The increasing demand for pork across the world, food safety concerns, and trends such as animal health and welfare, sustainability and environmental impacts are contributing to the growth of the global swine feed market. IMARC Group expects the market to reach US$ 141.2 billion by 2028, exhibiting a growth rate (CAGR) of 3.3% during 2023-2028. However, despite these growth forecasts, there is a decline in production, especially due to the effect of the African swine fever. According to Alltech Agri-Food Outlook 2023 report, global swine feed production, which was 322.2 million tons in 2021, decreased by 2.98% in 2022 to 319.4 million tons.
By Derya Yildiz
Swine feed, also known as pig feed, is made up of a variety of nutrients derived from both plant and animal sources, with the primary ingredients being soy meal, corn, barley, wheat, sorghum, minerals, and vitamins. There are several different pellet and mash swine diets on the market that are formulated to enhance performance objectives and herd health. Swine feed in the form of pellets is the most popular among swine farmers. In addition, several varieties of swine feed comprise of proteins that are made with all-natural plant sources and natural fungal-based enzymes which aid in the break-down of different components of the feed during digestion.
GLOBAL SWINE FEED PRODUCTION
According to Agri-Food Outlook 2023 report, prepared by Alltech, global feed tonnage totaled 1.266 billion metric tons in 2022. 319.4 million tons of this is swine feed. This corresponds to about 25.6 percent of the total compound feed production in the world. According to the report, African swine fever (ASF) and high feed prices depressed pig production in many countries. As a result of this, global swine feed production, which was 322.2 million tons in 2021, decreased by 2.98% in 2022 to 319.4 million tons.
Swine Feed Production on Regional Basis
In the global swine feed market in 2022, while the overall tonnage decreased by about 3%, there were significant differences from country to country. For example, while swine feed production decreased by more than 8% in European countries, there was an increase of around 2% in Latin American countries.
Asia-Pacific is the world’s largest producer of swine feed, but experienced a significant decrease in production in 2022. Based on data compiled by Alltech, swine feed production of the region, which was 143.5 million tons in 2021, decreased by 2.20% in 2022 and amounted to 140.4 million tons.
It is stated that the African swine fever (ASF) has a significant impact on the decline in the region. According to the report, as pork prices increase, more farms are investing in pigs. Low pork prices led to a decrease of 5.5 MMT in pig feed production in China. In 2021, there was a sharp increase in the number of breeding sows. In the first half of 2022, these pigs were quickly sold and the price of pork was reduced. This resulted in a decrease in the number of live pigs. In the first eight months of 2022, consumption of pig feed decreased by about 8%, according to the China Feed Industry Association.
China is by far the largest producer of swine feed in the region. The country produced 101 million tons in 2022. This means more than 70% of the total production in the region. China is followed by Vietnam with 11 million tons, Thailand with 8 million tons and South Korea with 7 million tons in 2022.
Europe is the second largest producer of swine feed in the world. The countries in the region produced around 81.9 million tons of swine feed in 2021. However, this production amount decreased to 75.1 million tons with a record decrease of 8.25 percent in 2022.
ASF affected the Eastern European countries and Ireland, where feed tonnage was down 2.16%. Germany reported an 8% reduction in feed tonnage due to a ban on exports to Asia. Spain, the largest swine feed producer in the region, produced 15.8 million tons in 2022. In the region, high production costs and low pork prices affected pig producers, but prices are showing signs of recovery, according to the Alltech report.
North America ranks third in world swine feed production with 62.9 million tons. In North America, feed production decreased by nearly 1% because of a reduction in pork supply, aggressive outbreaks of Porcine Reproductive and Respiratory Syndrome (PRRS), high feed and trucking costs, disruptions in trade due to shipping costs, labor shortages and input cost volatility aggravated by the invasion of Ukraine.
The USA realized 86.8% of the total swine feed production in the region with a production of 54.7 million tons.
Latin America follows North America with 36.2 million tons in world swine feed production. In 2022, swine feed production in the region increased by 2% compared to the previous year. According to the Alltech report, the pig industry expanded in Latin America, thanks to increased demand, decreases in the cost of food, favorable exchange rates and numerable opportunities to export to Asia.
In Brazil, which represent most of the Latin American swine market, feed tonnage increased by 4% from 19.7 million tons to 20.5 million tons.
In Africa, 3.3 million tons of swine feed was produced in 2022. Production in the region was down slightly, due in part to ASF and high feed costs. Better pork prices in South Africa led to an increase of 0.175 million tons of pig feed production.
In Oceania, where 1.4 million tons of swine feed production is realized in 2022, the production remained steady in Australia and increased over 8% in New Zealand to 0.164 million tons.
Finally, production remained steady in Israel, the only Middle Eastern country that produces swine feed.
MARKET GROWTH EXPECTATIONS
There are different forecasts of the global commercial scale of the swine feed market. For example, according to swine feed market report by IMARC Group, the global swine feed market size reached US$ 116.8 billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 141.2 billion by 2028, exhibiting a growth rate (CAGR) of 3.3% during 2023-2028.
Mordor Intelligence also makes close predictions. According to the company’s report, the global swine feed market size is expected to grow from US$ 103.49 billion in 2022 to US$ 128.96 billion by 2028, at a CAGR of 4.50% during the forecast period (2023-2028).
Stratistics MRC points to much higher market sizes and growth rates compared to the other two research companies. According to the company’s report, the global swine feed market is accounted for US$ 136.30 billion in 2022 and is expected to reach US$ 183.28 billion by 2028 growing at a CAGR of 5.06% during the forecast period.
