South America Ruminant Feed Premix Market - Growth, Trends and Forecasts (2020 - 2025)

The South America Ruminant Feed Premix Market is projected to register a CAGR of 3.4% during the forecast period(2020-2025). The increasing demand for high-value animal protein and declining feed conversion rates are driving the animal feed premix market. Additionally, increasing the production of compound feed and feed additives is driving the market further as feed premixes are the substance used to enhance the nutritional content of the feed. In the studied market, Brazil dominates the market as it accounts for higher feed production driven by increasing meat consumption and production. The South American feed premix market is slightly concentrated with the dominance of a few international players accounting for the major share in the market. Some of the major players operating in the market are Cargill Incorporated, Nutreco, CCPA group, ICC, and Kemin Industries, Inc.

Key Market Trends

Increasing Feed Production Drives the Market

The demand for high-quality compound feed from the livestock industry due to increased industrial production of meat and dairy products has triggered an increase in the consumption of the compound feed and feed additives. According to the Food and Agriculture Organisation (FAO), in 2017 the cattle and buffaloes population in the region was 358.17 million that has increased to 358.61 million in 2018. Also, the poultry bird population increased from 2637.36 million to 2684.75 million during the same period. Furthermore, Beef is the highest consumed meat type in Argentina, according to the Organisation for Economic Co-operation and Development (OECD) in 2016 per capita beef and veal consumption was 39Kg that has increased to 39.7 Kg in 2019. Large-scale producers and meat manufacturers use additive premixes to ensure a steady supply of nutrients to the animals, enhance production and performance. Thus, the rise in demand for feed additives is driving the market for feed premixes.

Brazil Dominates the Market

According to the Brazilian Beef Exporters Association (ABIEC), in 2018, the beef cattle accounted for USD 116.22 billion, 8.3% up on the USD 107.31 billion posted in 2017. The beef cattle GDP thus grew to an 8.7% share of the overall Brazilian GDP. Furthermore, of the 10,959 thousand tons of beef meat produced 2,205.2 thousand tons of meat is exported which is 20.1% of the total beef produced in 2018. The domestic consumption of feed in Brazil is very high as meat production in the country is also high. According to the ITC Trade, in 2016, beef export amounted to 938.3 thousand metric tons which have raised to 1,356.6 thousand metric tons with a value of USD 5,610.76 million in 2019. China and Hong Kong continued to dominate as the top two destinations for Brazil’s beef exports, accounting for 60.8% of total beef shipments in 2019. Thus, the rising meat production coupled with the increasing export market will drive the market for feed during the forecast period.

Competitive Landscape

Some of the major players are Cargill Incorporated, BASF SE, Archer Daniels Midland Company, CCPA GROUP, ICC, and Nutreco NV. These companies focus on expanding their businesses by adopting various strategies. Moreover, they are increasing their investments in R&D activities for launching new products with better, latest, and new features. For Instance, in 2018 Neovia, acquired Biomix a leading premix manufacturer in Colombia. This allows the company to strengthen its positions on the premix market with a portfolio brand toxibond and biocalcio and gain a significant market position in South America.

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