The global animal feed additives market size was valued at USD 14.92 billion in 2013. Feed additives market is one of the important segments of the worldwide meat production industry. Feed additives act as catalysts in improving the rate of weight gain, preventing diseases in animals, preventing vitamin deficiencies, and improving feed digestion and conversion, thereby improving the quality of meat production.
The global meat consumption, including beef, poultry, and pork, was 229,414 kilo tons in 2009 and is expected to exceed 250,000 kilo tons by the end of 2014 at an estimated CAGR of 1.8% from 2009 to 2014. This increase in meat consumption around the world on account of changing eating habits and growing population are expected to drive global demand
Additionally, various disease outbreaks in livestock animals such as swine flu and foot & mouth diseases in the past decade have increased the concerns over meat quality and safety, prompting higher feed additives usage. However, the ban on antibiotics in Europe and the U.S. is expected to open up the industry for replacement products such as enzymes, acidifiers, and amino acids.
In 2003, Severe Acute Respiratory Syndrome (SARS) in China, Hong Kong, Taiwan, and Singapore claimed 0.5% to 2% of GDP loss. Recent disease outbreaks have resulted in an increase in regulatory intervention, with various regional regulatory bodies looking to come together to standardize meat products. Ongoing standardization processes in Southeast Asia have increased feed additives demand.
North America animal feed additives market by product, 2012 - 2022 (USD Million)
Main products analyzed in the report include antibiotics, vitamins, antioxidants, amino acids, feed enzymes, and feed acidifiers. Amino acids dominated the global industry and accounted for 31.5% of global revenue in 2013. The 20 essential amino acids, which are building blocks for proteins, are set to witness significant growth in existing applications, particularly with production costs expected to decline, making them a more viable option for some companies to produce.
Feed acidifiers are primarily used for their usefulness in promoting a healthy gut by modulating the intestinal flora through their bacteriostatic and bactericidal effects. Feed acidifiers are expected to continue gaining popularity, primarily due to their role in optimizing feed utilization, thereby reducing overall feed costs.
On the basis of livestock, the global animal feed additives market is segmented into pork/swine, poultry, cattle, and aquaculture. Pork and cattle/beef livestock applications are expected to continue being key markets, owing to their popularity in the U.S., Europe, and Latin America. These applications together accounted for over 54% of global revenue in 2013.
Poultry is expected to register highest revenue growth rate over the forecast period owing to increasing animal feed additives consumption in poultry, post disease outbreaks such as bird flu. Poultry is expected to account for 38.8% of the global revenue by 2020.
Asia Pacific’s increasing domestic meat demand, coupled with its emergence as a key meat exporter has changed the regional dynamics in the recent past. APAC accounted for over 32% of global revenue in 2013 and is expected to continue gaining market share over the forecast period.
Germany, Italy, the UK, and Eastern Europe are expected to drive additive demand in Europe over the forecast period. Germany was the largest consumer, accounting for close to 10% of global additive market in 2012. Shifting meat consumption towards organic rather than processed meat is expected to challenge North American market growth over the forecast period.
Market Share Insights
The global animal feed additives industry is dominated by integrated participants including DSM, BASF, and Evonik, together accounting for 70% of the overall market share. Other companies operating in the industry include Addcon Group GmbH, Adisseo France S.A.S., Archer Daniel Midland, Biomin Holding GmbH, Cargill Inc., Danisco, Kemin Industries, and Nutreco N.V.
With frequent regulatory updates and increasing R&D spending, the global feed additive market is constantly evolving. In recent times, there has been a significant increase in mergers, acquisitions, and partnerships among companies, to enhance product portfolio, gain access to regional markets, and to avail synergetic benefits. The industry has witnessed companies increasing their presence across the value chain by integrating and diversifying their product portfolio.
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