China's feed industry maintained steady growth during the first half of 2026, although the overall market continued to show significant differences across animal species and business models.
According to data jointly released by China’s Ministry of Agriculture and Rural Affairs and the China Feed Industry Association, China’s total industrial feed production reached 168.50 million tons in H1 2026, representing a year-on-year increase of 3.9%. Compound feed production increased by 4.3% to 157.98 million tons, while concentrated feed and additive premix production declined by 5.7% and 2.1%, respectively.
Behind the moderate overall growth, however, the performance of different feed segments varied considerably. Pig feed continued to expand, aquaculture feed recorded the strongest growth among major livestock and aquaculture categories, while poultry feed faced greater pressure.
Pig feed production reached approximately 83.53 million tons, increasing 7.9% year on year and reaching a historical high.
However, the increase should not simply be interpreted as a broad-based recovery in the pig farming sector.
The continued release of pig production capacity and longer feeding cycles have contributed to higher feed consumption. In addition, differences among piglet, sow and fattening-pig feed demand provide important clues about the current market.
According to industry data, piglet feed increased by approximately 1.1%, sow feed by 4.2%, while fattening-pig feed recorded a much stronger increase of 11.8%. This indicates that current feed demand is still largely supported by existing production capacity rather than a significant expansion in future herd replenishment.
For feed manufacturers, this means that high pig-feed volume does not necessarily translate into stronger profitability across the entire value chain.
The poultry feed market presented a different picture.
In H1 2026, egg-laying poultry feed production fell to 14.90 million tons, down 10.4% year on year, while meat poultry feed production was approximately 49.62 million tons, a slight decrease of 0.4%.
The decline in layer feed reflects continued pressure on the egg production sector and adjustments in production capacity. Meat poultry feed was comparatively stable, although profitability and inventory adjustments in some subsectors continued to affect feed demand.
Compared with the relatively long adjustment cycle of the pig industry, poultry production can respond more quickly to changes in market profitability. As a result, feed demand may fluctuate more rapidly when farmers adjust their production capacity.
Among the major feed categories, aquaculture feed delivered the strongest growth in H1 2026.
National aquaculture feed production reached 11.10 million tons, up 17.4% year on year. Marine aquaculture feed performed particularly well, with certain marine feed categories recording substantial growth.
Improved prices for aquatic products and stronger stocking activity among farmers provided important support for feed demand. At the same time, the continued development of intensive, standardized and large-scale aquaculture is creating additional demand for specialized feed products.
Recent industry developments also indicate growing opportunities in shrimp feed, marine fish feed and other specialized aquaculture segments.
Nevertheless, the strong first-half growth should be viewed in the context of seasonality. Aquaculture feed demand typically changes with water temperature, disease risks and farming cycles. Therefore, the exceptionally high growth rate seen in the first half may moderate during the remainder of the year.
Ruminant feed production reached approximately 7.20 million tons, representing year-on-year growth of 3.6%.
Although the growth rate was lower than that of pig and aquaculture feed, the segment showed relatively stable demand.
The continued development of large-scale cattle and sheep farms, together with the gradual transition away from small-scale farming, is supporting the adoption of commercial feed products.
Compared with the highly cyclical pig and poultry markets, ruminant feed therefore remains a relatively stable segment within China's animal nutrition industry.
Changes in feed raw material prices have also become an important factor affecting industry profitability.
During the first half of 2026, prices of major feed ingredients showed mixed trends. Corn and soybean meal remained at relatively low levels compared with previous years, while prices of some other raw materials fluctuated according to supply and demand.
Lower prices for major protein and energy ingredients can reduce production costs and create room for feed manufacturers to optimize formulations.
However, the benefits are not evenly distributed.
Large feed manufacturers generally have stronger purchasing capabilities, larger-scale procurement and more sophisticated formulation systems. Their ability to adjust formulations, substitute raw materials and manage inventory can provide greater protection against market volatility.
For smaller feed mills, meanwhile, weaker purchasing power and limited technical resources may make cost control increasingly difficult.
The first half of 2026 also highlighted the differences between major business models in China's feed industry.
Integrated agricultural companies that combine feed production with pig or poultry farming may benefit from lower feed costs, but their feed businesses are closely linked to the profitability of downstream farming operations. When livestock prices remain under pressure, improvements in feed margins may not fully offset losses from the farming segment.
By contrast, companies that focus primarily on commercial feed sales can benefit more directly from increasing demand for standardized feed products.
Companies with strong positions in aquaculture and specialized feed markets may also have greater opportunities to capture structural growth, particularly as China's aquaculture industry becomes increasingly intensive and technology-driven.
Recent results from specialized aquaculture feed producers further demonstrate the potential of this segment. For example, Yuehai Feed reported a 33% year-on-year increase in feed sales during H1 2026, significantly outperforming the overall aquaculture feed market.
Looking ahead, China's feed industry is likely to remain characterized by moderate overall growth and increasingly clear structural differentiation.
Pig feed demand may remain relatively high in the short term, but its growth should be interpreted alongside changes in herd structure and pig farming profitability. Poultry feed is likely to remain under pressure until production capacity and market profitability improve.
Aquaculture is expected to remain one of the industry's key growth areas, although its growth rate may moderate after the peak season. Ruminant feed should continue to demonstrate relatively stable demand as large-scale farming develops.
For feed manufacturers, the competitive focus is also shifting. Raw material procurement, formulation technology, production efficiency, technical services and customer relationships will become increasingly important factors determining profitability.
Overall, the first half of 2026 suggests that China's feed industry is not simply entering a new period of broad-based expansion. Instead, the market is moving toward a more differentiated stage in which specialization, cost efficiency and technical capabilities will increasingly determine the winners.
