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Rising poultry exports fuelling sales of poultry feed
![Rising poultry exports fuelling sales of poultry feed](https://biz-file.com/c/1809/460376.jpg)
The report, Poultry Feed Market Forecast, Trend Analysis and Competition Tracking - Global Market Insights 2018 to 2027, notes that rising exports of poultry, particularly from the European Union and the United States, have remained instrumental in driving the need for enhanced poultry production, in turn fuelling sales of poultry feed.
Fact.MR envisages that the demand for poultry feed is projected to expand at a compound annual growth rate (CAGR) of 7.1% in terms of volume during the period of forecast 2018-2027. The research also reveals that the sales volume of poultry feed is likely to cross 890,000,000 tonnes by the end of the assessment year.
Meeting consumer needs, government regulations
Poultry feed producers have been focusing on carrying out developments in their products and processing methods in a bid to cater to the growing needs of consumers, as well as abide by laws laid by regulatory authorities regarding greenhouse gas emissions. This has also triggered the use of clean labels as a measure to assure safety of poultry products by communicating ingredient information to the consumer. In addition, being largely driven by industry-specific aspects, manufacturers can expect momentous growth in the forthcoming years, says the report.
Government regulations regarding the use of antibiotics in raising poultry are likely to impact the poultry feed market. For instance, the European Union has banned the use of antibiotics in poultry feed owing to health risks associated with these formulations. The FDA has passed various legislations, such as Guidance #213 which has banned the use of antibiotics. This factor has opened new avenues for the use of other additives including enzymes and premixes to poultry feed to enhance productivity. Moreover, the FDA has also allowed the use of insect proteins, such as the use of Black Soldier Fly Larvae (BFSL), in poultry feed that can act as a sustained protein source.
Increase in broiler production
Growing broiler production is likely to trigger the sales of poultry feed across the globe. The United States Department of Agriculture estimates that broiler production is anticipated to increase by 2% by 2018-end to reach 92.5 million tonnes. This aspect is expected to fuel use of poultry feed in broiler production during the 2018-2027 period.
Corn as a source for poultry feed has gained significant traction over the past couple of years. Poultry feed derived from corn provides high nutrition and palatability, along with high protein and low fat content. Corn poultry feed can replace other sources such as soybean by offering cost superior reductions during production. Sales of poultry feed from corn sources are estimated to cross $123bn by the end of 2027, making it a lucrative investment area for stakeholders in the poultry feed market.
Briquettes vs pellets
Sales of poultry feed in the form of briquettes are likely to account for a major share in the entire poultry feed market. However, the demand for poultry feed pellets are projected to witness a relatively higher growth with respect to adoption owing to the enhanced feed conversion ratio, feed intake and weight gain.
Demand for poultry feed continues to remain concentrated in the emerging economies of Asia Pacific. Countries such as China and India have been showcasing increasing preference for broiler meat over the past few years. This has resulted in the increasing dependence on quality poultry feed to cater to the growing poultry production. On the other hand, sales of poultry feed in the United States is likely to account for a lion’s share in the poultry feed market, making North America an attractive region for stakeholders from an investment standpoint.
Overall, stakeholders in the poultry feed market can expect an opportunistic scenario driven by a combination of industry specific and macroeconomic factors during the assessment period.
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