Alfalfa Hay Market: Current Analysis and Forecast (2021-2027)

Surging demand for dairy and animal products, shrinking of the land for grazing animals, growth in high-yielding cattle are some of the prominent factors that are driving the market of alfalfa hay. One of the most important characteristics of alfalfa is its high nutritional quality as animal feed. Alfalfa produces more protein per acre than any other crop. Alfalfa hay contains 15-22% crude protein and is also an excellent source of vitamins and minerals. Specifically, alfalfa contains vitamins A, D, E, K, U, C, B1, B2, B6, B12, niacin, pantothenic acid, inositol, biotin, and folic acid.

Factors such as low availability of substitutes, budget-friendly, prolonged shelf life, and emerging e-commerce sector are some of the prominent factors that are contributing to the market growth. As per OEC, Between 2019 and 2020 the exports of Seed, lucerne (alfalfa), for sowing grew by 13.4%, from US$253M to US$286M. Trade-in Seed, lucerne (alfalfa), for sowing represent 0.0017% of total world trade. Moreover, companies across the globe are more focused on strategic alliances, which is contributing to market growth. For instance: Anderson Hay & Grain Inc. has entered a joint venture with Agitha Group, the UAE animal feed market leader. The venture is formed with the objective to serve the consumers better in the UAE and GCC.

The Global Alfalfa Hay market is expected to register a CAGR of around 6% over the period of 2021-2027. Hay is the 3rd largest U.S. crop in terms of harvest acres. It also provides environmental services, notably erosion control. As per USDA, Production of alfalfa and alfalfa mixture dry hay for 2021 is forecast at 48.2 million tons, up 1 percent from the August forecast, but down 9% from 2020. As of 2019, some of the alfalfa hay-producing states in the United States are California with 7,060 thousand metric tons, Idaho with 5,111 thousand metric tons, and Minnesota with 2,966 thousand metric tons. These states account for nearly 27.0% of the alfalfa hay production in the country. As per the University of California, 61% of all hay sold on international markets is sown, grown, and swathed in the United States. The total value of U.S. alfalfa hay exports has also steadily risen from around $600 million in 2014 to a little more than $1 billion in 2021

Al Dahra ACX Global Inc., Alfalfa Monegros SL, Anderson Hay & Grain Inc., Bailey Farms, Border Valley, Standlee Premium Products, LLC, Cubeit Hay Company, Glenvar Hay, Green Prairie International, and Grupo Oses, etc., are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report:

"Amongst application, diry animal feed category accounted for the majority share in the market in 2020"

Based on the application, the market is fragmented into dairy animal feed, poultry feed, horse feed, and others. The dairy animal feed segment grabbed a considerable market share and captured USD XX Mn in 2020. The growing number of dairy animals such as cattle, goats, etc., and decreasing land for grazing are leading to the growing demand for the alfalfa hay from this segment. In 2015, there were 969.2 million heads of cattle which further increased to 996.1 in 2021

"Amongst cubes, cubes segment is expected to witness highest CAGR during the forecast period"

Based on the type, the market is fragmented into bales, pallets, and cubes. The alfalfa the cubes segment grabbed the major market share owing to the benefit over bales as bales are heavy, messy, and cumbersome. As much as 20% of conventional hay may be wasted when fed. The benefits such as controlled feed intake, less dust than long-stem hay, reduced storage requirements, ease of handling, and reduced transportation cost are acting as a growth catalyst to the industry

"North America to witness significant growth during the forecast period"

For a better understanding of the market adoption of the Alfalfa Hay market, the market is analyzed based on its worldwide presence in the countries such as North America (the United States, Canada, rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. North America region grabbed the major market for the Alfalfa Hay Market industry in 2020. However, the Europe region would witness a considerable CAGR during the forthcoming years.

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