Feed additives: a revolution for animal nutrition

SUMMARY

A feed additive is an extra or an additive nutrient that is incorporated into the animal feed for the enhancement of the nutrition level of the feed. The market for feed additives are expected to propel currently and in the coming years on account the upsurge in animal diseases which is further resulting in growing concerns for the health of the animals, thus driving the demand for additives and adding up to market growth. In addition, significant growth in the consumption of livestock commodities is also one of the major driving factors for the feed additives market. The rising consumption of meat and livestock products is further leading to increased concerns for the healthy growth of livestock, thus boosting the growth of the market throughout the forecast period. Feed additives are mainly used for the following purposes; for preserving feed’s nutritional characteristics, to facilitate ingredient dispersion, to facilitate growth, to facilitate feed ingestion and consumer acceptance of the product, and lastly to supply the essential nutrients to the animals in purified form.

MARKET OVERVIEW

In addition to this, the demand for feed additives is estimated to expand in the coming years on account of rising meat consumption globally, which is further leading to increased use of additives for giving nutritious diet to livestock for better growth. As per the data given by the FAO, aggregate consumption of meat is expected to reach 45.3 kg per capita in 2030 from 41.3 kg per capita in 2015. Furthermore, the rising livestock population, along with the shift of the livestock industry to an organized sector are also projected as the driving factors for the market to grow throughout the forecast period. However, the stringent government regulations regarding the use of antibiotics as a risk to human health, coupled with the rising cost of raw materials may hamper the growth of the market during the coming years. Moreover, a shifting consumer preference towards vegan food and increasing popularity of vegan products also may reduce the demand for livestock products, therefore may hinder the market growth. In order to remain globally competitive and to tap the potential this market holds, market players are investing heavily in research and development and expansions to fuel innovation and develop efficient product offerings, thus capable of offering high value to the customers. For instance, in September 2019, DSM introduced Bovaer®, the feed additive that enables farmers to achieve consistent methane reduction from cows by 30%. Similarly, in January 2018, Cargill, Incorporated, opened its first dedicated fish feed plant in India with an aim to triple the fish feed capacity for farmers.

SEGMENT ANALYSIS

The feed additives market is segmented on the basis of product type, livestock, form, source, and geography. By product type, the antibiotics segment is projected to hold a noteworthy market share as they are widely used as balanced supplements and premixes for animal production. Enzymes are expected to grow substantially over the forecast period as they help in improving the digestive systems of the animals and are widely used.

By livestock, the aquatic segment is projected to grow at a noteworthy CAGR owing to the increasing number of farmed fishes due to the globally growing demand for fish meat. Furthermore, the poultry segment is projected to hold a significant market share due to the growing demand for chicken and eggs, which is further leading to the growth in the production of chickens, thus driving the demand for feed additives for the poultry segment.

Geographically, the market is segmented as North America, South America, Europe, Middle East and Africa, and Asia Pacific. The Asia Pacific region is projected to hold a significant share in the market on account of rising demand for animal protein, meat and the presence of a significantly larger population base. North America is also projected to grow substantially over the next five years on account of the growth in meat consumption in the region, which is further leading to the high production of livestock, thus significantly driving the demand for feed additives in the region.

COMPETITIVE STRATEGIES

There is a high volume of companies working in the feed additives market, however, some have solidified their position as the leading providers in this industry. These players are involved in a plethora of investments, product launches, and R&D as a part of their growth strategies to further strengthen their position and provide better services to their customers worldwide, which is further expected to propel the growth of the market in the coming years. Some of these are:

• December 2019, Adisseo, a global leader in feed additives announced the opening of their new R&D center in Singapore which will be fully dedicated to aquaculture, for the topics related to health and nutrition.
• In October 2019, Nutreco announced an agreement to acquire the compound feed business of Cargill in Portugal. Similarly, the company also acquired, the South African premix company Animal Nutrition and Health (ANH), the company will be fully integrated into Trouw Nutrition South Africa.
• In March 2019, BASF SE introduced its next-generation phytase Natuphos E, for the feed industry in Indonesia. This product helps the animals to better utilize the important nutrients which further make the livestock feed cost-effective and environmentally friendly.
• In September 2018, DSM and Novozymes announced the launch of their latest product, BalanciusTM, a new feed additive for broiler chickens. This helps the farmers to move towards sustainable production as less feed is utilized with better nutrients.
• In July 2018, BASF launched a new silage additive Lupro-Cid® NA to ensure safe animal feed for Japan’s dairy farms. This is a low-corrosive organic acid product that makes silage production easier and safer.
• In October 2017, Cargill Incorporated entered into an agreement to acquire Integral Animal Nutrition, a cattle feed producer in Brazil with an aim to strengthen its position in the animal nutrition business.

FUTURE PROSPECTS:

The feed additives market is headed towards a moderate growth with the rising investments by key market players in the industry for R&D and expansions and new product launches, which are estimated to augment this growth further in the coming years. According to the analysis by Knowledge Sourcing Intelligence the feed additives market is estimated to grow at a CAGR of 4.53% to reach US$40.108 billion by 2024.

Knowledge Sourcing Intelligence is a market research and consulting firm based out of India. Steered by some of the industry experts, the company provides syndicated reports, custom research, and consulting services.