Animal Milk Replacer Market Expected to Reach $8.5 Billion by 2035

According to a new report published by Allied Market Research, titled, “Animal Milk Replacer Market," The animal milk replacer market was valued at $4.6 billion in 2023, and is estimated to reach $8.5 billion by 2035, growing at a CAGR of 5.3% from 2024 to 2035.

Milk replacers are the products that offer health advantages to newborn animals. Consumption of milk replacers aid long-term growth rates in newborn animals, as well as improve milk supply and general health. The availability of supplemented milk replacers with vitamins, minerals, and fortified substitutes are anticipated to boost the animal milk replacer market growth.

Rise in the number of bovine feed industry has significantly driven the growth of animal milk replacer market in recent years. The bovine feed industry has rapidly expanded as milk producers begin to replace traditional cattle and domestic animal feed with nutritionally balanced compound feed and milk replacers, realizing the practical benefits of nutritional feed in terms of yield enhancement. Cattle output in Asia-Pacific has grown faster than any other agricultural sub-sector, resulting in rapid expansion of the pig, calf, and livestock sectors. The livestock business is the most important component of agricultural output. Livestock products account for almost 40% of the overall agricultural output in worldwide markets. Consumption of animal byproducts has grown as a result of animal population expansion and rise in spending power of the people. Thus, the animal milk replacer market share is expected to grow in the coming years.

Moreover, milk replacer is less costly than complete cow's milk, resulting in better market growth rates. Manufacturers spend heavy amounts on research and innovation to create solutions that promote gut health and increase immunity. Animal milk replacer contains digestible proteins, enriched vitamins, and organic selenium for maximum absorption and utilization. A young calf and other animals grow well on milk replacer and develop their rumens just as well as they would on full milk. Animal milk replacers are beneficial in reducing the risk of stomach disturbances and illness in animals. These milk replacers minimize the possibility of transmission of diseases from cows to calves owing to which there is increase in adoption of animal milk replacer market trends.  

However, the milk replacer market faces certain challenges in terms of market growth. Traditionally, owners fed their cats, dogs, calves, and other pet animals with milk and home-made food, which included leftovers and scraps from family meals. In many developing countries, such as India and Indonesia, there is a lack of awareness regarding animal nutrition and supplements. Moreover, many individuals do not recognize the importance of providing animals with milk replacers to ensure their health and well-being. Traditional ways of feeding animals are expected to hinder the growth of the animal milk replacer market. 

Furthermore, there are several growth opportunities for market players in the developing regions. India is one of the leading countries in terms of cattle and calf population as it had the highest livestock populations as of 2022 with the number as high as 308.0 million, which constituted around 30% of the global cattle population. Although India is leading in terms of cattle and calf population, India’s cattle feed industry is not really exploring the entire potential of manufacturing functional or nutritional feed products for animals in the country. The buyers are not aware of the new innovations in the animal feed category, such as animal milk replacers and other nutritious feed products. Hence, countries such as India, Brazil, Argentina, and Africa, prove as an attractive destination for international animal milk replacer manufacturers to enter and meet the growing feed demand. 

The Animal Milk Replacer Market Analysis is done on the basis of type, animal type, form, distribution channel, and region. On the basis of type, the market is categorized into dairy based, plant based, animal based, pre-mixed, and others. On the basis of animal type, it is segregated into small animals, calf, pig, kitten, puppies, foal, and others. On the basis of form, it is bifurcated into liquid and solid. On the basis of distribution channel, it is divided into supermarkets and hypermarkets, specialty stores, convenience stores, e-commerce, and others. On the basis of region, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (France, Germany, Italy, Spain, the UK, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia and rest of Asia-Pacific), Latin America (Brazil, Argentina, Colombia, and rest of Latin America), and Middle East and Africa (GCC, South Africa, and rest of MEA). 

By type, the dairy based segment dominated the global animal milk replacer market in 2023 and is anticipated to maintain its dominance during the forecast period. Dairy-based milk replacers closely mimic the nutritional composition of natural milk, which ensures optimal growth and health in young animals. Moreover, dairy-based products have a long-standing reputation for efficacy and reliability among farmers and breeders. Furthermore, advancements in dairy processing technologies have led to the development of highly specialized and fortified milk replacers, catering to diverse livestock species and addressing specific nutritional needs. 

By animal type, the calf segment dominated the global animal milk replacer market in 2023 and is anticipated to maintain its dominance during the forecast period. Calves require specialized nutrition during their early stages of life for optimal growth and development, which drives the demand for milk replacers. In addition, the dairy industry's emphasis on improving calf health and reducing mortality rates further boosts the adoption of milk replacers products. Moreover, the increase in trend of early weaning in dairy farming practices contributes to the growth of this segment. 

By form, the solid segment dominated the global animal milk replacer market in 2023 and is anticipated to maintain its dominance during the forecast period. Solid milk replacers offer convenience in handling and storage, reducing logistical complexities for farmers. Moreover, they provide a more concentrated source of nutrients, enabling precise feeding and promoting better growth & development in young animals. Furthermore, solid milk replacers often have longer shelf lives compared to liquid counterparts, which drives the animal milk replacer market demand for this segment. 

By distribution channel, the supermarkets and hypermarkets segment dominated the global animal milk replacer market size in 2023 and is anticipated to maintain its dominance during the forecast period. These retail channels offer a wide range of milk replacers products, providing consumers with convenience and choice. Moreover, supermarkets and hypermarkets often have extensive distribution networks, allowing for widespread availability of these products. Additionally, the ability to leverage promotional activities and discounts in these retail outlets further boosts sales, driving their prominence in the market. 

Region-wise, Europe is anticipated to dominate the market with the largest share during the forecast period. Europe features a well-established dairy industry with high standards of animal husbandry and milk production. The stringent regulations regarding livestock welfare and food safety have encouraged the adoption of milk replacers as a reliable alternative in the region. Moreover, the rise in consumer preferences for specialty dairy products and increase in investments in R&D further contribute to the growth of animal milk replacer market in Europe. Furthermore, strong distribution networks of Europe, along with the presence of key market players, contribute to the region's dominance in the global animal milk replacer industry. 

The players operating in the global animal milk replacer market have adopted various developmental strategies to expand their milk replacer market share, increase profitability, and remain competitive in the market. The key players operating in the animal milk replacer market include Alltech, Beaphar, Cargill, Inc., FrieslandCampina N.V., Glanbia Plc, Hubbard Feeds Inc., Lactalis, Koninklijke DSM N.V., Liprovit B.V., Manna Pro Products, LLC, and Nutreco. 

Key Findings of the Study 

• By type, the dairy based segment was the highest revenue contributor to the market in 2023. 

• By animal type, the calf segment was the largest segment in the global animal milk replacer market during the forecast period. 

• By form, the solid segment dominated the global animal milk replacer market in 2023. 

• Depending on distribution channel, the supermarkets/hypermarkets segment was the largest segment in 2023. 

• Region-wise, Europe was the highest revenue contributor in 2023.