Animal Food Production

Business for Sale Industry Economics

$61,649,000,000

Revenue

3.37%

Projected CAGR

2003 - 2021

Historical

2021 - 2027

Projection

1.47%

CAGR

$3,144,000,000

Profit

Quick Scroll

Summary

Animal Food Production is the manufacture of food for animals such as cattle and pets. Revenue in the sector is predicted to slip marginally over the next five years due to declining input costs.

However, some favorable developments have driven market demand, including expanded pet adoption, with the number of domestic cats and dogs increasing at an annualized rate of 1.8 percent over the five years to 2021.

Since the prices of industry goods are determined by domestic grain supplies, animal feed costs, and livestock prices, decreases in the prices of these inputs have stifled industry revenue growth.

As a result of these developments, market income is forecast to fall slowly at an annualized rate of 0.1 percent to $61.6 billion over the next five years, reaching $61.6 billion in 2021.

This involves an uptick of 2.3 percent in 2020 and 1.7 percent in 2021, respectively, due to the COVID-19 (coronavirus) pandemic, as increased pet ownership balances supply chain delays and declining market spending.

Performance

The Animal Food Production industry processes raw materials to make feed for livestock like horses, pigs, ducks, and turkeys, as well as domestic pets like cats and dogs.

For the next five years, the sector will be supported by consistent downstream demand from farm supply wholesalers as well as dog and pet owners. Nonetheless, industry income has fallen, owing primarily to deterioration in the red meat, corn, and wheat sectors.

Although low meat prices benefit industry operators by increasing earnings, they also pose a threat to industry revenue because feed for red meat farmers accounts for a large portion of industry revenue.

Outlook

The Animal Food Production industry is predicted to return to growth over the five years to 2026, after witnessing sales declines over the five years to 2021.

For the next five years, industry revenue is forecast to grow at an annualized rate of 1.8 percent to $67.4 billion.

If the economy recovers from the COVID-19 (coronavirus) pandemic, which is projected to raise demand for meat and pet food, the sector will likely benefit from a stable economic environment.

As per capita meat consumption in the United States and abroad remains relatively high, stocks of beef, poultry, and swine, as well as demand for animal feed, are expected to rise.

Furthermore, demand for pet food is expected to grow in tandem with increased pet ownership.

Expected reductions in the value of the US dollar over the next five years would almost certainly aid in the expansion of export sales.

Overall, conditions are favorable for expansion, though expected price rises in oilseeds and other grains should temper profit expectations.

DE16PC 517154 1

Industry

Operators in the Animal Food Production industry refine raw materials to provide food for animals such as livestock and dogs. After that, the goods are packed and sent to beef ranches, dairy farmers, other livestock processing farms, food wholesalers, and supermarkets.

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