Compound Feed Market Size to Climb USD 614.57 Billion in 2025

Compound Feed Market Poised for Growth with Rising Demand for Animal Nutrition

The global compound feed market size is expected to grow from USD 614.57 billion in 2025 to USD 986.58 billion by 2034, at a CAGR of 5.4% over the forecast period from 2025 to 2034. This market growth is propelled by the rising demand for high-quality animal protein, increasing livestock production, and the critical role of compound feed in improving animal health, nutrition efficiency, and productivity.

Last Updated: 28 August 2025 Category: Meat Products and Seafood Industry Insight Code: 5811 Format: PDF / PPT / Excel

Compound Feed Market Size, Share and Emerging Innovations by 2034

The global compound feed market size estimated at USD 583.08 billion in 2024 and is predicted to increase from USD 614.57 billion in 2025 to nearly reaching USD 986.58  billion by 2034, growing at a CAGR of 5.4% during the forecast period from 2025 to 2034. The growth of the market is driven by the increasing consumer awareness towards animal welfare and health via the food production chain, which may enhance animal welfare.

Compound Feed Market Size 2025 to 2034

Key Highlights

  • By region, Asia Pacific dominated the compound feed market share of 33% in 2024, driven by the growing animal population.
  • By region, Latin America is expected to grow fastest during the forecast period, driven by increasing demand for natural and plant-based animal food products.
  • By ingredient, the cereals segment held a major market share of approximately 45% in 2024, driven by their high starch content.
  • By ingredient, the additives segment is projected to grow at a CAGR between 2025 and 2034, driven by the increasing consumer preference towards animal health and performance.
  • By animal, the poultry segment held a major market share of 40% in 2024, driven by increasing consumer demand for meat consumption.
  • By animal, the aquaculture segment is projected to grow at a CAGR between 2025 and 2034, driven by the increasing demand for nutrient-rich and formulated feeds.
  • By form, the pellets segment held a major market share of 50% in 2024, driven by the increasing demand for livestock production.
  • By form, the crumbles segment is projected to grow at a CAGR between 2025 and 2034, driven by the increasing demand for young or small animals.
  • By distribution channel, the feed mills and cooperatives segment held a major market share of 55% in 2024, driven by the increasing focus on animal health and performance.
  • By distribution channel, the online platforms segment is projected to grow at a CAGR between 2025 and 2034, driven by the increasing consumer preference towards online animal food shopping.
  • By end use, the commercial livestock farms segment held a major market share of 60% in 2024, driven by the increasing focus on high quality livestock production.
  • By end use, the aquaculture producers segment is projected to grow at a CAGR between 2025 and 2034, driven by the increasing consumer demand for fish.

Industry Coverage

Study Coverage Details
Growth Rate from 2025 to 2034 CAGR of 5.4%
Market Size in 2025 USD 614.57 Billion
Market Size in 2026 USD 986.58 Billion
Market Size by 2034 USD 986.58 Billion
Largest Market Asia Pacific
Base Year 2024
Forecast Period 2025 to 2034
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Increasing Demand for Various Types of Raw Materials to Enhance Animal Health and Welfare May Revolutionize the Market growth in 2024

The global compound feed market covers the production, distribution, and utilization of nutritionally balanced feed mixtures formulated from raw materials such as cereals, oilseed meals, vitamins, minerals, and additives. Compound feed is widely used in commercial livestock farming to ensure optimal animal health, growth, and productivity. It plays a vital role in poultry, swine, cattle, aquaculture, and pet nutrition. Market growth is driven by rising global demand for animal protein, industrialization of livestock farming, advancements in feed formulations, and increasing focus on animal health and performance.

The market is driven by various growth factors such as the increasing focus on animal health, increasing disposable incomes, rapid urbanization, growing animal population and increasing demand for animal protein. In addition, increasing demand for animal protein, growing industrialization of livestock farming. Increasing focus on animal health and welfare, rising technological advancements and increasing consumer preference towards animal-source foods, which are further expected to drive the growth of the market during the forecast period.

