Animal Feed Additives Market – Insights
Additives are natural or chemical substances added to preserve or improve the quality of food or a product. Feed additives are additives, specifically used in animal nutrition, to enhance the feed quality, digestibility in order to prevent diseases and improve quality of meat or food obtained from animals.
Farm animals are provided with a variety of additives such as sensory additives, nutritional additives, zootechnical additives, and coccidiostats and histomonostats. Sensory additives help stimulate the appetite of animals, allowing them to eat more; while nutritional additives provide specific nutrients to nutrient-deficient animals. Zootechnical additives are added to the feed to improve health and performance of animals, and coccidiostats and histomonostats are antibiotics used to prevent bacterial and microbial growth in the feed. Stringent regulations by the European commission have banned the use of coccidiostats and histomonostats, replacing them with probiotic alternatives. Regulation (EC) No 1831/2003 of the European Parliament and of the Council on additives for use in animal nutrition, banned coccidiostat on December 31, 2012. This has prompted various developments to find natural alternatives to coccidiostats in histomonodial and anticoccidial drugs, which help control Eimeria infections. Some of the recent discoveries are the use of vaccines and other alternatives such as sulfonamide, nicarbazin, and amprolium. Unattenuated vaccines such as Coccivac, Advent, Immucox, and Inovocox, and attenuated vaccines such as Paracox and HatchPak CocciIII are widely used. Consumption of livestock such as poultry, swine, and cattle is growing as it constitutes a protein rich diet. This is expected to drive growth of the global animal feed additives market in the near future. Feed additives are increasingly being used to meet the nutritional levels required for metabolism that enables weight gain of the animal, and prevents consumers from diseases such as bird flu and swine flu. This, in turn is a driving factor for the global animal feed additives market growth. Animal feed additives market is expected to exhibit a CAGR of 4.43% in terms of revenue over the forecast period (2017-2025). The global antibiotics market was pegged at US$ 4.199 billion (revenue) in 2016, which is expected to expand at a CAGR of 4.41%, emerging as a major product expected to drive growth for the animal feed additives market over the forecast period.
The global animal feed additives market was pegged at US$ 16.27 billion in 2016 and is expected to expand at a CAGR of 4.43% in terms of revenue, over the forecast period.
Figure 1. Global Animal Feed Additives Market Share, By Region, 2016
Animal Feed Additives Market: Government Regulation
Animal feed additives are labeled 'organic' that are specifically used by livestock. To maintain necessary amount of nutrients in the animal feeds a regulatory body was formed, the United States Department of Agriculture, Code (592) Feed Management. They regulated provisions not to exceed the quantity of nitrogen and phosphorus nutrients supply required by livestock and poultry for maintenance, production, performance, and reproduction. The normal bird feeds have insufficient amount of methionine, a proteinogen amino acid required for feather growth in birds, therefore synthetic methionine is added to ensure proper feathering of birds. The United States Department of Agriculture (USDA) advised against the use of ‘organic’ labeling in the poultry feeding on synthetic methionine. A new rule was formulated by the USDA which strictly asked manufacturers to reduce the standard limit of synthetic methionine in organic poultry. A list of registered products that could be permitted as additives in animal nutrition is issued by European Union and Switzerland. They include: a) substances as antioxidative effects, b) emulsifiers, stabilizers (organic acids), c) coloring substances, d) probiotics, e) enzyme mixtures, f) performance promoters (only antibiotics, others banned since 1st January 1999), g) vitamins and provitamins, and h) trace elements.
