The GCC Compound Feed Market is projected to grow at a CAGR of 7% during the forecast period (2020-2025). The growing demand for meat and aquaculture products is the major driving force behind the growth of the compound feed market. Increased awareness regarding quality meat and milk products and increased livestock production are two other factors augmenting the growth of the market studied. Feed is the largest and most important component for ensuring safe, abundant, and affordable animal proteins. This growth of the compound feed market is thus largely fuelled by the rise in meat consumption, increasing disposable income and increase in mass production of meat.
Key Market Trends
Increased Demand for Meat Drives the Market
The demand for higher-value and quality foods, such as meat, is increasing compared with plant-originated foods, such as cereals in the GCC countries. The region’s increase in meat consumption is in line with the rising global trend of consumption of protein-rich foods, particularly organic and healthy produce with a strong, branded and most often halal provenance. These changes in consumption, together with sizeable population growth, have led to large increases in the total demand and production for meat in these countries, and this trend is likely to continue. According to FAO, meat production in Kuwait and Oman increased from 97.3 and 76.1 thousand metric ton in 2016 to 108.0 and 80.0 thusand metric ton 2018, respectively. Meat products are growing rapidly due to the increasing health concerns along with the growing disposable income especially in the developing countries such as Saudi Arabia and Bahrain. The growing demand for quality meat has created an opportunity for feed manufacturers to enhance animal productivity. This has led to the growth in the usage of feed additives, thereby, boosting the compound feed in the growth of the animal feed market.
Poultry Feed Dominates the Market
Chicken is one of the most popular meats in the region. According to the US Department of Agriculture (USDA), the share of the United States poultry exports to Saudi Arabia have reduced from 10% in 2017 to 9.1% in 2018, primarily due to the stringent regulations from the Saudi Food & Drug Authority (SFDA) that mandates a Food Safety & Inspection Service (FSIS) issued health certificate for the imported poultry meat attesting that the poultry had been fed vegetable protein and were free from growth hormones. The sharp increase in the imported chicken prices have made the locally produced chicken more competitive, thus, proving advantageous for the various stakeholders in the value chain including the poultry producers, wholesalers, and retailers in Saudi Arabia. This is also seen as a opportunity for local growers to increase their market share, thus demand in high quality compiund feed is likely to continue in the GCC region during the forecast period.
Competitive Landscape
The GCC compound feed market is moderately consolidated in the region with many established players along with few smaller players. Leading companies focused on acquiring feed mills and small manufacturing for expansion of the business in local as well as foreign markets. Some of the players have been expanding their geographical presence by acquiring or merging with the manufacturers in the foreign market. The leading companies focused on the expansion of the business across regions and setting up a new plant for increasing production capacity as well as a product line. The companies are also increasing production capacities of their existing plants.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
Methodology
LOADING...
