Growth in animal protein levels off toward 2026

After years of growth, the global animal protein market is easing off slightly. In 2026, production growth is expected to slow further. This is shown by new research from RaboResearch. The differences between animal species are becoming more pronounced, while costs, disease pressure, and trade developments are weighing more heavily.

Fish and poultry lead the way

Overall growth in animal protein will lag behind previous years in 2026. Fish and poultry will continue to drive expansion. Pork and beef production, however, are set to decline. As a result, global production of terrestrial animal proteins will fall for the first time in six years.

According to RaboResearch, this is driven by a combination of factors. Shifts in beef markets in North America and Brazil are part of the picture. At the same time, China is actively restructuring its pork sector, with implications for global supply.

Margins under pressure, efficiency critical

Although feed costs are expected to remain stable, pressure on margins is increasing. “While we expect feed costs to remain steady, lower protein supplies, rising volatility and trade costs, and disease pressure will weigh on margins,” says Éva Gocsik, Global Strategist Animal Protein at RaboResearch.

For processors, capacity utilization remains a key concern. Trade disruptions add to this, including tariffs and protectionist measures. This combination may raise costs and dampen demand. In both mature and emerging markets, improving efficiency and productivity is becoming increasingly important, both at farm level and in processing.

Consumer behavior, disease, and sustainability

The expected cooling of the global economy is making consumers more price-sensitive. This may lead to shifts within animal protein categories. According to Gocsik, consumers are more likely to switch between protein sources. At the same time, demand for protein-rich foods may continue to support the market. Diseases remain a disruptive factor. African swine fever and avian influenza continue to weigh on production and trade. New animal diseases are also increasing pressure on margins and productivity.

In addition, sustainability is moving further up the strategic agenda. Regulatory momentum is sharpening the focus on climate- and nature-related risks. Technology, including artificial intelligence, can support risk management and transparency, although the sector remains cautious about investment. Consumers continue to place strong emphasis on animal welfare, food safety, availability, price, and quality.

Rabobank.com