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The global organic feed market share is expected to depict substantial expansion over the estimated period. Providing the livestock with necessary nutrients ensures proper health, growth, and breeding. To maintain livestock health, the animals require nutrients such as amino acids, carbohydrates, and fatty acids combined with a good balance of proteins, energy, and vitamins in their daily diet. Organic feed helps animals grow healthy and strong with a balanced and chemical-free diet to produce better lean meat.
The demand for organic animal products has increased globally over the past decade. This is pushing the demand for organic dairy products. Numerous studies have found that organic milk contains higher nutritional minerals, antioxidants, and omega-3 fatty acids. Rising organic dairy product demand forces livestock owners to adopt organic practices in the dairy sector.
There is excessive usage of antibiotics in animal feed which causes adverse effects. Conventional livestock regularly fed with antibiotics are passed along to human consumers, leading to antibiotic resistance. The government and regulatory bodies worldwide have banned or set a limit on using antibiotics in animal feed products. The World Health Organization (WHO) recommended farmers and food industry players prohibit using antibiotics to promote growth and prevent diseases in healthy animals. As a result, the demand for organic feed gained traction in recent years.
Feed safety is one of the critical factors impacting the purchase of animal feed. Organic products do not contain synthetic ingredients. Therefore, they are safe for animal health. Furthermore, certification standards play a vital role in ecological/organic products to ensure the risk of contamination from unapproved products or derivative substances. The increased awareness of certified organic feed for livestock is expected to support the market growth.
The COVID-19 pandemic moderately affected the organic feed market. Amid the crisis, feed manufacturers faced problems in the procurement of raw materials due to restrictions and transportation issues. Several governments across countries implemented stay-at-home orders, resulting in farmers' panic-buying of animal feed in anticipation of potential shortages. Furthermore, export ban and transportation disruptions led to problems in the demand and supply of organic feeds. However, the shift in consumer buying behavior toward healthy eating and organic products such as milk and meat gained more traction during the pandemic. The rising demand for organic foods in the dairy, poultry, and meat segment pushed the consumption of organic feed during the pandemic.
The report will cover the following key insights:
Based on source, the cereals and grains segment is expected to account for a significant revenue in the global organic feed market. Cereals form an essential source of energy and nutrients for animals. Wheat is one cereal with the highest protein content available for animal feed. A larger proportion of grains and cereals, such as barley, corn, oats, rye, and sorghum, are grown organically in North America and Europe and consumed by the animal feed sector. According to an article published by the Nutrition Reviews, globally, up to 40% of all cereal grains produced annually are used as animal feed.
The ruminant segment is expected to hold a significant share in the global organic feed industry. The consumer demand for organic milk and meat is increasing owing to their nutritional value. Thus, the diet for organic livestock refrains from using genetically modified feeds or ingredients (GMOs), antibiotics, and growth promotants of any kind. Organic ruminant meat, including goat, lamb, and beef, contains omega-3 fatty acids, antioxidants, and less cholesterol than non-organic meat. Hence, the increasing demand for organic meat is propelling organic feed market growth.
Based on livestock, the poultry segment is expected to grow at a high CAGR over the forecast period. The poultry segment is one of the fastest-growing sectors witnessing high organic production. Poultry meat consumers seek organic meat products owing to increased awareness of better health and taste of organic poultry meat. Organic feed companies are investing in new techniques and products for poultry feed production to satisfy the rising demand from consumers and suppliers. For instance, in June 2022, Citadel Environmental Solutions company, providing environmental health and safety consulting services, introduced Biocat OSAA 'L,’ an organic surface active agent.
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North America is expected to account for a considerable share in the organic feed market. The U.S. is one of the world’s largest animal feed producers and exporters. Organic food consumption, especially dairy, poultry, and meat category consumption increases rapidly in the U.S. and Canada. According to Economic Research Service USDA report, organic meat, fish, and poultry sales reached nearly USD 2.04 billion in 2020 and held nearly 4% of the organic food retail sales in the U.S. The rapidly rising demand for organic food products, especially from the meat and dairy segment, positively impacting the organic livestock production. Thus, the demand for organic feed products is growing continuously throughout the forecast period.
By Source | By Livestock | By Form | By Geography |
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