The Global Feed Acid Market is expected to surpass US$ 3,206.9 Mn in terms of value by the end of 2030.
Global Feed Acid Market: Drivers
Increasing meat consumption and production is a prime factor fueling the market growth of feed acid. The global market for feed acids is driven by the rising livestock production for the consumption of meat and dairy products and the expansion of the livestock industry. The increasing usage of dietary additives that provide health benefits to animals is expected to boost the growth of the market.
Global Feed Acid Market: Opportunities
An increasing ban on antibiotics is expected to open new doors of opportunities for the market of feed acids. For instance, Europe has banned the use of antibiotics as growth promoters (AGP). This has encouraged animal producers to opt for feed acid. For this Europe is considered as the largest market for feed acids. Also, South Korea was the first Asian country to ban the use of antibiotics in animal feed. Thus, an increasing ban on the use of antibiotics is expected to foster the market growth of feed acids.
Global Feed Acid Market: Recent Developments
- On August 5, 2021 – BASF and SINOPEC are the manufactures will further expand their Verbund site operated by BASF-YPC Co., Ltd. (BASF-YPC), a 50-50 joint venture of both companies in Nanjing, China. It includes the capacity expansion of several downstream chemical plants, including a new tert-butyl acrylate plant to support the growing China market. The partners will expand the production capacities of propionic acid, propionic aldehyde, ethyleneamines, ethanolamine, and purified ethylene oxide, and build a new tert-butyl acrylate plant.
- On 26 August 2021, Perstorp an producer increased the prices for carboxylic acids and esters effective from September 1, 2021, or as existing contracts allow, Perstorp Oxo AB will increase its selling prices for the following products globally as below. All terms, conditions, and differentials will remain the same.
- On April 5, 2021, Kemin Industries acquired Proteus Industries, Inc. This acquisition adds sustainable clean label yield enhancement technology to the global Kemin Food Technologies portfolio of ingredient solutions.
Global Feed Acid Market: Restraints
The market of feed acid is facing threats from substitutes available in the market. Vitamins, antioxidants, and feed enzymes are some of the substitutes available in the market. Also, probiotics are highly preferred over feed acids which are affecting the demand for feed acids. This factor is expected to hinder the market growth of the feed acids.
Global Feed Acid Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 pandemic began in a single city and spread to 188 countries across the world. Globally, as of 4:18 pm CEST, 16 September 2021, there have been 226,236,577 confirmed cases of COVID-19, including 4,654,548 deaths, reported to the World Health Organization (WHO). As of September 15, 2021, a total of 5,634,533,040 vaccine doses have been administered. The pandemic adversely impacted the food supply chain, specifically livestock production. Many processing plants shut down putting pressure especially on pig and poultry industries. As a result, the demand for feed acid has declined significantly.
The global feed acid market is estimated to be valued at US$ 1,909.4 million in 2022 and is expected to exhibit a CAGR of 6.7% over the forecast period (2023-2030).
- By product type, Amino Acids segment dominated the market and fastest growth rate during the forecast period.
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The growing consumption of dairy food products is a current trend around the globe. This is attributed to the growing number of health-conscious consumers. The exponential rise in poultry production across the developing region coupled with the growing awareness regarding animal health is again expected to foster the market growth of feed acid. Rapid industrialization and urbanization are also contributing to the market growth of feed acids over the forecast timeframe.
Partnerships and agreements among key players for business expansion is one of the growing trends in market growth. For instance, in January 2023: Novus International acquired the Biotech Company Agrivida to develop new feed additives. Increasing adoption of such a strategy by key players for business expansion will stimulate the market growth of the feed acids in the near future.
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.