Animal Nutrition Trends and Challenges Shaping the 2027 APAC Market

The Asia-Pacific animal nutrition market is facing growing pressure to improve livestock productivity while managing increasingly complex production costs and supply chains. Rising demand for animal protein is driving investment in commercial livestock farming, while advances in feed formulation are changing how producers approach animal health and feed efficiency.

Asia produces an estimated 39% of the world's animal feed, with China, India, and Vietnam among its largest markets. However, the pace of development varies significantly across the region. As the industry moves towards 2027, businesses must improve production efficiency while managing changing regulations, environmental pressures, and raw material costs.

In this article, we explore the key trends shaping APAC animal nutrition, alongside the technical and commercial challenges businesses need to address.

4 Trends That Will Shape APAC Animal Nutrition in 2027

1. Precision Nutrition and the Shift Away from Antibiotic Growth Promoters

Restrictions on antibiotic growth promoters (AGPs) are changing how livestock producers approach animal health and feed formulation. Regulatory changes in several APAC markets have increased demand for alternatives that support gut health and immunity while reducing reliance on routine antibiotic use.

Probiotics, prebiotics, organic acids, and phytogenic additives are becoming increasingly important, while advances in amino acid formulation and nutrient availability also allow nutritionists to develop diets that meet the requirements of different species.

However, producers need solutions that deliver consistent improvements in animal performance and feed conversion ratios (FCR) at a commercially viable cost.

2. Aquaculture Growth and Demand for Alternative Feed Ingredients

Aquaculture is a particularly important part of the APAC animal nutrition market. The FAO's 2026 State of World Fisheries and Aquaculture report found that Asia accounts for around 76% of global aquatic animal and algae production.

The scale of production is creating demand for specialist feeds that meet the nutritional requirements of different species while reducing reliance on traditional marine ingredients. Pressure on fishmeal and fish oil supplies is driving interest in alternatives such as algae-derived oils, insect meal, and microbial proteins.

Feed manufacturers are also exploring agricultural by-products such as rice bran and distillers dried grains with solubles (DDGS), as these ingredients can reduce dependence on imported commodities such as soy and corn.

3. Lower-Emission Livestock Production and Smart Feeding Technology

Reducing the environmental impact of livestock production is becoming a greater consideration for nutrition businesses, particularly in cattle and dairy markets. Methane-reducing feed additives, including seaweed-based ingredients such as Asparagopsis, are attracting interest as producers look for ways to reduce the emissions associated with cattle and dairy production.

Other nutritional interventions, including enzymes and targeted dietary formulations, can improve feed utilisation and support livestock productivity. The challenge for producers is finding solutions that reduce environmental impact without compromising milk or meat yields.

Technology is also changing how larger livestock operations manage feeding. Automated dosing, connected feed equipment, and monitoring systems allow producers to adjust feeding strategies using animal performance and health data, but adoption depends on the investment required and the infrastructure available on individual farms.

4. Commercialisation and the Changing Scale of Production

Across South-east Asia, the transition towards larger, integrated livestock businesses is changing demand for animal nutrition products. Commercial producers need consistent feed quality and reliable supply, with formulations that can deliver predictable results across larger herds and flocks.

Australia and New Zealand have more established livestock industries, where the focus is on improving the efficiency of existing production systems. Feed manufacturers must develop nutritional solutions that improve feed utilisation and help producers manage the cost of maintaining livestock performance.

Key Challenges Facing APAC Animal Nutrition Businesses

Biosecurity, Mycotoxins, and Climate-Related Stress

Disease remains a significant threat to livestock production across APAC, as African Swine Fever (ASF) and avian influenza can disrupt production and cause significant financial losses. This is increasing attention on preventative health management, with nutrition playing a supporting role in maintaining animal health and resilience.

Climate conditions also add to the challenge. High temperatures can reduce feed intake and affect animal performance, meaning diets must be adjusted with the right balance of electrolyte and amino acid levels. Heavy rainfall and humidity can also make grain drying and storage more difficult, increasing the risk of fungal growth and mycotoxin contamination.

Although feed testing, quality control, and mycotoxin management solutions are important for protecting animal health and maintaining feed quality, these nutritional interventions must work alongside farm biosecurity and safe storage practices.

Sustainability and Feed Ingredient Traceability

Environmental expectations are increasingly influencing how feed ingredients are sourced and manufactured. Businesses face growing pressure to measure the carbon footprint of their supply chains, including Scope 3 emissions associated with purchased ingredients and agricultural production.

Deforestation associated with commodities such as soy and palm oil is also increasing scrutiny of sourcing practices, so manufacturers need evidence that suppliers meet relevant environmental and traceability requirements.

Alternative ingredients may offer sustainability benefits, but businesses must also consider their nutritional performance, availability, and cost. Environmental commitments need to be commercially viable if they are to influence sourcing decisions at scale.

Raw Material Volatility and Pressure on Margins

Raw material volatility remains a major challenge for feed manufacturers. Fluctuations in global grain prices, foreign exchange rates, and shipping costs can put significant pressure on production margins, particularly in markets that rely heavily on imported ingredients.

Geography also affects how easily feed ingredients can be sourced and distributed across the region. In Indonesia and the Philippines, transporting goods between islands can increase freight costs and complicate supply planning. Australia faces different pressures, with the distances between agricultural production areas, suppliers, and feed mills adding to transport costs and timescales.

Securing Specialist Animal Nutrition Talent

These developments are changing the expertise animal nutrition businesses need to remain competitive. Product development and formulation need strong scientific knowledge, while responding to ingredient volatility and sustainability requirements requires commercial and supply chain expertise. Businesses also need leaders who can turn technical developments into strong commercial strategies.

CSG Talent partners with businesses across the animal nutrition and wider agricultural sectors to identify the specialist expertise they need to support growth and adapt to changing market demands.

Contact CSG Talent for specialist animal nutrition recruitment support.