Investment Rating - The report does not explicitly provide an investment rating for the animal feed industry Core Insights - The global feed industry is in a rapid development phase, with a projected production of 1.328 billion tons in 2024, and China being the largest producer at 316 million tons. The feed product structure is dominated by poultry feed (approximately 40%) and pig feed (approximately 26%) [4][10] - The industry faces challenges such as a slight decline in production due to reduced downstream farming demand, overcapacity, and environmental pressure. High reliance on raw material imports, particularly soybean meal, necessitates innovation in alternative feed technologies [4][19] - Future opportunities lie in globalization and the application of biotechnology, with Chinese feed companies expanding into Southeast Asia and innovating in biological feed and precision nutrition [4][46] Summary by Sections 1. Industry Overview - The feed industry provides essential nutrients for animal growth and health, with various classifications based on feeding targets and physical forms [5][6] 2. Global Feed Production - In 2024, poultry and pig feeds account for the largest shares of global feed production, with poultry feed being the largest category at approximately 40% [7][8] 3. Industry Growth - The global feed production has increased significantly from under 1 billion tons in 2014 to 1.328 billion tons in 2024, reflecting a robust growth trend [10][11] 4. Major Producers - The top four countries (China, the USA, Brazil, and India) account for over half of global feed production, with a notable increase in the number of Chinese companies among the top producers [14][16] 5. Chinese Feed Industry - China's feed production has shown a stable upward trend, reaching 316 million tons in 2024, although it faced a 2.1% decline due to reduced livestock and aquaculture demand [19][20] 6. Regional Structure - In 2024, Shandong and Guangdong provinces lead in feed production, with both exceeding 100 billion yuan in total output value [22][23] 7. Competitive Landscape - The concentration of the feed industry is increasing, with the top 20 companies accounting for approximately 62% of total production in China [25][26] 8. Industry Chain Structure - The feed industry has a "pyramid" structure, with upstream raw material supply, midstream processing, and downstream livestock applications forming a tightly integrated ecosystem [33][34] 9. Upstream Raw Material Costs - Raw material costs account for 80%-90% of total feed costs, with energy and protein sources being critical components [36][37] 10. Midstream Processing - The midstream sector focuses on converting raw materials into finished feed, with key competitive factors including formulation technology and cost control [39][40] 11. Downstream Demand - The scale and structure of the livestock industry directly influence feed sales, with significant demand from pig and poultry farming [40][41] 12. Future Opportunities - Opportunities for growth include globalization, the potential of biological feed markets, accelerated innovation in feed products, and collaborative efforts across the supply chain [46][48][49]