Market Trends of Liquid Feed Industry
This section covers the major market trends shaping the Liquid Feed Market according to our research experts:
Increase in the Production of Meat and Aquaculture Products
The growing demand for high-grade meat and meat products from health-conscious consumers has spurred the production of meat, hence boosting the liquid feed supplement market globally. Owing to the advantages such as better digestibility in animals, simplified and flexible addition of additives, and the possibility of fermentation, the demand for liquid feed supplements is rising rapidly to aid the production of high-quality meat. According to the USDA report, the total meat consumption accounted for 11,850 metric tons during the year 2021 which is higher than the previous year's stated 11,732 metric tons.
According to the OECD Report 2021, the total meat production remained stable in 2020 at an estimated 328 metric tons, as output increases in poultry and ovine meats offset contractions in pig and bovine meat production. Total poultry meat production in 2020 is estimated at 134 metric tons, up 1.2 % from 2019, underpinned by a sharp rise in demand in China.
Furthermore, the Economic Research Services, US Department of Agriculture, reports that the total consumption of beef in the United States has increased from 55 pounds per capita in 2019 to 58.4 pounds per capita in 2020 and is projected to further rise steadily over the coming years. With vitamins, minerals, and feed additives as part of the composition, a liquid feed supplement is an emerging economical source of balanced nutrition for livestock to cater to the growth of livestock production worldwide.
The demand for seafood is increasing rapidly as more and more people are becoming aware of the health benefits of fish consumption. Increasing life expectancy and limited availability of land and water resources for animal feed production and increasing use of these resources for food and ethanol production are increasing the demand for animal feed in the global meat industry.
Asia-Pacific Dominates the Market
The Asia-Pacific region is the leading animal feed producing and consuming region in the world, thereby inflicting a direct impact on the liquid feed market. The increased scale of industrial livestock production in the region has significantly contributed to an increase in liquid feed production capacities in major economies across the region.
The countries in the region are driving the liquid feed market owing to changing consumption patterns toward more protein-based products, including meat. China is one of the fastest-growing markets, with the country's Feed Industry Association emphasizing the maintenance of minimum protein levels in livestock feed. The other liquid feed supplement markets in the region, including Vietnam, which is the second-largest pork consumer, and India, which is the most potential market for liquid feed supplements, driven by an increasing trend in the intensive farming system, are contributing to the demand for liquid feed supplements in the entire Asia-Pacific belt.
The growth of the feed industry in China has led global compound feed players like Archer Daniels Midland and Cargill to expand and open their new facilities in China. The Zhangzhou feed factory of Archer Daniels Midland Company in China is the fourth compound production facility of the company, which has an annual capacity of 30,000 metric tonne of feed premixes and 80,000 metric tonne of complete feed and concentrates. Cargill has invested in a new premix facility in China to continue growing its feed presence in the region. Sorghum growers in the United States got a big boost when the USDA revealed record sales to China in 2020. According to the National Sorghum Producer, a soy grower body in the USA, the demand surge led by China's animal feed industry was the reason for rising sorghum imports in China.
