The global feed-grade oils market is expected to accumulate USD 302.9 million in value by 2023 end. During the forecast period ranging from 2023 to 2033, a CAGR worth 6.6% has been projected for the market, with an expected closing value worth USD 576.5 million. During the 2018 to 2022 historical period, the industry expanded at a value CAGR worth 2.5%.
The mounting popularity of energy levels in food in developed countries like the United States & Germany and the growing demand for maintenance of the animals' growth development boost the demand for feed-grade oils.
| Data Points | Key Statistics |
|---|---|
| Growth Rate (2018 to 2022) | 2.5% |
| Projected Growth Rate (2023 to 2033) | 6.6% |
| Expected Market Value (2023) | USD 302.9 million |
| Anticipated Forecast Value (2033) | USD 576.5 million |
Feed-grade oils can be formed from vegetable and animal oil blends. Feed-grade oils were conventionally used primarily in swine and poultry diets. However, feed-grade oils have recently been used to significantly boost the content of ruminant diets in the form of starch.
Feed-grade oils aid in the maintenance of the animals' growth development. In recent years, there has been an upsurge in the use of oils in feed, which has prompted the use of acidulated soap stock, a common source of vegetable oils. Feed-grade oils aid in reducing bloat and providing energy to the animals.
Besides this, when grain prices are high, feed-grade oils are widely used because they are less expensive and represent an affordable solution for increasing the energy content in the animal diet while also boosting feed palatability. Depending on the requirements, feed grade oils go through various processing techniques such as neutralization reaction, absorbents such as bleaching earth are used to remove bleaching contaminants and pigments, and steam injection technique is used to remove deodorization of volatile components. As a result, feed-grade oil can be obtained in a range of methods.
Explore FMI!
Book a free demo
Feed-grade oils are in high demand due to their cost-effectiveness of energy and high nutritional content. Aside from its energy levels, feed-grade oil aids in the masking of dust caused by the granular component of the feed. As a result, it helps to bind the feed particles together, reducing respiratory health issues in animals.
In the feed ratio, approximately 1% of the feed-grade oil is used. As a result, the feed-grade oils market is gaining traction in the feed industry. Feed-grade oils are also used as dispersing agents, which helps to reduce the incidence of bloat by reducing dustiness in the feed.
Aside from the aforementioned applications, feed-grade oils also strengthen animal palatability, improve animal health, and prevent machinery wear. As a result, the market for feed-grade oils will witness improved growth prospects.
Although the feed-grade oil market has numerous end-uses, there are numerous obstacles that likely pose a challenge to market growth. Feed-grade oils are also susceptible to oxidation, which can result in rancidity. Rancidity has an unpleasant odor and affects the palatability of the feed. As a result, the energy and nutritional value of the feed may be affected. As a result, these influences may restrain the growth of the feed-grade oils market.
The amount of feed-grade oils added should be made with caution, as a huge portion may cause digestive upset and reduce the animal's feed intake due to an excess of oil in the ration.
North America holds the majority of the global feed-grade oil market. The North American region includes the United States, Canada, and Mexico, and it is assumed to be a dominant market for feed-grade oils during the forecast period due to its widespread use in livestock agronomic practices.
The global feed-grade oil market is majorly driven by burgeoning meat consumption due to rising disposable income and population. Americans consumed a record 122.75 pounds of poultry per capita in 2017. Chicken consumption has risen by 540 percent since 1910, from around 10.1 pounds per capita in 1910 to 65.2 pounds in 2018.
According to the recent Packaged Facts report Global Meat & Poultry Trends, consumption of meat in the United States is expected to rise by 1% per year through 2023. As per Future Market Insights, North America accounted for 23.4% of the feed-grade oils market in 2022 and will continue to govern growth in the coming years.
Growing Use of Fish Oil and Palm Oil in Europe Drive the Growth of the Market
Europe accounts for a sizable portion of the feed-grade oil market. Certain feed-grade products, such as fish oil and palm oil, make a significant contribution to the robust growth of the European feed-grade oils market. The market for food-grade lubricants is expanding due to high demand from countries such as Germany, the United Kingdom, and France.
In Europe, sales of food and beverages increased by 10.5%, from EUR 110,271 million in 2018 to EUR 120,387 million in 2019, with the applicability of these feed-grade oils attributed to increased nutritional content in food. This factor is spurring demand for feed-grade oils. According to Future Market Insights, Europe hold held 42.3% of the Feed Grade oils market in 2022 and will continue to lead the growth rate during the forecast.
The livestock agricultural sector is a significant land user in Europe, shaping rural landscapes. Feed-grade oils are critical in assisting farmers in achieving the strategy's goal of further reducing antibiotic use and promoting health cooperation in Europe. In light of the ongoing COVID-19 pandemic, the Health and Food Safety Commissioner emphasized the importance of strengthening the interconnections between human and animal health surveillance systems and agencies. These factors play significant roles in the expansion of the European feed grade oils market.
Increasing Number of Poultry Farms in the Region to Provide Opportunity for The Growth of the Region
The Asia Pacific is anticipated to exhibit a significant growth rate in the feed-grade oils market over the forecast period owing to the increasing demand for animal feed due to the increasing global population. Also, the rising awareness about the benefits of using feed-grade oil in animal feed is anticipated to propel the market in these regions during the forecast period.
The Asia Pacific region is the largest market for feed-grade oil due to the rise in the number of aquatic and poultry animal farms within the region. The rise in disposable income and increasing population size within the region are driving forces expected to fuel the growth of the global feed-grade oil market over the foreseeable period.
The swelling dispersion of start-ups in the feed grade oils market has upsurged the product quality and expanded global sales. Besides, to gain a competitive edge, new start-ups are working on novel developments and releasing innovative products such as:
Some key players in the feed grade oils market are CanPro Ingredients Ltd, NHU Europe GmbH, Xiamen Kingdomway Group Company, Double S Liquid Feed Services, Inc., DAR PRO Ingredients, Renkert Oil, Inc., Archer Daniels Midland Company, Valley Proteins, Inc. Key development in the feed grade oils market is as follows:
Recent Developments
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 6.6% from 2023 to 2033 |
| Market Value in 2023 | USD 302.9 million |
| Market Value in 2033 | USD 576.5 million |
| Base Year for Estimation | 2022 |
| Historical Period | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast,; Company Ranking,; Competitive Landscape, Growth Factors, Trends, and; Pricing Analysis |
| Segments Covered | Application, Product Type, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East and Africa |
| Key Countries Profiled | United States of America, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, China, Japan, South Korea, Malaysia, Singapore, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Companies Profiled | CanPro Ingredients Ltd; NHU Europe GmbH; Xiamen Kingdomway Group Company; Double S Liquid Feed Services, Inc.; DAR PRO Ingredients; Renkert Oil, Inc.; Archer Daniels Midland Company; Valley Proteins, Inc. |
| Customization | Available upon Request |
The overall market is forecasted to progress at 6.6% CAGR between 2023 and 2033.
The global market value could become USD 576.5 million by 2033.
The regional industry size was almost 23.4% of the global industry size in 2022.
India feed grade oils market follows China in size.
High nutritional content at cost-effective price is the main reason.
Feed Grade Oils market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
