The global livestock sector is characterized by differences in dynamics. In developing economies, the livestock sector is evolving in response to rapidly increasing demand for livestock products. In developed economies, demand for animal products is stagnating. Livestock production will increasingly be affected by external factors. These include surging demands for animal products and struggling supplies of feed raw materials, resulting from the competition for natural resources and trade barriers. Simultaneously, there is growing concern about food and its impact on health, and the effect of production systems on animal welfare and the environment. Optimization of productivity and efficiency within such constraints are important objectives, as well as maximization of the profit for all stakeholders. Animal feed and nutrition are the essential link in the livestock production chain, i.e., between crop cultivation and animal protein production and processing. It is usually the biggest cost factor in livestock production. Several indicators demonstrate that further optimization of animal feed and nutrition is potentially possible. The genetic potential is only partially utilized. The utilization of most nutrients appears to be low and there is a huge variation in performance among farms and within farms, among animals. In addition, environmental performance can be improved significantly. New science and technologies seem to offer many opportunities for innovation in animal feed and nutrition. Key drivers for future innovation are basically (gen)omics, microsystem- and nanotechnology and information and communication technology (ICT). These mainstream technologies are the foundation of many application technologies of relevance for animal feed and nutrition. Acceptance by consumers and society is a critical success factor. In conclusion, animal feed and nutrition are crucial in livestock production. Innovations have the potential to meet the challenges and to result in resource efficiency, healthy livestock and people, responsible production systems and optimal profit throughout the value chain.