in Brazil, often serves as a more affordable substitute for the traditionally favored, yet pricier, beef.
Brazil's meat export sector demonstrates significant growth and strategic market diversification. According to the ITC Trade Map, Brazil's beef exports increased from 1.38 million metric tons in 2022 to 1.83 million metric tons in 2023. China remains Brazil's primary meat export destination, representing 67.2% of export value in 2023. Brazil is expanding its market presence in the United States and the European Union to reduce dependency on a single market. Feed premixes support Brazil's meat export sector by enhancing livestock health, productivity, and quality. These premixes deliver concentrated essential micronutrients that improve growth, development, weight gain, and feed efficiency, helping producers meet export quality standards. The expanding export opportunities are increasing domestic production, which drives the feed premix market growth.
South America Feed Premix Industry Overview
The market for feed premix is concentrated with the dominance of a few international players accounting for a major share of the global market. Some of the major players are Cargill, Incorporated, Archer Daniels Midland Company (ADM), BASF SE, Alltech, and Kemin Industries, Inc. The companies are not only competing based on product quality or product promotion but are also focused on other strategic moves, like acquisitions and expansions, to acquire a larger share and expand their acquired market size. The most adopted strategies for these companies are mergers and acquisitions, and from time to time collaborations for investments in new product developments and research enhancement.
South America Feed Premix Market Leaders
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Cargill, Incorporated
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Archer Daniels Midland Company (ADM)
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BASF SE
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Alltech
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Kemin Industries, Inc.
*Disclaimer: Major Players sorted in no particular order
South America Feed Premix Market News
- October 2024: DSM-Firmenich inaugurated a new production facility in Sete Lagoas, Brazil. The plant produces 100,000 tons of supplements annually for beef and dairy cattle health and nutrition.
- July 2024: ADM, the American agribusiness company, expanded its premix facility in Apucarana, Parana, increasing production capacity by 40%. The 7,500-square-meter facility manufactures mineral, amino acid, vitamin, and additive mixtures for the Brazilian animal nutrition market. The expansion includes manufacturing area restructuring, separation of production and pet animal operations, and product portfolio updates.
South America Feed Premix Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Demand for Animal Protein
4.2.2 Increasing Production of Compound Feed
4.2.3 Innovations by Major Manufacturers
4.3 Market Restraints
4.3.1 Stringent Government Rules
4.3.2 High Price of Raw Materials
4.4 Porter's Five Force Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Antibiotics
5.1.2 Vitamins
5.1.3 Antioxidants
5.1.4 Amino Acids
5.1.5 Minerals
5.1.6 Other Ingredient Types
5.2 Animal Type
5.2.1 Ruminants
5.2.2 Poultry
5.2.3 Swine
5.2.4 Aquaculture
5.2.5 Other Animal Types
5.3 Geography
5.3.1 Brazil
5.3.2 Argentina
5.3.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Cargill, Incorporated
6.3.2 Archer Daniels Midland Company (ADM)
6.3.3 BASF SE
6.3.4 Land O Lakes, Inc.
6.3.5 Kemin Industries, Inc.
6.3.6 Nutreco
6.3.7 Alltech
6.3.8 DSM-Firmenich
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
South America Feed Premix Industry Segmentation
A premix is a value-added solution to livestock feed consisting of a mixture of requisite vitamins, minerals, diluents, and other nutrients. The increasing demand for high-value animal protein and declining feed conversion rates are driving the South America feed premix market. The South America feed premix market is segmented by Type (Antibiotics, Vitamins, Antioxidants, Amino Acids, Minerals, and other Ingredients Type), Animal Type ( Ruminants, Poultry, Swine, Aquaculture, and Other Animal Types). The report offers market size and forecasts in terms of value (USD) and Volume (Metric Tons) for all the above segments.
| Type | |
| Antibiotics | |
| Vitamins | |
| Antioxidants | |
| Amino Acids | |
| Minerals | |
| Other Ingredient Types |
| Animal Type | |
| Ruminants | |
| Poultry | |
| Swine | |
| Aquaculture | |
| Other Animal Types |
| Geography | |
| Brazil | |
| Argentina | |
| Rest of South America |
South America Feed Premix Market Research FAQs
How big is the South America Feed Premix Market?
The South America Feed Premix Market size is expected to reach USD 14.5 billion in 2024 and grow at a CAGR of 4.20% to reach USD 17.80 billion by 2029.
What is the current South America Feed Premix Market size?
In 2024, the South America Feed Premix Market size is expected to reach USD 14.5 billion.
Who are the key players in South America Feed Premix Market?
Cargill, Incorporated, Archer Daniels Midland Company (ADM), BASF SE, Alltech and Kemin Industries, Inc. are the major companies operating in the South America Feed Premix Market.
What years does this South America Feed Premix Market cover, and what was the market size in 2023?
In 2023, the South America Feed Premix Market size was estimated at USD 13.89 billion. The report covers the South America Feed Premix Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Feed Premix Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Feed Premix Industry Report
Statistics for the 2024 South America Feed Premix market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. South America Feed Premix analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South America Feed Premix Market Report Snapshots
