South America Animal Feed Market Outlook, 2029

Animal feeds are important source of nutrients for animals. Animal feeds are food items grown or produced for consumption of livestock. The animal feed industry encompasses various sectors such as poultry, aquaculture and cattle. As one human needs, vital and crucial nutrients for development and growth of their body, animal’s even needs nutrients for their livelihood and growth. Different types of feeds are available in the market sourced from plants, animal meat, organic or inorganic substances. From last few years, protein-based feeds have increased awareness and importance among the minds of farmers farming for livestock and animal feed. Changes in lifestyle and awareness of animal based protein products have increased the demand for animal feed. The animal feed industry is wearing a substantial growth potential in the market owing to increased consumption of animal based products, rising livestock population, and increase in domestic consumption. The severe covid-19 pandemic compelled the implementation of preventive measures that drastically altered the status of animal feed industry and negatively impacted the growth of animal feed market. Covid-19 had adversely impacted the availability of raw materials necessary for manufacturing of animal feed. The availability in most countries has become quite difficult due to shutting down of feed plants. The consumption of meat and every other animal feed has been badly affected due to closure of every kind of transportation services. Since, the pandemic is getting off slowly; the demand for animal feed is on the way to rise. Investments by prominent manufacturers are expected to drive the industry of animal feed market. According to the research report, "South America Animal Feed Market Outlook, 2029," published by Bonafide Research, the South America Animal Feed market is anticipated to add to more than USD 9.75 Billion by 2024–29. Currently, Brazil is the leader of Latin American market holding more than 40% in the animal feed market. The animal meat sourced market in Brazil is also dominating as they are leading meat producers in the world. A great portion of animal feed is expected to grow by Pig feed which will witness increase in consumption due to growth of pig meat production. Change in lifestyle of consumers and urbanization have resulted in preference towards meat and other animal products. Colombia exports its poultry meat to countries such as China, & Thailand. The demand for protein-rich feeds is rising in all over Latin America. With ban on use of antibiotic growth promoters of meat and antimicrobials coupled with increased frequency of meat related disease outbreaks such as swine flu, is driving demand for quality and safe meat products with high nutritional value which in turn expected to raise the animal feed market. Expansion of urbanization, increase in preferences of processed foods and use of animal feeds additives to improve feed utilization are expected to boost demand for animal feed additives in Latin American region during the forecast period. A primary driver is the rising demand for meat, dairy, and other animal-derived products, propelled by population growth and increasing disposable incomes. As consumers shift towards higher protein diets, particularly in countries like Brazil and Argentina, the need for efficient livestock production intensifies, thereby boosting the demand for animal feed. The rapid industrialization of the livestock sector has led to a greater emphasis on high-quality animal feed. This trend is characterized by advancements in farming practices and feed formulations that optimize animal health and productivity. The adoption of innovative feed additives enhances nutrient absorption and disease resistance, which are crucial for maintaining livestock health amid rising disease pressures. In South America, the livestock feed market includes several key segments: cattle feed, poultry feed, pig feed, aqua feed, and others, each with distinct brands and growing demands. Cattle feed is significant, particularly in Brazil and Argentina, where vast cattle ranching operations thrive. Major brands like Cargill and Nutreco offer specialized formulations to enhance growth and milk production, driven by strong demand for beef both domestically and for export. Poultry feed is another critical segment, reflecting the increasing consumption of chicken and eggs. Brands such as Avícola do Brasil and Nutriens provide balanced feeds that promote optimal growth rates and egg production, aligning with poultry’s role as a cost-effective protein source. The pig feed sector is also expanding, especially in Brazil and Chile, where rising pork consumption is noted. Companies like DSM and Elanco offer specialized feeds that enhance feed efficiency and weight gain, catering to both smallholders and large producers. Additionally, the aqua feed segment is gaining traction, particularly in coastal regions, with brands like Biomar and Skretting supplying high-quality feeds for various fish and shrimp species. The growing preference for seafood and the push for sustainable aquaculture practices have increased demand for effective aqua feeds. The others category includes specialized feeds for small ruminants and pets, with brands like Purina catering to niche markets, as consumer interest in organic and non-GMO options rises.

