Animal Feed Additives Market Overview:
Feed additives are employed in animal nutrition to enhance the quality and properties of animal feed to boost features such as overall gut health/digestive performance, palatability preservation, and others. They have gained importance globally, as they improve the overall health of the animal, in turn improving the quality and quantity of meat produced from them. For example, in poultry diets, feed additives are used to improve the bird’s egg-laying capacity, feed utilization, and disease prevention. Similarly, a swine diet includes various natural and synthetic additives, such as acidifiers, high dietary levels of copper and zinc, and phytase to boost the performance and profitability of this feed.
The world animal feed additives is estimated to garner $32.1 billion by 2021, registering a CAGR of 5.8% over the forecast period 2015-2021. Increasing global meat consumption, industrialization of meat products, and growing awareness of the quality of dairy and meat products consumed are the major factors driving the feed additives’ market growth. Increasing raw material costs are likely to restrict the market growth, as majority of additives, such as feed acids, antioxidants and vitamins, are extracted from natural sources encompassing seeds, tree barks, leaves, etc.
The world animal feed additives market is segmented based on type, livestock, and geography. The type segment is further bifurcated into amino acids, feed enzymes, vitamins, minerals, feed acidifiers, antioxidants, antibiotics and binders. The demand for amino acids is increasing owing to its extensive application in feed additives. Animals/livestock require continuous supply of protein in their diet; hence, amino acids are considered as an essential component of the animal feed.
Key Segments - World Animal Feed Additives Market
Top Investment Pockets:
The rising demand for products that are enriched with protein, industrialization in meat production, and rising awareness towards the quality of meat has increased the need for feed additives. Due to increase in global population, the demand for food (meat and meat products) is also on the rise. Hence, stringent government regulations are being imposed on feed manufacturers and industries for proper and efficient addition of additives in animal feed, which in turn will foster the efficacy of nutrition and additives into animal feed. Additives such as amino acids, enzymes, and vitamins are regularly required by animals throughout their life. Therefore, these additives are quantified as large and steady revenue generating segments in the world animal feed additives market and hold lucrative prospects for investors.
The poultry feed industry is one of the key end-user industry for food additives. The steady growth of the poultry feed industry drives the additives market. Rising demand for functional and convenience meat products is yet again fueling the consumption of feed additives. Moreover, changing consumer life styles in developing regions such as Asia-Pacific and Latin America have resulted in increased preferences for healthy eating and growing demand for convenience food. The swine feed market is identified as the second most attractive segment in the world animal feed additives market. Based on livestock, the market is segmented into swine, poultry, cattle, aquatic animals, and others. In 2014, the poultry segment emerged as a leading livestock segment for the consumption of feed additives, followed by swine and cattle, because of the rise in demand for poultry meat, consumer taste preferences, and increase in disposable incomes in developing economies, mainly in China and India.
Geographically, the world animal feed additives market is segmented into North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East & Africa). Asia-Pacific is the largest continent in the world with a population of more than 4.3 billion in 2012. With rapid economic growth in the region, demand for meat protein is rising especially in China, India, Malaysia, Japan and Singapore. This increased demand for meat protein has triggered meat production in the region, where uptake of feed additives has increased and is expected to show a healthy growth rate of 6.2% for the period of 2015 to 2021. Apart from improving nutritional value of the feed, these feed additives are gaining importance for their role in feed cost reduction and meat quality improvement.
During the 2000s, the consumption of animal products had increased. 2000-2010 had witnessed increase in the consumption of pork. Though pork consumption trend has fluctuated it still remains one of the most preferred meats by the urban as well as the rural population of China. Beef is mostly consumed in restaurants, not cooked at home. On the other hand, poultry is the second highest consumed meat in China. With rapid industrialization, the meat consumers are becoming aware of the quality and type they are consuming. Hence the livestock producers are concerned regarding the additives that are being given to the meat producing animals.
Acquisition and expansion are the leading strategies adopted by the key market players in the world animal feed additives market in order to expand their market hold in the industry. Expansions and acquisitions by the market players cover about 40% share, each, out of the total number of strategies. Evonik Industries AG, Cargill Incorporated, Nutreco N.V., Archer Daniels Midland Company, and Adisseo France SAS are the leading companies who adopted expansion and acquisition as their key business strategies.
Competitive intelligence on prominent feed additives manufacturers provides key insights in terms of strategies implemented to gain a significant share in the animal feed additives market. Cargill, Inc., BASF SE, and Alltech Inc. are leading players providing a wide range of feed additive products across all livestock sectors. Few of the key players profiled in this report include BASF SE, Cargill, Inc., Archer Daniels Midland Company, Novozymes A/S, Chr. Hansen Holding A/S, Alltech, Inc., Evonik Industries AG, Charoen Pokphand Foods Public Company Limited, Nutreco N.V., and Adisseo France SAS.
Key Benefits for Stakeholders:
- The report provides a quantitative analysis of the current trends and future estimations from 2014 to 2021, which assists in identifying the prevailing market opportunities.
- Region-wise market conditions of animal feed additives are comprehensively analyzed in this report.
- An exhaustive analysis of the world animal feed additives market by type helps in understanding the types of feed additives that are currently being used along with the variants which would gain prominence in the future.
- Competitive intelligence (of leading manufacturers of animal feed additives) helps in deducing the competitive scenario across the geographic regions.
- SWOT analysis highlights the strengths, weakness, threats and opportunities of leading companies operating in the market.
- Key market players in this market are profiled in the report and their strategies are analyzed thoroughly, which helps in understanding the competency in this market.
Animal Feed Additives Market Key Segments:
The World Animal Feed Additives Market is segmented as follows:
- Amino Acids
- Feed Enzymes
- Non-Starch Polysaccharides
- Zinc Sources
- Iron Sources
- Manganese Sources
- Copper Sources
- Feed Antioxidants
- Calcium Lignosulphate
- Guar Gum
- Aquatic animals
- North America
- Rest of Europe
- Rest of Asia-Pacific
- South Africa
- Rest of LAMEA