Global Organic Feed Market is Segmented By Form (Pellets, Crumbles, Others) By Type(Cereals and Grains, Oilseeds, Others), By Livestock (Swine, Poultry, Aquatic Animals, Ruminants, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Organic Feed Market Overview
(200 pages) Global Organic Feed market to grow at a high CAGR during the forecast period 2024- 2031. The competitive rivalry intensifies with Cargill Incorporated, BernAqua., SunOpta, and others operating in the market.
Organic feed is food material or fodders for the cattle, goats, poultry, swine, and other livestock that contains certified organic ingredients. Ingredients comprise wheat, barley, soybean, corn, and crops grown without the use of any fertilizers and chemical pesticides, which make the crop organic in nature. Organic feed comes in different varieties such as crumbles, mashes, and pelleted feeds, and is generally demanded by livestock owners who supply organic milk and meat. Organic feeds are in high demand, as it is free from antibiotics, drugs, pesticides, and growth hormones, which help in healthy growth of the animal health and help in improving digestion, enhancing longevity in livestock, and maintains the pH in rumen.
Organic Feed Market Dynamics
Increasing awareness of antibiotic-free solutions
Excessive use of antibiotics in animal feed can cause adverse health effects in animals. As a result, the demand for antibiotic-free meat or organic meat is increasing rapidly all across the world. Several governments and regulatory bodies of feed products have banned or set a limit on the use of antibiotics in animal feed products. Increasing demand for antibiotic-free meat products is deterring animal farmers from the use of antibiotics on their animals. This factor is propelling the growth of the global organic feed market. Feed safety has become a matter of concern for many governments around the world, particularly those in North America and Europe. Consumers around the world are becoming more aware and informed about the extrinsic attributes of the meat they consume. Due to these factors, the importance of organic feed is increasing among consumers globally. WHO (World Health Organization) is recommending farmers to stop using antibiotics routinely in animal feed. United States Department of Agriculture (USDA) has restricted the use of antibiotics in livestock production.
Nowadays, consumers are highly aware of the products they consume. More people now look at all the available information on the product, such as ingredients, chemicals used, certifications, and quality, before making a final purchase decision. In recent years, consumer perception has been changing toward meat, owing to the negative health impact of meat on the human body. As a result, vegan diets have become very popular. Organic meat has emerged as one of the preferred alternatives for consumers who are seeking a healthy and sustainable option in the meat segment. Animals fed with certified organic feed are raise to become healthy and strong. With a balanced and chemical-free diet, animals produce improved quality lean meat that lacks the unhealthy fats that industrial meat carries. Owing to this, the demand for organic feed is increasing across the world.
Organic Feed Market Segmentation Analysis
Cereals and grains segment is expected to dominate the global organic feed market
Cereals and grains include wheat, corn, and barley among others. The high growth, especially in the Asia Pacific region is attributed to the increasing awareness about the benefits of feeding organic cereals and grains to livestock, to maintain their nutrient requirements and enhance their growth, and fulfill the rising demand for organic food. High availability of cereals and grain crops in Europe and Asia Pacific due to the increasing organic farmland practices in most of the countries in the region is also one of the key factors driving the growth of the segment. China is the top country by cereal production in the world. As of 2018, cereal production in China was 612 million metric tons that accounts for 20.66% of the world's cereal production. The top 5 countries (others are the United States of America, India, Indonesia, and Russian Federation) account for 54.73% of it.
Based on livestock, poultry segment is expected to dominate the global organic feed market. Poultry meat is consumed across regions, and unlike beef and swine, it does not have any religious constraints. The global poultry meat production is growing, with two-thirds of the increase originating in the Asia-Pacific region. The consumption of poultry meat in the United States is also increasing, since it is considered a convenient product that is readily available on the market. An increasing trend on the global front is poultry meat, which grew from 119,205.21 metric tons in 2018 to 120,884.63 metric tons in 2019 (OECD, 2020). The increasing concerns about animal health and the rising awareness pertaining to the benefits of organic feed feedstuffs have contributed to the growth of this market. Due to the increase in organic poultry production and the rise in demand for organic meat, the meat producers are focusing on investing in organic rearing of livestock to produce meat, dairy, and other by-products from animals.
