Market Trends of South Africa Compound Feed Industry
This section covers the major market trends shaping the South African Compound Feed Market according to our research experts:
Increasing Consumption of Meat Products
Increasing health concerns, nutritional security along with the growing disposable income created the demand for meat products. The rising demand for animal products and processed meat has created an opportunity for feed manufacturers to enhance animal productivity. According to the Organisation for EconomicCo-operation and Development (OECD), The per capita meat consumption in South Africa is increasing. Poultry meat is the highest consumed meat among all other types followed by Beef and veal meat. For example, per capita consumption of poultry meat was 33.7 Kg in 2017 which increased to 34 Kg in 2018. In 2018, Beef and veal consumption was 12.2 Kg which increased to 12.4 Kg in 2019 in the country. According to the Food and Agriculture Organization (FAO), in 2016, the poultry bird population was 165.3 million which increased to 176.3 million in 2018. An increase in demand for various animal products has led to the growth in livestock production which in turn, is boosting the growth of compound feed in the animal feed market.
Gaining Popularity of Aquaculture in South Africa
The expansion of the aquafeed industry created an opportunity for compound feed to spur the market, as these feeds boost immunity and enhance the performance of fish, thus, helping them gain optimum weight in a quick span of time. The local wild fishery sector is an important part of the nation's food supply, supports the livelihood of thousands of coastal communities. The Department of Agriculture, Forestry, and Fisheries promote the growth of the sector in a sustainable manner. Since the launch of the initiative, by 2018, more than USD 37.58 million has been invested in the aquaculture sector by the government and private sector. In order to maintain our food and nutrition security through this important sector, the government has prioritized developing the local aquaculture sector through its Operation Phakisa: Oceans Economy initiatives. The increasing demand for compound feed within the market is mainly attributed to the government's increasing focus on strengthening its trade ties regarding the sales of meat, between the region.
