Market Challenge: High R&D costs for new products

High research and development costs associated with bringing new products to the market is a major constraint for the growth of the global animal intestinal health market. Developing innovative feed additives, prebiotics, probiotics, and postbiotics that can effectively improve gut health in livestock and pets requires extensive research and testing. Companies have to spend huge amounts of time, money and resources to understand the complex microbiome and how different ingredients impact intestinal functions. They need to closely monitor animal trials over long periods to confirm the safety, efficacy and commercial viability of potential new products. This level of R&D commitment is highly capital intensive for businesses. Government sources suggest that on average, it costs between US$ 100 and US$ 300 million and takes 8-12 years for a new animal health product to clear regulatory approvals and launch commercially. A large portion of this cost arises from the multi-phase clinical trials that are mandatory to demonstrate a new ingredient's health benefits and ensure it causes no adverse side effects even after prolonged use. Another challenge is that not all research leads to a commercially viable product in the end. Many candidates fail or underperform at various stages of testing itself. This elevates business risks and uncertainties associated with investments in R&D.

Market Opportunities: Advancing probiotic research and development

Advancing probiotic research and development could indeed present a major opportunity in the global animal intestinal health market going forward. There is significant ongoing research taking place around the world to better understand the role of probiotics in promoting intestinal balance and immunity in livestock and companion animals. As we learn more about the complex microbiome and how certain probiotic strains can support overall gut and systemic health, there is huge potential to develop more targeted and effective probiotic solutions. Research indicates that optimal intestinal health in production animals helps drive improved nutrient absorption and utilization, leading to superior growth rates, feed conversion efficiency, and disease resistance. As intensive farming continues to intensify worldwide to meet growing demand for animal proteins, strategies like probiotics that enhance productivity in a sustainable manner could see wide adoption. Probiotics minimize the need for antibiotic growth promotion and help animals better withstand stresses. This is particularly important given the long term risks of antimicrobial resistance. International agencies have also called for a reduction in the overuse of antibiotics in animal agriculture.