The animal feed market in Thailand to grow in the following years
The Thai animal feed market is projected to witness a compound annual growth rate of 2.96% to grow to $6.985 billion by 2026, from $5.697 billion in 2019, according to a recent report from Research And Markets.
With a significant increase in the export of Thai chicken in recent years, together with the opening of new export destinations such as Japan and the EU, the market for animal feed is forecast to grow exponentially in the coming years. For instance, according to the Thai Department of Customs, the country's chicken meat export has increased from nearly 546,000 tonnes in 2014 to 950,000 tonnes in 2019.
Growing consumption of meat and other livestock products
Animal feed is considered as the demand-led 'livestock revolution' which is taking place because of a rapidly growing population, income growth, and increasing urbanization. Growing consumption of meat and other end products such as milk, eggs across the different provinces is considered as one of the prime factors driving the market growth during the forecast period. In addition, a growing number of supermarkets, convenience stores, and quick restaurant services have impacted the demand for meat and other products which is further driving the growth of the market in the coming years. For instance, according to the United States Department of Agriculture (USDA), the number of convenience stores in Thailand has increased from 11,797 in 2015 to over 14,403 in 2019. In August 2021, according to European traders, a group of importers in Thailand had ordered and issued an international tender to buy and purchase up to 139,500 tones of animal feed wheat. The traders had stated that the shipments had to be completed by December 2021.
Cattle is projected to hold a notable share in the animal feed market
By Livestock, Thailand's animal feed market is divided into aquatic animals, cattle, poultry, and others. Cattle and poultry are expected to hold a significant share in the country's animal feed market. The prime factor driving the segment demand for animal feed is the growing number of cattle populations in the country. Thailand has the largest cattle population in the ASEAN region and is a significant exporter of beef and dairy products. A rising number of cattle heads and heard is expected to drive the market growth, analysts said.
COVID-19 impact on Thailand animal feed market
The COVID-19 pandemic led to a decline in meat consumption in Thailand, which was a major factor for the decrease in the growth of the animal feed market in the year 2020. The decrease in the number of foreign tourists, a closedown of hotels and other hospitality businesses, and the government's imposition of stringent measures on social distancing were some of the reasons behind low meat consumption in the country.
According to USDA, foreign tourists in Thailand went from 39.9 million tourists prior to the pandemic to 6.7 million in 2020. Furthermore, the trade restrictions implemented by countries all over the world led to reduced feed imports from the other countries. However, the country increased its domestic production of feed materials such as corn which supported the growth of the market during the pandemic. Furthermore, an increase in the price for broken rice, which is used majorly as swine feed in the country, was seen in 2020.
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