Food and Beverage - Organic Feed Market

Market Synopsis

The global organic feed market size was valued at USD 10.0 Billion in 2022 and is expected to reach a value of USD 19.99 Billion in 2030 and register a revenue CAGR of 8% during the forecast period . The industry is expanding as a result of rising consumer demand for organic food items and increased knowledge among livestock owners of the advantages of using organic feed.

Organic feed is a favored option for livestock owners concerned about their animals' health and welfareconcerned about their animals' health and welfare because it is produced without any synthetic chemicals, genetically modified organisms (GMOs), or Antibiotics.

The market for organic feed is expanding primarily due to the increasing use of organic agricultural techniques and the increased demand for animal products including meat, milk, and eggs. Organic farming methods prevent the use of artificial fertilizers, pesticides, and other chemicals to preserve the ecological balance. As a result, farming has a smaller negative impact on the environment and its crops are healthier and more nourishing. Since organic feed is thought to enhance the health and production of animals, livestock owners are adopting it at an increasing rate.

Furthermore, the need for organic feed is being driven by consumers' growing desire for natural and organic products. As customers become more environmentally and health-conscious, the demand for organic food items is rising. The market for organic feed is expected to develop as a result of this trend throughout the course of the forecast period.

The market for organic feed is expanding as a result of legislative support for organic farming and rising uptake of organic certification programmes. Governments all across the world offer assistance and incentives to farmers who switch to organic agricultural methods. Moreover, the popularity of certification programmes like USDA Organic, EU Organic, and JAS (Japanese Agricultural Standard) Organic is encouraging livestock owners to switch to organic feed.

However, a significant obstacle to the expansion of the organic feed sector is the high cost of organic feed in comparison to conventional feed. Because it needs more labour, specialised machinery, and resources to manufacture, organic feed has a higher cost. Because of this, the cost of organic feed has increased, making it less affordable for small-scale farmers and animal owners.

Moreover, the market's expansion is being hampered by livestock owners' lack of knowledge about the advantages of organic feed. Many farmers are still unaware of the advantages of organic feed and the significance of ecologically friendly and sustainable farming methods.

During the expected period, the market is expected to expand due to the rising demand for organic feed in developing nations such as Asia-Pacific, Latin America, and Africa. It is expected that the growing urbanization and increase in disposable income in these areas will increase demand for organic food items, which will increase demand for organic feed.

In conclusion, the market for organic feed is expected to expand significantly over the forecast period as a result of theforecast period due to rising demand for organic food items, expanding use of organic agricultural methods, and favourable regulatory policies. However, significant obstacles must be overcome to fully tap into the market's potential, including the high price of organic feed and livestock owners' ignorance of its advantage.

Government Regulations:

• The USDA’s National Organic Program (NOP) sets standards for organic production, handling and labeling of animal feed products. The NOP also provides incentives and rebates to encourage farmers to use organic feed.
• The FDA has issued regulations that require all animal feed and pet food made with organic ingredients to be labeled with the corresponding USDA Organic Seal.
• The European Union has established regulations requiring organic feed to meet specific standards, such as being produced withoutrequiring organic feed to meet specific standards, such as being produced without antibiotics or synthetic fertilizers, and having minimal environmental impact.
• The Canadian Food Inspection Agency has adopted regulations that require all organic feed sold in Canada to meet the Canadian organic standards.
• The U.S. Department of Agriculture has established national labeling requirements for organic feed, which must include information about the source and composition of the ingredients used in production.  Moreover, the label must state that any animal feed sold as "organic" meets USDA-approved organic standards.                  

Type Outlook:

Cereals and grains, oilseeds, forage, and other products make up the type-based segments of the organic feed market. Due to their high nutritional value and widespread availability, the cereals and grains category is expected to account for largest revenue share of the market. Cereals and grains are popular for livestock feed because of their high protein, fiber, vitamin, and mineral Content. These organic feed varieties also have a longer shelf life and are simple to store, making them a practical choice for farmers.

Moreover expected to develop significantly during the forecast period is the oilseeds section. This results from the food and beverage industry's rising demand for organic oils and protein-rich meals. Because they are high in proteins, lipids, and fiber, oilseeds like soybeans, sunflower, and flaxseed are excellent choices for animal feed. In the upcoming years, demand for organic oilseeds is expected to be driven by the growing need for plant-based protein sources and meat alternatives.

Another significant area of the organic feed market is forage, which is expected to develop steadily throughout the forecast period. Forage is a form of organic feed used to give livestock fiber and energy. Grazing animals like cows, sheep, and goats frequently use it. Forage is often produced from grasses, legumes, or other plants and can take the form of hay, silage, or pasture. Forage's high fiber content benefits animals' digestion and general health.

The "others" portion, which covers a variety of organic feed, also includes insects, tubers, and pulses. The increased need for alternative and sustainable protein sources is likely to drive this segment's moderate rise throughout the forecast period. For instance, insects, which are high in protein, are being investigated as a possible replacement for conventional cattle feed.

In conclusion, the market for organic feed is expected to develop significantly during the projected period, driven by the growing demand for sustainable and organic agricultural methods. Type-based market segments include cereals and grains, oilseeds, forage, and others that are expected to have sizeable market shares. A number of variables, including nutritional value, demand from the food and beverage sector, and the increased desire for substitute sources of protein fuels each segment's growth.                                                                                                         

Livestock Outlook:

Market for Organic Feed by Livestock: The organic feed market can be segmented into segments for poultry, swine, ruminants, aquatic animals, and other livestock. Due to the rising demand for organic poultry products like eggs and meat, the poultry segment is expected to account for a sizeable portion of the organic feed market. The market is growing as a result of the healthier and tastier goods produced by poultry-fed organic feed. Moreover, it is expected that during the forecast period, demand for organic feed in the poultry segment will increase due to the growing popularity of home poultry farming and rising customer preference for organic food items.

