(PRWEB) May 06, 2014
According to Mordor Intelligence research and analysis, Cargill and ForFarmers are the most active companies operating in the compound feed market while ADM (US), Nutreco N.V. (The Netherlands) and Charoen Pokphand (Thailand) are some of the biggest.
But, like always, Mordor Intelligence questions – Who is the competition? Is it the multinationals or the local feed mills that account for about 94% of the global market? What are the most active companies doing to gain market share? And what should existing players be doing?
A glimpse at the statistics:
In 2013, the global compound feed production was around 950 million tons and the market was worth around $480 billion. The global market for compound feed is estimated to grow at a compounded annual rate of 1.5% between 2014 and 2020. Asia-Pacific and South America are estimated to be the fastest growing regions with estimated CAGR of 1.7% and 1.8% respectively.
Know more about the fastest growing markets:
Among feed ingredients, cereal forms a major part of compound feed, occupying a 37% share. The compound feed additives market is expected to grow at a CAGR of 4.1% in value terms during the forecast period, to reach $44,342 million by 2020. Antioxidants are the fastest growing feed additives, set to grow at an estimated CAGR of 4.6%.
Increased consumption of meat and aquatic products, buoyed by growing middle class incomes in emerging economies like China, Brazil and India, will be a major growth factor. Increasing industrial livestock production and technological innovations in the meat processing industry are creating demand for high quality meat, thereby driving the market for compound feed. Demographic factors like increasing number of double income families and economic strength both in the developing and developed worlds are driving the companion animal feed market. Although the increasing cost of raw materials is restricting the growth of the compound feed market, it is driving the market for feed additives. Rising demand for organic meat has created an opportunity in the industry for organic feed.
The question remains: Where should companies invest resources? What is the best way to crack a particular market/geography?
Mordor Intelligence understands that the needs of each organization are unique. Companies have unique research requirements owing to product strategy, geographical presence, company vision, outlook towards innovation, and other factors.
Case 1: AmericanFeed is a North American feed company. They would like to capture a bigger pie of the North American market before expanding to Europe or Asia-Pacific. What can they do to differentiate in the North American compound feed and feed additives market?
Case 2: John is a Europe-based animal feed business consultant. John’s client, a company based out of Asia-Pacific, wants to expand into Europe. What strategy should John advocate? Should the client acquire a local player or should they set up their own feed mills? If so, how would they find customers? Who would they be competing with? Should they even enter the European market? Is it better to gain more market share in Asia-Pacific or is it easier to enter the African Market?
Case 3: BlueFeeds is a company that has mastered the blue ocean strategy. They believe there is fortune at the bottom of the pyramid and have proved it through agricultural food production in Africa. Now, they want to focus on the African Animal feed industry. Their goal is to lead through the entire value chain, from Animal Feed to human food. They would like to define the market even before competition considers entering the market. Is this the best time to enter Africa? And if yes, how should BlueFeeds go about it?
Case N: Mordor Intelligence has a solution here: info(at)mordorintelligence(dot)com