Feed acid is compounds used in the animal feed to improve the quality and nutrients diet of the animals. The use of feed acid provide essential nutrients to the animal and also improves the functioning of the digestive system. Moreover, it also enables the weight gain in animals and offers better immunity. Therefore, the use of feed acid offers a nutritionally balanced diet to the feed.
The global feed acid market is estimated to be valued at US$ 1,820.2 million in 2021 and is expected to exhibit a CAGR of 6.5 % over the forecast period (2021-2028).
Figure 1. Global Feed Acid Market Value (US$ Mn), by Region, 2020
Europe region held dominant position in the global feed acid market in 2020, accounting for 35.80% share in terms of revenue, followed by North America and Asia Pacific, respectively. Europe is lucrative market for feed acids. The region’s favourable regulatory scenario is enabling growth in the market. It exhibits significantly high demand for propionic acid, accounting for larger percentage of sales witnessed in the market
Global Feed Acid Market: Drivers
The growing prevalence of the disease among animals is driving demand for feed acids. The outbreak of diseases such as avian flu and foot-and-mouth has raised concern over animal health around the globe. Owing to which quality food has become a critical factor in the overall health. The growing awareness regarding the important ingredients that helps in improving the overall health of the animal coupled with the growing preference of consumers for quality meat products is further expected to foster the market growth of the feed acids.
An increase in the implementation of the innovative animal husbandry practices to enhance the meat quality is propelling the market growth of the feed acids. Moreover, increasing population coupled with the growing concern over food security is further driving demand for meat products. Furthermore, growth in the commercialization of livestock rearing practices across the developing region is again expected to propel the market growth of the feed acids over the forecast period.
Global Feed Acid Market: Opportunities
Increasing blending of feed acids with different organic acids for the improved result is expected to provide lucrative opportunities. Feed acid blends improve the positive effects when compared to those that can be achieved by using single acid substances. Blends of feed acids also enhance gut health and control more pathogenic bacteria in the digestive tract. Hence, the growing use of feed acids blend will favor the market growth of feed acids over the forecast timeframe.
The growing demand for nutritional supplements for monogastric animals is expected to bring new market opportunities. Also, an increase in support from governments for encouraging the use of feed acid among livestock producers is expected to foster market growth. Also, growing awareness regarding the multiple benefits of amino acid supplementation in feed coupled with the standardization of meat products due to growing health concerns is again expected to foster the market growth of the feed acids.
|Base Year:||2020||Market Size in 2021:||US$ 1,820.2 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||6.5%||2028 Value Projection:||US$ 2,828.6 Mn|
ADDCON GmbH, BASF SE, Biomin GmbH, Perstorp AB, Kemin Industries Inc., Impextraco, Jefo Nutrition Inc., Novus International, Corbion Purac, and Trouw Nutrition International B.V.
|Restraints & Challenges:||
Continuous product launch by key players in the market for meeting the demand is one of the current trends and this is expected to foster the market growth of feed acid. For instance, in June 2018, Perstorp launched a new organic acid additive, ProSid™ Pellet, designed specifically for the feed industry to improve feed quality and reduce production costs. Organic acid-based additives can help achieve better results in feed hygiene, gut health, mold inhibition, and moisture balance.
Increasing disposable income coupled with the changing eating habits of consumers is contributing to the market growth of feed acids. This is also attributed to the growing health and wellness trend and increasing adoption of a healthy lifestyle among consumers. Moreover, increasing spending on the food meat products due to growing health awareness along with the rising demand for high protein-rich food products is again expected to foster the market growth of the feed acids in the near future.
Figure 2. Global Feed Acid Market Share, By Animal Type, 2020
Key Takeaways of the Graph:
By animal type, the poultry animal type held dominant position in the market and accounted for 65% share in the global feed acid market in 2020. The segment is expected to reach US$ 1,887.47 million in 2028. Poultry livestock has been significantly contributing to the demand witnessed in the feed acid market over the last few years. It is expected to remain a popular animal type through the course of the forecast period.
Global Feed Acid Market: Restraints
Factors such as volatility and strong odor limit the use of feed acids. Also, some feed acids are corrosive to intestines of animal which are again limiting the use of feed acid. Such factors are hindering the market growth of the feed acids.
The availability of alternative protein sources is declining the consumption of the meat. Also, strict rules and regulations associated with the use of feed acid in the animal diet are expected to hinder the market growth of the feed acid.
Global Feed Acid Market: Competitive Landscape
Major players operating in the global feed acid market include, ADDCON GmbH, BASF SE, Biomin GmbH, Perstorp AB, Kemin Industries Inc., Impextraco, Jefo Nutrition Inc., Novus International, Corbion Purac, and Trouw Nutrition International B.V.
The animal feed industry has been severely affected by the emergence of Covid-19 and decline in demand for various products in poultry, pork, and dairy sectors. The sudden change in the consumer's behavior in the face of the pandemic has forced manufacturers to re-evaluate their strategies and policies. The animal feed industry is also a complex sector due to the fact that its processing and distribution involve multiple entities such as the livestock supplier, meatpackers and processors. The animal feed industry is one of the few sectors that has been able to maintain strong growth despite the downward trend in agricultural exports as a result of the pandemic.
Availability of registration facilities for feed additives is expected to propel growth of the global feed acid market over the forecast period. For instance, in September 2021, The Ministry of Economy of Ukraine approved a registration dossier, which offers the procedure for state registration of feed additives in Ukraine.
The global feed acid market is witnessing ban on feed additives with GMO residues. For instance, in May 2021, Rosselhoznadzor, the Russian veterinary watchdog, barred feed additives import from Germany, the U.K, and Canada after a routine inspection revealed GMO residues in supplied products. Earlier this year, Rosselhoznadzor banned the feed additives import from Spain and the US, as well as from the Netherlands in late 2020, in each case also citing GMO fears.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.