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

The South America Ruminant Feed market is projected to grow at a CAGR of 3.5% during the forecast period (2020 - 2025). A ruminant feed is fodder that is blended from various raw materials and additives. These blends are formulated according to the specific requirements of the target animal. The ruminant feed is one of the prominent aspects of cattle healthcare since it has a direct correlation with productivity and outcome from animal farming. It plays an important role in improving the cattle digestive system by pH shift and metabolic modification, and secondly, helps in improving and maintaining the growth of animals by providing important nutrients such as amino acids and vitamins. The major drivers for this market include increasing demand for high-value protein, increased awareness regarding the safety of meat and milk products, and increased industrial livestock production. Furthermore, increasing focus on cattle health to prevent disease is further anticipated to boost the demand for ruminant feed in this region during the forecast period.

Key Market Trends

Growing Demand for Animal Feed

The highest growth for meat consumption is recorded in the South American region because of changing diet patterns, urbanization, rising population, and economic growth. In recent years there is an increasing awareness among the population, regarding the health benefits of protein intake. This brought several changes in dietary habits and consumption patterns, where the shift towards the increased consumption of meat and dairy products has been observed. Owing to this, the production quantity of ruminant meat has shown a positive growth rate of 8.3% from 2016 to 2019. Due to rising health consciousness among consumers, they are focusing on nutritious rich products, derived from cattle that are provided by enriched feed products. This increasing demand for various animal products is imposing a positive impact on the growth of the ruminant feed market in this region.

Brazil Dominates the Market

The Brazilian feed sector is the third-largest feed sector in the world, mainly due to the high amount of raw materials produced in this country and the size of the country. According to Alltech Global Feed survey data, Brazil produced a total of 69.5 million metric tons of animal feed in 2019, of which approximately 14 million metric tons accounted for feed produced for ruminants. The increasing demand for meat protein has triggered the ruminant meat production in the country, which in turn increased the uptake of ruminant feed and is expected to show a healthy growth rate further. Ruminant feed, apart from improving nutritional value, also plays a vital role in the quality improvement of meat and hence, gaining importance in the market. Furthermore, the growing population, increasing per capita consumption of meat, and the increasing adoption of intensive farming methods are the major factors driving the demand for ruminant feed in Brazil.

Competitive Landscape

The Ruminant Feed market in South America is consolidated with many players present in the market. There is a presence of key global players in the market such as Cargill, Land O Lakes Inc., ADM, Kemin Industries, and Lallemand animal nutrition. These firms are developing new strategies by significantly investing in Research and development and are coming with new products in this segment to build up a huge presence and gain a strong customer base in the market. For instance, recently in the year 2020, Kemin Industries launched Kessent and CholiGem to widen its Ruminant product portfolio.

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