The Asia Pacific market accounted for the largest share in 2020. This dominance is attributed to the presence of the large livestock population (FAO 2019) and their growth. Furthermore, increasing consumption of quality livestock-based products has subsequently led to the increasing demand for feed and the increased awareness about the importance of quality feed among livestock producers and feed buyers.
Feed additives are essential for animal nutrition as they improve the quality of feed, enhance the efficiency of the growth of livestock, prevent diseases, and improve feed utilization, thereby improving animals’ performance and health. They also subsequently improve the yield and quality of food from animal origin. The growth in consumption of animal-based products, growth in feed production, standardization of meat products due to disease outbreaks, and implementation of innovative animal husbandry practices to improve meat quality have led to the increased consumption of feed additives. The increase in demand for natural growth promoters and nutritional supplements for monogastric animals has presented an opportunity for feed additive manufacturers.
DEMAND FOR LIVESTOCK-BASED PRODUCTS TO DRIVE FEED ADDITIVES MARKET
The rising demand and consumption of livestock-based products such as dairy & dairy-based products, meat, and eggs are expected to drive the usage of feed additives for the growth and development of farm animals. According to FAO data, it has been stated that the global meat production is projected to be 16% higher by 2025.
FIGURE 1 FEED PRODUCTION TREND, 2015-2019 (MILLION TONS)
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TABLE 1 DEMAND FOR ADDITIVES AND RISING AWARENESS FOR QUALITY
Key drivers Rise in awareness about feed quality and nutrient value Description
• Changing lifestyles and improved health awareness have increased concerns over food safety across the world
• Pathogenic and parasitic contamination in meat products in the recent past have fueled the demand for quality-assured feed Key drivers Increased global demand for naturally produced feed and feed additives Description
• The use of natural food additives prevents disease outbreaks in livestock and improves overall feed absorption and assimilation
• Many livestock producers use feed enzymes, as they are natural growth promoters Key drivers Implementation of innovative animal husbandry practices to improve meat quality Description
• Meat and dairy processors follow the rules related to labeling and packaging meat & dairy products due to the increase in concerns about E. coli and Salmonella infections.
• Meat composition, fat content, color, flavor, and protein content are some of the attributes that define the quality of meat. These qualities are obtained by using feed additives Source: Expert Interviews, Related Research Publications, and MarketsandMarkets Analysis
Poultry meat is the primary driver for the growth of the overall meat production, owing to its high demand, low production cost, and lower product prices, both in developed and developing countries. According to FAO statistics, it has been stated that the production of poultry meat reached 128.9 million tonnes (142.08 million tons) in 2019, whereas swine meat recorded 110.1 million tonnes (121.36 million tons), buffalo and cattle meat recorded 72.6 million tonnes (80.02 million tons), and sheep and goat meat recorded 16.2 million tonnes (17.8 million tons) in 2019.
Furthermore, owing to the increasing awareness about the role and dynamics of food nutrients, especially protein, on overall physical and mental growth and development, there is a growing trend toward animal-sourced protein in the form of either meat, eggs, or milk. This drives the usage of feed additives in feed as it increases its nutritional quality.
DEMAND FOR ANIMAL PRODUCTS INCREASES FEED PRODUCTION
The global feed production has increased consistently in the recent past, driven primarily by demand-side factors, including an increase in livestock production and consumption, and the resultant population. Other factors that impact the volume of feed production include the increasing commercialization of livestock rearing practices, particularly in developing economies. In 2019, as established by the Alltech feed survey in 2020, the global feed production crossed the billion-ton mark for the first time, and over the period 2015-19, the production in terms of volume increased by over 140 million tons.
The overall growth of the market can largely be attributed to the increase in the livestock population in the regions and subsequent demand for better quality feed additives and compound feed. The growth in consumption of meat drives the overall animal husbandry and rearing industry, which, in turn, would impact the feed as well as the feed additives industry, in terms of both the overall amount of feed and additives demanded as well as the requirement of value-added products to promote growth and reduce mortality among livestock. The growth of the market is restricted due to the stringent regulatory framework in regions such as Europe and volatile raw material prices of natural feed additives.
