GLOBAL- The cattle feed and feed additives market could reach US$ 64.98 billion in 2026 at a CAGR of 3.3%, a report by Research and Markets estimates.
The report predicts that livestock production will escalate in the next decade, thus driving the demand for cattle feed and feed additives, thanks to a rise in meat consumption globally.
In 2021, the Asia Pacific was the largest region in the cattle feed and feed additives market, and it is likely to maintain a leading position in its market share.
This region has had a relatively low per capita beef consumption over the years. However, there could be some more growth, albeit slowly.
Growth in per capita consumption is due to strong population growth, rapid urbanization, and the increasing purchasing power of the expanding middle class.
This growth has to be accompanied by an increase in cattle production and a proportional demand for feed and feed additives.
Technology to propel market growth
Technological advancements are a major factor in the rising popularity of the cattle feed and feed additive market.
Major players in this sector are leveraging new technologies to reinforce their position in the market, driving the growth of this market.
These technologies revolve around technologies in developing equipment for feed production and technologies to revolutionize feed and its additives formulation.
According to the report, various firms, including Cargill, ADM, Biomin, BASF SE, and Adisseo France S.A.S among others, will be instrumental to the rise in the production and marketing of feed and additives.
Many other industry players, and startups, will also impact technology in feed and feed additives production.
For example, the report provides that Thailand-based Charoen Pokphand Foods PCL recently developed a unique feed formula containing probiotics to improve the digestive systems of farm animals.
This probiotic technology boosts the animals’ immunity and ultimately reduces the intake of antibiotics during the production process.
High prices and sustainability pressures to subdue consumption
While beef consumption is growing and affecting related markets, global beef prices are rising, according to Euromonitor International.
These prices are due to high input costs, demand from the reviving hospitality sector, and tighter supply across some producers.
Consumers could reduce their intake of more expensive beef in favor of cheaper protein alternatives.
Additionally, the sustainability of meat production is vital, with consumers looking for environment-friendly, humanely raised, and organically produced cattle, especially in developed countries.
Cattle farming is widely associated with high greenhouse gas emissions, extensive water use, and deforestation. Therefore, beef producers are bound to compete with poultry, plant-based foods, and other more environment-friendly options.
Moreover, these producers now have to embrace sustainable production methods.
Impact of the Ukraine War
Another issue that could offset the growth of the cattle feed and feed additives market is the Ukraine war.
One of the main ways the war will affect the market is because of the availability of grain, Ukraine and Russia being large grains exports.
Additionally, high energy costs after the war lead to a hike in the prices of grains, making these raw materials quite expensive.