January 21, 2015

Rapid growth of Chinese animal feed market seen till 2019


The Chinese animal feed market will continue to grow rapidly in the coming years in step with the country's rising demand for meat and meat products especially pork, as well as demand for milk and dairy products, according to a recent report by the global market research and consulting company TechSci Research.


The report, titled "China Animal Feed Market Forecast & Opportunities, 2019", said the China animal feed market is projected to register a compound annual growth rate (CAGR) of more than 16% during the period 2014-19, in value terms.


Growing demand for processed meat and protein diet due to rise in household income levels would continue to drive the demand for animal feed from various livestock and poultry farms, the report said, adding the swine feed segment is expected to maintain its dominance.


South China is seen to be the leading revenue generator over the next five years.


"Continuing rise in the production cost of feed is making the companies to increase focus on enhancing their efficiency in feed production. This has resulted in various technological advancements to produce better feed at lower costs over the last decade", said Karan Chechi, research director with TechSci Research.


"Various companies have also been looking for raw material substitutes that are relatively cheap. However, over the course of next decade, food safety issues are expected to take the center stage and significantly change the feed formulation process in the country", Mr. Chechi added.


"China Animal Feed Market Forecast & Opportunities, 2019" evaluates the future growth potential of China's animal feed market and provides statistics and information on market structure and consumer behavior trends.


The report-intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation—includes animal feed projections and demand forecasts. It also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in the Chinese animal feed market.


Over the past decade, China's animal feed industry has seen increasing consolidation. From 15,518 feed mills in 2005, the number has dwindled to 10,843 as of 2010. However, the overall production is seen to grow steadily over the forecast period.


The Chinese animal feed market continues to be highly dependent on the prices of raw materials including wheat, corn and soy.


The aquatic feed segment is also experiencing significant growth as seen in the expansions occurring in the aquaculture industry.

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