Asia Pacific, followed by Europe and North America, respectively, accounted for a major share in the global animal feed additives market in terms of revenue, in 2016 and the trend is estimated to remain the same over the forecast period. In 2016, Europe held a share of 27.77% in terms of revenue, followed by North America (24.44%). The growing consumer knowledge for quality meat and protein intake in Asia Pacific due to rising consumer awareness coupled with meat industry, is expected to drive growth of the global animal feed additives market over the forecast period. The enzymes segment in the global animal feed additives market is expected to witness a CAGR of 4.46% from 2017 to 2025. Asia Pacific is expected to be the most lucrative market during the forecast period, due to increase in grain demand for food production with low availability of land and water resources has resulted in the growth of the meat industry, which is expected to affect the animal feed additive in the global market. The feed additives acts as a catalyst which prevents diseases in animals and improves the vitamin intake, weight gain, digestion, and enhance the quality of meat. Owing to these factors and to control diseases such as avian influenza and bird flu, the addition of feed additives is expected to drive the global animal feed additive market over the forecast period.
Multinational players need to tap potential addressable market in emerging regions with the help of developments and technological advancement
Major players, including BASF SE, DuPont, DSM, Novozymes, Danisco, Evonik Industries AG, Addcon Group, Cargill Pvt. Ltd., Archer Daniels Midland Company (ADM), Adisseo Inc. France, Kemin Industries, and Inc., Nutreco N.V. are the key competitors in the global animal feed additives market. Development and innovation with technological advancement are the key market trends, which are expected to shape the industry in the near future. Among new developments, MiXscience developed ‘Vectorized Solutions, to Transport Additives by Release Technology (VSTAR)’, which is developed to provide protection and stability to active components during additive processing and in storage.
Feed additives are supplements that are added in feed of livestock to improve the nutritional level of the farm animals. Feed additives contains amino acids, fatty acids, minerals, and vitamins which helps in the growth of the animals at a healthy rate. The nutritional level of the animal feed depends on its nutritional content and also depends upon other factors such as hygiene, digestibility, feed presentation, and effect on colonic health. Farms animals’ diet consist of maize, soybean, and wheat along with high quality feed, which should contain carbohydrates, fats and proteins in particular. Increasing consumer knowledge on animal feed and prevention against diseases caused by meat consumption such as bird flu, etc. and growing meat industry in Asia Pacific and Europe is the key factor of the growth of the global animal feed additive market during 2017-2025. The animal feed additive market is expected to expand at a CAGR of 4.43% during the forecast period.
Increasing demand for feed enzymes and feed grade vitamins, growing demand for low volume with higher value specialty animal feed products drive the demand for organic trace minerals which is expected to propel the demand for animal feed additives market during the forecast period. Other factors such as declining cost of production and growing importance for swine and poultry drives the feed amino acids, and increasing consumption and production of pork benefits the demand for global animal feed additive market. Growth of the animal feed additive market is expected to be directly proportional to growth of the antibiotics market, which is expected to exhibit a CAGR of 4.41% in terms of revenue during 2017-2025 and is expected to retain the trend during the forecast period.
Asia Pacific dominated the market in 2016 and the trend is expected to remain the same during 2017-2025. The increasing demand for feed additives due to rise in demand for white meat, farmers awareness and increase in livestock industrialization over last decade, is the major driving force to position Asia Pacific as the largest region in the global animal feed additive market. Increase in urban population coupled with healthcare awareness is gaining traction for high quality protein from meat and increasing consumption of aquatic and meat products are some of the factors which is expected to created opportunities for major market players and drive the animal feed additive market during the forecast period. Europe market is also expected to experience significant growth and is projected to exhibit a CAGR of 4.43%, during the forecast period.
This report segments the global animal feed additive market on the basis of product types and livestock. On the basis of product types, the animal feed additive market is segmented as antibiotics, vitamins, antioxidants, amino acids, enzymes, acidifiers, and others. On the basis of livestock, the global animal feed additive market is segmented into pork/swine, poultry, cattle, aquaculture, and others. Moreover, amino acid is the largest product segment, accounting for over 30.64% share of the global animal feed additive market in 2016, while, antibiotics is projected to be the fastest growing product segment and expected to grow at a CAGR of 4.41% in terms of revenue during the forecast period.
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“*” marked represents similar segmentation in other categories in the respective section.
Note- We will profile top 10 companies’ profiles. Also, we will provide the exhaustive list of domestic players for every region.
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