Market Trends of Thailand Compound Feed Industry
Poultry Segment Dominates Among Animal Types
In the market studied, poultry stands out as the dominant animal type. Thai consumers favor poultry, especially chicken, for its affordability compared to pork and beef. Additionally, they appreciate its versatility in cooking and menu options. This consumer preference is reflected in rising chicken production. As per FAOSTAT data, Thailand's chicken meat production climbed from 1.79 million metric tons to 1.83 million metric tons. Concurrently, the country's broiler stock increased from 300 million heads to 318 million heads between 2022 and 2023, as reported by the Agricultural Statistics of Thailand. This surge in production, alongside the expanding broiler stock, has bolstered the demand for poultry feed, further fueling market growth.
Thailand's dominance in poultry bird production, compared to other species, is reinforcing the segment's growth. According to the FAOSTAT data, Thailand's poultry bird stock reached 304,404 thousand heads, overshadowing cattle and buffaloes at 5,358 thousand heads and goats and sheep at 474 thousand heads and 40 thousand heads, respectively. Along with this, Thailand's poultry products are not just popular domestically but also gaining traction as an affordable alternative to pork on the global stage. For example, poultry meat exports surged from 364,922 metric tons in 2022 to 492,250 metric tons in 2023, as highlighted by the ITC Trade Map. This further supports local production, thereby increasing the usage of poultry meat.
Furthermore, market players are bolstering growth by introducing organic poultry feed and expanding their facilities. In 2024, Tan-khun Organic Farm, a prominent Thai producer of organic chicken and duck, inaugurated a feed mill with a monthly capacity of 20 metric tons. The company uses organic feed ingredients sourced from farmers in northeastern and central provinces, including broken rice, corn, green beans, crab shells, and shrimp heads. These organic components are certified by the Department of Livestock Development and are used internally, distributed to farmers, and offered to clients seeking organic feed options. With such initiatives, product availability is on the rise, further propelling the poultry segment's growth. Consequently, the surging demand for poultry meat, coupled with expanding exports, is set to drive the market's growth over the coming years.
Cereals Emerging as the Largest Ingredient Type
Thailand utilizes a diverse range of feed ingredients to manufacture animal feed. The locally produced cereals are widely used in the country, demonstrating the dominance of the segment during the study period. Additionally, increasing cereal production all over the country supports the rising demand for cereals in animal feeds. As per FAOSTAT, the production of cereals in Thailand grew from 38.3 million metric tons in 2021 to 39.7 million metric tons in 2022. This is aiding their availability, thereby supporting the usage of cereals in feed production.
Along with this, corn is one of the major cereal grains used in the country's poultry and swine feed production. To meet the increased demand for corn to produce feed, the government is supporting the expansion of corn production through investments. In March 2023, the government invested THB 716 million (USD 19.8 million) in an income insurance scheme for farmers and encouraged them to grow corn. Similarly, under this scheme, the authorities have decided to set a guaranteed minimum price for corn to support corn growers. This government support for feed production is expected to boost the growth of the segment in the coming years.
Moreover, the rising investments in the production of animal feed from cereals are also aiding market growth. In 2022, Thailand's largest agricultural conglomerate, Charoen Pokphand Foods (CP) Foods Philippines, invested an amount of PHP 1 billion (USD 18 million) to build a feed mill in the country. This also follows sourcing products such as corn, sorghum, and cassava from farmers in the country. Hence, the rising demand for cereal-based feeds among the swine and poultry segments, coupled with increasing investments, is expected to drive the growth of the market during the forecast period.
