October 21, 2014

Global feed premix market to grow 3% CAGR to $7B in 2020

The global feed premix market is seen to grow at a CAGR [compound annual growth rate] of 3.1% to US$6.99 billion in 2020 from US$5.66 billion in 2013, according to forecasts released by Research and Markets.

A major driving factor for the growth is the increased demand for cost-effective and high-quality feed from farmers to boost farm animal productivity, according to Research and Markets.

Consumer demand for high quality-meat from the meat-processing industry has also translated into demand for feed premixes from farmers.

Asia and North America, according to the forecasts, will account for around 60% of the global market as both regions will be the major producers and consumers. The US and China will be the leading producers and China, India and Brazil will be the fastest-growing consumers.

Stable economic conditions and the resulting increased meat consumption are fuelling the growth in demand for premixes in. Asia-Pacific, Research and Markets said.

It said the following will be the trends in the premix industry during the period 2014-20: 

• Mergers and acquisitions (M&A) will be the key business strategy for major players looking to consolidate in Southeast Asia and other developing regions.
   
• Key players in the market will expand their business by setting up new plants to increase production capacity. 
     
• Companies will invest in production processes to reduce the cost of production and cater to increasing demand. 
     
• Major players in the market will continue to be Cargill Inc. (USA), DSM NV (The Netherlands), Nutreco NV (The Netherlands) and Archer Daniels Midland (USA), among others.