  • Growing aquaculture industry: The increasing growth of the fish farming market is presenting a major demand for specialized aqua feed formulations, which may expect to drive the market growth.
  • Increasing preference towards sustainability: The increasing use of by-products from other industries and adoption of sustainable farming practices in feed formulations, which may expect to drive the growth of the compound feed market.
  • Increasing demand for livestock nutrition: Animal feed livestock helps to make an important contribution to the food chain, which is further expected to drive the market growth during the forecast period.

Market Opportunity

Rising Technological Advancements and Digitalization

One of the significant opportunities revolutionizing the market growth is the rising technological advancements in the compound feed. To optimize animal productivity and health, customized feed solutions and advanced technologies are becoming necessary in compound feed. In addition, the rising integration of advanced technologies such as Internet of Things (IoT) and artificial intelligence (AI) enabling data-driven automation and decisions and enhance digital transformation. Furthermore, to improve efficiency and reduce costs, automated feed production systems are being adopted. These advanced factors are expected to revolutionize the growth of the compound feed market in the coming years. 

Market Challenge

Resource Scarcity and Increasing Costs

One of the major challenging factors restraining market growth is the increasing high costs and resource scarcity in animal feed. Due to factors such as increased competition, geopolitical tensions and climate change, ingredients such as fishmeal, soybean and corn, which may form the huge amount of animal feed, which are very highly cost. The land degradation and water scarcity, further reducing the availability of resources necessary for feed crop production and further exacerbate the issue. In addition, the environmental effect of over-reliance on specific feed ingredients, including deforestation connected to soybean farming, may create sustainability challenges. These factors are expected to restrain the growth of the compound feed market.

Compound Feed Market Regional Insights

How Asia Pacific Dominates the Compound Feed Market Revenue in 2024?

Asia Pacific dominated the market in 2024. The market growth in the global market is attributed to the factors such as the increasing growth of poultry farming and intensive livestock, increasing disposable incomes, growing animal population, increasing demand for animal protein, increasing growth in poultry and livestock industry, growing urbanization, increasing government initiatives and policies, increasing expansion of aquaculture and rising advancements in feed technology. China, India, Japan and South Korea are dominating countries fueling the market growth in the region.

India dominated the compound feed market revenue in 2024, driven by the increasing demand for ready-to-eat fodder for animals, increasing demand for animal nutritional feed and growing aquaculture and livestock industries. In India, for the livelihood, about 20.5 million people depend upon livestock. It also offers livelihood to significant rural community. It contributes about 17.11% to the agricultural GDP and 5.1% to the country’s GDP. With one of the largest livestock populations, animal husbandry becomes a major subsidiary occupation of the farmers in India, which expected to drive the demand for compound feed in India.

Compound Feed Market Share, By Region, 2024 (%)

Latin America Compound Feed Market Trends

Latin America is expected to grow fastest during the forecast period. The segment growth in the region is driven by factors such as the increasing demand for animal protein, increasing consumer preference towards affordable protein, rising technological advancements, increasing focus on health and sustainability, increasing higher quality and safety standards and increasing consumer spending on livestock. 

Segmental Insights

Ingredient Insights

How Cereals (corn, wheat) Segment Dominates Compound Feed Market Revenue in 2024?

The cereals (corn, wheat) segment dominated the market revenue in 2024. The segment growth in the global market is driven by factors such as versatility in formulations, economic viability, nutritional contribution and primary energy source. Cereals such as wheat and corn are important to compound feed due to their cost-effective and abundant energy sources. Cereals provide metabolizable carbohydrates for animals. Cereals offer various amounts of minerals, fiber and protein, which are vital for growth and health. To create feeds, cereals can be used in several proportions tailored to the specific nutritional needs of various animal species, which may enhance animal health and growth. 

The Additives Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the market is driven by various benefits such as improved health, enhanced performance and growth, better digestion, disease prevention, improved feed quality, increased palatability, reduced antibiotic use and sustainable practices. 

Animal Type Insights

Why Poultry Segment Dominates Compound Feed Market Revenue in 2024? 

