Industrial food processing by-product valorisation into animal feed in the European Union industry reached USD 6.1 billion in 2025 and is projected at USD 6.4 billion in 2026. The industry is expected to reach USD 10.5 billion by 2036 at a 5.0% CAGR during the forecast period.
| Parameter | Details |
|---|---|
| Market Value (2026) | USD 6.4 billion |
| Forecast Value (2036) | USD 10.5 billion |
| CAGR (2026 to 2036) | 5.0% |
| Estimated Market Value (2025) | USD 6.1 billion |
| Incremental Opportunity | USD 4.1 billion |
| Leading Source | Distillers grains at 24% share |
| Leading Form | Dry meal at 42% share |
| Leading Livestock Use | Ruminants at 39% share |
| Leading Nutrient Role | Energy feed at 34% share |
| Leading Application | Compound feed at 51% share |
| Leading Sales Channel | Compound mills at 46% share |
| Leading Processing Method | Drying at 44% share |
Source: Future Market Insights, 2026
Incremental opportunity across 2026 to 2036 is estimated at USD 4.1 billion and is tied to current feed use rather than broad residue generation. Value expansion reflects wider industrial use of standardized side streams and stronger mill acceptance across formal feed programs. Linked areas such as animal feed alternative protein and feed enzymes support the same direction as European formulators continue widening ingredient options while protecting feed performance and purchasing discipline.
Untapped opportunity for key players is expected in turning uneven industrial side streams into dependable feed ingredients through stronger drying and steadier nutrient consistency across formal mill supply. Spain is projected to reach 5.8% CAGR through 2036. Belgium is expected to reach 5.6% CAGR, while Poland is estimated to reach 5.4% CAGR and Denmark is forecast to reach 5.2% CAGR through disciplined industrial handling. Germany is predicted to reach 4.8% CAGR, while France is expected to reach 4.7% CAGR and Italy is expected to reach 4.5% CAGR. This growth outlook shows that feed-factory readiness and side-stream usability holds importance across the European Union.
This industry covers industrial food-processing and bio-processing side streams upgraded into feed ingredients for animal nutrition across the European Union. It includes materials sold as usable feed inputs after collection and stabilization. Drying and blending are covered under this scope. Fermentation and similar treatment methods are also included. Coverage also includes formal placement into animal feed programs across commercial livestock production systems.
Wheat bran and corn gluten are within the defined scope. Brewer’s grains and potato pulp enter feed use after feed grade handling. Bakery meal and whey powders are included as similar industrial side streams. Coverage also includes dry and wet formats. Liquid and pelleted forms are part of the scope as well. These materials are sold through compound mills and other formal feed channels across EU livestock systems.
Excluded from scope are finished compound feed sales and municipal food waste. Household waste streams and disposal only waste handling are also excluded. Fertilizer only placement falls outside the scope. Untreated residues without feed grade stabilization or traceability are not included. Pet-food brand sales and broad waste management contracts also stay outside this market boundary unless a clearly defined feed ingredient sale occurs inside formal animal nutrition channels.
Demand outlook is propelled by regular industrial use, which means familiar formulation practice are more important than speculative residue conversion. European mills understand intake behavior and nutritional roles across these materials, and the gluten feed trade reflects that established base. Better drying and storage extend usable distance and preserve value, while high-protein feed supports rising interest in upgraded streams with stronger nutrient positioning. Feed manufacturers also favor ingredients that offer stable function and lower exposure to imported price swings or irregular availability. Interest across Europe animal feed alternative protein reinforces this direction, so demand continues building through practical formulation needs and disciplined handling.
Segmentation within this industry is primarily driven by the physical and nutritional characteristics of industrial side streams rather than by branded product differentiation. Source type and physical form are the main determinants of realized market value, while livestock application and nutrient role define formulation suitability and inclusion rates. End‑use application further influences value outcomes, and the combined structure of sales channels and processing methods shapes overall commercial realization. Dry formats benefit from wider geographic reach and easier integration into large‑scale feed mills, whereas wet materials are typically confined to proximity markets and require tighter handling discipline. Demand patterns also vary by livestock mix, as ruminant systems can accommodate higher‑fiber and higher‑moisture inputs more effectively than monogastric diets.
