Alfalfa Market

Global Alfalfa Market Size (2024 to 2029)

As per our analysis report, the global Alfalfa Market is expected to reach USD 34.39 billion by 2029 from USD 25.75 billion in 2024, growing at a compound annual growth rate (CAGR) of 5.96 % during the forecast timeline. The Asia-Pacific region is expected to have a large market share in the alfalfa market owing to the large livestock population in this region. The imbalance between the demand and supply results in hindering the growth and expansion of the alfalfa market.

Global Alfalfa Market Drivers:

The increase in demand for the dairy and meat sector is expected to drive the growth of the global alfalfa market. There is an annual growth in the production of meat, especially in developing countries. This results in the rise of the developing country’s share in global meat and milk production to a share of 66 and 55 %, respectively. There is an increase in demand for high-value animal protein from the livestock sector, which will favor market growth. The change in the production practices of the dairy industry in China drives the demand generation for alfalfa in the country. With the increase in the number of cows raised by modern dairy farmers, the demand for imported hay and commercial feeds has increased.

The rise in the demand for nutritious animal feed is anticipated to drive alfalfa market growth during the forecast time period. Traditional feed is being replaced with balanced compound feed, leading to the rapid growth of the cattle feed business. It is believed that nutritional feed will have a benefit in the improvement of the yield. Asia-Pacific region has the highest livestock population, and livestock population in this region is growing at a higher rate than any other agricultural sub-sectors. Livestock plays a crucial role in the development of agriculture, and its proper maintenance will help in the overall growth of the agriculture sector. In the total agricultural output in global sales, livestock contributes around 40%. In addition to this, the increase in the consumption of livestock with the increase in people's living standards is expected to boost product adoption. Hence, the rise in the consumption of livestock products would fuel the growth of the adequate animal population as the requirement for nutritious feed increases. Thus, it acts as a contributing factor to the growth of the alfalfa market in the coming years.

Global Alfalfa Market Restraints:

The major restraints in the alfalfa market are the demand and supply gap of cattle feed. Improvements in the productivity and efficiency of the feed are vital objectives of the sector, but the imbalance between the demand and supply is also to be considered for the growth of the alfalfa industry. In livestock rearing, such as dairy, sheep, goat, pig, and poultry, nutritious and quality animal feed plays an important role in the sector as it shares the highest total cost. Cattle feeding is an important factor in the livestock sector as it is vital in the proper development of the animal and sector growth. Therefore, the rise in the demand for animal products and struggles in the supply of feed compounds hinder the growth of the market.

Impact of COVID-19 on the Alfalfa Market:

The spread of the COVID-19 pandemic across several nations resulted in hindering the growth of the alfalfa market. The market has been mostly affected by the widespread pandemic in the Asia-Pacific region as it has a large animal population compared to other nations in the world. The imposition of the lockdown affected the alfalfa hay imports, exports, and production, mainly in the Asia-Pacific region. Despite the demand for nutritious animal feed during the pandemic, the COVID-19 virus impacted the supply of the supply. To reduce the spread of the pandemic, governments of many countries have implemented various policies that affect all stakeholders, such as manufacturers, consumers, enterprises, and others in the livestock feed industry. The migrant workers are mainly from the Southeast Asian region, and the pandemic made the people return to their home country as the factories faced temporary closure and some permanent closures. As the spread of COVID-19 declined, the alfalfa market started to recover after a few months.

REPORT COVERAGE:

This research report on the global alfalfa market has been segmented and sub-segmented based on animal type, feed type, and region.

Global Alfalfa Market – By Animal Type:

• Cattle
• Horses
• Equine
• Others (Deer, Mice, Antelope, Gophers, and Rabbits)

The cattle segment is expected to dominate the alfalfa market with the presence of a large number of the population in almost all countries. In the Asia-Pacific region, there is a large population of cattle, sheep, goats, and horses, with more numbers in India, China, Bangladesh, and Pakistan countries in the region. Horses have the greatest demand in Afghanistan, and the demand for alfalfa products as animal feed in this region is also rising. This fuelled the prominent opportunities for market growth in this region.

The other segment is expected to showcase a promising growth rate in the alfalfa market. The rise in the consumption of non-veg food products across the world is the factor contributing to the growth of the segment in the market. In the last few years, there has been an increase in the consumption of meat in countries like India, China, Japan, Mexico, Brazil, and UAE. Hence, these factors provide promising growth for the global growth of the market.

Global Alfalfa Market – By Feed Type:

• Hay bales
• Cubes
• Pellets
• Others (Alfalfa meal, seeds, and powder)

The hay bales segment is expected to dominate the alfalfa market share. Among farmers, hay is the traditional product and is more popular as animal feed in all income groups. But nowadays, farmers with higher incomes are shifting towards the cubes and pellets form of the feed. But still, farmers in developing countries prefer hay as they can’t afford cubes and pellets. Thus, the growing livestock population and the expanding dairy and meat industry drive the growth of the hay segment. Hence, it is expected to grow at a high CAGR during the forecast timeline.

Global Alfalfa Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Asia-Pacific region holds a major share of the alfalfa market owing to the adoption of alfalfa in animal feed in this region. Mostly developing countries in this region, such as India, China, Indonesia, Bangladesh, Australia, Pakistan, and Vietnam, the market is expected to grow rapidly. The growing demand from the farmers fuels the market growth in the region.

North America has one of the largest market shares in the total alfalfa market. The U.S. holds the majority share in this region. Increasing measures to increase and strengthen the livestock industry are driving the growth of the U.S. Government. The U.S. is taking several measures to expand the market for its U.S. dairy, poultry, and egg products across Canada. The exports of U.S. livestock products across borders have increased. The percentage of consumption of beef cattle is high compared to other livestock consumption in North America. Hence, the demand for alfalfa in the cattle fed is growing continuously from the livestock operators in the region.

In the entire European Union, the livestock sector is one of the major players in the agricultural economy. Among many states in this region, the importance of the subsectors of agriculture is high in the agricultural economy as it is influenced by cultural and biophysical conditions. In this region, the hay segment holds the highest share. In the total agricultural output, the value of the production of milk and dairy products is high in the European livestock sector. In addition to this, the European Union is the leading exporter of many dairy products. These factors provide a significant growth opportunity for the alfalfa market in this region.

KEY MARKET PLAYERS:

Major Key players in the Alfalfa Market are  Alfalfa Monegros, S.L.; Standlee Premium Products, LLC; Anderson Hay & Grain Inc.; Bailey Farms; Cubeit Hay Company; SL Follen Company; Green Prairie International Inc.; Haykingdom Inc.; Barr-ag Ltd; Old Manor Farm Ltd; Forage Genetics International; Standlee Hay Co Ltd; McCracken Hay Company.

RECENT HAPPENINGS IN THE MARKET:

• In 2022, Green Prairie International Inc. launched a new, unique product with the name Green Cured. The newly launched product is an air-dried hay product and is expected to grow its business in the next few years.
• In 2021, Forage Genetics International received approval for the native DNA sequence for resistance to anthracnose race 5 in alfalfa. This is expected to benefit the farmers by preventing defoliation and saving yield loss up to 25-30%.