Organic trace minerals are minerals used in small quantities (micro minerals) and are formed when inorganic minerals are attached to organic molecules such as polysaccharides and amino acids. The organic molecules are referred to as chelates, and they prevent trace minerals from interacting with feed components and other minerals in the animal body, thereby increasing the bioavailability (the degree or rate at which a substance is absorbed by the animal body) of trace minerals. In spite of the fact that trace minerals are added to animal feed in minute quantities, they play a vital role in maintaining animal health. In light of these facts, there is an increased preference towards use of organic trace minerals in comparison to their inorganic counterparts.
The major forms of organic trace minerals are Zinc, Manganese, Iron, Copper, Selenium and Cobalt among others. Zinc and Iron are the highest consumed trace minerals on account of their variable properties in the animal body and together account for over half of the global revenue. Amino acid was the preferred chelate for animal feed as compared to polysaccharide and proteinates due to higher bioavailability. Higher bioavailability of organic trace minerals in comparison to their inorganic substitutes is expected to be a key factor driving the growth of the market. Also, the growing demand for the animal as a source of protein in countries such as Brazil and India is expected to boost further the market. Growing awareness among consumers in Asia Pacific with regards to benefits of these minerals in controlling/preventing diseases in livestock has also resulted in increased sales. In spite of the numerous driving forces, the market faces considerable constraints in the form of stringent regulations and the high cost of R&D which translates to a higher cost of final product.
The global meat production is on the rise and according to FAO; production increased from 297,082 kilo tons in 2011 to 304,078 kilo tons 2012 which was a growth of 2.4%. The increase in production is mainly concentrated in developing countries where the production increased from 177,494 kilo tons in 2011 to 184,485 kilo tons in 2012 registering a growth of close to 4%. The production increase was seen in countries such as India, China, Russia, Brazil and South Asia. The above-mentioned statistics coupled with increasing awareness of the hazards or inorganic trace minerals are expected to boost the demand for organic trace minerals over the next few years. The global organic trace minerals market was valued at USD 375 million in 2012 and is expected to grow at a CAGR of 6.7% from 2013 to 2020. Asia-Pacific is expected to witness substantial growth due to the increasing meat production in countries of China and India.
Key product segments covered in the report include Zinc, Copper, Manganese and Iron. The other segments such as Chromium, Selenium and Cobalt are also a part of the scope of the report. Zinc was the most dominant product for animal feed, with estimated revenues of over USD 180 million in 2012. Zinc is extremely essential for improving health and immunity of the animal and the available zinc in most forms of animal feed is not sufficient to meet the requirements of major species. Zinc is also expected to witness the fastest growth over the forecast period, at an estimated CAGR of over 6.5% from 2013 to 2020. Iron was the second highest consumed trace mineral and accounted for close to 17% of the revenue in 2012. Iron is essential for the metabolism of ruminants as it the primary oxygen carrier in the body. There is increased iron deficiency in poultry and ruminants across major parts of Asia Pacific which has led to increased demand for the mineral over the past few years. The other consumed trace minerals were Manganese and Copper, which are used in animal feed to improve the immunity of the animal. There is high demand for these trace minerals in Europe, South America and parts of Asia-Pacific in light of the growing number of outbreaks of diseases.
Animal feed organic trace minerals market revenue share, by product, 2012
Historically, organic trace minerals were largely used in North America and Europe due to high consumer preference for organic foods. Also, the strict environmental regulations prohibit the use of inorganic minerals which are said to be harmful to the environment. North America was the largest market for organic trace minerals, accounting for close to 38% of the market revenue in 2012. However, the region is expected to lose share due to the rapid growing demand in Asia Pacific. Europe was the second largest market for trace minerals and was valued at USD 135 million in 2012. Europe is world’s second largest producer of meat after China, and the production is expected to increase over the next six years, particularly in parts of Eastern Europe. Most relevant markets, identified as attractive opportunities in the European feed additive market include carotenoids, vitamins, enzymes and organic trace minerals.
Asia Pacific market was smaller as compared to North America and Europe in 2012. However, the region is expected to witness the fastest growth over the next six years on account of growing meat production, particularly in China. The meat production in China touched 83,736 KILO TONS which was close to 25% of the global production. This rise in production in expected to make China the most lucrative organic trace minerals market over the forecast period. Also, the growing awareness regarding environmental hazards of inorganic trace minerals is expected to fuel the demand for organic counterparts in the region. The demand in rest of the world is primarily fuelled by Brazil, which was the world’s fourth largest producer of meat, with close to 24,650 kilo tons in 2012. The growing disposable income of the region coupled with increasing demand for the animal as a source of protein is expected to drive the demand for organic trace minerals in the region.
Royal DSM was the largest organic trace mineral manufacturers in the world, and it consolidated its position by acquiring Trotuga, a Brazilian animal nutrition company. The other key companies in the market include Tanke Biosciences Corp, ADM, Zinpro Corp, Biochem Lohne Germany, Nutreco NV and Kemin Industries Limited.
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