Animal Feed Additives Market Is Estimated To Witness High Growth Owing To Rising Consumption of Animal-derived Products and Growing Concerns over Animal Health
The Animal Feed Additives Market is estimated to be valued at USD 43.44 Bn in 2024, exhibiting a CAGR of 3.4% over the forecast period (2024-2031).The market has been witnessing rising growth owing to the increasing consumption of animal-derived products such as meat, eggs, and dairy. Furthermore, there has been growing awareness among consumers and producers regarding the health and nutrition of livestock.
The animal feed additives market is driven by the rising consumption of animal-derived products and growing concerns over animal health. Firstly, the demand for meat, eggs, and dairy has been increasing significantly across the globe owing to growth in population and disposable income levels. Animal feed additives help improve the quality and yield of animal-derived food products. Secondly, producers and farmers are more focused on ensuring optimal health and maximum productivity of livestock through balanced nutrition. Feed additives help prevent disease outbreak and enhance immunity. They are also formulated to improve the metabolism, digestion, and absorption of nutrients from feed. The growing emphasis on animal welfare and performance is expected to propel the demand for feed additives in the coming years.
Increasing Demand for Animal Protein is Driving the Animal Feed Additives Market
The growing demand for animal-sourced protein foods such as meat, eggs, and dairy is a key driver for the animal feed additives market. With increasing worldwide population and rising incomes in developing economies, consumption of animal protein is on the rise. This is leading to increased focus on livestock production efficiency and health. Feed additives help improve productivity and yield in livestock by enhancing digestibility, metabolic functions, and overall animal performance. They support faster growth, higher feed conversion rates, and increased immunity against diseases. To meet the growing demand for animal proteins through improved and sustainable livestock production, the use of feed additives is expected to significantly grow in the coming years.
Focus on Preventing Disease Outbreaks and Ensuring Food Safety Boosts the Market
Another major driver for the animal feed additives market is the focus on preventing disease outbreaks and ensuring food safety. Feed additives such as antibiotics, vitamins, prebiotics and probiotics play an important role in maintaining optimal health and immunity of livestock. They help prevent the spread of contagious diseases that can threaten entire herds or flocks. For example, coccidiostats are important feed additives used for preventing coccidiosis in poultry. Similarly, using feed supplements containing immune-boosting ingredients protects livestock health and prevents economic losses from disease outbreaks. This risk mitigation aspect of feed additives is garnering increased importance. Food safety regulations also require restricted use of certain additives, driving the demand for alternatives.
Fluctuating Raw Material Prices Pose a Challenge
Volatility in prices of key raw materials used in feed additives such as vitamins, amino acids, minerals, and antibiotics is a major challenge faced by industry players. The prices of these raw materials depend on international commodity markets and are highly unpredictable. For example, China dominates the global supply of many vitamins and has imposed export restrictions in the past, affecting overall availability and pricing. Similarly, antibiotic raw materials sourced from China saw significant price fluctuations due to policy changes. These unstable input costs directly impact profitability of feed additive producers and sustainability of their operations over the long run.
Restrictions on Antibiotic Use in Feeds Hamper Growth
Growing restrictions on the use of antibiotics as feed additives, especially in the European Union, pose a challenge to market players. Concerns around antibiotic resistance and contamination of meat and milk have led to regulatory bans on antibiotics for growth promotion. While a few medically-important antibiotics may still be used for disease treatment and prevention, the commercial scope is limited. Industry must invest in developing alternatives such as prebiotics, probiotics, organic acids, essential oils and enzymes. Transitioning to these new products involves additional costs and risks short term compliance hurdles as regulations evolve. This restraints revenue growth potential for some established antibiotic feed additives.
Opportunities in Organic and Natural Alternatives
The ban on antibiotic growth promoters in the EU and increasing consumer demand for antibiotic-free, organic and natural meat and dairy globally present opportunities for natural feed additive solutions. Plant-derived products, prebiotics, probiotics, organic acids, phytochemicals, and various herbal extracts are promising alternatives being researched and marketed as natural growth promoters, gut health modulators and immunity boosters. The premium organic livestock segment is fast growing and offers a viable market for such natural, clean-label products. Innovation towards cost-competitive, easily incorporable and scientifically validated natural feed additives can drive future expansion opportunities.
Focus on Emerging Economies and Probiotics
Emerging economies in Asia Pacific, Latin America, Africa, and Eastern Europe offer significant untapped growth opportunities for animal feed additive suppliers. With rising livestock production and consumption in these regions, the demand for supplements is projected to surge. Localization of manufacturing and supply chains to target these high-growth regional markets presents a viable strategy. Probiotics, prebiotics, and herbal feed additives are products with increasing commercial interest. Their novelty and marketing as ‘positive’ additives promoting gut and general health resonate well globally. Innovation and differentiation in probiotic formulations tailored for specific livestock and local conditions can tap unrealized potential across regions.
Link - https://www.coherentmarketinsights.com/market-insight/animal-feed-additives-market-538
Key Developments
- In May 2024, the Europe-based feed additives company Nuqo announced the opening of its new affiliate, Nuqo Animal Nutrition India Pvt Ltd. This strategic move marks Nuqo's expansion into the rapidly growing Indian animal nutrition market.
- In July 2023, Olmix, a French company specializing in algae-based solutions for animal and plant nutrition, announced the acquisition of Yes Sinergy, a Spanish company focused on the development of natural feed additives for animal health and welfare.
- In 2023, the German specialty chemicals company Evonik launched its first plant-based feed additive, marking a significant milestone in the company's efforts to develop more sustainable and environmentally-friendly solutions for the animal nutrition industry.
- In June 2023, Alltech, a global leader in animal nutrition and health solutions, unveiled the launch of Triad, an advanced solution designed to support pig livability and successful farrowing.
Key Players
DSM, BIOMIN Holding GmbH, Ajinomoto Co., Inc., ADM, Alltech, Inc., ANOVA Group, BASF SE, Cargill Inc., Centafarm SRL, Chr. Hansen Holding, Evonik Industries, HONG HA NUTRITION, International Flavors & Fragrances, Inc., Kemin Industries, Inc., Novozymes, Novus International, Inc., Olmix Group, and Solvay S.A.
