Global Feed Additives Market
The global animal feed additives market is projected to reach USD 37 billion by 2022, from USD 28.6 billion in 2016, registering a CAGR of 5.3%, over the forecast period. Feed additives are essential in animal nutrition, as they improve feed quality, and thereby improve animals’ performance and health. In addition, they subsequently improve the yield and quality of food from animal origin.
Growing Compound Feed Industry = Growth in Feed Additives Usage
The compound feed additives market is expected to register a CAGR of 4.1%, till 2022. Changing demographics such as swelling urban populace, increase in the income, growing trend of double income families and busy lifestyles in developing regions like Asia-Pacific have increased the consumption of convenience food. The increase in domestic consumption of meat and aquatic products, along with technological innovations in the meat processing industry and increased industrial livestock, have accelerated the demand for high-quality meat and driven the companion animal feed market growth. Further, these animal-based nutrients prove necessary in regulating metabolism and, at the same time, ensure good health. Apart from these, the increase in health awareness in Asia-Pacific has led to a surge in plant and animal protein demand. On the other hand, the recent epidemic outbreaks have made the meat quality an important issue, especially in regions like Europe and North America. The increase in the application of animal protein in this region has exerted huge pressure on livestock farmers, who are gradually shifting to various scientific methods of farming. It is observed that the farmers face problem while supplying meat as according to the pace of demand. This situation has generated an opportunity for compound feeds and feeds additive manufacturers. Further, demand for industrialization of the livestock and meat industry is another driving factor of the market. Growth in expectancy of human life coupled with the scarce availability of land & water resources, for animal production, have helped the meat industry in optimizing the compound feed utilization.
The animals are raised under control conditions and are supplied with essential nutrients via compound feed and feed additives. The industrial production of meat is replacing traditional methods of farming, globally, and is expected to draw parallel growth in the feed additives industry. Various stringent regulations, especially in the EU, have restricted the market growth. Other restricting factors are price volatility and unsteady supply of raw materials. The raw materials and supplements are blend together in different proportions, for yielding compound feed for different animal species. Although the fluctuating cost of raw materials restricts the growth of the compound feed market, it acts as driving factor for the feed additives market. The growing demand for organic meat has created an opportunity in the industry for organic feed and additives.
Reduce Antibiotics, Increase Profitability is the Growing Trend
The poultry segment is the largest consumer and accounted for over 35% of the feed additive market, in 2016. Studies show that feed additive is more efficient in improving the animal performance in antibiotic free environments, as they enhance body weight, feed intake & feed conversion ratio and footpad integrity than the antibiotic growth promoters. Feed additives offer results in antibiotic free environments, therefore, have a preferred place. This is significant for the market, as the global livestock industry intends to withdraw antibiotics from animal production. Several companies work on solutions, driven by market needs. For instance, Trouw Nutrition developed several programs based on a feed farm health approach and focus on high-end R&D. Further, in Chine, a trial was carried out to determine whether feed additive improves broilers performance without the usage of antibiotics or not. The results were encouraging to the overall poultry industry. In the first half of the trial, the addition of the feed additive significantly increased body weight and feed intake, while decreasing the feed conversion ratio. These improvements continued to occur during the second half of the study. The group provided with feed additives showed a significant improvement in animal performance, compared to, both, negative and the positive control. Furthermore, the addition of the feed additive improved the footpad integrity of the broilers.
China Feed Additives Market Records a Tremendous Growth Rate
The China feed additives market is expected to be a global leader in the industry, during the forecast period. It is world’s largest producer and consumer in the livestock industry and is expected to continue the meat and dairy products consumption, owing to rising population, improving domestic meat and dairy production systems, strong per capita income and accessibility to the products because of the better transportation, distribution systems and consumption pattern shifts. Market reforms and aggressive strategies by manufacturers, government support programs have propelled the market to new heights. The foreign and local players have invested and are constantly expanding their market reachability. Companies are expected to continue consolidation, operation through subsidiaries and embrace new technologies to maximize the quality and management systems. The feed acidifiers market is forecast to register an increased CAGR, owing to the increasing consumption rate in the Asia-Pacific region. The ban on antibiotics has also spurred growth in the feed probiotics market. Further, the demand for feed additives from the aquafeed industry is projected to be the highest, during the forecast period, due to the increased adoption of aquaculture activities and demand for fish & seafood products in the Asian countries such as India, China, Vietnam etc. Asia-Pacific is projected to be the fastest-growing market, during the forecast period. Moreover, countries such as China, India, Thailand and Indonesia have great potential for the business growth. Economic growth, industrialization of the livestock industry, rising awareness in farmers and governmental support are the major driving factors for the market, in this region
Neovia Acquires Apligén
Neovia acquired Apligén, a Mexican company specializing in the production of premix, specialty feed and additives. This acquisition is expected to complete Neovia’s premix business with technological and high-quality products & services under the company’s Wisium Brand, to meet the Mexico’s nutrition market demand for technology, technical expertise and quality. Apligén is a family-run company, which is recognized for its quality products (premix, speciality feed, and additives) & services. The company has an annual turnover of around EUR 30 million, further, benefits from strong positions in ruminants and swine have been steadily developing for several years. The animal feed additives industry is highly concentrated with the top ten companies accounting for more than 50% of the market share. These companies are targeting countries in Asia-pacific region for business expansion, either by investing in new production unit or acquiring established small players in the region. Investment in the R&D activities, to introduce new efficient products, is another strategy adopted by manufacturers to stay ahead of the competition in the matured market of North America and Europe. The leading players in the market are focused on the expansion of their respective businesses.
Here is a list of some major market players:
Adisseo France SAS
Danisco Animal Nutrition
Archer Daniels Midland Company
Notable Market Developments
Hamlet Protein started sales office in China
NutriAd started s new plant in China
Lohmann Animal Nutrition changed its name to Kaesler Nutrition.
Alltech boosted its aqua feed presence with Coppens acquisition
New tool to calculate feed mill profitability improvements
The DSM-Novozymes feed enzymes alliance
Dairy and pig trials to support the development of EU equivalent regulations on feed additives, to detoxify mycotoxins are about to get underway in China.
Additive based companies promote the usage of plant-based aquaculture feed.
Super-additive leading the way to more sustainable aquaculture feed.
Our report on Global Feed Additives market covers:
Global feed additives market trends & dynamics
Latest News & developments
Porter’s five force analysis
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