South Korea Compound Feed Market- Trend Analysis & Forecast to 2030

The compound feed market in South Korea was valued at US$ ** million in 2023, with production volumes reaching ** million tonnes. The market is expected to expand at a compound annual growth rate (CAGR) of **% from 2024 to 2030. South Korea’s compound feed market is a critical component of its agricultural and livestock sectors, ensuring optimal nutrition for various animal categories. With a focus on efficiency and quality, the market is evolving rapidly, influenced by advancements in feed formulations, government policies, and growing consumer demand for high-quality animal products.

Market/ Product Overview

The compound feed market in South Korea has witnessed steady growth, driven by the increasing demand for meat and dairy products. South Korea's strategic focus on improving livestock productivity and health has made compound feed a cornerstone of its agricultural development. The market is characterized by advanced feed production technologies, high-quality feed ingredients, and stringent safety standards. Additionally, South Korea's commitment to sustainability and reducing greenhouse gas emissions has spurred innovations in feed formulations to lower the environmental footprint of livestock farming.

South Korea's Significance in the Global Compound Feed Supply

South Korea is recognized as a pivotal player in the global compound feed market due to its advanced production technologies and adherence to high-quality standards. Although the nation imports a significant portion of raw materials such as corn and soybeans, its ability to produce tailored feed products for diverse livestock categories has positioned it as a competitive supplier in the international market. The country’s innovative approach to feed formulations ensures that it remains a reliable source for premium-quality compound feed.

South Korea Commercial Livestock Farming Trend

The commercial livestock farming industry in South Korea has undergone a transformation, focusing on efficiency and sustainability. The country predominantly farms poultry, swine, and cattle, with growing investments in technology-driven solutions like automated feeding systems and precision farming. These advancements are helping farmers optimize feed use, reduce wastage, and improve animal health. The government’s initiatives to support livestock farmers, including subsidies and training programs, have further boosted the adoption of compound feed in the industry.

South Korea Compound Feed Production & Demand Trend

South Korea's animal feed production has experienced steady growth over the past decade, driven by rising domestic demand for animal protein. In 2023, the nation produced approximately 20 million metric tons of feed, with poultry and swine feed accounting for the largest shares. Consumption trends indicate a preference for high-protein and nutrient-rich formulations to meet the needs of modern livestock farming. Urbanization and rising incomes have also contributed to increased meat consumption, further driving the demand for compound feed.

The production of compound feed in South Korea is marked by the adoption of advanced technologies and stringent quality control measures. Feed mills across the country are equipped with modern machinery to ensure precise formulation and consistency. The industry has also embraced digital tools for monitoring production processes and ensuring compliance with safety standards. With a focus on sustainability, many manufacturers are exploring alternative raw materials like insect protein and algae to diversify their product offerings and reduce dependence on imports.

The demand for compound feed in South Korea is closely tied to the growth of its livestock industry. Rising consumer preferences for meat and dairy products have led to increased investments in livestock farming, driving the demand for high-quality feed. Additionally, the trend of fortified feed, which enhances the nutritional value of animal products, is gaining popularity. The swine and poultry sectors are the primary consumers, but the aquaculture segment is also emerging as a significant contributor to feed demand.

South Korea Major Feed Ingredients Used

South Korea’s compound feed production relies heavily on imported raw materials, including corn, soymeal, and wheat. These ingredients form the base of most feed formulations, supplemented by vitamins, minerals, and additives for enhanced nutritional value. The country is also exploring local alternatives, such as rice bran and by-products from the food processing industry, to reduce dependency on imports and promote sustainability. The use of probiotics and enzymes in feed formulations is another growing trend aimed at improving animal health and digestion.

South Korea Compound Feed Market Growth Factors

The growth of South Korea’s compound feed market is driven by several factors, including the rising demand for animal protein, technological advancements in feed production, and government support for the livestock sector. Urbanization and changing dietary habits have increased the consumption of meat and dairy products, spurring investments in livestock farming. Innovations in feed formulations, such as the inclusion of probiotics and organic additives, are improving animal health and productivity, further boosting market growth. Additionally, South Korea's focus on sustainability and reducing the environmental impact of livestock farming is fostering the development of eco-friendly feed solutions.

