Animal Feed Additives Market Report

Animal Feed Additives Market Analysis By Product (Antioxidants, Amino Acids, Enzymes (Phytase, Non-Starch Polysaccharides), Acidifiers, By Livestock (Pork/Swine, Poultry, Cattle, Aquaculture), And Segment Forecasts, 2014 - 2025

Published: March 2017  |  104 Pages  |  Format: PDF  |  Report ID: 978-1-68038-070-5

Industry Insights

The global animal feed additives market size was estimated at 256.8 kilo tons in 2015. Globally increasing consumption of meat and milk products as a source of protein and other nutrients is expected to be a key factor driving market growth.

Fodder additives are the coherent parts of the globally rising meat production industry. These products are the catalysts that help in diseases prevention in animals, improving the rate of weight gain, vitamin intake, digestion and conversion and thereby enhancing the quality of meat production. Owing to these qualities of the product, the addition of additives in the feed are expected to increase in the near future hence driving the industry growth.

U.S. animal feed additives market volume by product, 2014 - 2025 (Tons)

U.S. animal feed additives market

Numerous disease outbreaks in livestock animals including foot & mouth infections, swine flu, and bird flu during the last decade has increased concern for safety and quality of meat and meat products. This has further prompted the use of specialty additives adding to global product demand.

The ban on antibiotics in the U.S. and Europe is anticipated to boost the market for replacement products such as acidifiers, amino acids, and enzymes. However, overlapping demand for major grains such as wheat, maize, and barley from other commercial food and biofuel applications is also expected to hamper industry growth over the forecast period.

Development of new technologies along with constant improvements in the formulations of finished products based on the feed type preferences and changing regulatory trends are steering industry growth. One of the major technological advancements in the recent past include the “Vectorized Solutions, to Transport Additives by Release Technology (VSTAR)” developed by MiXscience. It is designed and developed triggering the belligerent conditions of additive processing & storage environment to provide stabilization and effectual protection mainly to the active components.

In addition, owing to recent epidemic outbreaks, the quality of meat has become an important concern, especially in Europe and North America. Increasing customers knowledge about extrinsic quality attributes of meat is expected to significantly impact the global meat market in the coming years which in turn is anticipated to surge demand for feed additives.

Rising life expectancy, growing grain demand for ethanol and food production with limited availability of water and land resources for animal fodder production has resulted in the meat industry to optimize feed utilization.

These products are manufactured and distributed by different participants in the form of premixes, feed mills, and distributors. The industry participants either sell the premixed products directly to the consumers by their brands or supply to the integrated feed producers. The global fodder manufacturing industry is constantly evolving with continuous altering regulatory norms and increasing R&D spendings.

Product Insights

Amino acids including lysine, methionine, tryptophan and thiamine emerged as the leading product category and accounted for over 30% of the total revenue in 2015. The rising meat consumption particularly in the Middle East, and Asia Pacific regions is anticipated to be a key driving factor for the growth of the amino acids market in the next nine years.

Lysine, a major amino acid additive, is necessary for the growth of animals, especially poultry and swine. The advantage of synthetically formulated lysine over its natural substitute (soybean) is a key factor driving the demand. Lysine has equivalent nutritious value as that of soybean. Moreover, it is considered to be the more economical alternative for animal feed. The product also helps in plummeting the content of nitrogen in animal excreta, which in turn leads to a reduction in pollution. The ban on the bone meal and blood meal in some regions globally is yet another reason boosting the lysine demand.

Antibiotics emerged as the second largest animal feed additives segment while accounting for around 26% of the overall volume in 2015. The ability of antibiotics to promote growth in livestock was one of the primary factors which helped in developing its market in the past. However, due to the complete ban on antibiotics usage as animal growth promoters in the U.S. and the European Union in 2006 and 2009 respectively, the majority of global demand for antibiotics is expected to originate from the Asian and Latin American regions.

The excessive use of antibiotics as growth promoters resulted in local bacterial population becoming resistant to the products. Traces of antibiotics in the meat can also affect human health because of their excess use as growth promoters. Concerns regarding the ill effects of antibiotic usage as growth promoters have been increasing in North America and Europe. However, this was counter balanced up to an extent by continuous usage of antibiotics growth promoters in Asian and Latin American countries.

Livestock Insight

The global demand for feed additives has seen a paradigm shift due to rising awareness among consumers. Poultry emerged as the largest livestock segment and accounted for over 34% of the total revenue in 2015.

The outbreak of bird flu or avian influenza increased awareness about poultry health and surged the demand for quality meat. The upsurge of bird flu has led to the implementation of stringent regulations and norms further boosting the demand for specific additives globally. In addition, global poultry meat production is estimated to increase at a rapid rate, which is expected to increase demand for feed additives in this segment.

China, India, and Brazil are projected to account for the highest production due to rising living standards, production cost benefits, high overseas demand, and population induced domestic demand. Lenient regulations in these markets also contribute towards growing demand and encourage foreign players to invest, making the industry more competitive.

Poultry was followed by cattle in 2015, and by 2025 it is expected to account for over 29% of the overall market share in terms of volume. There are several benefits associated with cattle fodder accompaniments such as lowering the input cost (compared against the output) and contribute to improving the cattle’s digestive system. These products lead to shift in pH and regulate the metabolism and also enhance their growth by providing vital nutrients, such as amino acids, trace minerals, and vitamins, externally.

Regional Insight

Asia Pacific was the leading animal feed additives market and accounted for around 33% of the total revenue in 2015. Emerging economies in the region including India, China, and Indonesia have been experiencing strong economic growth. Increasing population and increasing living standards have spurred the meat demand in the region. Growing disposable income is now triggering consumers to change their food habits and consume more meat products.

China is the largest producer and consumer of meat in the world. China’s rapid urbanization is supported by strong economic growth. People in the country are migrating to urban cities with higher earnings. Owing to changing lifestyles and increasing disposable income, there is a shift from their traditional food to meat products.

Asia Pacific was followed by North America which accounted for around 27% of the total volume share in 2015. Growing meat consumption mainly in the U.S. and Mexico coupled with stringent regulations regarding meat quality are expected to remain key driving factors for the industry. In addition, abundant raw material availability such as maize, and dextrose is also expected to drive the market for feed additives over the forecast period.

Competitive Insights

The global feed additives market is highly competitive and fairly concentrated, with top four companies accounting for the maximum share of the global production in 2015. Some of the key players include DSM, Novozymes, BASF, Danisco (DuPont), Evonik, Kemin, and Cargill. Application development and customized products are expected to be the key parameter for being competitive in this industry, with frequent mergers and acquisitions being undertaken as an attempt to diversify product portfolio and gain market share.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                                

Volume in tons, revenue in USD Million and CAGR from 2016 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Canada, Germany, Spain, China, India, Brazil, Saudi Arabia

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

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Segments covered in the report

This report forecasts volume and revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global animal feed additives market on the basis of product and region: 

  • Product Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

    • Antibiotic

    • Vitamin

      • Vitamin A

      • Vitamin E

      • Vitamin B

      • Vitamin C

      • Others

    • Antioxidants

    • Amino Acids

      • Tryptophan

      • Lysine

      • Methionine

      • Threonine

      • Others

    • Feed Enzymes

      • Phytase

      • Non-Starch Polysaccharides & Others

    • Feed Acidifiers

    • Others

  • Livestock Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

    • Port/Swine

    • Poultry

    • Cattle

    • Aquaculture

    • Others

  • Regional Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • Spain

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

      • Vietnam

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

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