The poultry segment dominated the market revenue in 2024. The segment growth in the global market is attributed to the rising need for nutritional rich feed and cost-effective feed and rising adoption and intake of chicken and eggs across the world. In addition, with major advancements in nutrient absorption and feed efficiency, the use of compound feed in poultry feed is well-established, which is expected to boost the segment growth in the global market. 

The Aquaculture Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the market is driven by the rising consumption of seafood, rising customer trend towards fish farming and increasing aquaculture sector. Aquaculture in animal feed enhances the growth and health of aquatic animals by enhancing mineral and phosphorus availability, which considered to the sustainability of aquaculture feed. In aquaculture feed, the utilization of compound feed helps to improve the digestibility of plant-based feed ingredients, which is further expected to enhance the segment growth in the global market.

Form Insights

How Pellets Segment Held the Largest Compound Feed Market Revenue in 2024?

The pellets segment dominated the global market revenue for compound feed in 2024. The segment growth in the market is driven by factors such as the increasing hygiene and food safety through treatment, increasing feed efficiency, increasing demand for storage and handling, increasing demand for uniform nutrient distribution and reducing feed waste.

The Crumbles Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the market is attributed to the various benefits such as the increasing better growth in young animals, reducing respiratory problems and dust, improved feed intake, enhanced digestibility, and increasing uniform nutrient distribution. 

Distribution Channel Insights

What Factors Help Feed Mills & Cooperatives Segment Grow in 2024?

The feed mills and cooperatives segment dominated the market revenue in 2024. The segment growth in the global market is driven by factors such as ensuring safety and quality, enhancing productivity and efficiency, providing balanced nutrition, and providing financial support. Feed mills can significantly reduce costs, by processing and purchasing ingredients in huge volumes. In addition, leading to reduced waste, optimized egg or milk production and better weight gain, proper feed processing and formulation increase the palatability and digestibility of feed, which may expect to drive the segment growth.

The Online Platforms Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the global compound feed market is driven by factors such as increasing demand for high-quality animal feed, growing e-commerce platforms, increasing integration of internet connectivity, increasing consumer preference towards online shopping, increasing modern and busy lifestyles, improved supply chain management, enhanced brand awareness and increasing demand for direct-to-consumer sales.

End-Use Insights

Why does the Commercial Livestock Farms Segment Held the Largest Compound Feed Market Revenue in 2024?

The commercial livestock farms segment dominated the market revenue in 2024. Compound feed farms is a major commercial livestock farming which provides a efficient, consistent and balanced nutritional source for animals. It helps to reduce the risk of nutritional diseases, ensure nutritional consistency, offers economies of scale and simplifies feeding. In addition, improved animal performance and health, economic efficiency, nutritional consistency, and enhanced food safety are the major benefits that further drive segment growth.

The Aquaculture Producers Segment is Expected to Grow Fastest During the Forecast Period. 

The aquaculture producers segment plays an important role in compound feed as it supports animal reproduction, growth and health through a convenient, consistent and balanced nutrition source. By using eco-friendly raw materials, promoting a good feed conversion ratio, aquaculture producers help to improve overall sustainability, which may expected to drive the segment growth in the global market.

Compound Feed Market – Value Chain Analysis

Raw Material Procurement

  • In the compound feed industry, raw material procurement deals with the strategic process of testing, acquiring and sourcing ingredients such as vitamin supplements, soybean meal and grains to create a high-quality and balanced animal feed.

Packaging and Branding

  • Branding and Packaging for compound feed market deals with raw packaging such as containers, storage, labelling and quality control.  Packaging and branding deals with handling of individual feed ingredients, including protein meals, brans and grains.

Waste Management and Recycling

  • The waste management and recycling in the compound feed industry deals with to safely incorporating, processing and collecting food and agricultural waste into animal feed to create a sustainable nutrient source.