MARKET DRIVERS & RESTRICTIONS
The increasing demand for pork across the world, food safety concerns, and trends such as animal health and welfare, sustainability and environmental impact stand out as the main driving factors in the swine feed market. Market research companies also draw attention to this in their reports. For example, according to the report by IMARC Group, the increasing concerns regarding food safety have created a demand for high-quality swine feed to ensure meat safety. Another factor that is stimulating the growth of the swine feed market is the rising awareness about the importance of maintaining a healthy pig diet amongst farm owners. In accordance with this, they are shifting from regular swine feed to functional and premium variants that help in improving the immunity of the animals against enzootic diseases as well as reducing the risk of metabolic disorders, acidosis, injuries and infections. Furthermore, an increase in the demand for organic pig meat from consumers in the developed nations, along with the introduction of new animal rearing practices and maintenance of high farming standards, has created a positive outlook for the global swine feed market.
Mordor Intelligence points out similar things in its report. According to the report, swine livestock production has been growing across the world to support the needs of the changing diet patterns of the populations, particularly in developing markets. In addition to the growing demand for animal protein and the industrialization of livestock production, other factors driving the swine feed market include the increasing focus on animal welfare and sustainability.
Consumers are becoming more concerned about the origin and quality of their food, leading to a rise in demand for products from animals raised in humane and sustainable conditions. This trend is driving the adoption of new feeding practices and technologies that promote animal welfare and reduce environmental impacts.
High awareness, the growing demand for animal nutrition, and the ban of antibiotics in many regions are prompting players in the livestock industry and meat manufacturers to use good quality feed and are anticipated to drive the swine feed market globally.
Stratistics MRC, which shares the same views about market drivers as other companies, draws attention to constraints in its report. According to Stratistics MRC, there are three major constraints in the market: the price volatility of raw materials, the growing veganism trend and animal diseases. According to the company’s report, the market’s expansion may be hampered by the high price volatility of the raw materials and additives used in the manufacturing of feed. For instance, a considerable increase in maize prices may adversely affect the owners of small and medium-sized pig farms’ capacity to pay it. The demand for pig meat is expected to be hampered by the increased number of people choosing vegan and vegetarian diets and giving up animal products, which would further negatively impact the industry.
Some of the major players:
ABF – Associated British Foods
ADM Animal Nutrition
AGRAVIS
Agrosuper Group
Alltech
Anyou Group
Avril Group
Betagro Group
BRF
Cargill
Cherkizovo Group
Chubu Shiryo
CJ Cheil Jedang
CP Group
Dabeinong Group
DaChan Food
Danish Agro Group
DBN Group
De Heus
DLG Group
East Hope Group
Feed One
ForFarmers
Grupo Vall Companys
Guangdong Nanbao Group
Guilin Liyuan
Haid Group
Harim Group
Industrias Bachoco
J.D. Heiskell & Co.
JA Zen-Noh
Japfa
JBS
Jiada Group
Kent Nutrition Group
Land O’Lakes
Marubeni Nisshin Feed
Muyuan Foodstuff
New Hope Group
Nutreco
Perdue Farms
Royal Agrifirm Group
San Miguel Foods
Sichuan Tequ Group Smithfield Foods
Tongwei Group
TRS Group
Twins Group
Tyson Foods
Wellhope
Wen’s Food Group
WH Group
Xinjiang Tiankang
Also, the adoption of plant-based diets and the rise in popularity of veganism are developments that are predicted to damage pig consumption in the future and reduce swine feed sales. It is also projected that the recent outbreak of various swine illnesses, including swine flu and African Swine Fever (ASF), will negatively affect product standards and overall swine feed demand during the course of the forecast period.
MARKET STATUS BASED BY REGION
In the global swine feed market, the largest markets by region are Asia-Pacific and Europe, as can be seen from the production data. According to the report by Mordor Intelligence, Asia-Pacific is the leading pork consumption and production market, accounting for about half of the world’s production. The region is the largest market for swine feed products due to the huge pork meat consumption.
Pork meat has been consumed in the region since ancient times and is the most preferred meat due to its fat content and taste. China is the primary market for pork production. In 2021, China has around 454.8 million swine population, accounting for more than 50% in the region. The demand is also generated from the processed meat industry, which is growing at a healthy rate and requires high-quality pork meat. The adoption of intensive livestock farming systems is expected to help maintain a steady growth rate of swine feed.
China is followed by Vietnam, Thailand, South Korea, Japan, and the Philippines in the region. Japan, South Korea, and Taiwan are the saturated markets for pork consumption, while Vietnam and the Philippines are emerging markets.
The Asia-Pacific is followed by Europe. The both regions have a direct impact on the swine feed market. The increasing scale of livestock production in the regions has contributed to the increase in feed production capacities in the region’s major economies, such as China, India, Russia, and Spain.
SWINE FEED INDUSTRY OVERVIEW
According to the report by Mordor Intelligence, the global swine feed market is consolidated with major players. Major companies are adopting strategies, such as mergers and acquisitions, expansion, and partnerships, to increase their market shares. The leading companies are focused on acquiring feed mills and small manufacturing facilities for the expansion of their businesses in domestic and international markets.
Resources:
1. Alltech, Agri-Food Outlook 2022 & 2023, https://www.alltech.com/agri-food-outlook/
2. IMARC Group, Swine Feed Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028, https://www.imarcgroup.com/swine-feed-market
3. Mordor Intelligence, Swine Feed Market Size & Share Analysis – Growth Trends & Forecasts (2023 – 2028), https://www.mordorintelligence.com/industry-reports/global-swine-feed-market-industry
4. Maximize Market Research, Swine Feed Market- Global Industry Analysis and Forecast (2022-2029), https://www.maximizemarketresearch.com/market-report/global-swine-feed-market/72105/
5. Stratistics MRC, Swine Feed Market Forecasts to 2028, https://www.strategymrc.com/report/swine-feed-market
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