Due to the rising demand for organic pig products, the swine category is also expected to experience considerable expansion in the organic feed market. Better growth rates, better-tasting meat, and a decrease in illness incidence are all benefits of feeding swine organic feed. Furthermore, the adoption of organic feed has increased due to the strict limits on the use of antibiotics in swine feed, which is expected to fuel market expansion.

Due to the rising demand for organic Dairy Products such milk, cheese, and yoghurt, the ruminants category is expected to represent a sizable part of the organic feed market. Ruminant health benefits from organic feed include healthier animals, better milk quality, and a decrease in disease incidence. Moreover, it is expected that throughout the forecast period, demand for organic feed in the ruminants segment would increase due to consumers' increased knowledge of the health benefits of Organic Dairy Products.

Due to the rising demand for organic seafood products, the aquatic section of the organic feed market is also expected to experience substantial expansion. When aquatic animals like fish and prawns are fed organic feed, the growth rates, meat quality, and illness incidence all improve. Moreover, during the forecast period, the demand for organic feed in the aquatic segment is expected to increase due to the rising customer preference for organic seafood products and the growing popularity of organic Aquaculture.

The market for Organic Feed by Region: The market for organic feed may be segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Due to strict rules on the use of antibiotics in livestock feed and the rising demand for organic food items, Europe is expected to hold a sizable part of the global organic feed market. The demand for organic feed in the region is also expected to increase over the projected period due to the expanding customer preference for Organic Food Products and the growing acceptance of organic farming practices.

Due to rising consumer demand for organic food items and expanding consumer knowledge of the health benefits of eating organic food, North America is also expected to experience considerable expansion in the organic feed industry. Moreover, it is expected that throughout the forecast period, demand for organic feed in the region will increase due to favorable government measures supporting organic agricultural practises and the growing consumer desire for organic food items.

Due to the rising demand for organic food items and growing consumer knowledge of the health benefits of eating organic food, the organic feed industry is predicted to grow quickly in Asia. Moreover, it is expected that during the forecast period, the demand for organic feed in the livestock industry will be driven by the region's growing urbanization and population growth.                

Regional Outlook:

Region-based global organic feed market segmentation includes North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Due to the high level of consumer awareness regarding organic goods and the existence of strict rules and certifications controlling the organic feed business, Europe held the greatest market share in 2021. The livestock business is converting to organic farming practices to suit the rising demand for organic meat, milk, and eggs, and the region is currently experiencing a boom in organic livestock production. The European Organic Regulation, which governs organic farming and production in the EU, sets down stringent requirements for the use of organic feed and outlaws the use of hormones, antibiotics, and genetically modified organisms in such feed.

Due to the rising demand for organic meat products and rising consumer awareness of the health benefits of eating organic food, North America is predicted to have considerable growth during the projected period. The region's demand for organic feed is also expected to increase with the popularity of ethical and ecological farming methods. Moreover, the rise in farms with organic certification and government programmes to support organic farming methods is expected to stimulate market expansion.

Due to the increased demand for organic products, rising disposable incomes, and expanding populations in nations like China, India, and Japan, the Asia-Pacific region is expected to have the fastest growth throughout the projected period. Moreover, the demand for organic feed in the area is being driven by the growing knowledge of the negative impacts of conventional feed on animal health and the environment.

Due to the expanding use of organic agricultural methods and the rising demand for organic meat and dairy products in these countries, Latin America and the Middle East & Africa are also expected to have considerable growth over the forecast period. Moreover, government programmes to support organic farming methods and rising consumer awareness of the advantages of organic food are expected to fuel market expansion in these regions.

Global demand for organic products and the transition to sustainable and moral farming methods are projected to generate considerable expansion in the organic feed market during the forecast period. The market expansion is expected to be further fueled by the rigorous laws limiting the usage of organic feed and the growing consumer awareness of the environmental and health benefits of organic food.

Competitive Landscape:

The global organic feed market is highly consolidated, with a few dominant players accounting for a majority of the market share. The major players in the market are adopting various strategies such as mergers and acquisitions, collaborations, product launches, and partnerships to strengthen their position in the market. Some of the leading companies in the global organic feed market are:

• Hansen Holding A/S
• Koninklijke DSM N.V.
• Lallemand Inc.
• Novozymes A/S
• Archer Daniels Midland Company (ADM)
• Lesaffre et Compagnie
• Evonik Industries AG
• Biomin Holding GmbH
• Cargill, Inc.
• Dupont De Nemours, Inc.                                

Strategic Development:

• Companies are focusing on developing customized probiotic solutions to meet the specific needs of different livestock animals.
• Increasing investments in research and development to develop more effective and efficient probiotic products.
• Companies are expanding their product portfolios by launching new probiotic products for different livestock animals.

New Product Launches:

• In 2020, Chr. Hansen Holding A/S launched a new probiotic solution for poultry, called GalliPro Fit.
• In 2021, Koninklijke DSM N.V. launched its new range of probiotics, called Balancius, which is specifically designed for use in organic animal feed.
• In 2021, Biomin Holding GmbH launched a new probiotic product, called Biomin® Imuno SKY, for use in broiler chickens.
• In 2022, Lallemand Inc. launched a new probiotic product, called ProTernative® Organic, which is designed for use in organic dairy cattle feed.
• In 2022, Novozymes A/S launched a new probiotic product, called Novozymes LactoDrive, which is designed for use in piglet feed.

Market Segmentation :

For the purpose of this report, the global organic feed market has been segmented based on product type, Livestock and region: