Market Snapshot
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 6.85 Billion |
| Market Size (2029) | USD 7.81 Billion |
| CAGR (2024 - 2029) | 7.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Market Overview
The Compound Feed Market size is estimated at USD 6.85 billion in 2024, and is expected to reach USD 7.81 billion by 2029, growing at a CAGR of 7% during the forecast period (2024-2029).
The growing demand for meat and aquaculture products is the major driving force behind the growth of the compound feed market. Increased awareness regarding quality meat and milk products and increased livestock production are two other factors augmenting the growth of the market studied. For instance, the livestock sector in Qatar saw robust growth in 2021, recording over 1.5 million registered heads of livestock, which is greatly increasing local production of meat and dairy.
Saudi Arabia is one of the fastest-developing animal compound feed markets in the GCC region. Growing consumption of raw and processed meat, along with emerging health consciousness among consumers drive the requirement for a compound feed market in the country. As per the USDA, in 2021, the consumption of beef and veal meat was 194 (1,000MT CWE) increase, compared to 183 (10,000MT CWE) in 2020.
Significant companies like IFFCO, Arasco, Agthia, Trouw Nutrition (Nutreco), and Al Ghurair Foods Llc are some leading players in the global compound feed market. In the recent year, Agthia launched four new camel feed (including compound feed) products on the sidelines of the Global Forum for Innovations in Agriculture in Abu Dhabi. The new products have been designed specifically to meet the nutrition and health needs of camels in the UAE and the region. Hence, the GCC compound feed industry is anticipated to witness substantial growth during the forecast period.
Key Market Trends
Poultry Feed Dominates the Market
Chicken meat is considered one of the most widely preferred meals among consumers in the region. The demand for white meat is observed to be increasing in the GCC countries due to the affordability and the growing perception among consumers that it is healthier than red meat. Due to increasing health awareness among consumers, the demand for chicken meat and its products is anticipated to increase in the coming years.
According to OCED Agricultural Outlook, 2021, the consumption of poultry meat in Saudi Arabia is likely to increase and reach 1392.98 thousand metric ton from 1373.79 thousand metric ton in 2020. According to the USDA, in Saudi Arabia, the constantly increased demand for chicken and their parts (such as leg quarters and breast and deboned chicken meat) in the country is mainly due to increased demand from households of working couples, the development of Shawarma restaurants, growing demand toward ready-to-cook poultry meals, and the development growth of hypermarkets and supermarkets.
Furthermore, with the increasing health awareness, the demand for regular protein supplements is increasing. This is leading to an increased demand for poultry products like eggs as they are excellent sources of protein. Due to the development of processing sectors readily available products on the retail shelves and restaurant menus are increasing, which, in turn, is propelling the demand for poultry meat in the region. Thus, factors, such as affordability, growing health awareness among consumers, and increasing food processing, and service sectors are anticipated to increase the use of compound feed to produce healthy chicks during the forecast period.
Saudi Arabia Is One Of The Fastest Growing Compound Feed Markets
The demand for higher-value and quality foods, such as meat, is increasing compared with plant-originated foods, such as cereals in Saudi Arabia. The increase in meat consumption is in line with the rising trend of consumption of protein-rich foods, particularly organic and healthy produce with a strong, branded, and most often halal provenance. These changes in consumption, together with sizeable population growth, have led to large increases in the total demand and production for meat in this country, and this trend is likely to continue.
Meat products are growing rapidly due to the increasing health concerns along with the growing disposable income especially in developing countries such as Saudi Arabia. The growing demand for quality meat has created an opportunity for feed manufacturers to enhance animal productivity. This has led to the growth in the usage of feed additives, thereby, boosting the compound feed in the growth of the animal feed market.
In addition, quality control for feed and food products in Saudi Arabia is one of the key factors impacting the market growth of the Saudi Arabian compound feed market. The enhanced meat and processed food utilization of Saudi Arabia are giving prospects of market growth. Furthermore, dairy broiler and layer feed are the primary segments in this region. Saudi Arabia is a key poultry producer in the Middle East. According to FAO, poultry meat production in Saudi Arabia increased from 9,00,513.34 metric ton in 2020 to 9,10,446.03 metric ton in 2021, respectively.
Besides, as per the 2020 Global Agriculture Network information, Saudi Arabia amended the country’s animal feed funding program. Animal feed subsidies play an important role in the growth of Saudi Arabia’s livestock sector. This has lead to massive growth of the compound feed industry.
