The global animal feed protein market is forecast to grow at a CAGR of 2.2% during the forecast period of 2016 and 2022
The overall growth will be primarily driven by the increased awareness of nutritional benefits of using protein and other micro ingredients in the formulation of animal feed.
The food industry is expected to face the challenge of feeding more than 9 billion people by 2050, but this offers an opportunity for the animal feed industry, as well. Apart from the population growth that will probably lead to increased demand, consumers are demanding more animal protein, particularly as those in developing countries continue to adopt Westernized lifestyles. Consumers are becoming more affluent, thus their ability to afford more meat has increased. However, how much the increasing demand in developing countries will offset the steady increase in mature regions like Europe remains to be seen.
In most countries, regulatory bodies ensure that the feed industry adheres to feed safety, which could be translated to food safety for human consumption. Strict regulations create increased confidence in the quality of feed ingredients manufactured. These regulations are expected to become stronger and have an impact on the market, as governments increasingly work toward ensuring food security and safety.
Furthermore, globalization gives rise to increased international trade, which means that countries need to offer good product quality to stay competitive in the global market. More collaboration is expected in the industry, to ensure that issues are tackled globally. Most large participants have a global presence, which offers the participants an understanding of the regulations in different countries.
Of all protein sources, Soymeal, a product from the most popular oilseed soya bean, has the highest amount of crude protein. Hence, it is in great demand, particularly in China, the largest importer of soya beans.
In addition, feed ingredient manufacturers are likely to try to stay competitive by means of innovation and new product development, which will be achievable through increased investment in R&D. This, in turn, would provide more evidence that can support market growth.
In addition, market participants that go the extra mile to provide technical support will have a competitive advantage, as farmers look for information on not just the know how’ but also the do how’. Animal feed protein market is a highly fragmented market, with Sojaprotein and Wilmar garnering a significant market share due to their wide product portfolio, with offerings in almost all segments, and their global presence.