|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
39.54 Billion
|
|
CAGR
(2023-2028)
|
5.21%
|
|
Fastest
Growing Segment
|
Vitamins
|
|
Largest
Market
|
Asia-Pacific
|
Market Overview
Global
Animal Feed Additive Market has valued at USD 39.54 Billion in 2022 and is anticipated to
project impressive growth in the forecast period with a CAGR of 5.21% through 2028. Animal feed additives are
carefully formulated substances used in animal nutrition to enhance the
quality, nutritional value, and overall performance of animal feed. These
additives play a crucial role in ensuring the well-being and productivity of
livestock. They can comprise a diverse range of ingredients, including
vitamins, minerals, amino acids, probiotics, prebiotics, enzymes, and herbal extracts,
among others.
By
incorporating these additives into animal feed, farmers and nutritionists can
optimize the growth and development of livestock, improve the efficiency of
nutrient utilization, and enhance the overall health and immune function of the
animals. Additionally, specific additives are designed to support digestive
health, ensuring proper nutrient absorption and minimizing the risk of
digestive disorders. With the use of animal feed additives, farmers can provide
their livestock with a balanced and tailored diet that meets their nutritional
requirements, leading to healthier animals and improved productivity. This
ultimately contributes to the sustainable and responsible production of
high-quality animal products to meet the growing demands of a rapidly expanding
global population.
Key Market Drivers
Increasing
Demand for Nutritious Animal Feed
The
global demand for animal feed additives is anticipated to witness significant
growth, driven primarily by the escalating need for nutritious animal feed.
With the increasing awareness about animal health and the importance of a
balanced diet in livestock's growth and productivity, farmers are proactively
incorporating feed additives. These additives, rich in essential nutrients like
vitamins, enzymes, acids, and minerals, substantially enhance the nutritional
value of animal feed.
Moreover,
the rising consumption of animal-based products such as meat, dairy, and eggs
is further fueling this demand. Consumers today are conscious about the quality
of animal-based foods they consume, which directly correlates with the
livestock's diet. Consequently, the animal husbandry sector is focusing on feed
quality to ensure healthier livestock, resulting in better yield and quality of
animal products.
Additionally,
the advent of innovative feed additives, such as probiotics and prebiotics,
fosters animal health and reduces dependency on antibiotics. This progress is a
result of extensive research in animal nutrition, aligning with global efforts
to reduce antibiotic resistance. In conclusion, the escalating demand for
nutritious animal feed, coupled with the consumer’s desire for high-quality
animal-based products, is set to boost the global market for animal feed
additives.
Increased Industrialization of
Livestock Production
The
industrialization of livestock production is experiencing a significant upward
trend on a global scale, with a notable surge in the demand for animal feed
additives. This growing phenomenon closely aligns with the simultaneous
increase in the global population and the subsequent rise in the consumption of
meat and dairy products. As the scale of livestock production expands to meet
these demands, the need for effective and health-conscious feed solutions
becomes increasingly paramount.
Animal
feed additives, encompassing a wide range of components such as vitamins, amino
acids, enzymes, and acidifiers, play an integral role in enhancing the
nutritional value of animal feed. By optimizing the feed composition, these
additives promote animal health and well-being, while also boosting production
efficiency. Moreover, they serve a vital function in mitigating the risk of
diseases, enhancing the overall quality of animal-derived products, and
minimizing the environmental impact associated with livestock production.
The
growth of industrial livestock production not only fuels the demand for animal
feed additives but also stimulates advancements in feed additive technologies.
This symbiotic relationship between production scale and technological
innovation further propels market growth. In essence, the escalating
industrialization of livestock production worldwide not only amplifies the need
for animal feed additives but also shapes the future development trends within
this sector.
Rise in Pet Ownership
The
global surge in pet ownership is expected to significantly drive the demand for
animal feed additives. This increase is primarily due to a growing awareness
among pet owners regarding the health and diet of their pets. As pets are
increasingly being considered as part of the family, owners are willing to
invest in high-quality, nutrient-rich pet food to ensure their animal
companions' well-being. This shift in attitude is pushing the pet food industry
to enhance their offerings by incorporating animal feed additives, which are
substances added to pet food to improve its nutritional value, taste, and digestibility.
These additives include vitamins, minerals, amino acids, and enzymes, among
others. The global animal feed additive market is expected to witness
considerable growth due to these factors. Moreover, with advancements in pet
food formulation and manufacturing technologies, it's likely that a wider range
of additives will be made available, further amplifying demand. In essence, the
rising trend of pet humanization, coupled with the increasing consumer
awareness about pet nutrition, is set to propel the global animal feed additive
market in the upcoming years.
