During the projected period (2023 to 2033), the global animal feed processing equipment market is expected to grow at a CAGR of 4.2%. The animal feed processing equipment market is projected to be valued at US$ 23.1 Billion in 2023. It is anticipated to reach a valuation of US$ 34.8 Billion by 2033.
As per a recently published report by FMI, global demand in the animal feed processing equipment market witnessed an impressive year-on-year (YoY) growth of 6% in 2021. The report also suggests that during the forecast period, by function, pellet mills are set to dominate the market in terms of revenue in the animal feed processing equipment market.
By feed type, the ruminant feed industry is the current largest consumer in the global animal feed processing equipment market. However, the segment is expected to showcase growth at a lower CAGR than the poultry feed industry.
Rising demand for high-quality feed and rapid industrialization of livestock production, especially in the aquaculture sector, is set to pave the way for equipment manufacturing companies to explore the animal feed processing equipment market. The development of highly advanced and automated machinery by key companies to cater to the surging demand from livestock farmers is also expected to boost the global animal feed processing equipment market in the next ten years.
Moreover, the high demand for feed additives and compound feed, especially in emerging economies has created new growth opportunities for machinery manufacturers to provide a large number of advanced machinery and equipment. Also, the ongoing expansion of feed-based industries across the Asia Pacific is anticipated to foster the global animal feed processing equipment market in the evaluation period.
The global market is anticipated to grow at a fast pace with increasing demand for animal feed across the globe, availability of various customized services, technological advancements in the field of machinery, and growing awareness regarding feed health & nutrition among farmers. In December 2021, for instance, BASF introduced Natupulse TS, its latest enzyme product for animal feed. It is a non-starch polysaccharide (NSP) enzyme that can lower digesta viscosity, ensure more sustainable production, and elevate the digestibility of the feed.
Why is the USA Showcasing Lucrative Demand for Animal Feed Processing Equipment?
Rising Exports in the USA to Push Sales of Animal Feed Processing Machines by 2033
According to FMI, the animal feed processing equipment market in the USA is the largest in the world with around 20% of the share globally. It is likely to be valued at US$ 4.3 Billion and will continue to exhibit growth at a CAGR of 5.13% from 2023 to 2033. In 2019, the USA shipped US$ 2.8 billion worth of animal feed products to the global market, accounting for almost 11% of the global animal feed exports. Increasing exports to countries such as Canada, Mexico, and Indonesia will drive growth in the USA animal feed processing equipment market.
Can International Companies Distribute their Animal Feed Processing Equipment in India?
Demand for Affordable Semi-automatic Animal Feed Extruders to Surge in India
The Indian animal feed processing equipment market primarily caters to the poultry and cattle feed industry. India’s poultry feed industry is reeling and is heavily dependent on imports. The reason for the struggle of the Indian poultry market has been the tripling of animal feed prices in the country, which is leading to the government relaxing import duties.
Demand for efficient and effective pellet coolers in India has also increased due to the warm weather. Cost-effective solutions are needed by feed manufacturers in the country. Automatic feed mill plants in India cost around US$ 8000. Maintenance costs and surging prices of raw materials mean India will be dependent on semi-automatic feed mill plants, which cost around 90% less than their automatic counterparts.
Global Animal Feed Processing Equipment Market Outlook
The increasing popularity of aquaculture is set to attract a great deal of attention among aquafeed companies operating across the globe. The global animal feed processing equipment market exhibited steady growth at a CAGR of 3.1% during the historical period from 2017 to 2021. For the aquaculture industry to maintain its current growth rate, the delivery of feed and nutrient inputs will have to surge at a similar rate, while the production of aquatic ingredients remains static. Other industries are also currently competing for achieving the same feed resources.
But, the high demand for more feed, especially for catfish and tilapia, as well as considerable growth in the aquaculture industry is set to spark the interest among the majority of the small-scale companies to process their own feed, rather than buying a complete fish feed. It is also expected to compel small-scale farmers to install feed processing equipment.
Increasing awareness among farmers regarding the benefits associated with feed processing machinery and rising costs of compound feed are anticipated to push the global animal feed processing equipment market. As per FMI, the market is projected to exhibit growth at a CAGR of 4.2% during the forecast period from 2023 to 2033.Source : FMI