South America Poultry Feed Market - Growth, Trends, and Forecast (2020 - 2025)

The South America Poultry Feed Market is projected to register a CAGR of 2.5% during the forecast period. The increasing demand for poultry meat products is the major factor that is driving the market. The increasing industrial livestock production and the increasing demand for organic feed are two other factors augmenting the growth of the market studied. As poultry requires 60% protein, 13% fat, and 3% calcium, the required nutrient content is met majorly by poultry by-products and fish meal. Approximately 50% of the live market weight of ruminants and 30% of poultry is the by-product. These by-products are rendered, ground, and available as a feed source for poultry.

Key Market Trends

Increasing Demand for Poultry Meat Products

The demand for a higher value and quality foods, such as meat, eggs, etc. is increasing compared to plant-originated foods, such as cereals, owing to the rising demand for greater food varieties and protein intake. These changes in consumption, together with sizeable population growth, have led to large increases in the total demand for animal products in many developing countries. Furthermore, this trend is expected to continue in the coming years. With increased animal protein production, there is likely to be increased demand for feed, especially the demand for ingredients high in protein and energy. This is supported by the global feed survey conducted by Alltech, which reported the global broiler chicken feed production at 307.28 million metric tons in 2020. As poultry requires 60% protein, 13% fat, and 3% calcium, the required nutrient content is met majorly by poultry by-products and fish meal. Approximately 30% of poultry is a by-product. These by-products are rendered and ground and are available as a compound feed sources for poultry. As poultry meat consumption is witnessing an increasing trend in the region, the demand for poultry feed is projected to increase during the forecast period.

Brazil is Dominating the Market

According to the AllTech feed survey in the year 2019, South America has approximately 3,715 mills with an annual production capacity of 120.2 million Metric Tons. According to the studies, The feed segment in Brazil is the third-largest feed sector in the world. This is mainly attributed to the high production of raw materials in the country coupled with the enhancing consumption of meat within the country. The domestic consumption of feed in Brazil is very high as it is a hub for meat production, regionally. According to the AllTech feed survey in the year 2019, There are around 1,580 feed mills situated in Brazil. Poultry business in Argentina is growing by 10% annually, primarily focused on exportation as the cost of chicken meat in Argentina is the cheapest in the world. The poultry industry accounts for the maximum share in the Argentinian compound feed market, and it also utilizes most of the feed. Overall the poultry feed production in the region, Brazil holds the major share in the production to the increased poultry meat consumption in the country. Hence this trend is expected to significantly push the growth of the poultry feed market in the region during the forecast period.

Competitive Landscape

The global poultry feed market is fairly fragmented, with the presence of various participants across several countries. The market studied displays unique characteristics, such as very few large manufacturing companies on the one hand, and on the other hand, a highly unorganized market with several regional players with small market shares. The leading companies are focused on acquiring feed mills and small manufacturing facilities for the expansion of their businesses, in both domestic and international markets.

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