Disease
Outbreaks in Livestock
The
global demand for animal feed additives is expected to rise substantially due
to expanding incidences of disease outbreaks in livestock. These unforeseen events
underscore the importance of preventive measures in livestock management as
disease outbreaks, such as Avian flu or Swine fever, can cripple an entire
farming industry within a short period. The utilization of animal feed
additives is one such measure. These substances are incorporated into animal
feed to enhance the nutritional content and promote the overall health and
productivity of the animals. When livestock are healthier, the incidence of
disease is likely to decrease, protecting farmers' livelihoods and ensuring
sufficient supply of livestock products. As disease outbreaks become
increasingly prevalent, the importance of fortifying animal health through feed
additives will only become more pronounced. This reality, combined with growing
awareness among farmers about the benefits of feed additives, is likely to
drive the global market for these vital substances. Consequently, animal feed
additive manufacturers stand to gain considerably from this trend, positioning
the sector for continuous growth.
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Key Market Challenges
Rising Costs of Raw Materials &
Production
The
global animal feed additive market is expected to face a significant downturn
due to the escalating costs of raw materials and production. These rising costs
directly impact the price of the finished product, making it less affordable
for end users. Raw materials such as amino acids, vitamins, and minerals, which
form a crucial part of animal feed additives, have seen a surge in prices,
driven by factors such as inflation, supply chain disruptions, and increased
energy costs. Increased production costs, including labor and energy expenses,
further compound these issues. As a result of these increased costs,
manufacturers are forced to pass on the burden to the consumers in the form of
higher prices for animal feed additives. This price hike can discourage
purchase, thus reducing demand. Furthermore, consumers may start seeking
cheaper alternatives or reduce the usage of additives in animal feed, which
could exacerbate the drop in demand. This trend can have a ripple effect on the
entire industry, forcing businesses to rethink their strategies, and
potentially prompting them to seek more cost-effective raw materials and
efficient production methods.
Alternative Feeding Methods
The
growing popularity of organic and natural feeding practices poses a threat. Driven
by sustainable practices and an increasing awareness of animal welfare,
alternative feeding methods are projected to significantly reduce the global
demand for animal feed additives. These methods aim to diminish reliance on
chemically-laden additives that have traditionally been used in animal feed, by
focusing on leveraging natural, plant-based diets and waste products. In
addition, alternative feeding practices such as integrated pasture management
and rotational grazing are gaining momentum. These techniques improve soil
fertility, enhance animal health, and decrease the requirement for additives.
Furthermore, insect farming for feed, utilizing black soldier fly larvae or
mealworms, provides a rich source of proteins, fats, and essential nutrients,
thereby obviating the need for synthetic supplements. Vertical farming also
plays a role by providing a sustainable source of animal fodder. As these
methods continue to evolve and gain acceptance, a significant decrease in the
utilization of animal feed additives can be expected, fostering a shift towards
more sustainable and humane animal farming practices on a global scale.
Key Market Trends
Feed Cost-Effectiveness
Animal
feed additives are becoming increasingly significant in the global agricultural
sector due to their ability to bolster feed cost-effectiveness. These additives
are substances or microorganisms that, when incorporated into animal feed,
enhance its nutritional value or improve its overall quality, thereby promoting
better livestock health and productivity. Given the increasing prices of
traditional feed ingredients, feed additives present a cost-efficient solution,
allowing farmers to achieve optimal animal growth and health while minimizing
feed costs. Furthermore, these additives are effective in mitigating diseases
in animals, reducing the dependence on antibiotics and thereby limiting their
overuse, which is another significant global concern. Add to this the mounting
demand for high-quality animal products as a result of booming global
population and escalating income levels, the demand for feed additives is set
to surge globally. In essence, the drive towards feed cost-effectiveness is
stimulating a shift in preference towards animal feed additives, which in turn
is significantly influencing the global demand trajectory.
Rapid Expansion of The
Aquaculture Industry
The
global aquaculture industry is witnessing rapid expansion, a trend that is
expected to significantly amplify the demand for animal feed additives.
Aquaculture, also known as fish farming, relies heavily on feed additives to
enhance the growth, health, and yield of cultured species. These additives include
vital nutrients such as vitamins, minerals, amino acids, and probiotics, all of
which are crucial for the optimal growth and survival of aquatic organisms. As
the industry expands, the demand for these additives is set to increase
commensurately.
This
growth in demand is fueled not only by the expansion of aquaculture enterprises
but also by the rising awareness of the benefits of feed additives in improving
yield and disease resistance in cultured species. Moreover, the growing
consumer demand for high-quality, sustainably produced seafood is also driving
the aquaculture industry to adopt advanced feed solutions, including
specialized additives. These dynamics, combined with the need for sustainable
intensification of aquaculture to meet the global demand for protein, are set
to contribute to a significant surge in the consumption of animal feed
additives globally. Therefore, stakeholders in the animal feed additive
industry must be prepared to meet this increasing demand, which is likely to
present opportunities for innovation, expansion, and profit.
Segmental Insights
Type Insights
Based
on the Type, the amino acids product segment has emerged as the dominant force
in the global industry, capturing the largest share of the overall revenue.
This can be attributed to its remarkable ability to bolster immunity and foster
animal growth, effectively preventing nail and skin issues. Furthermore, it
plays a vital role in averting cerebral dysfunction, which can lead to muscular
incoordination in animals. As a result, the demand for amino acids is expected
to remain high in the product industry, serving both as a feed supplement and a
key ingredient in pet food. The use of antibiotics as growth promoters
significantly contributes to the market's growth, not only by promoting
livestock growth but also by improving meat quality, increasing protein
content, and reducing fat content.
