Global animal protein outlook 2026

Growth in global animal protein production will continue to slow in 2026, influenced by both cyclical and structural factors. Seafood will remain the leading contributor to production growth, followed by poultry, while pork and beef will contract, marking the first reduction in global terrestrial species output in six years.

While we expect feed costs to remain steady, lower protein supplies, rising volatility and trade costs, and disease pressure will weigh on margins. Processors may face ongoing challenges around capacity utilization, as well as trade disruptions resulting from tariffs and other protectionist measures. All of this could raise costs, pressure demand, and ultimately squeeze margins. In both mature and developing markets, a focus on increasing efficiency and productivity will be critical at the farm and processor level.

With global GDP growth projected to slow in 2026, consumers will remain price-sensitive and shift consumption patterns. Price dynamics within animal protein categories will vary, with price pressures leading some consumers to trade down within categories or switch between proteins. Yet, substitution is not always straightforward, as some proteins are not always considered direct substitutes for more premium products.

Despite disruptions, animal protein trade has remained resilient, with strategic front-loading helping sustain volumes amid volatility and shifting tariffs that are reshaping global flows. Meanwhile, supply-demand imbalances continue to seek equilibrium, a trend that is likely to persist in 2026. Geopolitical tensions and evolving trade policies will continue to influence trade, but new trade agreements may provide a boost.

Disease outbreaks have also disrupted trade, squeezed margins, and pressured productivity. Beyond recurring threats like African swine fever and avian influenza, diseases like New World screwworm, Bluetongue, foot-and-mouth disease, and lumpy skin disease are emerging. While some outbreaks are short-lived, others persist. This is driving greater adoption of biosecurity measures, and new approaches to managing disease pressure are gaining attention. However, implementing these solutions is complex, as it requires careful consideration of the implications across the supply chain, trade, and society.

In this increasingly uncertain operating environment, sustainability-related risks, particularly those linked to climate and nature, can play a role in either exacerbating or mitigating business risks. For animal protein companies, addressing risk holistically is no longer optional. Regulatory momentum, such as the rise in climate-related financial disclosure legislation, is pushing sustainability to the forefront of strategic planning.

Technology will also play a pivotal role, helping companies across the supply chain manage operational risks while advancing sustainability goals. However, investment remains weak, though investor excitement in artificial intelligence (AI) may have benefits for livestock producers and processors. While not all AI applications will transform the industry, strategic integration into existing workflows could spark meaningful progress in a sector that is traditionally slow to adopt new technologies.

To meet the challenges and leverage the opportunities these evolving market dynamics present, animal protein companies should pursue diversification and consolidation while adapting their portfolios to shifting consumer preferences.