Alfalfa Hay is an essential feed for horses, dairy cows, goats, cattle and sheep. The U.S., Spain, Canada and France are prime countries pushing the alfalfa hay production forward. Companies of these regions actively take part in the supply chain network from logistics applications, sourcing, and shipping to distribution and market, at the same time emphasizing on quality of alfalfa.
In 2022, the size of the world market for alfalfa hay was 257.8 million metric tonnes. the market will grow at a compound annual growth rate (CAGR) of 5.3% from 2023 to 2028, reaching 353.5 million metric tonnes.
The growing demand arriving from dairy and animal products, increased high yield cattle, bred cattle demand for feed and reducing bare land for grazing of animals is favoring the growth of global alfalfa hay market. Another factor contributing to the growth of market includes rising demand from commercial dairy operators as the amount of investment has surged. There is an immense pressure on livestock sector, meet the demand for high-value animal protein. As livestock is counted as major factor for growth of alfalfa hay market. Developing countries would be the biggest contributor in world meat production and milk production.
Some of the factors that may deter the growth of alfalfa hay market includes water restrictions, competition regarding high crop value crops and the decreasing land acreage due to drastically growing urbanization. Sudden demand recorded resulted in hiked price of alfalfa hay. Therefore, dairy producers are considering substitute and reducing the rates alfalfa hay again. Alfalfa hay is majorly used in animal rearing and it delivers high feed value. Cost of alfalfa hay relies on elements like type of harvesting, quality of hay produced and the bale size. Sometimes, higher domestic prices of hay causes a negative effect on exports for some markets. Based on the product type, alfalfa hay is segmented into pellets, cubes and bales. Bale fetches maximum share out of all these segment of alfalfa hay market.
Segmentation based on region includes regions of Latin America, Western Europe, North America, Asia Pacific Excluding Japan (APEJ), and Eastern Europe, Japan and Middle East and Africa (MEA). Two major key developments in this stream are from year 2018, where, the prices of US hay has driven as the demand for alfalfa hay is increasing in China. The western hay industry exports has increased dramatically in the year 2017. The hay volume has increased 56% and hay value has increased 47% compared to 2016, 2015 and 2014. Another one that took place in Apr 2018, where, the prices of US hay has driven as the demand for alfalfa hay is increasing in China. Oct 2017: The western hay industry exports has increased dramatically in the year 2017. The hay volume has increased 56% and hay value has increased 47% compared to 2016, 2015 and 2014.
Western Europe is the leading market of alfalfa hay, where Spain is leading, followed by France and Italy. But, the trade value stays higher in North America compared to Western Europe. In Asia-Pacific, Indian and Chinese government less favorable policies act as restraints in the growth of the market. Whereas, MEA region is expected to show significant growth rate during the forecast period followed by Japan. Saudi Arabian government started a 3-year program to save water resources by reducing its domestic production of alfalfa, hence, Saudi Arabian alfalfa hay market is on verge of depletion.
Alfalfa Hay Market Scope
|Revenue forecast in 2028
|USD 353.5 million
|CAGR of 5.3% during 2018-2028
|product, by type, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
Key segments of ‘Global Alfalfa Hay Market’
Based on product, the market has been segmented into,
- Alfalfa Hay Bales
- Alfalfa Hay Pellets
- Alfalfa Hay Cubes
Others Based on region, the market has been segmented into,
- United States
- Southeast Asia
What to expect from the upcoming report on ‘Global Alfalfa Hay Market:
- Future prospects and current trends of the global alfalfa hay market by the end of forecast period (2018-2025)
- Information regarding technological progressions as well as innovations taking place in developing economies
- Supportive initiatives by government likely to influence the market dynamics
- Trends, drivers, opportunities, restraints, challenges and key developments in the market
- In-depth analysis of different market segmentations including regional segmentations, and product types
- Deep analysis about the competitive landscape of the market and the initiatives by them to improve this market