However,
the excessive use of antibiotics as growth promoters has led to the development
of antibiotic resistance in local bacterial populations. Moreover, the presence
of antibiotic residues in meat poses potential risks to human health due to
their overuse as growth promoters. While vitamins naturally occur, additional
vitamin supplements are added to livestock feeds to ensure proper nutrition.
Commonly used vitamin additives include vitamins A, D, E, and K, as well as
riboflavin, which are incorporated as supplements to enhance and maintain
animal health. Vitamins are also administered to animals to improve
reproductive performance. Additionally, growing consumer awareness regarding
the benefits of fat-soluble vitamins is expected to fuel their demand in the
industry.
Livestock Insights
Based
on the Livestock, the poultry segment emerged as the dominant force in the
industry in 2022, commanding the largest share of the overall revenue. This
dominance can be attributed to the sustained growth in broiler production
across different regions. Various types of poultry feed additives, such as
enzymes, antioxidants, vitamins, and acidifiers, are readily available in the
market. These additives are utilized to enhance efficiency and nutritional value
of the poultry products. Developing countries have witnessed an increase in
consumption, driven by rising income levels and urbanization, leading consumers
to seek dietary diversity. As a result, developing countries are expected to
maintain their dominance in the poultry feed segment, owing to their growing
population and high meat consumption rates.
The
swine industry is influenced by key parameters such as high efficiency,
productivity, and profitability. Major additives used in pork feed include
antimicrobials, antioxidants, binders, emulsifiers, enzymes, and pH control
agents. Antibiotics play a crucial role in improving growth performance and
disease control. Additionally, fat-soluble vitamins (A, K, E, and D) and
water-soluble vitamins (B12, riboflavin, choline, and niacin) are incorporated
into pork feed to enhance pork growth performance. The global cattle feed
market has experienced significant growth due to the rapid industrialization of
meat and dairy products, coupled with the expanding population.
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Regional Insights
In 2022, the Asia-Pacific (APAC) region emerged
as the leading producer of animal feed additives, driven by the significant
markets of China, India, Japan, and Australia. These countries have witnessed a
surge in demand for animal feed additives, owing to the growing consumption of
meat and the rapid industrialization of the livestock industry. Notably, China
has established itself as both the largest producer and consumer of animal feed
additives globally.
Moreover, the APAC market has experienced
notable growth in countries like Vietnam, Thailand, and Malaysia. This growth
can be attributed to the changing demographics and the increasing meat
consumption in these regions. As a result, the demand for feed additives,
including grain, mineral supplements, protein supplements, and vitamin
supplements, has witnessed a substantial rise in the poultry feedstuff sector.
The APAC market is poised to grow steadily, driven by the ever-increasing
demand for poultry and other meat products. With the region's focus on
enhancing livestock production and meeting the rising consumer demands, the
animal feed additives market is expected to flourish during the forecast
period.
Recent Developments
- In January 2022, BASF expanded its feed enzymes
production capacity at the Ludwigshafen (Germany) plant. Through the expansion
of the existing plant, BASF has significantly increased its annual production.
The enhanced production capacity enables BASF to effectively meet the growing
global demand from customers for a reliable and high-quality supply of BASF
feed enzymes.
- In November 2021, Royal DSM announced the
commencement of large-scale production of its innovative methane-reducing feed
additive for ruminants, Bovaer, with the establishment of a new plant at its
existing site in Dalry, Scotland, with the support of Scottish Enterprise.
- In
October 2021, De Heus, a subsidiary of Koudijs, inaugurated a new feed additive
plant in Khylchytsi in the Lviv region, Ukraine, with an investment of USD 9.2
million.
Key Market Players
- Cargill
Inc.
- Ajinomoto Co., Inc.
- BASF SE
- Kemin Industries, Inc.
- ANOVA Group
- BIOMIN Holding GmbH
- Olmix SA
- Archer Daniels Midland Company
- Evonik Industries AG
- Alltech, Inc.
|
By
Type
|
By
Livestock
|
By
Region
|
|
- Amino
Acids
- Vitamins
- Minerals
- Enzymes
- Others
|
- Poultry
- Swine
- Cattle
- Aquaculture
- Others
|
- North
America
- Europe
- Asia
Pacific
- South
America
- Middle
East & Africa
|
|
|
|
|
|
|
Report
Scope:In
this report, the Global Animal Feed Additive Market has been segmented into the
following categories, in addition to the industry trends which have also been
detailed below:
- Animal Feed Additive Market, By Type:
o
Amino Acids
o
Vitamins
o
Minerals
o
Enzymes
o
Others
- Animal Feed Additive Market, By Livestock:
o
Poultry
o
Swine
o
Cattle
o
Aquaculture
o
Others
- Animal Feed Additive Market, By
Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Global Animal Feed Additive Market.
Available
Customizations:
Global
Animal Feed Additive market report with the given market data, TechSci
Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
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Additive Market is an upcoming report to be released soon. If you wish an early
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