Rapid urbanization in the developing economies associated with the rising world population is constructing food challenges. According to the United Nations Department of Economic and Social Affairs, the current global population is 7.6 billion and is expected to reach 8.6 billion in 2030. Owing to the depletion of arable land as a result of industrialization, food security is a major objective, and livestock products are the prime means to meet such conditions. According to Food and Agriculture Organization of the United Nations, livestock supports food security of approximately 1.3 billion people and contribute 40% of the global value of agricultural output and support the livelihoods with food security concerns. Animal nutrition is a necessity with increasing uptake, for the mandatory affluence of global livestock sector and primarily for the rampant production of protein-enriched commodities such as meat, eggs, and milk to feed the majority of the non-vegetarian population in Asia-Pacific region. Increasing disposable income of the population and rising consumer health awareness towards protein-enriched products such as milk, eggs, and meat are the key factors influencing the growth of the Asia-Pacific animal nutrition market. As of 2018, APAC animal nutrition market size was around 5.2 billion and is estimated to be progressing at a CAGR of 5.1% during the forecast period 2019-2025.
APAC Animal Nutrition Market Driven by Rising Demand in the Animal Husbandry Sector
APAC has a booming animal nutrition market due to huge non-vegetarian population. The developing nations in this region are witnessing considerable growth in income, and major population in these economies are now able to afford meat consumption. The growing consumption of meat across APAC is creating a definite demand influx in the livestock feed market. In India, the livestock population especially cattle, are associated with rising human population, and government initiatives like establishment of Animal Husbandry Infrastructure Development Fund (AHIDF) will ensure the development of infrastructure in the animal husbandry sector. According to the Department of Animal Husbandry and Drying, about 176.4 million tons of milk production was recorded in 2017-2018. India holds the first rank among the global milk producing nations since 1998 with the largest bovine population globally. As per the United Nations Population Division, children below the age of 15 years constitute a major 26% of the world population as of 2019. The demand for dairy milk feeding to the population under 15 years of age for their nutritional management is a major factor impelling the growth of the cattle feed industry in this region. The market is flooded with several options as well for specific species and conditions. For example, excess intake of rapidly digestible carbohydrates such as cereals and barley leads to Rumen Acidosis disease in cattle. This metabolic disease often results in death; this can be prevented by good diet formulation, which includes a proper balance of fiber and non-fiber carbohydrates and excellent feed bunk management. The factors mentioned above and the growing demand for less carbohydrate diet are the factors triggering the growth of the animal nutrition market.
Poultry Industry and the Prospects for the Asia-Pacific Animal Nutrition Market
Increasing consumption of poultry and pork as sources of protein is another key factor anticipated to boost demand for the animal nutrition market in the Asia-Pacific region. According to the Department of Animal Husbandry and Dairying, in India broiler production was approximately 4.5 million in 2017. Changing food habits of the middle-class population in this region and growing demand for more plentiful and less costly protein products is inciting the demand for broiler feed market. Increasing employment levels, growing demand for ready-to-eat foods, a general preference for poultry over other meats on a price basis, have influenced the Asia-Pacific animal nutrition market size. As a part of the Mid-Day Meal Scheme initiated by the Ministry of Human Resource Development in some states of India, eggs are supplied as a nutrient-rich food item in their menu. To ensure balanced and nutritious diet to children of primary and upper primary groups, the government of India has taken this initiative, which in turn, led the higher consumption of eggs thereby increasing the demand for animal nutrition market share in this region.
The Ongoing Trend of Pet ’Ownership’ to ‘Parenting’ and Increasing Demand for Blood Meal as Animal Nutrition in APAC
APAC countries such as Vietnam and China are among the largest meat products consumers. A blood meal is a heterotrophic nutrition, used as a livestock dietary supplement usually comes from cattle or hog as a slaughterhouse by-product. Nowadays, rising obesity or overweight among pets is a serious concern from pet owners. Usually, pet owners fed their animals with the leftovers from family meals. However, consumers are now becoming aware of the fact that pet food consists of separate nutritional elements, and that pets need to be fed a diverse range of food, as part of an adequate diet, which in turn, is triggering the demand for animal nutrition market in APAC region.
The application segment that will be creating the most lucrative opportunities for the Asia-Pacific animal nutrition market is fodder. This application segment is projected to grow at a CAGR of 3% through to 2025. Fodder, a type of animal foodstuff, is used explicitly to feed domesticated livestock. According to Agri Exchange, India’s cattle and water buffalo population was approximately 305 million head in 2018. An increasingly urban population is creating a huge demand for animal-based food products, particularly milk. This factor is attracting more people to start dairy farms for sustainable livelihood, and such activities are influencing demand for fodder in this region.
The Major Players in the Asia-Pacific Animal Nutrition Market:
Prominent players in the Asia-Pacific animal nutrition market include Archer Daniels Midland, Cargill, Incorporated, Purina Animal Nutrition (Land O’Lakes), New Hope Group, and Weston Milling Animal Nutrition.
Mergers and acquisitions are the other key strategies adopted by the players to stay ahead of their competitors. New Hope Group, China-based livestock, and animal feed provider has announced its acquisition with Real Pet Food, an Australian pet food company, on Dec 20, 2017. With this acquisition, New Hope Group can provide animal nutrition ingredients and solutions best-in-class customer service and leading R&D capabilities for animal nutrition customers across the globe. Such joint ventures aid the market players to expand their geographical boundaries and accentuate their footprint into the global Asia-Pacific animal nutrition market.
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