Global Feed Antibiotics Market - Analysis of Growth, Trends, and Forecast (2018 - 2023)
The Global feed antibiotics market was estimated at a value of about USD 3161.14 million in 2017. The industry is forecasted to register a CAGR of over 3.91% over the forecast period.
Increased industrial livestock production
The livestock sector has seen significant changes in the past decades since the demand for food derived from animals has been increasing globally at a faster pace. The surge in this demand has been fulfilled by commercial livestock production and their associated food chains. According to the World Bank, industrialized meat production is growing six times faster than traditional meat production methods. With an increase in mass production of meat, change is observed towards landless meat production facilities. Additionally, the meat production industry is moving towards consolidation, especially in developed parts of the world such as the United States and Europe, to increase meat production with reduced land usage. For example, in the United States, the growth of Concentrated Animal Feed Operations (CAFO) has occurred rapidly in the past decade, and similar models are getting popular in other parts of the world with the help of government and other financial institutions.
Feedlot raised animals are kept indoors for the majority of the year and are given compound feed to enhance their growth and supply them with essential nutrients thereby driving the market for feed additives and additives. Large-scale meat production can lead to high water consumption with soil and water contamination; an estimated 60% to 90% of nitrogen and phosphorous consumed by animals acts as a pollutant in the form of animal waste. To combat this, feed additives play an important role in reducing phosphate and ammonia content in animal waste. The use of feed additives increases water retention in livestock, thus enhancing meat quality and mass.
Regulatory issues are the biggest constraints in the compound feed industry. Animal feed production comes under feedstuff regulations in most countries. The regulatory framework is increasingly getting stringent, such as in 2006 in EU and in 2009 in United States, which banned the use of certain antibiotics as growth promoters in animals. Europe had imposed a ban on the use of animal proteins in aqua feed.
Many countries including China, Thailand and Vietnam that export fish to Europe and United States do not have such regulations against antibiotics or animal proteins usage in animals or feeds. Such disparities in regulations have adverse effects on the global fish and aqua feed trade, especially between developed and developing economies. Producers of feed and feed additives are required to follow strict regulations related to regional and national health and safety for their products approval in the developed nations. This ultimately affects the cost of the final products. Such regulatory initiatives are posing challenges for existing feed products and increasing the cost of new feeds development.
Key Developments in the Market:
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