Geographical Penetration
Asia Pacific is expected to be fastest growing region in the global organic feed market
Asia Pacific is expected to grow with highest CAGR during the forecast period, owing to increase in exports of organic products, including meat and dairy products. In addition, Asia Pacific is exhibiting high growth, both, in terms of population and economy. Owing to this, the demand for organic feed is increasing across the region.
North America and Europe are expected to be the largest consumers of organic feed, owing to the high number of organic farms in these regions. According to the Agricultural Marketing Resource Centre, in 2016, there were 2.3 million acres of organic certified rangeland and 46,014 organically-certified beef cows in the United States. In the United States, organic beef sales totaled USD 146.7 million in 2015. According to USDA PSD data, conventional livestock feed corn use ranged between 36% and 38% of U.S. supplies from 2016/17 to 2018/19, while organic livestock feed corn use range between 51% and 62% of U.S. supplies. Between 2016/17 and 2018/19 conventional livestock feed soybean use ranged between 20% and 21% of U.S. supplies. In comparison, organic livestock feed soybean use ranged from 77% to 86% of U.S. organic soybean supply, or nearly 60% more on average than the conventional market. Besides, North America and Europe are leading consumers of organic meat and dairy products, owing to rising awareness about healthy food products and the higher expenditure power of consumers. According to the Organic Centre Organization, a large-scale review of 67 studies on the nutritional profile of organic meat in the European Union (EU) showed that organic meat contains nearly 50% higher levels of beneficial omega-3 fatty acids than non-organic meat due to required grazing and feeding practices. One study from Spain found organic beef had 17% less cholesterol, 32% less fat depending on the beef cut, 16% fewer fatty acids, and 24% fewer monounsaturated fatty acids than its conventional counterpart.
Organic Feed Company and Competitive Landscape
The global organic feed market is fragmented with presence of several players across various regions. The most active companies across the globe are Cargill, BernAqua, Country Heritage Feeds, ForFarmers, SunOpta, and Purina Animal Nutrition LLC among others. The leading companies are focused on acquiring feed mills and small manufacturing facilities for the expansion of their businesses, in both domestic and international markets. Moreover, key players in the organic feed market space are investing in research & development to innovate new products that can meet the nutritional requirement of specific animals. For instance, K-Much Feed Industry Co. Ltd. has developed a special fermentation process that allows organic ingredients to produce natural protein and energy. Natural and organic feed without extra additives provides livestock with a healthy, nutritious, and quality diet.
COVID-19 Impact on global organic feed market
The coronavirus pandemic has led to surging demand for organic and sustainable foods. People are more inclined toward consuming safe, reliable, and healthy foods, in the COVID-19 scenario. Moreover, accelerated demand for organic meat during the pandemic was driven by the consumer inclination toward consumption of protein-rich diets in light of rising fitness and health consciousness. Sales of organic food leaped 12.8% to hit a record $56.4 billion in 2020, according to the Organic Trade Association. This compares to a 4.6% growth rate in 2019. Total sales of organic fruit and vegetables reached $20.4 billion in 2020, pushed by a more than 28% jump in frozen. Sales of organic meat, poultry, and fish rose nearly 25% to reach $1.7 billion.
Even though the demand for organic feed has been relatively stable, the supply has been gravely hit by the coronavirus crisis. For instance, countries such as Romania have banned the export to Non-European Union countries thereby creating severe demand-supply problems in the feed industry. Amongst the banned grain exports include soybeans, bakery ware, flour, maize, barley, and wheat. On the other hand, China, a major supplier of organic soybean has caused disruptions for global organic feed producers in view of its draconian measures imposed to curb the Covid-19 pandemic. Moreover, the supply of containers and vessels has also been affected along with the transport of certain micro-ingredients due to China’s logistics issues. The Indian Government has ordered the partial closure of its international ports promoting further disruptions in the feed supply chain.
