Feeding Growth: How Mexico’s Compound Feed Market Is Powering Livestock and Sustainability

Mexico Compound Feed Market Overview

The Mexico Compound Feed Market is projected to reach US$ 11.48 billion by 2033, up from US$ 6.80 billion in 2024, expanding at a CAGR of 6.10% from 2025 to 2033, according to Renub Research. The sector’s momentum stems from the country’s increasing demand for livestock products—meat, milk, and eggs—combined with a strong shift toward sustainable feed practices and technological advancements in formulation and production.

Compound feed plays a critical role in Mexico’s agricultural ecosystem, forming the backbone of livestock production that sustains both domestic consumption and export potential. As the fifth-largest producer of animal feed globally, Mexico’s feed industry supports diverse livestock segments, from poultry and cattle to aquaculture and swine.

The Backbone of Mexico’s Livestock Economy

The compound feed industry is indispensable to Mexico’s agricultural landscape, driving both economic growth and food security. Livestock farming—including cattle, swine, poultry, and aquaculture—is central to the nation’s economy and culture.

According to the USDA, Mexico produced over 43 million metric tons of animal feed in 2023, positioning it as one of the top five global producers. Meanwhile, FAOSTAT reported 7.9 million metric tons of meat produced in 2022, comprising 3.8 million metric tons of poultry, 2.2 million metric tons of beef, and 1.7 million metric tons of pork.

This growth in meat production directly correlates with a heightened need for high-quality compound feed. As livestock operations expand, farmers increasingly depend on nutritionally balanced feeds to ensure productivity, animal welfare, and product quality.

Government Support Strengthening the Feed Ecosystem

The Mexican government has been instrumental in reinforcing agricultural and livestock productivity. Targeted subsidies, drought relief, and modernization programs have improved access to feed and technology for small and medium farmers.

For instance, in 2023, the Government of Jalisco announced a 300 million peso (US$ 17.5 million) aid program to support over 60,000 farmers impacted by droughts. Initiatives like these have helped stabilize supply chains, ensuring that feed production and distribution remain consistent even amid climate challenges.

Such government-backed measures are not only improving resilience in feed production but also fostering investment in sustainable and digital agricultural technologies—both of which are critical for long-term sectoral growth.

Growth Drivers for Mexico’s Compound Feed Market

1. Shift Toward Sustainable and Specialty Feed Solutions

Mexico’s feed industry is undergoing a rapid transformation, driven by sustainability concerns and evolving consumer preferences. Farmers and feed producers are increasingly turning to eco-friendly and antibiotic-free formulations.

Innovations such as precision fermentation and locally sourced ingredients are reshaping feed production. One remarkable example is NextProtein LATAM’s 2024 initiative to recycle 200,000 tons of organic waste from Mexico City’s Central de Abasto into animal protein feed—showcasing how sustainability and innovation can go hand in hand.

These new approaches not only reduce the environmental impact but also help farmers align with global standards for ethical and sustainable livestock production.

2. Technological Advancements in Feed Production

The integration of digital tools, automation, and data analytics has revolutionized Mexico’s feed production landscape. By leveraging AI-driven formulation systems and smart monitoring tools, manufacturers can now customize feed recipes in real-time, ensuring optimal nutritional value and minimizing waste.

In 2024, Pilgrim’s Mexico announced plans for a new hatchery and feed mill, enhancing operational efficiency and expanding its capacity to meet the growing livestock feed demand.

These advancements allow feed producers to fine-tune formulations based on livestock species, life stage, and environmental conditions—ultimately improving productivity and profitability.

3. Rising Demand for Animal Protein

Population growth, urbanization, and rising incomes are propelling domestic meat consumption in Mexico. The USDA Agricultural Projections to 2033 estimates that per capita consumption of beef, pork, and poultry will reach 82.5 kilograms by 2033.

As demand for meat and dairy rises, so does the need for high-efficiency feed formulations that can enhance growth rates and product quality. Feed manufacturers are responding with premium compound feeds that ensure optimal conversion ratios, thereby supporting both economic and nutritional goals.

Challenges Facing the Market

1. Raw Material Price Volatility

Feed producers face significant challenges due to fluctuations in raw material prices, particularly for corn, soybeans, and wheat—key ingredients in compound feed. Droughts, floods, and geopolitical disruptions in major grain-producing regions can cause unpredictable price spikes, squeezing profit margins.

Moreover, changes in trade policies or tariffs impact import costs, further influencing feed prices and, by extension, livestock production costs. Stabilizing raw material supply chains will be essential for ensuring long-term industry balance.

2. Disease Outbreaks and Biosecurity Risks

Epidemics such as African Swine Fever and Avian Influenza pose recurring threats to the livestock and feed sectors. Outbreaks can lead to mass culling, reduced herd populations, and lower feed demand.

Additionally, restrictions on animal movement during such crises often disrupt supply chains and cause logistical delays. These issues underscore the need for enhanced biosecurity, traceability, and contingency planning across feed manufacturing networks.

Regional Insights: Feed Additives Market by Region

Northern States

The Northern States—including Nuevo León, Coahuila, and Chihuahua—represent a thriving hub for cattle and poultry feed production. These regions are adopting natural feed additives, such as probiotics and enzymes, to enhance growth efficiency while supporting sustainability.

Despite occasional raw material cost fluctuations, the North remains a vital center for feed innovation and export-oriented livestock production.

Central States

In the Central States like Jalisco, Guanajuato, and Michoacán, the feed additives market benefits from strong swine and poultry farming bases. Rising consumer preference for eco-friendly and antibiotic-free feeds has encouraged manufacturers to explore organic and herbal additives.

However, supply chain volatility and input costs continue to pose operational challenges. Still, the region remains a cornerstone of Mexico’s feed manufacturing industry.

Southern States

The Southern States—notably Veracruz, Oaxaca, and Chiapas—are seeing rapid growth in feed consumption, fueled by expanding poultry and pig farming. The region’s emphasis on plant-based and sustainable feed options reflects a growing trend toward environmental responsibility.

Though climatic risks and logistics present obstacles, the South holds significant potential for expansion in the coming decade.

Market Segmentation

By Animal Type:

Ruminants

Poultry

Swine

Aquaculture

Others

By Ingredient:

Cereals

Cakes and Meals

By-products

Supplements

By Region:

Northern States

Central States

Southern States

Leading Players in the Mexico Compound Feed Market

Major players are investing in technological innovation, capacity expansion, and sustainable feed solutions to capture market share. Key companies include:

Archer Daniels Midland (ADM)

Cargill Inc.

Nutreco

Alltech Inc.

Land O’Lakes Purina

Kent Feeds

DeKalb Feeds

Heiskell & Co.

These companies are actively developing digital monitoring systems, precision nutrition models, and eco-conscious feed alternatives to meet evolving market demands. Their expansion and partnerships across regional markets signal confidence in Mexico’s growing livestock economy.

Final Thoughts

Mexico’s compound feed market is entering a dynamic era defined by innovation, sustainability, and modernization. With a strong policy framework, robust livestock industry, and increasing consumer awareness, the country is poised to remain a leader in Latin America’s feed production ecosystem.

However, managing input cost volatility, strengthening biosecurity, and investing in climate-resilient supply chains will be essential for ensuring steady growth.

As Renub Research projects, with the market poised to climb to US$ 11.48 billion by 2033, Mexico’s compound feed industry isn’t just feeding animals—it’s feeding progress, resilience, and sustainability for the decade ahead.