Animal Feed Additives Market - Global Outlook and Forecast 2019-2024

INDUSTRY INSIGHTS

The global animal feed additives market size to reach USD 33 billion by 2024, growing at a CAGR of over 5% during the forecast period.

The increasing demand for dairy and meat productivity on account of the growing global population is one of the major reasons driving the feed and feed additives market. The global meat output was estimated at 336 million tons in 2018, which was 1.7% higher than in 2017. North America, the EU, and Russia are the major meat output markets. The demand for meat and animal-based products will continue to grow despite the outbreak of droughts, diseases, or changes in consumption patterns. The global demand for animal-based protein is expected to grow by more than 50% in the next three decades. Thus, to meet food requirements, animal farmers are under high pressure to increase their productivity, which is driving them toward premixes and additives.

The global animal feed additives market has witnessed consolidation in recent years and is becoming intensely competitive as market vendors are competing in terms of product quality, product innovation, and pricing. Animal feed additives are regulated differently across countries; hence, vendors should increasingly focus on complying with regulations, which could pose a major challenge for them. Several players are expected to expand their presence worldwide during the forecast period, especially in the fast-developing countries in the APAC region, to gain market share. Companies are also introducing new products that are aimed at enhancing animal nutrition and performance. For instance, Balancius is a new feed additive for broilers developed together by Novozymes and DSM. Balancius is the first and unique additive that works in the intestine to improve feed efficiency and increase sustainable product yield.

SNIPPETS

• The APAC region dominated the industry and accounted for a 33%  of the global animal feed additives market share in 2018.
• Poultry is the largest segment in the global market and accounted for a 35% share in 2018.
• the US, Nordics, and South Africa are driving the demand for aquaculture feed additives.
• The demand for herbal and organic additives is gaining importance in the industry.
• Amino acids are expected to contribute $1.9 billion to the global market revenue by 2024.

GLOBAL ANIMAL FEED ADDITIVES MARKET SEGMENTATION

This research report includes a detailed segmentation by

• Product
• Species
• End-users
• Geography

PRODUCT INSIGHTS

Amino acids are used to improve animal health and nutrition and accounted for a 26% share of the global market in 2018. These organic compounds improve livestock health with reduced environmental impact, thereby promoting the efficient use of grains. They also help to increase the production of livestock resources. The APAC region has huge potential and scope for amino acids, as there are many farmers that are unaware of their benefits.

Vitamins are the second-largest segment and are essential feed additives that are used in all livestock feeds. They help to maintain expectancy and productivity of animals. The need to improve livestock quality is expected to be a major driver for the vitamin segment during the forecast period.

The demand for antibiotics is declining because of growing concerns related to health complications and the negative impact on human health due to the consumption of meat or poultry that contain antibiotics. In 2018, the demand for antibiotics was highest in APAC, which accounted for a market share of 33%. Although the market is growing, the demand is expected to reduce during the forecast period due to increased concerns over negative impact on human health.

SPECIES INSIGHTS

In 2018, the poultry segment, which accounted for a share of 35%, dominated the global animal feed additives market. Poultry is the most consumed meat and is likely to dominate during the forecast period. With the surge in the global population, the demand for protein and food is also on the rise. The growth of the market will be driven majorly by the US, China, Brazil, and EU, whereas the emerging markets such as India, Russia, and Thailand are likely to be the fastest adopters of poultry feed additives.

The global swine meat export was estimated at 8.4 million tons in 2018. The US was the main exporting country. The key markets that are likely to witness a demand for swine feed additives are the US, Mexico, Chile, Australia, and Russia. The demand for feed additives in the swine/pork segment is also witnessing a high demand from APAC and European countries. China, Japan, South Korea, the Philippines, and Vietnam are the key markets driving the demand in the Asia Pacific region due to the high swine meat production and demand. The growing trend of antibiotic-free products and demand for premium meat in the EU is also driving the swine segment in Europe.

Cattle is the third-largest segment for the global market. The demand for milk and dairy products is constantly growing. Therefore, to meet the demand, cattle have to be provided with essentials minerals, trace elements, and health supplements. Amino acids are the most used in cattle, followed by vitamins, minerals, probiotics, and feed enzymes. Globally, the US was the largest market and accounted for approximately 20% share in 2018, while Australia and Argentina regions were the growth promoters for more than 7% in 2018 against 2017. The demand for cattle segment is expected to grow at a CAGR of 4% during the forecast period.

FORM INSIGHTS

The global animal feed additives market was dominated by liquid additives, which accounted for 60% shares in 2018. Liquid additives are easy to mix with the feed. They are also more convenient and cost-effective than dry form. Liquid feed additives are highly palatable and increase their consumption among animals, which help to reduce feed wastage and labor cost. China, India, Indonesia, and Japan are the major markets for liquid type segment. The US is also expected to boost the demand for liquid types during the forecast period.

The dry feed additives market was dominated by APAC. The high number of livestock population, coupled with a large labor force, is driving the demand in the region. The demand is rising because of the high demand among livestock farmers. These additives in the dry form are spill-proof and can be handled and stored easily.

REGIONAL INSIGHTS

APAC accounted for approximately 60% of the global population; thus, the demand for food from the region is expected to grow significantly by 2030. Also, the rising demand for protein will fuel the need for animal meat during the forecast period. Poultry was the largest segment for feed additive users and accounted for a 34% share in 2018. The large demand for poultry meat and eggs is driving the poultry feed additives market, followed by swine feed additives. China is the largest market in the APAC region, followed by India, Australia, Japan, and Malaysia.

Europe was the second-largest market for feed additives. The European market is witnessing a significant rise in the production of livestock owing to a huge demand for meat with high nutritional value. This key factor is positively driving the demand for animal feed additives in Europe. The increased investments in the domestic market from Hungary, Poland, and Romania have also fuelled the demand in the region.

North America is one of the most significant markets for feed additives as it is home to major producers such as Cargill, Alltech, ADM, and Kemin Industries. The US accounted for more than 80% share of the feed additives market in North America in 2018. The growing demand for quality meat, sustainable animal farming, and increased exports will drive the demand in North America. Also, the rising pet humanization is also driving the demand in the pet food segment.

Latin America is one of the key meat producers in the world. Brazil, Mexico, and Argentina are the key markets in the region for animal feed and feed additives. The increased meat production, rising exports, and growing feed cost are driving the demand in the region. The poultry feed additives market is expected to grow at a CAGR of more than 6% during the forecast period.

This market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Market Segmentation by Product 

• Amino Acids
• Vitamins
• Minerals
• Eubiotics
• Antibiotics
• Others 

By Species 

• Poultry
• Cattle
• Swine/Pork
• Aquaculture
• Others 

By Form 

• Liquid
• Dry 

By Geography 

• North America
  • US
  • Canada

• APAC
  • China
  • Japan
  • Australia
  • India 

• Europe
  • UK
  • Germany
  • France
  • Russia
  • Spain 

• Middle East & Africa
  • Saudi Arabia
  • South Africa 

• Latin America
  • Brazil
  • Mexico