India Animal Feed Market Outlook to 2028

India Animal Feed Market Overview

The India Animal Feed Market was valued at USD 14.20 billion in 2023, driven by the rising demand for high-quality animal protein, increasing livestock population, and advancements in feed production technology. The market encompasses a variety of products including poultry feed, cattle feed, aqua feed, and others, catering to different livestock needs.

Key players in the India Animal Feed Market include Godrej Agrovet, Cargill India, Suguna Foods, Amrit Group, and Venkateshwara Hatcheries. These companies maintain strong market positions through extensive distribution networks, innovative feed formulations, and strategic partnerships with livestock producers. They focus on enhancing feed efficiency and nutrition to support the growing demand for quality animal products.

Major regions such as Uttar Pradesh, Maharashtra, Tamil Nadu, and Andhra Pradesh lead the market due to their high livestock populations, substantial agricultural activities, and developed feed manufacturing infrastructure. These states also exhibit higher demand for specialized and fortified animal feeds, driven by their diverse livestock sectors and increasing consumer preference for protein-rich diets.

In May 2022, Cargill India announced a strategic investment of USD 160 million over three years to expand its animal nutrition business and other operations. This investment aims to enhance its capacity to serve the growing livestock industry and strengthen its market presence in India, demonstrating the company's commitment to the region's agricultural sector.

India Animal Feed Market Segmentation

The India Animal Feed Market is segmented by type, form, livestock, additive, and region.

By Type: The market is segmented into Poultry Feed, Cattle Feed, Aqua Feed, and Others. In 2023, Poultry Feed held the dominant market share due to the increasing demand for poultry products and the growing awareness of high-protein diets. Companies like Suguna Foods and Venkateshwara Hatcheries are key players in this segment, offering a range of feeds tailored to different stages of poultry growth and production.

By Form: The market is categorized by form into Pellets, Crumbles, Mash, and Others. Pellet form led the market in 2023, owing to its ease of handling, reduced wastage, and enhanced palatability, making it a preferred choice among livestock farmers. Pellets are favored for their ability to deliver balanced nutrition consistently, which is crucial for maximizing animal growth and health.

By Region: The market is segmented by region into North, South, East, and West India. South India, particularly Tamil Nadu and Andhra Pradesh, dominates the market in 2023 due to the strong presence of poultry farms and robust feed manufacturing infrastructure. The North region, including states like Punjab and Haryana, holds a substantial share due to its large dairy farming activities, driving the demand for cattle feed.

India Animal Feed Market Competitive Landscape

Company

Establishment Year

Headquarters

Godrej Agrovet

1991

Mumbai, Maharashtra

Cargill India

1987

Gurgaon, Haryana

Suguna Foods

1984

Coimbatore, Tamil Nadu

Amrit Group

1994

Kolkata, West Bengal

Venkateshwara Hatcheries

1971

Pune, Maharashtra

Suguna Foods: In September 2021, Suguna Feeds launched new cattle feed variants, Milky Best+ and Nutri Best, at their feed mill in Udumalpet. These products are designed to improve milk yield and quality while being offered at lower prices compared to many competitors. This initiative aims to address farmers' challenges regarding feed quality and availability, enhancing Suguna's market presence in the cattle feed sector.

Suguna Foods: In August 2024, Godrej Agrovet has recently completed the acquisition of the remaining 49% stake in Godrej Tyson Foods from Tyson Foods, Inc worth USD 35.8 Mn. Following this acquisition, Godrej Tyson Foods has become a wholly-owned subsidiary of Godrej Agrovet, enhancing its market position in the poultry sector and expanding its product offerings in processed poultry and vegetarian products.

India Animal Feed Market Analysis

Growth Drivers

Increasing Livestock Population: The livestock population in India has seen a substantial rise, the 20th Livestock Census conducted in 2019 reported a total livestock population of 535.78 million in India. This growth is particularly notable in states like Uttar Pradesh, Rajasthan, and Madhya Pradesh, which account for a substantial share of the country's cattle and poultry populations. The rise in livestock numbers has directly influenced the demand for animal feed, particularly in the poultry and dairy segments, as farmers strive to maintain productivity and animal health.

Surge in Demand for Protein-Rich Diets: There is a growing consumer preference for protein-rich diets in India, driven by a shift towards healthier eating habits and increasing awareness about nutritional benefits. In 2022-2023, India's total poultry meat production was predicted to be 4.995 million metric tons, which accounts for 51.13% of the country's total meat production of 9.77 million metric tons. This surge in demand for animal-based proteins has led to an increased need for high-quality animal feed, particularly for poultry and dairy cattle, to ensure optimal growth rates and productivity.

Technological Advancements in Feed Production: The adoption of advanced technologies in feed production, such as precision nutrition and automated feed mills, has enhanced feed efficiency and quality. In 2023, one third of the total feed production facilities in India incorporated automated systems to improve production processes and reduce wastage, according to industry reports. These technological advancements allow for more precise formulation of animal feed, ensuring balanced nutrition and improved feed conversion ratios.

Challenges

Price Sensitivity and Market Competition: The India Animal Feed industry faces intense competition from low-cost manufacturers, both locally and internationally. Farmers often prioritize cost-effective feed options, creating a challenging environment for premium feed brands that offer advanced formulations at higher price points. This price sensitivity is exacerbated by fluctuating grain prices, which directly affect feed costs.

Supply Chain Disruptions: The market has been impacted by supply chain disruptions, primarily due to fluctuations in raw material availability and transportation challenges. These disruptions have resulted in delays and increased costs in feed production, affecting market dynamics. Additionally, geopolitical tensions and trade restrictions have contributed to instability in raw material supply.

Government Initiatives

National Livestock Mission (NLM): The governments NLM aims to support the livestock sector by promoting efficient feed and fodder production, improving feed quality, and enhancing livestock productivity. This initiative provides subsidies and technical support to feed manufacturers, encouraging the adoption of modern and sustainable practices. It also supports the establishment of fodder banks and distribution centers in rural areas to improve access to quality feed.

Pradhan Mantri Matsya Sampada Yojana (PMMSY): Under the PMMSY, Initially the government has allocated INR 20,050 crore for the next 5 years to boost aquaculture and fishery activities, which includes enhancing feed quality for aqua species. This initiative aims to increase the production of fish feed by supporting the establishment of modern fish feed plants and promoting research on nutritionally balanced feeds.

India Animal Feed Market Future Outlook

The India Animal Feed Market is expected to witness robust growth by 2028, driven by increasing investments in feed technology, rising demand for quality animal protein, and government initiatives supporting the livestock sector.

Future Market Trends

Growth in Sustainable and Organic Feed Options: By 2028, a noteworthy portion of animal feed is expected to be produced from sustainable and organic sources, driven by both consumer demand and regulatory requirements. Manufacturers are focusing on eco-friendly and chemical-free formulations to cater to the health-conscious livestock farmers.

Integration of Precision Nutrition in Feed Formulation: The adoption of precision nutrition in feed formulation is expected to grow, allowing for more customized and efficient feed products. This trend is driven by technological advancements in feed analysis and the growing emphasis on improving livestock productivity and reducing environmental impact.
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