Indonesia Animal Feed Market Outlook to 2028

Indonesia Animal Feed Market Overview

The Indonesia animal feed market is valued at USD 8.3 billion, based on a five-year historical analysis. The market is driven by the rapid expansion of the livestock sector and the increasing demand for meat and poultry products. The countrys growing population and rising disposable income have resulted in increased consumption of animal protein, which has, in turn, spurred demand for high-quality animal feed. Furthermore, government support for livestock production and the modernization of feed production facilities have also played a key role in driving the market.

Java dominates the animal feed market in Indonesia due to its high livestock production and concentration of feed manufacturing facilities. The regions proximity to major urban centers, such as Jakarta and Surabaya, ensures better access to raw materials, logistics, and distribution networks. Additionally, Sumatra is emerging as a substantial player in the market, mainly driven by its growing poultry and aquaculture sectors, which are benefiting from government initiatives aimed at boosting feed production in the region.

Indonesias National Feed Standards (SNI) play a crucial role in ensuring the quality and safety of animal feed. In 2023, the government updated SNI regulations to include stricter guidelines on raw material sourcing and feed additives. These standards are mandatory for all feed producers and have helped improve the overall quality of feed products, ensuring that they meet both domestic and international requirements for safety and efficacy.

Indonesia Animal Feed Market Segmentation

The Indonesia Animal Feed Market is segmented by feed type, livestock, additives, form, and region.

By Feed Type: Indonesia's animal feed market is segmented by feed type into compound feed, fodder, and forage. Compound feed holds the dominant market share due to its widespread use in commercial farming. The rising demand for nutritionally balanced and scientifically formulated feed, particularly for poultry and aquaculture, has led to the increased adoption of compound feed. The shift toward intensive farming methods has also bolstered the use of compound feed, which offers higher efficiency in terms of livestock growth and feed conversion ratios.

By Livestock: The market is further segmented by livestock into poultry, swine, cattle, aquaculture, and others (sheep and goats). Poultry dominates the market share within this segment, driven by Indonesias robust poultry industry, which caters to both domestic consumption and export markets. The demand for poultry products, including eggs and meat, has surged in recent years, primarily due to the population's increasing protein intake. This trend, combined with the adoption of modern farming techniques, has solidified poultry feed as a major segment.

Indonesia Animal Feed Market Competitive Landscape

The Indonesia animal feed market is dominated by key domestic players and multinational corporations. The market exhibits consolidation with a few major companies that have a substantial market share due to their extensive distribution networks, technological innovations, and strong brand presence. Companies such as Charoen Pokphand Indonesia and Japfa Comfeed Indonesia lead the market, benefitting from their ability to provide a consistent supply of high-quality feed and their close ties with local livestock producers.

Company

Establishment Year

Headquarters

Revenue

No. of Employees

Product Portfolio

Market Presence

R&D Expenditure

Company

Charoen Pokphand Indonesia

1972

Jakarta

Japfa Comfeed Indonesia

1975

Jakarta

CJ Indonesia

1988

Jakarta

Malindo Feedmill

1997

Jakarta

New Hope Group

1992

Medan

Indonesia Animal Feed Market Analysis

Indonesia Animal Feed Market Growth Drivers:

Rising Demand for Protein-Rich Diets: Indonesias population reached 280 million in 2024, driving an increase in demand for protein-rich foods such as poultry, beef, and fish. This demand has boosted animal feed consumption to support livestock farming. According to the Ministry of Agriculture, Indonesias meat consumption in 2023 was estimated at 11.5 kg per capita, with poultry and aquaculture sectors leading the demand for feed. This growing demand for protein-rich diets necessitates higher production of quality feed, making it a key driver of growth in the animal feed market.

Increasing Livestock Production: Indonesias livestock production is expanding to meet the growing protein demand. In 2023, the countrys cattle population reached 16 million, and the poultry population exceeded 3.6 billion. This growth, fueled by rising incomes and urbanization, has increased the need for quality feed, which accounts for about 70% of livestock production costs. The government is promoting livestock farming through initiatives such as the 2022 Livestock Development Program, further boosting feed demand.

Expansion of Poultry and Aquaculture Industries: Indonesias poultry and aquaculture industries have seen rapid expansion due to growing consumer demand for affordable protein sources. In 2023, the country produced 4.8 million tons of poultry meat and 1.2 million tons of aquaculture products. This growth requires substantial feed inputs, making the poultry and aquaculture sectors key drivers of feed demand. The governments Aquaculture Revitalization Program, which aims to double fish production by 2025, further stimulates feed consumption in the aquaculture sector.

Indonesia Animal Feed Market Challenges:

High Deployment Costs: The deployment of Animal Feeds comes with substantial financial challenges due to the need for dense infrastructure and additional components. According to the World Bank, deploying Animal Feeds in urban environments can cost telecom operators around $25,000 per site, including equipment, site acquisition, and power supply. High deployment costs remain a major barrier, especially for operators in developing regions of Indonesia, where financial resources may be limited. Despite these costs, the demand for robust 5G networks in densely populated areas pushes the deployment forward, albeit at a slower pace.

Limited Fiber Infrastructure in Rural Areas: Rural areas across Indonesia face limited fiber infrastructure, creating challenges for Animal Feed deployment. Fiber-optic backhaul is essential for the efficient functioning of Animal Feeds, yet many developing nations in the region have insufficient fiber coverage. According to the Asian Development Bank, as of 2023, less than 35% of rural regions in Southeast Asia have access to high-speed fiber networks. This lack of connectivity hinders the extension of 5G services beyond urban centers, creating a digital divide that slows overall regional growth.

Indonesia Animal Feed Market Future Market Outlook

Over the next five years, the Indonesia animal feed market is expected to experience steady growth, driven by increased livestock production and rising demand for meat and poultry products. Government initiatives to modernize the livestock sector, coupled with technological advancements in feed production, will further boost market growth. Additionally, the increasing focus on sustainable farming practices and the integration of probiotics and other functional ingredients in feed will shape the future of the market. The growing export opportunities for poultry and aquaculture products are also expected to encourage investments in feed manufacturing, especially in emerging regions like Sumatra and Kalimantan.

Indonesia Animal Feed Market Opportunities:

Growing Demand for Compound Feed: With the expansion of commercial livestock farms, there is increasing demand for compound feed, which offers balanced nutrition and enhances livestock productivity. In 2023, compound feed production reached 19.5 million tons, driven by demand from poultry and aquaculture sectors. This shift from traditional feed to compound feed presents substantial opportunities for manufacturers, especially as farmers seek higher yields and cost-efficiency in feed use.

Expansion of Feed Exports: Indonesia is emerging as a key player in the regional animal feed market, with growing exports to neighboring countries. In 2023, feed exports reached IDR 1.2 trillion, up from IDR 900 billion in 2022, with Vietnam and the Philippines being major importers. This expansion offers opportunities for local feed manufacturers to tap into Southeast Asian markets, especially as demand for quality feed rises in these countries.
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