Strong industrial supply keeps distillers grains ahead of other by‑product sources in the EU feed market. Ethanol‑linked production provides regular output and supports stable use across livestock systems. In 2026, distillers grains are expected to hold a 24% share of the source mix. Beet pulp and wheat bran remain widely used feed ingredients. Corn gluten and brewer’s grains also maintain steady market relevance. Bakery meal and potato pulp add supply in regions with concentrated processing activity. Whey powders are used where processing capacity supports consistent feed placement.
Better storage stability and simpler freight handling promotes consumption of dry meal across physical form. This is because wet feed holds value near dairy and beef zones with short haul delivery. Dry meal is projected to reach a 42% share in 2026. Liquid feed and pellets serve selected programs and need tighter handling control. This structure supports dry meal leadership through operating ease and wider geographic use across Europe. Insights into the Livestock Segment
Dairy and beef systems absorb fibrous and higher-moisture side streams more comfortably than swine or poultry formulas across industrial feed use. This advantage supports broader placement of pulp and bran across major livestock regions. Brewer’s residues and similar materials also see wider use under this structure. Alignment with the cattle feed business also supports this structure across European dairy and beef production. Ruminants are likely to secure 39% share in 2026 across livestock use. Swine and poultry use by‑product volumes that focus on energy‑rich materials and former foodstuff inputs, while ruminants accept a wider range of ingredients.
Many industrial side streams enter feed programs first as economical energy contributors replacing part of cereal use across livestock diets. Protein feed and fiber feed both hold important positions, while premium protein upgrading continues drawing attention across selected industrial users. Large-volume value leans toward energy-oriented streams serving broader species demand and practical inclusion rates. Energy feed is anticipated to represent 34% of the market in 2026 across nutrient role. This balance leaves the market split between bulk nutritional use and a smaller premium layer linked with more refined functionality.
Formal feed manufacturing is the main outlet for industrial side streams entering organized animal nutrition. Mills can blend variable inputs into standardized formulas under routine documentation and quality control, which supports wider acceptance than smaller specialized outlets. Pet feed and premixes are narrower in comparison due to tighter screening requirements. Aquafeed also faces a lower tolerance for variation across incoming material. By application structure, compound feed is set to make up 51% of the market in 2026. Similar pattern can be observed in the wider poultry feed and aquafeed market, since mainstream farm-feed programs accept a wider ingredient mix than highly controlled nutrition segments.
Large mills hold an advantage through testing and standardization. They also benefit from blending capability and stronger documentation across variable industrial side streams. Moisture reduction strengthens material stability during storage and transport, which keeps drying ahead of other processing options across broader industrial use. Integrators and traders serve important local functions near food processing plants and livestock clusters. On-farm mixers also play a role by supporting shorter-distance supply flows. Compound mills lead sales channel with 46% share in 2026, while drying leads processing structure with 44% share in 2026. Wider use of feed premix across organized feed systems supports this position because documented input handling is more common across structured manufacturing environments.
Market outlook is driven by plant discipline and feed-grade preparation rather than broad sustainability messaging alone. Residue value rises after intake control and safe storage are in place. Drying and blending support this improvement under formal feed standards. Large mills can absorb more volume than smaller handlers, while only part of the available residue base reaches stable daily feed readiness. This keeps the forecast measured and grounded, and it aligns with evidence across medicated feed additives where buyers prefer documented inputs and repeatable plant performance.
Transport cost shapes realized value almost as strongly as nutrient content across many industrial side streams. Wet materials perform best near dairy and beef zones with short haul delivery. Longer transport distances reduce delivered value through higher freight pressure. Drying improves product stability and supports wider market reach. Higher realized value comes from better handling and stricter control rather than raw residue availability.
In the EU industry for industrial food processing by-product valorisation into animal feed, price negotiations are being shaped by softer imported protein benchmarks rather than by-product availability alone. The World Bank’s April 2026 Pink Sheet lists soybean meal at US$442/mt in 2024, US$366/mt in 2025, US$386/mt in January 2026, and US$404/mt in March 2026.The benchmark for mainstream protein feed remains below its 2024 level, so buyers have less room to justify stronger pricing for valorised food-processing by-products even after the partial rebound seen in March 2026.
