The GCC compound feed market size is projected expand at a CAGR of 7% during the forecast period, 2021-2028. The growth of the market is attributed to rising demand for meat and aquaculture products.
Compound feed is a combination of raw materials and supplements fed to livestock that are derived from plant, animal, or inorganic substances. It may contain additives. While soybeans, corn, barley, wheat, and sorghum are the most commonly used raw materials, vitamins, minerals, and amino acids are the most commonly blended additives in compound feed.
Compound feed aids in the protection of the entire livestock and aquaculture production on the basis of quality and food supply. The primary goal of compound feed is to provide adequate and sufficient nutrients to livestock and domestic animals in order to improve their health.
Market Trends, Drivers, Restraints, and Opportunities
- Rising demand for high-quality meat and dairy products is one of the key factors driving the compound feed market's rapid expansion.
- Rapid industrialization and advancements in manufacturing techniques is anticipated to create lucrative opportunities for industry players.
- Increasing demand for owing to rising consumption of protein-rich food, particularly organic and healthy products is expected to fuel the growth of the market.
- High raw material prices as well as the government's rules and regulations on the production of compound feed can restraint the market growth. In the GCC countries, demand for high-value and quality foods is estimated to fuel the growth of the market.
- The relaxation in restrictions in international trade amidst the COVID-19 outbreak is anticipated to create lucrative opportunities for the industry players.
Scope of the Report
The report on the global compound feed market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
||GCC Compound Feed Market - Industry Analysis, Growth, Share, Size, Trends, and Forecast
||Ingredients (Cereals, Cakes & Meals, By-products, and Supplements), Livestock (Ruminants, Swine, Poultry, and Aquaculture)
||UAE, Saudi Arabia, Oman, Bahrain, Kuwait, and Rest of GCC Countries
||Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
|Key Players Covered in the Report
||Cargill, Incorporated, ADM, Charoen Pokphand Foods PCL., Land O’Lakes Inc, Alltech., Feedone Co.
Compound Feed Market Segment Insights:
Cereals segment is anticipated to account a major market share
Based on ingredients, the market is segregated into cereals, cakes & meals, by-products, and supplements. The cereals segment is anticipated to account for a large market share during the forecast period. Cereal grains are high in starch and contain 8-12% crude protein with low lysine and methionine, 2-5% percent fat, less than 0.15% calcium, and 0.3-0.5% phosphorus. Maize, barley, oats, wheat, rice, and other cereals are commonly used in feed.
Poultry segment is anticipated to expand at a rapid pace
On the basis of livestock, the GCC compound feed market is segregated into ruminants, swine, poultry, and aquaculture. The poultry segment accounted for a significant market share in 2020, in terms of revenue. One of the preferable meats in the region is chicken. According to the US Department of Agriculture (USDA), the US’ share of poultry exports to Saudi Arabia has decreased from 10% in 2017 to 9.1% in 2018, primarily due to Saudi Food & Drug Authority (SFDA) stringent regulations, which require a Food Safety & Inspection Service (FSIS) issued health certificate attesting that the poultry had been fed vegetable protein and were free of growth hormones.
The increase in imported chicken prices has made locally produced chicken more competitive, which has benefited the various stakeholders in the value chain in Saudi Arabia, including poultry producers, wholesalers, and retailers. This, in turn, has increased the opportunity for local growers to increase their market share.
The market in Saudi Arabia to exhibit a high CAGR
In terms of regions, the market is segregated into UAE, Saudi Arabia, Oman, Bahrain, Kuwait, and Rest of GCC Countries. The market in Saudi Arabia is expected to expand at a high CAGR during the forecast period. Stringent government regulations have encouraged local and emerging players to increase their market share in the country. On the other hand, the UAE is anticipated to account for a considerable market share in the coming years.
Segments Covered in the Report
The compound feed market is segmented on the basis of
- Cakes & Meals
- Saudi Arabia
- Rest of GCC Countries
- Charoen Pokphand Foods PCL.
- Land O’Lakes Inc
- Feedone Co.
The major players in the compound feed market include Cargill, Incorporated, ADM, Charoen Pokphand Foods PCL., Land O’Lakes Inc, Alltech., Feedone Co.
Companies are engaging in mergers, acquisitions and partnerships to expand their market share. Leading companies are focused on acquiring feed mills and small manufacturing businesses in order to expand their operations in both domestic and international markets.
Some of the players have expanded their geographical presence by acquiring or merging with foreign manufacturers. The major companies are focusing on regional expansion and the establishment of a new plant to increase production.