The market for compound feed in Spain is projected to register a CAGR of 4.2% during the forecast period. The technological revolution in the animal feed industry has led to increase in the production of the compound feed. According to the European Feed Manufacturers’ Federation (FEFAC), in 2018, Spain was ranked second in the total production of compound feed for farm animals in Europe, with 24.25 million metric tons of compound feed production as compared to 22.7 million metric tons in 2016. Industrial livestock production resulting in increased feed production coupled with demand for Spain meat is leading to higher export and is driving the market for feed. Some of the leading players like Cargill Inc, Trouw Nutrition Espa?a SA, Alltech Inc., ForFarmers, Nutreco NV. are dominating the studied market.

Key Market Trends

Growing Meat Export is Driving the Feed Market

Rising commercial production of livestock has led to a higher export market due to the increasing demand from other countries. According to ITC Trade, in 2019, the export market value for meat in Spain reached USD 8.33 billion, primarily due to heightened demand from France, Germany, Italy, and Portugal.

For Instance, in 2019 the swine meat export of Spain was valued at USD 5.2 billion as compared to USD 4.03 billion during the previous year. Of USD 5.2 billion exported in 2019, China is the major importer of swine meat which accounted for USD 1.22 billion in 2019. followed by France with a value of USD 0.66 million. This increasing demand is catered by increasing commercial production, which drives the compound feed market.

Increasing Feed Production

According to the European Feed Manufacturers’ Federation (FEFAC), Spain was ranked second in the total production of compound feed for farm animals in Europe, with an estimated 24.25 million metric tons of compound feed produced in 2018, as compared to 23.24 million metric ton during the previous year. Of the total 24.25 million metric tons of feed produced in 2018, pig feed accounted for 10.58 million metric tons, and 9.17 million metric tons of cattle feed was produced. The bolstering growth of the compound feed industry in the country has prompted global giants to strengthen their position in the Spanish market. Furthermore, technological developments in the animal feed industry have driven the market. For instance, in 2018, a Spain-based aquaculture feeding systems manufacturer Pontevedra had launched a new hatchery feeding system that can centrally and automatically live feed for fish larvae production at an industrial scale. This is expected to drive the growth of the market further during the forecast period.

Competitive Landscape

Leading companies focused on acquiring feed mills and small manufacturing for expansion of the business in local as well as foreign markets. Some of the players have been expanding their geographical presence by acquiring or merging with the manufacturers in the foreign market. The leading companies focused on the expansion of the business across regions and setting up a new plant for increasing production capacity as well as a product line. The companies are also increasing production capacities of their existing plants.?Some of the leading players like Cargill Inc, Trouw Nutrition Espa?a SA, Alltech Inc., ForFarmers, Nutreco NV. are dominating the studied market. In 2019, Royal De Heus acquired Spanish compound feed plant Evialis Galicia of Archer Daniels Midland Company. This move from De Heus will help in increasing the production capacity thus strengthening its position in the Spain animal feed industry.

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