Saudi Arabia Compound Feed Market- Trend Analysis & Forecasts

The compound feed market in Saudi Arabia was valued at US$ ** billion in 2024, with production volumes reaching ** thousand tonnes. The Saudi Arabia compound feed market is poised for robust growth, driven by increasing commercial livestock farming, advancements in feed production technologies, and rising demand for high-quality animal products. With a strategic location in the Middle East, Saudi Arabia plays a vital role in the global feed supply chain. The market is expected to grow at a compound annual growth rate (CAGR) of **% during the forecast period, reaching US$ ** billion by 2030.

Market/ Product Overview

The Saudi Arabia compound feed market has witnessed significant evolution due to growing consumer demand for meat, dairy, and poultry products. This growth is supported by government initiatives promoting domestic livestock farming and the modernization of agricultural practices. The shift from traditional feeding methods to compound feed is primarily driven by efficiency, nutritional optimization, and cost-effectiveness.

The Kingdom’s Vision 2030 initiative has also contributed to market growth, focusing on enhancing food security and self-sufficiency in animal husbandry. The increasing reliance on imported feed ingredients, however, poses challenges, leading to a strong push for domestic production. The compound feed market is segmented into cattle, poultry, and aquaculture, with poultry accounting for the largest share due to the growing demand for chicken products.

Saudi Arabia's Significance in the Global Compound Feed Supply

Saudi Arabia occupies a crucial position in the global compound feed supply chain. Its strategic location enables it to serve as a key distribution hub for the Middle East and North Africa (MENA) region. Despite limited arable land, the country imports high-quality raw materials such as soybean meal, corn, and fishmeal to meet domestic feed production needs. Saudi Arabia’s expanding livestock and poultry industries are further reinforcing its importance in the regional feed supply.

Saudi Arabia Commercial Livestock Farming Trend

Commercial livestock farming in Saudi Arabia has undergone significant transformation, marked by the adoption of modern farming techniques and increased focus on productivity. The poultry sector leads, contributing over **% of the total livestock market, followed by dairy and aquaculture. Government-backed investments in advanced farming infrastructure, such as climate-controlled housing systems and automated feeding equipment, have been pivotal in enhancing livestock yields. Rising domestic and export demand for animal products continues to drive this trend.

Saudi Arabia’s animal feed production has grown consistently, fueled by rising demand from the livestock sector. Annual compound feed production reached approximately ** million tons in 2024, with poultry and cattle feed dominating the mix. The country’s feed consumption pattern reflects a growing preference for nutritionally balanced diets, enhancing livestock productivity and quality. Key consumption hubs include Riyadh, Jeddah, and Dammam, driven by the concentration of commercial farms.

Saudi Arabia Compound Feed Production & Demand Trend

The compound feed production landscape in Saudi Arabia has witnessed notable advancements in technology and efficiency. Automated feed mills equipped with sophisticated formulation systems have become the norm, enabling the production of tailored feed for specific livestock types. Local production focuses on balancing cost-effectiveness with quality, utilizing imported raw materials and advanced processing techniques. Government initiatives aimed at boosting domestic feed production are expected to reduce reliance on imports in the coming years.

Demand for compound feed in Saudi Arabia is driven by the expanding livestock sector and rising consumer preference for high-quality animal products. Poultry feed accounts for the largest share, with significant demand growth in aquaculture feed due to increased fish farming activities. The trend toward using specialized feed for different livestock types highlights the market’s maturity and focus on nutritional precision. Urbanization and increasing disposable incomes are also driving higher consumption of meat and dairy, further boosting feed demand.

Saudi Arabia Major Feed Ingredients Used

Key feed ingredients used in Saudi Arabia include imported soybean meal, corn, barley, wheat, and fishmeal. Locally sourced ingredients like alfalfa and dates are also utilized, albeit to a lesser extent. The rising cost of imports has prompted efforts to explore alternative raw materials, such as by-products from the food processing industry. Nutritional additives, including vitamins and minerals, are extensively incorporated to enhance feed quality and animal health.

