Market Trends of Compound Feed Industry
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.
