Outbreak of Livestock Diseases Propels Demand for Animal Feed Additives
Feed additives have experienced substantial growth since last few years. The market stood at a value of US$35 Bn in 2019 and is expected to register near about 3.7% CAGR over the forecast period of 2021 and 2025. The rise in demand for raw and processed meat and poultry and fish products is expected to fuel the global animal feed additives market.
Increasing safety concerns due to outbreak of livestock diseases such as swine flu and bird flu have significantly boosted the demand. However, regulations implemented by various government bodies regarding the use of antibiotics to treat animals may restrain market growth. Moreover, there is a constant shift amongst consumers towards veganism, which is further expected to hamper market growth over the forecast period.
Government Regulation May Weaken the Growth of Antibiotic Feed Additives
Animal feed additives, sourced from microorganisms, are estimated to have a high potential for growth in the coming years. The plant segment too is expected to register noticeale growth over the forecast period. Increased demand for natural and plant-derived ingredients is significantly supporting the segment. The antibiotic segment is estimated to occupy the largest share of the pie. However, increasing government regulations regarding the use of antibiotics in livestock feeds due to their impact on human health may weaken the segment growth in the near future.
For instance, the European Union in 2018 passed a new law limiting the use of antibiotics in rearing farm animals. The announcement clearly prevents mass medication in animals, restricting the use of antibiotics or other drugs.
China and India to Represent Most Lucrative Markets for Animal Feed Additives
Globally, Asia Pacific is estimated to hold a mammoth share in the global market in terms of value. Countries such as China and India are the largest producers of raw and processed meat. Changing lifestyles of younger generations that are fitness-oriented are being characterized by higher protein consumption. This trend is expected to drive the animal feed additives market across Asia Pacific.
North America and Europe are highly dependent upon these nations for the import of raw or processed meat along with aquatic and poultry products. This factor has also been assessed as an instrumental one in fuelling the growth of Asia Pacific market.
Thus, in order to meet the global demand for processed meat Asia Pacific region needs feed additives to produce healthy and improved livestock or aquatic animal, which, in turn, is boosting the global demand for animal feed additives market.
New Product Offerings Emerges as Clear Winning Strategy for Key Players
Some of the major players studied in the report include BASF SE, Cargill Inc., Phibro Animal Health Corp., Danisco Animal Nutrition, Novozymes AS, Elanco Animal Health, Archer Daniels Midland Co. (ADM),Kemin Industries Inc.,Beneo GmbH, Disseo SAS and Lallemand Inc. among others.
Global population is shifting towards the consumption of sustainable and natural food products, pushing the animal feed manufacturers to offer new product variants comprising natural ingredients.
For instance, recently in 2019 Layn Corp, a China-based company, expanded with a new business unit for developing feed additives and antibiotic alternatives. The new business segment will include TruGro Animal Nutrition, plant-based sweeteners and CBD & Hemp extract. The animal nutrition segment focuses on offering botanical extracts including plant-based sweeteners and polyphenol-rich extract. The additives will help in addressing palatability, anti-oxidation, maintaining gut health and provide an alternative to the use of antimicrobial.
The company also announced the launch of TruGro AOX, an anti-oxidant platform, for the use in animal feed. The product will offer an alternative to synthetic antioxidant while improving performance.
Ascus Biosciences in 2019, introduced a new feed additives category, endomicrobials, which comprise beneficial microbes residing symbiotically within selected species to enhance productivity, efficiency and well-being.
At the same time NUQO a Europe-based company offers natural ingredients using algae bioactives and encapsulation techniques. It manufactures solutions at three different production sites across Europe. According to the company, its solutions helps animal performance and health. Its portfolio caters to ruminants, pigs, poultry and aqua species. Thus, product launches will be seen as a key strategy for growth amongst manufacturers.