POULTRY ANTIBIOTIC MARKET ANALYSIS

The global poultry antibiotic market size is estimated to be US$ 2.0 Billion in 2023. The market is expected to experience a moderate growth rate in the coming years, with a projected CAGR of 6% from 2023 to 2030. This would result in an estimated market size of US$ 3.0 Billion by the end of 2030.

The growth of the market is expected to be driven by factors such as the increasing demand for poultry products, the prevalence of various poultry diseases, and the rise in animal health concerns. However, the market is also facing challenges due to the negative impact of antibiotics on human health, which has led to strict regulations and the adoption of alternative strategies such as vaccination and probiotics. Overall, the poultry antibiotic market is expected to continue growing, albeit at a slower rate, in the coming years.

Poultry Antibiotic Market Regional Insights

• North America held the largest share of the global poultry antibiotic market in 2022, accounting for over 43.2% of the total market. The region is expected to continue dominating the market during the forecast period due to the high demand for poultry products, the prevalence of various poultry diseases, and the presence of major market players.
• Europe held the second-largest share of the market in 2022, with a significant contribution from countries like France, Germany, and the U.K. However, the region is expected to witness slower growth during the forecast period due to the increasing focus on antibiotic-free poultry production and stricter regulations on antibiotic use in animal feed. Europe holds around 30% of the market share.
• The Asia Pacific region is expected to witness significant growth during the forecast period, driven by factors such as increasing population, changing food preferences, and rising demand for high-quality protein sources. China and India are expected to be the major contributors to the growth of the poultry antibiotic market in the region. Asia Pacific accounts for approximately 20% of the market share.

Figure 1. Global Poultry Antibiotic Market Share (%), By Region, 2023

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Analyst View

• The poultry antibiotic market will experience changing dynamics in the coming years. Growing consumer awareness about the risks of antibiotic residue in meat will drive demand for antibiotic-free poultry. Many large poultry producers are already reducing antibiotic use to cater to this consumer segment. Tightening regulations around antibiotic use in animal feed in North America and Europe will further limit growth opportunities for conventional players. However, Asia Pacific will continue to provide high growth potential owing to rising meat consumption in China and other developing nations. Alternative growth promoters and preventive strategies can help players mitigate the impact of restraints to a certain extent. Adaptation will be a key to success, considering the push for judicious antibiotic use.

Poultry Antibiotic Market Drivers:

• Increasing demand for poultry products: The global population is increasing, and so is the demand for protein sources, including poultry products. This has led to a rise in poultry production, which in turn has increased the demand for antibiotics to prevent and treat poultry diseases. For instance, according to the World Animal Foundation Organization, in August 2023, there were around 34.4 billion chickens in the world as of June 2023. The U.S. leads the world in chicken production with 9.22 billion chickens per year. There are four chickens for every person on earth.
• Prevalence of various poultry diseases: Poultry diseases such as avian influenza, Newcastle disease, and coccidiosis are common and can have a significant impact on poultry production. Antibiotics are often used to prevent and treat these diseases, driving demand for antibiotics in the poultry industry. For instance, according to the World Health Organization report 2023, in 2022, 67 countries across five continents reported H5N1 high pathogenicity avian influenza outbreaks in poultry and wild birds to the World Organization for Animal Health, with over 131 million domestic fowl killed or culled in afflicted farms and communities.
• Rise in animal health concerns: Consumers are increasingly concerned about the health and welfare of animals, including those in the poultry industry. This has led to a greater focus on disease prevention and treatment, which in turn has increased demand for antibiotics. For instance, according to the Stop Food Borne Illness Organization, a survey was conducted in April 2022, asking about perceptions of Salmonella in poultry. The survey quantified the high level of public concern about food safety and demonstrated that lawmakers must take action to address this public health issue, beginning with Salmonella. The survey found strong support for poultry food safety reform. Almost the same 86% of the respondents wanted the U.S. Department of Agriculture (USDA) to implement stronger rules in chicken production to reduce Salmonella-related infections.  
• Technological advancements in the poultry industry: Advances in technology have led to improved methods of poultry production, including more intensive production methods. These methods can increase the risk of disease transmission and therefore increase the need for antibiotics. For instance, in September 2023, Poultry Tech Summit, the essential global event for collaborating on next-generation technologies, will be held in Georgia, U.S., on November 6-8, 2023, and will provide an opportunity to explore new innovations that address poultry industry challenges such as coccidiosis, Salmonella, and labor shortages. Furthermore, panelists will explore technology and the future of HPAI control, as well as the problems and technological solutions for egg production, poultry processing, and meat bird production.

Poultry Antibiotic Market Opportunities:

• Expansion into emerging markets: As standards of living improve in emerging markets, there is a corresponding increase in demand for animal protein sources, including poultry. This presents an opportunity for companies to expand their presence in these markets and capture a share of the growing demand. For instance, according to the Agricultural and Processed Food Products Export Development Authority (APEDA) for 2022, Poultry is one of the fastest-growing segments of the agricultural sector in India. The production of eggs and broilers has been increasing at a rate of 8 to 10% every year. Furthermore, during the fiscal year 2022-23, India exported 664,753.46 metric tons (MT) of poultry products to the world for a total value of Rs. 1,081.62 crores or US$ 134.0 million.
• Investment in research and development: Investment in research and development can lead to the development of new and improved antibiotics and other products for disease prevention and treatment in the poultry industry. This can help companies stay ahead of the competition and meet the changing needs of consumers and regulators. For instance, in March 2022, the U.S. Department of Agriculture (USDA) National Institute of Food and Agriculture (NIFA) announced an investment of more than US$13 million in research into breakthrough cures and preventative techniques for animal illnesses that cost the agriculture industry billions of dollars globally. This newly funded research looks on illnesses that impact a wide variety of animals, from cattle, poultry, and pigs to horses, sheep, and fish.
• Adoption of sustainable production practices: Sustainable production practices, such as organic and free-range farming, are becoming increasingly popular among consumers. This presents an opportunity for companies to differentiate themselves by offering antibiotic-free or reduced-antibiotic products.