Market Growth Factors

The compound feed market in Saudi Arabia benefits from several growth factors. Increasing consumer demand for meat and dairy products is driving livestock production, thereby boosting feed requirements. Government initiatives under Vision 2030 focus on reducing dependency on imports, encouraging investments in local feed production facilities. Advances in feed technology and formulation, along with increased awareness of livestock nutrition, further contribute to market expansion. Additionally, the growth of aquaculture and rising exports of animal products create a strong demand for high-quality feed.

Market Restraints & Challenges

The market faces several challenges, including a heavy reliance on imported raw materials, which makes feed production vulnerable to global price fluctuations. Limited arable land and water resources restrict the domestic cultivation of feed crops. High production costs, coupled with stringent regulatory requirements for feed quality, pose additional barriers. The nascent stage of alternative feed ingredient adoption and limited research capabilities also hinder market growth. Furthermore, competition from international feed suppliers adds pressure to local manufacturers.

Supply Chain Constraints & Challenges

The compound feed supply chain in Saudi Arabia faces significant bottlenecks. The dependency on imported raw materials leads to logistical complexities and increased costs. Inadequate storage infrastructure for feed ingredients contributes to wastage and quality degradation. Transportation inefficiencies within the Kingdom’s vast terrain further strain the supply chain. Limited availability of skilled workforce in feed production and distribution compounds the challenges. Addressing these bottlenecks will require investments in infrastructure, technology, and training programs.

Market Segmentation

The compound feed market in Saudi Arabia can be segmented by type, ingredient, form, and sales channel:

By Type: Poultry feed dominates the market, followed by cattle and aquaculture feed. The poultry segment’s dominance is attributed to high consumption of chicken products. Aquaculture feed is growing rapidly due to the rise in fish farming.

By Ingredient: Soybean meal, corn, and fishmeal are the primary ingredients, with vitamins and minerals playing a crucial role in enhancing feed quality. Efforts are underway to incorporate alternative ingredients like date by-products and food processing residues.

By Form: Pelleted feed accounts for the largest share due to its convenience and uniformity, followed by mash and crumbled feed forms.

By Sales Channel: Direct sales to commercial farms dominate, with online platforms and distributors catering to small-scale livestock farmers.

Compound feed demand in Saudi Arabia aligns closely with livestock trends, with poultry accounting for the largest share. Rising consumer demand for fish and dairy products has increased the focus on aquaculture and cattle feed. Specialized feed formulations tailored to specific livestock requirements, such as high-energy diets for broilers or nutrient-rich feed for dairy cows, are gaining traction.

Saudi Arabia Compound Feed Trade (Export & Import) Trend

Saudi Arabia heavily relies on imports for feed ingredients, sourcing primarily from the US, Brazil, and India. The Kingdom’s feed exports are minimal, limited to neighboring countries. Import volumes have increased in recent years, driven by growing feed demand. Trade policies under Vision 2030 aim to diversify supply sources and reduce import dependency by encouraging domestic feed production.

Saudi Arabia Compound Feed Market Competitive Analysis

The competitive landscape of the Saudi Arabia compound feed market features both domestic and international players. Key companies focus on innovation in feed formulation and strategic partnerships to strengthen market presence. Local manufacturers benefit from government support and proximity to end-users, while international firms leverage advanced technologies and economies of scale. The market remains highly competitive, with a focus on quality, cost efficiency, and sustainability.

List of Key Companies in Saudi Arabia Compound Feed Market (Manufacturers/Suppliers/ Exporters),

■ Almarai
■ Al-Watania Poultry
■ National Feed Company (Feedco)
■ Arabian Agricultural Services Company (ARASCO)
■ Nutreco
■ Cargill
■ ADM Animal Nutrition
■ Evonik Industries
■ BASF SE
■ Charoen Pokphand Group
■ Zinpro Corporation
■ Kemin Industries
■ Trouw Nutrition
■ Alltech

Future Outlook

The Saudi Arabia compound feed market is set to experience sustained growth through 2030, driven by advancements in livestock farming and feed production technologies. Government initiatives supporting domestic production and reduced reliance on imports will play a crucial role. Innovations in feed formulation and the adoption of alternative raw materials are expected to enhance market sustainability. Rising demand for high-quality animal products will continue to boost feed consumption, solidifying Saudi Arabia’s position as a key player in the regional feed market.