INDONESIA ANIMAL FEED MARKET

Animal Feed Market is primarily driven by the rising demand for poultry and meat, the growing income per capita, and the government initiatives to uphold the animal feed standard and safety.

Major Indonesia Animal Feed Market Drivers and Emerging Trends

The increasing demand for animal-based products is a major contributor for the growth of Indonesia animal feed market, as the country’s population is witnessing increased wealth and urbanization, there is a simultaneous increase in the demand for eggs, meats, or dairy products. The rise in the consumption levels coupled with shifting dietary preferences towards diet high in protein especially in urban areas is challenging the livestock industry to increase production of high-grade animal feed. Furthermore, the growing consumer consciousness about the safety and quality of animal products has stimulated investments in innovative feed formulations, which can further drive the expansion of Indonesia animal feed market. Farmers are increasingly adopting nutritionally enriched and specialized feeds for their animals which aim to provide livestock with the necessary nutrients crucial for health, reproductive success, and optimal growth.

The other factor contributing to the growth of Indonesia animal feed market is the growing income per capita especially noticeable among wealthier consumers who want to invest in premium meat products from animals receiving high-quality feed. In addition, the expanding middle-class demographic changing their eating habits towards higher-quality foods has driven an uptick in meat consumption in recent years. According to a publication by the Australian Bureau of Agricultural and Resource Economics and Sciences, in 2050 the meat consumption in Indonesia is estimated to increase by 132 percent which is expected to foster market growth in the years ahead.

The government efforts and regulations focused on ensuring the safety and quality of animal feed are also contributing to Indonesia animal feed market expansion, creating a competitive environment that emphasizes responsible manufacturing approaches. Furthermore, the government’s commitment and focus on sustainable agricultural methods influences market dynamics, as there is a growing recognition of the environmental footprint of livestock farming which is fostering a move towards environmentally friendly alternatives.

The increasing demand for organic products is fueling market expansion, as consumers are choosing naturally sourced eggs and meat driven by a rising awareness regarding environmental sustainability and well-being. The shifting consumer preference requires a change in livestock management practices focusing on organic feed for animals. The rising preference for organic animal-based products has compelled farmers to implement natural farming methods, leading to the use of specialized feed formulation for animals that meet strict organic criteria. The rise in consumer preference for organic feed which excludes synthetic pesticides is fueling the expansion of animal feed industry as manufacturers are prioritizing organic and natural ingredients in their innovative formulations responding to consumer preferences for animal products produced ethically and are chemical-free.

With ongoing population growth and urbanization, increased poultry product consumption has spurred a robust market for specialized feed that cater specifically to the nutritional needs of layers, turkeys, and broilers. In response to this demand, feed manufacturers are developing formulations aimed at improving growth rates, fertility, and general poultry health by innovating in feed technology with the integration of essential supplements and nutrients.

The agricultural sector in the country is reach in resources, facilitating the cultivation of diverse feed ingredients such as soybeans, palm, and corn which can serve as the opportunity for market growth. In addition, the expansion of cattle farming sector driven by demand from both domestic and international markets enables the cost-effective production of a variety of ingredients and provide local feed marketers with opportunities to expand their businesses.

Nevertheless, the expansion of Indonesia animal feed market presents certain challenges including the fluctuating prices of raw materials which represents a critical issue that can affect the costs and profitability of manufacturing animal feed. In addition, the environmental concerns stemming from greenhouse gas output and the consumption of water in the livestock industry are constraining the growth of the animal feed sector. Additionally, disease outbreaks represent a critical aspect leading to losses in livestock, reduced productivity, and the implications for Indonesia animal feed market.

Segments covered in the Report:

The Indonesia Animal Feed Market has been segmented on the basis of type and product. Based on the type, the market is segmented into swine, poultry, aquaculture, ruminant and others. Based on the product, the market is segmented into pellets, mash, crumbles.

Market Segmentation

Indonesia Animal Feed Market by Type 

• • Poultry
  • Swine
  • Ruminant
  • Aquaculture
  • Others

Indonesia Animal Feed Market by Product 

• • Pellets
  • Mash
  • Crumbles