KSA Animal Feed Market Outlook to 2030

KSA Animal Feed Market Overview

• The Saudi Arabian animal feed market was valued at USD 3 Bn in 2023, up from USD 2.2 Bn in 2018. This growth is driven by rising demand for meat and dairy products, increased population, and higher disposable incomes.
• Key market players include Al-Watania Poultry, Tanmiah Food Group, National Feed Company (Feedco), ARASCO, and Middle East Feed Mill. These companies dominate due to extensive distribution networks and innovative products.
• Challenges in the market include fluctuating raw material prices, stringent regulatory frameworks, and the need for sustainable feed production practices to address environmental concerns.
• Significant growth drivers include increasing meat consumption, advancements in animal nutrition, government support for livestock farming, and growing awareness of animal health.

KSA Animal Feed Current Market Analysis

• The KSA animal feed market is robust, driven by a growing demand for livestock products like meat and dairy. This demand, coupled with a focus on improving feed quality, supports higher animal productivity and health.
• Poultry feed is the major product in the market due to the high consumption of poultry meat and eggs. The sector's substantial feed requirements make it a significant market component.
• Compound feed is the bestselling product, valued for its balanced nutritional content. It is essential for optimal livestock growth and health, boosting productivity and profitability for farmers.
• Consumers prefer high-quality, nutritionally balanced, and cost-effective feed products. There is also a growing interest in organic and non-GMO feed options, reflecting trends toward healthier and more sustainable practices.
• Al-Watania Poultry dominates the market due to its extensive production capacity and advanced feed production technology. Its strong market presence and reputation for quality further consolidate its leading position.

Market Segmentation

The KSA Animal Feed Market can be segmented based on several factors:

By Animal Type: In 2023, the Kingdom of Saudi Arabia's Animal Feed Market was segmented by animal type, with Poultry feed leading in value percentage. This is driven by the country's high consumption of poultry products, particularly chicken, as a staple protein source.

Advanced poultry farming practices and the presence of major producers further bolstered the dominance of this segment in the market.

By Ingredient Type: In 2023, the Kingdom of Saudi Arabia's Animal Feed Market was segmented by ingredient type, with Cereal Grains dominating in value percentage. These grains, including corn, wheat, and barley, are essential for livestock growth and productivity due to their high energy content and cost-effectiveness, making them foundational in animal feed formulations.

By Form: In the 2023 KSA Animal Feed Market, the pellets dominate the market as they are easy to handle, store, and transport. They also reduce feed wastage and ensure uniform nutrient distribution, leading to better feed conversion rates. The convenience and efficiency of pelletized feed make it a preferred choice among large-scale livestock producers.

KSA Animal Feed Market Competitive Landscape

• Companies with a diverse range of animal feed products, such as compound feeds, premixes, and specialty feeds, can better meet the varied nutritional needs of different livestock. Al-Watania Poultry offers a broad portfolio, enhancing its market competitiveness by catering to poultry, dairy, and beef cattle sectors.
• Established brands with a history of delivering high-quality and effective feed products gain consumer trust. Tanmiah Food Group, known for its reliable and safe animal feed, enjoys strong brand loyalty and recognition, which bolsters its competitive standing.
• Competitive pricing strategies attract a larger customer base, especially in a cost-sensitive market. ARASCO adopts a strategic pricing model that balances affordability with high-quality nutrition, making it a preferred choice for many livestock farmers.
• Firms investing in advanced feed production technologies and R&D can offer innovative and superior products. Middle East Feed Mill utilizes cutting-edge technology in feed formulation and production, ensuring higher feed efficiency and nutritional value, which sets it apart from competitors.

