Advantageous demographic density dividend and increasing urbanization led to a rise in concentrated disposable income among the Middle and Affluent class consumers in Bangladesh. The current consumption trend of Bangladesh indicates a growth in animal protein consumption which is expected to continue throughout the next decade.
The animal feed sector has been expanding in tandem with the livestock and aquaculture sectors, as commercial animal farming has become more conventional. Motivated by the presumed large market potential, but also pushed by changes in the legal framework, our client, an international animal feed producer expressed their interest to explore the Bangladeshi animal feed market through Larive International B. V., a Netherlands-based international business development firm. Larive reached out to LightCastle for being a premier source of information regarding local market insight.
In order to assess the animal feed market prospects, we analyzed three broad actor groups: demand side, supply side and market dynamics, and support ecosystem which includes financial institutions, microfinance, government, INGO, NGO, and donors. We divided our regional scope of study as per the production hubs of livestock and aquaculture farms. LightCastle reached out to local and SME level farmers to assess the demand side of the feed market and retailers, wholesalers and dealers (also exclusive dealers) to garner suppliers’ perspective.
We have looked into the policies and tax incentives tied to the industry and carried out an in-depth analysis of the cost structure of logistics in order to form top-line market entry strategies for the client and support their interest in entering Bangladesh. Finally, we provided a detailed overview of the feed market along with multiple strategic recommendations as to how to acquire the market share tactically.
We are excited to help our client enter the Bangladesh market and boost the local feed industry through strategic investment. In phase II, we hope to collaborate with them along three specific dimensions: delivering M&A support, providing strategic insights and facilitating access to markets.