CANADA ANIMAL FEED MARKET

Canada Animal Feed Market forecast to grow at stable rate of growth in the coming years owing to surging consumer interest in meat and animal-based products and the rising need for livestock feed to support both domestic and international markets.

Major Canada Animal Feed Market Drivers and Emerging Trends

The rising consumer demand for meat is fostering the animal feed market growth to sustain livestock production and meet regulatory requirements. As the population grows and urbanization spreads, it is typical for dietary preferences to move towards diets high in protein and often including meat products. The growing preference for meat among the population results in increased demand for livestock, leading to a corresponding rise in the need for animal feed to support their growth and productivity.

Most of the livestock feed produced in Canada is consumed domestically with a small portion being sent to other nations, which exported feed and the ingredients generated about USD 3.33 billion in revenue in recent years. The Canadian feed sector contributes significantly to the national economy through various means, which can be evaluated by examining its integrated value chain closely linked with agricultural commodities in the country. Consistent animal protein production in Canada also guarantees the steady growth of the feed industry, offering stable employment opportunities especially in rural areas. Primary agriculture accounted for about 2.1% of Canada’s GDP in 2020 and employed nearly 270,000 workers as of 2018 while livestock operations constituted 41.6% of the sector in 2011.

 In Canada, the feed industry manufactures products for various animal species with a significant emphasis on cattle, poultry, and swine which collectively represent the majority of food-producing animals. The manufacturers of commercial feed play a crucial role in transforming raw materials into nutritious and safe livestock feed which is subsequently purchased by livestock producers to facilitate the production of meat, eggs, and milk. Feed expenses constitute as much as 75% of the overall costs associated with livestock production which may fluctuate based on the species being raised. Canada’s feed sector heavily relies on the country’s local grain supply with 80 percent of barley, 60 percent of corn, and 30 percent of domestically grown wheat utilized in feed manufacturing. Grain and oilseed farmers benefit from a reliable market provided by the feed industry for their products. Furthermore, the feed industry plays a role in generating revenue by utilizing waste from other agri-food and agriculture production along with products that are not suitable for human consumption and would otherwise hold limited economic value.

The other factor contributes to the growth of Canada animal feed market size is the growing demand for pet food. Rising domestic and international demand especially for premium pet food brands has bolstered animal food producers in Canada. These new markets have driven industry expansion despite challenges raised by the covid pandemic and adverse weather conditions. According to Canadian Animal Health Institute, cat and dog food are the most popular items given that one-third of the population are cat owners and almost half have a dog. Pet food manufacturers tend to establish their facilities in regions that mirror population trends, favorable agricultural climates for grain production, and the presence of livestock producers. This strategic placement often positions them in or nearly densely populated regions where there is a significant number of pet-owning households.

The Canada animal feed market has faced a series of substantial challenges including floods, fires, labor shortages, and the covid pandemic in recent years. Despite these difficulties, the industry has strengthened by implementing new contingency strategies and forging crucial partnerships. Despite successful outcomes, these experiences underscored Canada’s supply chain fragility, necessitating a more resilient system to ensure continuous provision of adequate feed for Canadian livestock and meet international demands especially during crises.

Segments covered in the Report:

The Canada animal feed market has been segmented on the basis of type and product. Based on the type, the market is segmented into poultry, swine, ruminant, aquaculture and others. Based on the product, the market is segmented into pellets, mash, crumbles.

Market Segmentation

Canada Animal Feed Market by Type

• • Poultry
  • Swine
  • Ruminant
  • Aquaculture
  • Others

Canada Animal Feed Market by Product

• • Pellets
  • Mash
  • Crumbles