Recent Developments in the Compound Feed Market

Kemin Industries

  • Launch: In March 2025, a global ingredient manufacturer, Kemin Industries launched PROSIDIUM™ , a new feed pathogen control solution in Bangkok. The aim behind this launch was to help animal feed producers and raw material producers to produce safe animal feed. (Source: PR Newswire)

Association of American Feed Control Officials (AAFCO)

  • Launch: In April 2025, the Association of American Feed Control Officials (AAFCO) announced the launch of Scientific Review of Ingredient Submissions (SRIS) program to offer an accurate and fast scientific assessment of new animal food ingredients. (Source: Feedstuffs)

Compound Feed Market Leading Companies

Compound Feed Market Companies 

  • Adisseo
  • Advanced Enzyme Technologies Ltd.
  • BASF SE
  • Cargill, Inc.
  • DuPont (IFF)
  • Evonik Industries AG
  • Novozymes A/S
  • Kemin Industries
  • DSM Nutritional Products
  • Lallemand Animal Nutrition
  • AB Enzymes GmbH
  • Alltech
  • BBI Enzymes
  • Puratos Group
  • Nutrex NV
  • Biovet, S.A.
  • Oriental Yeast Co., Ltd.
  • Verenium Corporation
  • Kitech
  • Enzyme Development Corporation

Segments Covered in the Report

By Ingredient Type

  • Cereals (Corn, Wheat, Barley, Sorghum)
  • Oilseed Meals (Soybean Meal, Rapeseed Meal, Sunflower Meal)
  • By-products (Distillers Dried Grains, Bran, Molasses)
  • Additives (Vitamins, Minerals, Amino Acids, Enzymes, Probiotics)

By Livestock/Animal Type

  • Poultry (Broilers, Layers, Others)
  • Swine
  • Ruminants (Dairy Cattle, Beef Cattle, Sheep & Goats)
  • Aquaculture (Fish, Shrimp, Others)
  • Pets & Others

By Form

  • Pellets
  • Crumbles
  • Mash
  • Others (Extruded, Liquid Supplements)

By Distribution Channel

  • Direct Sales to Farms
  • Feed Mills & Cooperatives
  • Distributors / Dealers
  • Online Platforms

By End-User

  • Commercial Livestock Farms
  • Smallholder Farmers
  • Aquaculture Producers
  • Pet Owners

By Region

  • North America
  • Europe 
  • Asia Pacific
  • Middle East and Africa (MEA)
  • Latin America
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  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Vidyesh Swar, Senior Research Analyst at Towards Food & Beverages, specializes in market research, focusing on supply-demand evaluation, pricing analysis, alternative proteins, plant-based foods, and sustainable food technologies within the industry.

Learn more about Vidyesh Swar

Aditi Shivarkar, with 14+ years in Food and Beverages market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards FnB's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The global compound feed market is estimated at USD 583.08 billion in 2024 and is projected to grow from USD 614.57 billion in 2025 to nearly USD 986.58 billion by 2034, expanding at a CAGR of 5.4%. Growth is fueled by rising demand for animal protein and technological advancements in feed formulations.

Asia Pacific dominates with over 30% share in 2024, led by China and India. Latin America is the fastest-growing region due to demand for affordable protein and sustainable farming practices, making it an attractive investment hub.

Advanced technologies like IoT, AI, and automated feed production systems are enabling data-driven nutrition, precision feeding, and efficiency improvements, significantly reducing costs while boosting livestock performance.

The biggest challenges are resource scarcity, rising raw material costs (soybean, corn, fishmeal), and environmental concerns such as deforestation linked to feed crops. These factors create volatility in production and pricing.

Key trends include sustainable feed formulations using industry by-products, rising aquaculture feed demand, reduced antibiotic use, and digitalization of feed supply chains to ensure quality and transparency.

Cereals (corn, wheat) lead with ~45% share in 2024 due to cost efficiency and energy contribution. However, additives (vitamins, enzymes, probiotics) are the fastest-growing, driven by demand for animal health and performance enhancement.

Poultry accounts for ~40% of market share in 2024 due to rising global consumption of chicken and eggs. Aquaculture feed is the fastest-growing segment, supported by the booming global seafood industry.

Major players include Cargill, BASF SE, Evonik, DSM Nutritional Products, Adisseo, Kemin Industries, and Alltech. These companies are focusing on M&A, sustainable feed innovations, and digitalized supply chains to strengthen market presence.