Poultry Antibiotic Market Trends:

• Focus on animal welfare: Consumers are becoming more concerned about the welfare of animals, including those in the poultry industry. This is leading to a greater focus on disease prevention and treatment, as well as the adoption of more humane production practices. For instance, in November 2022, the governments of Canada and Ontario contributed up to US$ 1.5 million through the Canadian Agricultural Partnership to assist qualifying non-supply-managed poultry operations and allied agri-businesses in increasing biosecurity efforts to minimize the spread of highly pathogenic avian influenza.
• Shift towards natural and organic products: There is a growing trend towards natural and organic products in the food industry, including the poultry industry. This is driving demand for antibiotic-free and organic poultry products and presenting opportunities for companies to differentiate themselves in the market.
• Increased regulation of antibiotic use: Governments and regulatory bodies around the world are increasingly regulating the use of antibiotics in the poultry industry, in order to combat antibiotic resistance and protect human health. This is leading to the adoption of alternative disease prevention and treatment strategies. For instance, in January 2023, a coalition of public health advocacy groups filed a lawsuit against the US Food and Drug Administration (FDA) and its Center for Veterinary Medicine (CVM) to protect the safety of consumers, meat processing workers, and farming communities, challenging the FDA's and CVM's refusal to phase out unnecessary antibiotic use in animal agriculture. Antibiotic-resistant bacteria are becoming more common in the U.S. and are the cause of about 2.8 million illness cases and 35,000 fatalities annually due to misuse of these drugs.

Poultry Antibiotic Market Restraints:

• Concerns about antibiotic resistance: The overuse of antibiotics in the poultry industry has led to concerns about antibiotic resistance, which can have serious implications for human health. This has led to increased regulation and a shift towards alternative disease prevention and treatment strategies, such as vaccines. For instance, in January 2020, Boehringer Ingelheim's U.S. Animal Health Business, a global pharmaceutical company, launched a vaccine to protect poultry from three illnesses. VAXXITEK HVT+IBD+ND builds a strong immunological foundation and provides enhanced protection against Marek's disease, infectious bursal disease (classic and variant kinds), and Newcastle disease.
• Adoption of alternative disease prevention and treatment strategies: The adoption of alternative disease prevention and treatment strategies, such as artificial intelligence and other technologies, is reducing the demand for antibiotics in the poultry industry. For instance, in September 2022, scientists at the University of Nottingham in China employed machine learning to discover novel ways to identify and target sickness in poultry farms, reducing the requirement for antibiotic treatment and the danger of antibiotic resistance spreading to human populations. The fast expansion in chicken production to fulfill rising demand in China has led to the widespread and indiscriminate use of antibiotics.
• Stringent regulations: Governments and regulatory bodies around the world are increasingly regulating the use of antibiotics in the poultry industry, in order to combat antibiotic resistance and protect human health. This is leading to greater scrutiny and restrictions on the use of antibiotics in animal feed.

Recent Developments

Research and Development Activities

• For instance, according to a review article published in the MSD Veterinary Manual, 2022, experts from the Virginia Maryland College of Veterinary Medicine stated that doxycycline and minocycline had the greatest liposolubility and greater penetration of bacteria such as Staphylococcus aureus than the group as a whole. This may contribute to their success in the treatment of gingival disorders caused by bacterial glycocalyx. Tigecycline is a minocycline glycylcycline derivative with a long side chain that reduces the possibility of resistance.
• For instance, according to Frontiers in Veterinary Science journal, June 2021, antimicrobial usage data at the flock level were based on mandatory documentation of antibiotic treatments in livestock in Germany, collected retrospectively for the time period of 2013–2018. As per the findings, a considerable increase in the relative usage of lincosamides and aminoglycosides was observed which may drive the growth of the market

Acquisition and partnerships in Poultry Antibiotic Market

• In 2020, Elanco, U.S. based pharmaceutical company completed its acquisition of Bayer Animal Health, an animal healthcare company for US$7.6 billion. This acquisition expanded Elanco's portfolio of animal health products, including poultry antibiotics.
• In 2019, Boehringer Ingelheim, a research-driven pharmaceutical firm, and Dopharma, a family-owned veterinary pharmaceutical company, announced the acquisition of the Dopharma's Saint-Herblon (France, Loire-Atlantique) production facility and the Coophavet brand by Dopharma.  This independent and family-owned Dutch company develops, produces and distributes veterinary products 100 per cent dedicated to livestock.

Figure 2. Global Poultry Antibiotic Market Share (%), By Product Type, 2023

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Top companies in Poultry Antibiotic Market

• Zoetis Inc.
• Elanco Animal Health
• Boehringer Ingelheim Animal Health
• Merck & Co. Inc.
• Bayer AG
• Ceva Santé Animale
• Virbac
• Vetoquinol S.A.
• Phibro Animal Health Corporation
• Huvepharma
• Neogen Corporation
• Nisseiken Co., Ltd.
• Venkys India Ltd.
• Inovio Pharmaceuticals, Inc.

Definition: Poultry antibiotics refer to medications or substances that are used to treat or prevent bacterial infections in poultry, including chickens, turkeys, ducks, and other birds raised for meat, eggs, or feathers. These antibiotics are specifically formulated and approved for use in poultry farming to maintain the health and welfare of the birds.