Competitive Landscape
The GCC compound feed market is consolidated in the region with many established players along with few smaller players. Leading companies such as IFFCO, Arasco, Agthia, Trouw Nutrition (Nutreco) and Al Ghurair Foods Llc are focused on acquiring feed mills and small manufacturing for expansion of the business in local as well as foreign markets. Some of the players have been expanding their geographical presence by acquiring or merging with the manufacturers in the foreign market. The leading companies are focused on the expansion of the business across regions and setting up a new plant for increasing production capacity as well as a product line. The companies are also increasing the production capacities of their existing plants.
Major Players
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IFFCO
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Arasco
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Agthia
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Trouw Nutrition (Nutreco)
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Al Ghurair Foods Llc
*Disclaimer: Major Players sorted in no particular order
Recent Developments
- February 2023: ARASCO, Cargill, and NEOM Food have signed an agreement to explore how they can work together to support best practices and improve sustainability in the Saudi aquacultural sector. The three parties will work together to explore and scale up sustainable ways to meet rising domestic demand for aquaculture, including through research and development into more sustainable compound feed sources.
- October 2022: UAE-based prominent leader in the agribusiness sector, Al Dhahra Holding has agreed with the biggest producer of complete animal feed including compound feed in the Middle East, ARASCO to supply up to 180,000 ton of WAFI animal feed to the Emirates.
Compound Feed 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 Increased Demand for Meat
- 4.2.2 Initiatives By the Key Players
- 4.2.3 Focus on Animal nutrition and Health
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4.3 Market Restraints
- 4.3.1 Shift Toward Vegan- Based Diet
- 4.3.2 Changing Raw Material Prices and Strict Government Rules to Restrict Market Growth
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4.4 Porter's Five Force Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Animal Type
- 5.1.1 Ruminants
- 5.1.2 Poultry
- 5.1.3 Swine
- 5.1.4 Aquaculture
- 5.1.5 Other Animal Types
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5.2 Ingredient
- 5.2.1 Cereals
- 5.2.2 Cakes & Meals
- 5.2.3 By-products
- 5.2.4 Supplements
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5.3 Geography
- 5.3.1 United Arab Emirates
- 5.3.2 Saudi Arabia
- 5.3.3 Oman
- 5.3.4 Bahrain
- 5.3.5 Kuwait
- 5.3.6 Rest of GCC Countries
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Competitor Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Arasco
- 6.3.2 Trouw Nutrition
- 6.3.3 Agthia
- 6.3.4 Fujairah Feed Factor
- 6.3.5 IFFCO
- 6.3.6 Al Ghurair Foods Llc
- 6.3.7 Parabel
- 6.3.8 Al-Sayer Group
- 6.3.9 Oman Flour Mills Company
- 6.3.10 Omani National Livestock Development Co.
- 6.3.11 Delmon Poultry Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Scope of the Report
Compound feed is a combination of different concentrate feed ingredients in suitable ratios. Frequently used ingredients in compound feed include brans, protein meals/cakes, grains, agro-industrial by-products, minerals, and vitamins. The GCC compound feed market is segmented by animal type into ruminants, poultry, swine, aquaculture, and others, by ingredients into cereal, cakes & meals, by-products, and supplements. The supplement segment is further segmented into vitamins, amino acids, enzymes, acidifiers, probiotics and prebiotics, and other supplements and by geography into United Arab Emirates, Saudi Arabia, Oman, Bahrain, Kuwait, and Qatar. The report offers the market sizes in value (USD) for all the above segments.
| Animal Type | Ruminants |
| Poultry | |
| Swine | |
| Aquaculture | |
| Other Animal Types | |
| Ingredient | Cereals |
| Cakes & Meals | |
| By-products | |
| Supplements | |
| Geography | United Arab Emirates |
| Saudi Arabia | |
| Oman | |
| Bahrain | |
| Kuwait | |
| Rest of GCC Countries |
Compound Feed Market Research Faqs
How big is the Compound Feed Market?
The Compound Feed Market size is expected to reach USD 6.85 billion in 2024 and grow at a CAGR of 7% to reach USD 7.81 billion by 2029.
What is the current Compound Feed Market size?
In 2024, the Compound Feed Market size is expected to reach USD 6.85 billion.
Who are the key players in Compound Feed Market?
IFFCO, Arasco, Agthia, Trouw Nutrition (Nutreco) and Al Ghurair Foods Llc are the major companies operating in the Compound Feed Market.
What years does this Compound Feed Market cover, and what was the market size in 2023?
In 2023, the Compound Feed Market size was estimated at USD 6.40 billion. The report covers the Compound Feed Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Compound Feed Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Compound Feed Industry Report
Statistics for the 2024 Compound Feed market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Compound Feed analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