IMPACT OF COVID-19
The outbreak of COVID-19 has brought serious medical, social, and economic challenges. Where the medical community is focused on developing successful diagnostic and medical treatment, the feed industry is also focused on manufacturing healthy products using for animals using feed additives to combat diseases by providing immune support. Owing to the increasing COVID-19 pandemic outbreak in various regions/countries, the feed additives market in 2020 was observed to witness a decline due to the lockdowns in various countries, closure of the international borders, and delay in cross border transit that has led to supply chain hindrances. The social distancing and the other measures taken by the regional governments limit the number of people who can work together in small areas. Thus, the decline in 2020 in the feed additives market growth was mainly due to the major impact of the COVID-19 pandemic.
ASIA PACIFIC IS PROJECTED TO RECORD THE HIGHEST CAGR
The Asia Pacific market accounted for the largest share in 2020. This dominance is attributed to the presence of the large livestock population (FAO 2019) and their growth. Furthermore, increasing consumption of quality livestock-based products has subsequently led to the increasing demand for feed and the increased awareness about the importance of quality feed among livestock producers and feed buyers. The booming population and protein demand in this region has also expedited market growth. Specialty meat markets are largely concentrated in this region, especially in China and Asian countries, which shall further support the growth in this region. The Asia Pacific is also projected to grow at the highest CAGR during the forecast period.
KEY PLAYERS TO GROW WITH ACQUISITIONS AND NEW PRODUCTS
Since feed additives market is a strongly growing one, the existing players are fixated upon improving their market shares, while their newer start-ups are being established rapidly in the market. The feed additives market can be classified as a fragmented market as it has the presence of a large number of organized players, accounting for a major part of the market share, present at the global level, as well as unorganized players present at the local level in several countries. There are numerous existing and emerging companies, particularly in the Asian markets.
FIGURE 2 ATTRACTIVE OPPORTUNITIES IN THE FEED ADDITIVES MARKET
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TABLE 2 FEED ADDITIVES MARKET: KEY DEALS
Year-Month: 2021-Feb Company: Kemin Industries Inc. (US) Description: Kemin Industries launched a new product named KemTRACE Chromium-OR, an organic compliant chromium propionate feed ingredient for swine, cattle, broiler, and horse diets.
Year-Month: 2021-Feb Company: Alltech (US), DLG (Denmark) Description: Alltech and DLG Group came together to focus on delivering profitability and efficiency to livestock producers in Scandinavia. Both the companies are finalizing the purchase of the Finnish company, Kärki-Agri.
Year-Month: 2020-Nov Company: Evonik (Germany) Description: Ecobiol Fizz would be the first probiotic for chicken in effervescent tablet form. The product will be used to stabilize the intestinal microbiota of broilers and chicken reared for laying, especially during stressful periods.
Year-Month: 2020-Nov Company: Evonik (Germany) Description: Evonik expanded its customer service offering for its animal nutrition customers by introducing a new digital portal called ‘myAMINO.’ Through this portal, the company has brought together its digital customer activities and services and added two web stores. It would help the company to strengthen its animal nutrition business.
Source: Expert Interviews, Government Authorities, Related Research Publications, Government Publications, and MarketsandMarkets Analysis
The market share analysis conducted by MarketsandMarkets portrays that the current market structure of feed additives is competitive, with the top 14 players accounting for 65%–70% share in the global feed additives market. The market is largely controlled by major players such as ADM (US), Cargill (US), DSM (Netherlands), DuPont (US), Evonik (Germany), BASF (Germany), Ajinomoto (Japan), Novozymes (Denmark), Chr. Hansen (Denmark), TEGASA (Spain), Kemin Industries Inc. (US), Adisseo (France), and Alltech (US), among others.
KEY PLAYERS IN THE FEED ADDITIVES MARKET
These players have adopted acquisitions, mergers, and expansions as key strategies to increase their customer base and technological capabilities.