The Chinese pet food market would rise at a compound annual growth rate of 4.06% from 2020 to 2025, according to projections from Knowledge Sourcing Intelligence, an India-based consulting firm.
In addition to the growing demand from the pork and poultry sector, a longer life cycle of beef production is also expected, according to the Chinese company Xiangtai Food, to contribute to the growth of the animal feed market.
Knowledge Sourcing Intelligence estimates that government stimulus, loosening of environmental standards and higher profits increased domestic beef production to 7 million metric tons and raised China’s livestock inventory by 2% to 91 million in 2020.
In addition, sustained demand for beef in China may incentivize larger livestock operations to invest in expansion, which may also increase consumption and production of animal feed.
For now, data from Chinese government agencies supports the expectation of an upward trajectory of domestic animal feed production.
In February 2021, the China Feed Industry Association (CFIA) published the 2020 National Feed Industry Development Summary.
In the CFIA report, the total production value of China’s feed industry was RMB 946.33 billion, which is an increase of 17.0% from the previous year.
The total operating income of the feed industry was RMB 907.28 billion in 2020, an increase of 16.6 percent.
Furthermore, total commercial feed production increased by 10.4%, to 252,761 million metric tons, and total feed additive production increased by 16%, to 13,908 tons.
As China recovers from the African swine flu outbreak in 2018 and demand increases from the growing poultry sector, domestic consumption of animal feed is projected to increase.
According to USDA’s feed and grain update report of October 2, 2020, China’s total feed demand and residual use in 2020-2021 is forecast to be 218.9 million tons, an increase of 6.8 million tons. tons or 3.2% more compared to 2019-2020.