Compound feed pricing trends continue to shape the commercial outcome for valorised food by‑products across the EU. Data from FoodDrinkEurope’s January 2026 INPUT COST BULLETIN Q3 2025 places the producer price index for prepared animal feed at 114 in December 2024. The index increased to 116 during early 2025 before easing to 112 by September 2025. This movement directly affects by‑products such as brewery residues and bakery leftovers sold into feed channels. As feed prices lose momentum buyer leverage increases. This limits the ability of processors to pass through handling and formulation costs.Analysis of Industrial Food Processing By-Product Valorisation into Animal Feed in EU Industry by Key Countries
.webp "Top Country Growth Comparison Industrial Food Processing By Product Valorisation Into Animal Feed In Eu Industry Cagr (2026 2036)")
| Country | CAGR |
|---|---|
| Spain | 5.8% |
| Belgium | 5.6% |
| Poland | 5.4% |
| Denmark | 5.2% |
| Germany | 4.8% |
| France | 4.7% |
| Italy | 4.5% |
Source: FMI analysis based on primary research and proprietary forecasting model
Country performance reflects feed-manufacturing depth, livestock concentration, and the quality of local residue handling. Large countries absorb higher absolute volumes, while smaller organized economies can post stronger estimates when plant systems work efficiently. This explains why Belgium and Denmark are experiencing steady growth despite smaller geographic scale. Germany, France, and Italy hold major value because of mature industrial feed capacity and diverse species demand. Country variation follows feed-factory readiness and by-product usability more than size alone.
Spain is projected to record a 5.8% CAGR over the forecast years and leads this country set because of scale and industrial depth. Large feed output and dense livestock production enable regular absorption of multiple side-stream types. Extensive crop processing activity further strengthens intake consistency. Catalonia plays a central role through organized feed manufacturing, while Aragón and Castilla y León add heavy daily intake across major livestock systems. The interlink with demand for animal feed additives in EU also supports Spain’s standing within the wider European feed structure. Spain remains the strongest national base in this study.
Belgium combines a smaller domestic footprint with unusually efficient industrial handling across food-processing residues and organized feed placement. Short distances between processors, storage points, feed plants, and livestock zones support stronger economics across side streams that face pressure under longer transport patterns. Under this operating structure, demand for industrial food processing by-product valorisation into animal feed in Belgium is likely to rise at a 5.6% CAGR by 2036. Flanders is the main commercial core, while proximity to neighboring livestock and feed markets strengthens daily circulation across multiple input streams. Belgium therefore outperforms several larger economies in the forecast ranking through tighter industrial coordination.
Poland presents a broad and mixed demand base shaped by agricultural scale and direct farm-level feed use. National grain processing and regular raw material availability strengthen industrial conversion across several by-product streams entering formal nutrition channels. Support from domestic agricultural depth leaves Poland forecast to post 5.4% CAGR in this sector over the assessment period. Wielkopolskie, Mazowieckie, and Kujawsko-Pomorskie are highly relevant because of feed manufacturing strength and livestock-linked absorption across large agricultural districts.
Denmark has a smaller tonnage base but its feed discipline remains very high across its livestock industries and organized manufacturing systems. Over the assessment period, Denmark is set to expand at a 5.2% CAGR in this industry. Strong documentation culture and efficient production support better acceptance of ingredients that require reliable handling and stable nutritional positioning. Jutland is imp through livestock concentration and strong compound feed manufacturing across the national base.
Germany is one of the significant countries with , despite a more measured forecast line. Large feed mill infrastructure supports the continued use of qualified by‑products. Wide species coverage also contributes to steady adoption. Strong industrial documentation enables placement within formal nutrition programs. Lower Saxony and North Rhine‑Westphalia are potential hubs due to high livestock density and strong feed manufacturing presence. Bavaria also plays a key role through its livestock base and established feed industry. Demand in Germany is expected to rise at a 4.8% CAGR from 2026 to 2036. owing to standardizationand organized placement across circular feed inputs.
France offers a mature industrial setting supported by broad species demand and long-standing crop-processing depth across several regions. Grain, starch, sugar, and dairy-linked side streams support commercial relevance across national feed manufacturing and livestock systems. France is expected to register 4.7% CAGR over the forecast as Brittany is witnessing demand for poultry and swine feed, while Grand Est and Hauts-de-France support cereal-based processing and regular feed manufacturing. France remains a dependable value center even without leading the country ranking in forecast pace.
