Resilient, Reforming, and Regional: The Global Feed Industry Adjusts to a New Normal
Poultry Leads, But with Caution
Poultry retained its dominance, accounting for 42.7% of global feed tonnage. Yet growth slowed to 1.7%, as Highly Pathogenic Avian Influenza (HPAI) outbreaks ravaged flocks in North America, Asia-Pacific, and parts of Europe. The U.S. alone saw a 20% spike in egg prices, prompting a $1 billion federal intervention package. Despite this, broiler feed production rose by 1.8%, buoyed by red meat price inflation and continued consumer preference for affordable protein.
Pet Food Ascends
The pet food sector proved once again to be the industry's most dynamic. With global tonnage increasing 4.5%, driven by premiumisation and rising pet ownership, especially in emerging markets, it now outpaces many traditional livestock segments in growth. Asia-Pacific led the surge (+11%), while Africa registered an astonishing 60% gain—albeit fr om a lower base.
Regional Realignments
Feed production in Asia-Pacific declined by 0.8%, largely due to a sharp 6.5 million tonne drop in China, wh ere disease, oversupply, and restructuring combined to depress pig, beef, and aquaculture volumes. Nevertheless, China added 475 new feed mills, signaling a pivot toward technologically advanced, vertically integrated facilities.
In contrast, Latin America (+3.6%) and Africa and the Middle East (+5.4%) posted the strongest gains. Latin America's growth was fueled by poultry and pork exports, while Africa’s surge reflects rising urban demand and a shift fr om pasture-based to commercial operations in both dairy and beef.
Europe showed cautious growth (+2.7%), with rebounds in pig and aquaculture feed. However, long-term prospects are constrained by regulatory pressures, herd decline, and volatile markets. The region remains a global leader in sustainability practices, particularly in aquaculture feed, wh ere alternative proteins are displacing traditional fishmeal.
Disease and Disruption
The impact of animal disease remains structural. ASF and HPAI have reshaped global production flows and altered consumption patterns. Consumers in Asia increasingly turned to eggs over meat, while North America saw contraction in layer feed due to flock reduction. Biosecurity and vaccine innovation have become imperatives—not options.
The Feed Economy: Shaped by Inflation, Trade, and Technology
Rising input costs and supply chain fragmentation—particularly in regions dependent on imports—exerted pressure on margins. At the same time, lower grain prices in some markets helped boost feed margins and export competitiveness. Trade tensions between the U.S. and China, and conflicts in Africa and the Middle East, complicated feed ingredient flows.
Technology is playing a growing role in navigating this complexity. Survey respondents highlighted nutritional innovation, genetics, and renewable energy technologies as key drivers of feed efficiency and sustainability in 2025. Governments, especially in Europe and Latin America, are leading sustainability initiatives, while North American trends are increasingly consumer-driven.
Outlook for 2025: Modest Optimism, Conditional Growth
The outlook for 2025 is cautiously optimistic. Poultry and pet food remain the bright spots. Dairy feed continues to rebound (+3.2%), with Europe and Africa showing the strongest recovery. Pig feed, however, declined globally by 0.6%, with persistent disease concerns and mixed economic signals clouding the forecast.
The industry’s challenge is not one of volume but volatility: managing disease, navigating inflation, and responding to consumer and regulatory demands simultaneously. Still, if the sector continues to invest in innovation, infrastructure, and collaboration, its slow but steady growth may prove more sustainable than the boom-and-bust cycles of the past.