KSA Animal Feed Industry Analysis

KSA Animal Feed Market Growth Drivers:

• Rising Meat Consumption: As per Saudi Arabian Monetary Authority, with meat consumption per capita reaching 45 kg in 2023, there has been a substantial increase in the demand for meat products. This rise in consumption has led to a higher demand for livestock feed, as farmers strive to meet the growing needs of the market.
• Increasing Livestock Population: As per ministry of environment, water, and agriculture the livestock population in Saudi Arabia has been on a steady rise. In 2023, the total livestock population reached 12 Mn, driven by the growing demand for meat and dairy products. This increase directly impacts the animal feed market as the need for high-quality and nutritionally rich feed grows to sustain and improve livestock productivity.
• Government Subsidies for Feed Producers: The Saudi government, under its Vision 2030 initiative, has allocated substantial funds to support local feed producers. In 2023, a total of USD 200 Mn was distributed in subsidies to reduce the production costs of animal feed, making it more affordable for livestock farmers and encouraging domestic feed production.

KSA Animal Feed Market Challenges:

• Raw Material Fluctuations: Fluctuations in grain and oilseed prices, such as corn and soybeans, directly impact feed production costs, influencing overall profitability and pricing strategies in the feed industry.

• Regulatory Compliance: Adhering to stringent regulatory standards set by authorities like the SFDA and EU ensures feed safety and quality, necessitating ongoing investment in compliance measures and technology upgrades.

• High Dependence on Imports: The Kingdom imports a significant portion of its feed ingredients, such as soybeans and maize. In 2021, imports accounted for approximately 60% of total feed ingredient requirements. This dependency makes the market vulnerable to global supply chain disruptions and price volatility, posing challenges for local feed manufacturers and farmers.

• Competition: Intense competition among local and international feed producers’ pressures market margins, prompting companies to innovate in product offerings and streamline operations to sustain profitability amidst competitive pressures.

KSA Animal Feed Market Trends:

• Shift Towards Organic and Natural Feed: There's a rising preference for organic and natural feed due to consumer concerns about product quality and safety, driving a 12% annual increase in organic animal feed production and consumption.
• Adoption of Nutritionally Enhanced Feed: Advances in animal nutrition have led to enhanced feed formulas containing additives like vitamins and probiotics, boosting livestock health with benefits such as an 8% increase in milk yield and 10% faster growth rates.
• Growth in Aquaculture Feed: Saudi Arabia's aquaculture sector is expanding at 5% annually, increasing demand for specialized feed tailored to fish and aquatic species' nutritional needs, supported by government efforts to enhance domestic fish production.

KSA Animal Feed Market Government Initiatives:

• Saudi Agricultural Development Fund (ADF): The ADF has allocated over SAR 10 billion in loans for agricultural projects, including animal feed production. These loans enhance local production capacities and encourage the adoption of innovative technologies.
• National Transformation Program (NTP): The NTP aims to increase local agricultural production by 10% by 2025, including the animal feed sector. Investments in research, improved logistics, and support for local manufacturers are key components.
• Import Regulations and Tariffs: Saudi Arabia regulates the import of animal feed ingredients to meet a demand of around 8 million tons annually. Strict quality standards ensure safety and support for local producers.

KSA Animal Feed Future Market Outlook

The KSA Animal Feed Market is expected to show a significant growth driven by increasing meat consumption, advancements in animal nutrition, government support.

Factors Influencing Growth

• • Advancements in Feed Technology: Future advancements in precision feeding systems will enhance nutrient efficiency, driving higher livestock productivity and reducing feed wastage, thereby boosting profitability.
  • Government Initiatives: Government subsidies for feed production and infrastructure development will stimulate market expansion, improving Saudi Arabia's capacity to produce over 2 million tons of animal feed annually and ensuring food security.
  • Urbanization Impact: Continued urbanization trends will increase demand for meat and dairy products in urban centers, driving the need for efficient animal feed production and distribution systems to meet growing dietary demands.
  • Private Sector Investments: Future private sector investments in feed production and livestock farming infrastructure will enhance production efficiencies and meet increasing demand, modernizing facilities and adopting advanced technologies for sustainable growth.