Industrial food processing by-product valorisation into animal feed in EU industry in Italy is forecast to rise at a 4.5% CAGR through 2036. Italy combines a meaningful feed sector with a more selective expansion profile across industrial by-product use and formal livestock nutrition. Dairy and mixed livestock demand support daily needs across several organized production districts with close food-processing linkages. Lombardy, Emilia-Romagna, and Veneto are the main demand centers through dense animal production and strong industrial adjacency.
Competition in this industry depends on execution quality rather than brand strength alone. Value emerges only after proper sorting, stabilization, drying, blending, testing, and documented use in formal feed channels. Supply remains fragmented across sugar processors, dairies, breweries, ethanol biorefineries, and bakeries across Europe. The wider algae based animal feed discussion points to the same lesson because feed buyers reward verified performance and steady specification. Traceability and safe storage therefore matter more than novelty or opportunistic volume.
Large integrated companies hold an advantage through mills and storage assets, while their nutrition relationships span multiple countries and livestock systems. Local specialists still retain room in shorter-distance supply systems through careful handling and better familiarity with variable industrial side streams. Entry favors firms that can standardize uneven intake and protect pricing through longer buyer relationships. Competition therefore remains active across both usability and cost.
A mix of integrated feed groups, crop processors, circular ingredient specialists, and newer fermentation-led firms shapes current competitive activity across this industry.
| Company | Residual Stream Access | Feed Ingredient Breadth | Scale Readiness | Geographic Footprint |
|---|---|---|---|---|
| ForFarmers | High | High | Strong | Multi-region |
| AGRANA | High | Medium | Strong | Global |
| Tereos | High | Medium | Strong | Multi-region |
| CropEnergies | High | Medium | Moderate | Multi-region |
| De Heus | Medium | High | Strong | Global |
| Roquette | Medium | High | Moderate | Global |
| FeedValid | High | High | Moderate | Regional |
| SFP Group | Medium | Low | Moderate | Regional |
| Enifer | Low | Medium | Low | Regional |
| MicroHarvest | Low | Medium | Low | Regional |
Source: Future Market Insights, 2026.
Key Developments in Industrial Food Processing By-Product Valorisation into Animal Feed in EU Industry
Major Global Players
Key Emerging Players/Startups
| Metric | Value |
|---|---|
| Quantitative Units | USD billion for market value, CAGR for forecast pace, and 2026 share values for leading segments |
| Market Definition | Industrial food-processing and bio-processing side streams upgraded into feed ingredients for animal nutrition across the European Union |
| Segmentation |
|
| Regions Covered | European Union with emphasis on major Western and Central feed economies |
| Countries Covered | Spain, Belgium, Poland, Denmark, Germany, France, and Italy |
| Key Companies Profiled | ForFarmers, De Heus, AGRANA, Tereos, CropEnergies, Roquette, FeedValid, Enifer, MicroHarvest, and SFP Group |
| Forecast Period | 2026 to 2036, with 2025 as the estimated base year |
| Approach | Bottom-up modeling from official feed tonnage and co-product anchors, followed by conservative pricing and cross-checks against industrial feed-system depth |
This bibliography is provided for reader's reference.
What is the market value estimated in 2026?
FMI estimates the market at USD 6.4 billion in 2026 under a conservative model anchored to current EU feed and co-product use.
What industry value is projected for 2036?
Projected market value reaches USD 10.5 billion by 2036 under the base forecast used in this assessment.
What CAGR is used for 2026 to 2036?
FMI uses a 5.0% CAGR across the forecast period to keep the outlook aligned with a mature industrial ingredient business.
Which source segment leads in 2026?
Distillers grains lead source structure with an estimated 24% share in 2026 due to industrial ethanol-linked supply depth.
Which form segment is largest?
Dry meal leads physical form with an estimated 42% share in 2026 through shelf-life and freight advantages.
Which application holds the largest share?
Compound feed is the largest application at an estimated 51% share in 2026 across formal industrial feed manufacturing.
Which country rises fastest in this study?
Spain leads the country pack with an estimated 5.8% CAGR through 2036 due to very large feed output and dense livestock regions.
What is included inside the market scope?
Scope includes industrial food and bio-processing side streams upgraded into feed ingredients, while finished feed sales and untreated waste stay outside.
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Industrial Food Processing By-Product Valorisation into Animal Feed in EU Industry
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