South Korea Compound Feed Market Restraints & Challenges

Despite its growth potential, the compound feed market in South Korea faces several challenges. High dependence on imported raw materials exposes the industry to price volatility and supply chain disruptions. Stringent regulatory requirements and rising production costs also pose significant hurdles for manufacturers. Additionally, the increasing focus on sustainable livestock farming demands substantial investments in research and development, which can strain smaller players. The fluctuating demand for meat due to changing consumer preferences and economic conditions further adds to the market’s challenges.

South Korea Compound Feed Industry: Supply Chain Constraints and Value Chain Challenges

The compound feed supply chain in South Korea is complex, involving multiple stakeholders from raw material suppliers to distributors. A significant bottleneck lies in the heavy reliance on imported feed ingredients, which can lead to supply disruptions during geopolitical or economic uncertainties. Logistics challenges, such as high transportation costs and storage limitations, also affect the efficiency of the supply chain. Moreover, maintaining consistent quality and safety standards across the value chain requires robust monitoring systems and collaboration among stakeholders.

South Korea Trend of Compound Feed Demand & End-Use Livestock Type

The demand for compound feed in South Korea is largely driven by poultry and swine farming, which account for the majority of livestock production. The dairy and beef cattle segments also contribute significantly, with a growing emphasis on premium feed formulations to enhance milk yield and meat quality. South Korea beef cattle compound feed market witnessed a CAGR growth of 4.5% during the period from 2018 to 2023. Aquaculture is an emerging segment, reflecting the increasing consumer preference for seafood. The diversification of feed products to cater to specific livestock requirements is a key trend shaping the market’s future.

South Korea Compound Feed Trade (Export & Import) Trend

South Korea is a net importer of raw materials for compound feed production, with major imports including corn, soymeal, and wheat. The country’s reliance on global markets makes it vulnerable to price fluctuations and trade policies. However, South Korea also exports high-quality compound feed products to neighboring countries, leveraging its advanced production capabilities. In 2023, South Korea exported compound feeds valued at USD ** million. Trade agreements and collaborations with key suppliers are essential for ensuring a stable supply of raw materials and maintaining the competitiveness of South Korea’s compound feed industry.

South Korea Compound Feed Market Competitive Analysis

The compound feed market in South Korea is highly competitive, with the presence of both domestic and international players. Leading manufacturers focus on innovation and sustainability to differentiate their products and meet the evolving needs of livestock farmers. Strategic partnerships, mergers, and acquisitions are common strategies to expand market share and enhance production capabilities. The adoption of digital technologies, such as feed management software and precision farming tools, is also a key differentiator among competitors. Regulatory compliance and quality assurance remain critical for maintaining a competitive edge in the market.

List of Key Companies in South Korea Compound Feed Market (Manufacturers/Suppliers/ Exporters),

■ CJ CheilJedang
■ Daehan Feed Co., Ltd.
■ Harim Group
■ Nonghyup Feed Co., Ltd.
■ Samyang Feed Co., Ltd.
■ Dongbu Farm Hannong Co., Ltd.
■ Sunjin Co., Ltd.
■ Cargill Korea
■ Daesang Feed Co., Ltd.
■ Kyoritsu Seiyaku Co., Ltd.
■ FeedOne Co., Ltd.

Future Outlook

The South Korean compound feed market is poised for steady growth, driven by advancements in feed production technologies and a growing focus on sustainability. By 2030, the market is expected to achieve greater diversification in feed ingredients and formulations, catering to the evolving needs of the livestock industry. Strategic investments in research and development, along with government support, will play a crucial role in addressing challenges and unlocking new growth opportunities. South Korea’s commitment to quality and innovation ensures its continued prominence in the global compound feed landscape.