New Revenue Sources in Feed Additives Market

According to MarketsandMarkets, the global feed additives market is estimated to be valued at USD 38.1 billion in 2021 and is projected to reach USD 49.6 billion by 2026, recording a CAGR of 5.5%, in terms of value. The growth in consumption of animal-based products, growth in feed production, standardization of meat products owing to disease outbreaks, and implementation of innovative animal husbandry practices to improve meat quality have led to the increased consumption of feed additives.

The European Commission defines feed additives as, "products used in animal nutrition for the purpose of improving the quality of feed and the quality of food from animal origin, or to improve the animals’ performance and health, e.g. providing enhanced digestibility of the feed materials. Feed additives may not be put on the market unless authorization has been given, following a scientific evaluation demonstrating that the additive has no harmful effects on human and animal health and on the environment."

Globally shift towards natural growth promoters driving the demands for feed additives

Antimicrobial compounds are commonly included in poultry diets for promoting growth and controlling diseases. The European Union banned feed-grade antibiotic growth promoters, owing to cross-resistance and due to the risk posed to the EU’s food safety and public health. Due to this, feed manufacturers are adopting new forms of natural feed additives apart from antibiotics with the help of new science. This new generation of growth enhancers includes botanical additives such as appropriate blends of herbs or plant extract. Herbs and plant extracts used as feed additives include different bio-active ingredients. These natural growth promoters predominantly include organic acids, probiotics, prebiotics, and so on. In addition to this, growing demands of feed additives from developing countries such as India, China, and Indonesia are also boosting the demand of feed additives. However, the growth of the market is restricted due to the stringent regulations in regions such as Europe and the price volatility of different feed additives.

Some of the key companies in feed additives market are ADM (US), Cargill (US), DSM (Netherlands), DuPont (US), Evonik (Germany), and BASF (Germany) amongst others. These players are actively investing into developments of novel feed additives ingredients developments and thus developing newer feed additives based on them.

The North America region is the second-largest region in the feed additives market in the forecast period

North America is the second-largest region in the global feed additives market in the forecast period. The feed additives market in North America is majorly driven by the growth in livestock population in US and Mexico. The region witnesses high production and consumption of feed additives. The presence of major feed additive manufacturers such as Cargill (US), ADM (US), DuPont (US), Kemin Industries Inc. (US), and Alltech (US), further drives the market.

The natural segment is projected to account for the second-largest share in the feed additives market during the forecast period

By source, the feed additives market is segmented into synthetic and natural. Natural segment accounted for the second-largest market share in the overall feed additives market. The demand for natural feed additives is increasing due to the demand for higher-quality animal feed and rising concerns of end consumers about obtaining animal-based products.

Market Research Report Analyst and Consulting