In the South American animal feed market, a diverse array of ingredients is utilized to formulate effective and nutritious feeds for various livestock. Cereals are foundational, with staples like corn, sorghum, and wheat serving as primary energy sources. Corn, in particular, is widely grown in countries like Brazil and Argentina, providing essential carbohydrates that support growth and productivity in livestock. By-products from food processing, such as soybean meal and sugarcane bagasse, are also significant. Soybean meal is a rich protein source, making it a staple in formulations for poultry and pig feed, while by-products help reduce costs and improve feed efficiency. Cakes and meals, particularly from oilseeds like soybean and sunflower, contribute valuable protein and fat to animal diets. These ingredients are essential for meeting the nutritional requirements of livestock, especially during critical growth phases. The versatility of these meals allows for their inclusion in a variety of feeds across species. Supplements play a crucial role in ensuring balanced nutrition, providing vitamins, minerals, and amino acids necessary for optimal animal health and performance. The increasing focus on livestock productivity drives demand for high-quality supplements that address specific deficiencies and promote growth. The others category includes specialized ingredients such as probiotics, enzymes, and even alternative protein sources like insect meal. These ingredients are gaining traction as farmers look for innovative ways to enhance feed efficiency and animal health while aligning with sustainable practices. In the South American animal feed market, various feed forms are utilized to meet the specific needs of different livestock, each offering unique advantages. Pellets are among the most popular forms, providing compact, nutrient-dense feed that minimizes waste and enhances digestibility. Major manufacturers in the region produce high-quality pellets tailored for poultry, pigs, and cattle, making them ideal for commercial operations where efficiency and uniformity are essential. Mash feed, which consists of finely ground ingredients mixed together, is commonly used in smaller farming operations. While it is less convenient than pellets, mash is cost-effective and allows farmers to easily mix their own formulations. This form is particularly favored in poultry farming, as it promotes good feed intake among birds. Crumbles serve as a middle ground between pellets and mash, offering a softer texture that is easier for young animals, such as chicks and piglets, to consume. This form encourages feed intake and supports healthy growth during critical developmental stages, making it increasingly popular among producers focusing on young livestock. The others category includes specialized feed forms like cubes and cakes, which are particularly beneficial for small ruminants such as goats and sheep. These forms can provide concentrated nutrition while being easy to handle and store. In South America, the availability of these various feed forms is supported by a well-established supply chain and local production capabilities, enabling farmers to choose the most suitable options for their specific livestock needs. In the South American animal feed market, sources of ingredients are primarily categorized into plant-based and animal-based feeds, each offering distinct advantages tailored to the region’s agricultural landscape. Plant-based feeds dominate the market, with key ingredients including corn, soybean meal, and other grains. These ingredients are widely available due to the region's robust agricultural production, particularly in countries like Brazil and Argentina. Plant-based feeds are generally more cost-effective, providing essential carbohydrates and protein that support healthy growth and productivity in livestock. Their abundance and affordability make them the primary choice for many farmers, enabling efficient livestock operations and contributing to overall food security. Animal-based feeds, while less prevalent, still play a crucial role in enhancing the nutritional profiles of livestock diets. Ingredients such as fishmeal and meat and bone meal are valued for their high protein content and digestibility, making them particularly beneficial in aquaculture and poultry farming. These feeds help optimize growth rates and improve feed conversion efficiency, which is essential for meeting the rising demand for animal protein in the region. However, the use of animal-based feeds is often subject to regulatory scrutiny due to concerns about sustainability and food safety, prompting a shift toward more responsible sourcing practices.

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Manmayi Raval

Research Consultant

The Brazilian animal feed industry has emerged as a dominant force in South America, driven by a combination of factors that position the country as a leader in livestock production and feed manufacturing. As the world's second-largest producer and largest exporter of beef, Brazil's livestock sector plays a crucial role in the global meat market. This prominence is not merely coincidental; it stems from Brazil's vast agricultural resources, favorable climate, and well-established infrastructure that supports large-scale livestock farming. The country's ability to produce high-quality animal feed is essential for sustaining its livestock industry, which includes beef, poultry, pork, and dairy production. One of the primary reasons for Brazil's leadership in the animal feed market is its abundance of raw materials, particularly corn and soybean meal, which are critical components in animal nutrition. The country's agricultural landscape is rich in these resources, enabling local feed manufacturers to produce competitively priced and high-quality feed products. The commercialization and industrialization of livestock farming in Brazil have also contributed significantly to the demand for animal feed. As consumer preferences shift towards higher-quality meat products, producers are increasingly adopting intensive farming practices that require specialized feeds tailored to the nutritional needs of different animal species. The Southeast region of Brazil, particularly states like São Paulo and Minas Gerais, has become a hub for livestock farming due to its extensive agribusiness networks and high levels of investment in technology and research. Major Companies present in the market: Cargill Inc., Guangdong Haid Group, Chareon Pokphand Foods, For Farmers, New Hope Liuhe Co Ltd, Archer Daniels Midland Co, Feed One Co, Ltd, Alltech Inc, Nutreco N.V, Kent Nutrition Group Considered in this report: • Geography: Latin America • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029

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Aspects covered in this report • Latin America animal feed market with its value and forecast along with its segments • Country-wise animal feed products market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered in the report: • Brazil • Argentina • Columbia • Rest of Latin America Types of feed ingredients in the report: • Cereals • By-Products • Cakes & Meals • Supplements Types of feed by livestock in the report: • Cattle Feeds • Poultry Feeds • Pig Feeds • Aqua Feeds Types of feed by form in the report: • Pellet • Mash • Crumbles • Cubes & Cakes The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Animal Feed Industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.