Published on: December 10, 2019
The growing global population will be the major driver for the growth of the live cattle market. The rise in the global population is increasing the demand for food and meat which is increasing the pressure on agriculturists to develop time- and cost-efficient methods of production. According to the UN Food and Agricultural Organization, production of food, including meat, will increase by 60% by 2050 from the current levels, to meet the dietary needs of the growing population.
Another major driver for the live cattle market is that the global per-capita consumption of animal-based protein has been increasing over the last 50 years. Cattle products such as cow and buffalo milk are considered to be one of the most wholesome foods from an aspect of nutritive value as it contains both micro- and macro-nutrients. Globally, there is a gradual change in the eating habits of people and increased demand for healthier and active lifestyles. The popularization of multiple types of nutrition diets and the rapid growth in the fitness market is driving the demand for the global live cattle market.
The global live cattle market is categorized as a part of the agricultural products market. The global agricultural products market covers crop growers, owners of plantations, livestock, and companies that produce and process foods but do not package and market them. The market is driven majorly due to the rise in demand for meat, eggs, and milk globally and increasing popularity of animal protein for a healthy diet among consumers.
Based on geography, the APAC region has the dominant market share with China and India being the major countries. The growth of the market in the region is driven by multiple factors including increasing population, rise in meat consumptions, and the presence of small and large players.
Global live cattle market can be segmented into the following:
Many factors are expected to drive growth in the live cattle market during the forecast period. Our analysis identifies the following factors to be driving the growth in the live cattle market:
With the rising world population, the emphasis on food safety and security has grown and increased the demand for food and meat produce. Globally, several initiatives have been implemented to improve farm productivity. It is estimated that the European Union spends nearly 20% of its budget towards livestock farming. The US federal and provincial governments invested $5.5 million in funding toward livestock research to be used in 34 livestock and forage-related research projects through Saskatchewan’s Agriculture Development Fund (ADF) and the Strategic Field Program (SFP).
In Vietnam, a World Bank supported project targeted toward the implementation of good animal husbandry practices has benefited over 151,000 livestock farmers. Similarly, the Rockefeller Foundation, and the United States Agency for International Development (USAID) announced their strategic partnership to increase incomes and improve the food security of smallholder farm households in many African countries by 2021. Such initiatives by governments and other organizations across the world will drive the global live cattle market.
The growing demand for meat (beef, dairy, and pork) sourced from livestock and poultry will drive the global live cattle market during the forecast period. Furthermore, consumers have been increasingly preferring meat and poultry products due to the growing popularity of protein-rich food sources. For instance, the consumption of beef and veal increased by about 8% and 3% in China and the US, respectively, during 2017-2018. Moreover, the growing population, as well as increasing per capita income and consumption of meat products, will fuel the demand for meat in growing economies such as India. The increase in demand for meat is prompting meat producers to increase production. This, in turn, will increase the demand for animal products and drive the global live cattle market during the forecast period.
APAC is expected to witness high growth in demand for dairy and meat products in the coming years due to the rapid increase in population. The demand for dairy, meat, and agricultural products in the region is supported by the diverse food requirements in developing and heavily populated countries such as China and India. According to the FAO, livestock contributes 40% of the global value of agricultural output and support the livelihoods and food and nutrition security of almost 1.3 billion people. Poultry has the highest share in processed meat due to the low manufacturing costs, low cholesterol content, and elevated protein content. Pork also has a significant share in the processed meat industry and its share is predicted to grow owing to increased demand for bacon, sausages, trotters, and hamburgers.
In addition, significant developments in the agricultural sectors of countries such as Bangladesh and Sri Lanka are anticipated to drive the market. Moreover, increasing population and rising disposable income are anticipated to continue driving the demand for dairy and meat, which will further propel the growth of live cattle farming in these countries.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
The traditional method of meat production is considered to have negative impacts on the environment due to emissions of methane and nitrous oxide from cattle and their digestive processes. Apart from this, the conversion of land for feed production and pasture requires the application of fertilizers, which emit large amounts of harmful gases. This has led to increased interest in cultured or lab-grown meat. Cultured meat has become popular among environmentalists as it helps reduce the emission of methane and other greenhouse gasses by as much as 96%. Thus, the negative impact of the traditional method of meat production on the environment as well as growing concerns about animal welfare and sustainability will have an impact on the global live cattle market.
Increasing environmental concerns associated with animal-based food products have made consumers seek sustainable options such as cultured meat. Cultured meat is grown from stem cells, which can be harvested by biopsy from the donor livestock, after which, it is cured in laboratories for a few weeks. The popularity of cultured meat has prompted several key players in the global meat market to support startups through seed funding and investments. This is accelerating the growth of the global cultured meat market. For instance, Aleph Farms, an Israeli startup, received a funding of nearly $12 million from Cargill Inc., one of the world’s major meat producers. Increasing interest and investment in the global cultured meat market will negatively impact the growth in the global live cattle market.
The growing popularity of plant-based diets across the world will be a major challenge for the global live cattle market during the forecast period. Plant-based diets primarily comprise food items such as fruits, vegetables, nuts, seeds, whole grains, and legumes. Plant-based foods are gaining prominence owing to health, lifestyle, and ethical concerns and the growing popularity of veganism.
The number of people adopting the vegan lifestyle is increasing in countries such as the UK, Germany, and France. In 2018, 2%-6% of the consumers in the US identified themselves as vegetarians. This has led to an increase in products catered towards vegans and vegetarians.
Two of the most popular alternatives to animal milk are soy and almond milk. Compared to cow and buffalo milk, almond milk contains lower amounts of carbohydrates and saturated fats, which makes it a healthier option. The downside of this is that micronutrients such as calcium, magnesium, and phosphorus are lower in almond milk. Currently, plant-based milk accounts for close to 15% of the total milk sales in the US and is consistently growing in demand.
These factors will negatively impact the growth in the global live cattle market during the forecast period.
Our reports on the live cattle market cover several large and small vendors active in the market including Ukrlandfarming Inc., Zhongding Dairy Farming, Gladstone Land Corp., Modern Dairy, Williams Cattle Company, and BASF.
Acquisitions and introduction of new technologies and products are some of the strategies adopted by the companies in the global live cattle market.
Following are a few of the major developments in the market:
Backed with competitive intelligence and benchmarking, our live cattle market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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