Animal Feed Enzymes Market Size, Share & Trends Analysis Report By Product (Phytase, Carbohydrase), By Formulation (Liquid, Dry), By Application (Poultry, Pigs), By Region, And Segment Forecasts, 2024 - 2030

Animal Feed Enzymes Market Size & Trends

The global animal feed enzymes market size was estimated at USD 1.55 billion in 2023 and is projected to grow at a CAGR of 4.4% from 2024 to 2030. Manufacturers invest highly in research and development (R&D) to create more advanced and specialized enzyme products. This includes developing enzymes tailored to specific animal species, diets, and environmental conditions and improving enzyme formulations for greater efficacy and stability.

The global enzymes market was valued at USD 13,112.76 in 2023 and is anticipated to expand notably over the forecast period due to the growing demand for specialty enzymes in research, pharmaceutical, diagnostics, and biotechnology applications. Industrial enzymes are expected to grow significantly due to their increasing demand from animal feed and nutraceutical industries. Rising consumer awareness about health has resulted in the growing consumption of functional food products, which is expected to trigger product demand in the coming years.

The use of microorganisms as a key source of enzymes is growing rapidly, which can be attributed to low production costs and easily accessible raw materials for enzyme manufacturers. End use industries extensively use microorganism-derived enzymes as they can be used to manufacture several products, and their scope is not restricted. This is beneficial for enzyme manufacturers' product portfolios.

The demand for carbohydrases is increasing due to their extensive use in soft drinks. Carbohydrases are categorized into amylase, xylanase, cellulose, pectinase, and lactase. Therefore, the increasing application of various types of carbohydrases in pharmaceutical and animal feed applications is anticipated to drive the market over the forecast period.

Drivers, Opportunities & Restraints

The increasing demand for swine and poultry food plays a vital role in market growth. These products help improve the overall health and well-being of swine and poultry. The industry comprises livestock raised through the proper use of nutrient-rich fodder. The industry's growth worldwide is expected to positively influence the market dynamics for enzymes over the forecast period.

Enzymes are used as additives in the animal food industry. Phytase, protease, and carbohydrase are extensively consumed. Phytase is a key source of phosphorus. It is required for the growth and repair of animal tissues and organs. Carbohydrase is utilized by livestock to improve the digestion of carbohydrates present in animal food. It further breaks down starch into simple sugars such as fructose, maltose, and glucose.

The market has experienced notable growth due to increasing demand for improved efficiency, better animal health, and sustainable livestock production. However, this growth is not without challenges. A significant restricting factor in this market is the high cost associated with enzyme products. These costs arise from various stages of the enzyme production process, including research and development, manufacturing, and storage, ultimately affecting the affordability and accessibility of these products for end users. This detailed assessment explores the multifaceted nature of this cost barrier, examining its impact on different stakeholders and market segments.

Market Concentration & Characteristics

The market concentration is consolidated, with a few key players establishing their dominance in the industry. Major companies such as Novozymes, BASF SE, DSM, and Adisseo hold significant shares due to their comprehensive product portfolios and extensive distribution networks. These companies invest heavily in research and development to innovate and improve their product offerings, which helps them maintain a competitive edge. The market concentration is also driven by mergers and acquisitions, which allow these firms to achieve economies of scale and expand their presence in the industry.

Animal feed enzymes are derived from animals' organs, such as plant materials, microorganisms, and calf stomachs. With the advent of different technologies, such as genetic engineering, enzyme manufacturers can produce the necessary quantity of enzymes in selected production hosts such as transgenic plants or microorganisms. Market players use appropriate microorganisms, such as enzyme-producing yeast, bacteria, and fungi, to produce enzymes on a commercial scale.

BASF SE and Novozymes are the key market players using R&D to develop the required enzymes for unexplored applications. As enzyme manufacturers focus on backward integration, the raw material supply is currently stable. However, with the entry of new players in the market, the demand for enzymes and raw material supply scenario will likely negatively impact market growth in the coming years.

In addition, Novozymes, a prominent market player, is dedicated to manufacturing central enzymes, whereas other enzyme producers, such as Danisco and DSM, focus on manufacturing on-site enzymes. Biofuel manufacturers can reduce the usage of stabilizing agents, downstream processing, and shipping and warehousing bulk quantities of enzymes. According to a study by Dyadic International Inc., a U.S.-based firm focusing on pharmaceutical R&D, on-site enzyme manufacturing reduces around 30-50% of the total enzyme manufacturing costs, decreases inventory, and modernizes the supply chain. For instance, BASF SE’s enzymes are produced and developed utterly in-house using biotech-based manufacturing, which, in turn, is likely to reduce the manufacturing cost of enzymes.

Product Insights

Carbohydrase dominated the market with a revenue share of 44.36% in 2023. One differentiating factor of carbohydrases is their specificity toward different types of carbohydrates. For instance, amylases are specific for starch breakdown, while cellulases target plant cell wall components. This differentiating factor enables targeted enzymatic action, depending on the composition of the feed. In addition, carbohydrases can be derived from microbial or fungal sources, providing further options for diverse production and formulation strategies.

Phytases are enzymes commonly used in animal food production. Their main function is to break down phytic acid, a phosphorus indigestible for most livestock, into more digestible forms. As phosphorus is an essential nutrient that livestock need for proper growth and development, these enzymes become a vital part of the production process. Thus, farmers can improve phosphorus utilization by adding phytases to animal food, enhancing overall animal health and performance. Proteases are enzymes that break down proteins into smaller peptides and amino acids. In animal food production, they improve protein digestibility, thereby enhancing the availability of essential amino acids for animal growth and development. Proteases are commonly used in poultry, swine, and aquaculture diets, improving protein utilization and overall animal performance.

Formulation Insights

Dry formulation dominated the market with a revenue share of 79.94% in 2023. Dry formulations of animal feed enzymes consist of enzyme preparations incorporated into solid carriers such as maltodextrins or calcium carbonate. These formulations offer distinct advantages in terms of stability, shelf life, and ease of handling during feed processing and storage. The dry nature of these enzymes ensures prolonged stability and activity retention, making them suitable for inclusion in pelleted, extruded, or mixed dry feed formulations without concerns about enzyme degradation or loss of efficacy over time. This stability is particularly advantageous in feed manufacturing environments where prolonged storage or variable processing conditions may affect liquid enzyme viability.

Liquid formulations contain concentrated enzyme solutions that can be easily mixed into liquid systems or sprayed onto dry animal food products. These formulations offer several advantages in animal food production processes. They provide a uniform distribution of enzymes, ensuring consistent enzyme activity and efficacy. This uniformity is also crucial for achieving desired nutrient release and absorption in the animal gut, enhancing efficiency and performance. Furthermore, liquid enzymes offer flexibility in application as they can be easily integrated into automated feeding systems without causing feed flow issues or clogging the equipment.

Application Insights

Poultry dominated the market with a revenue share of 37.50% in 2023. In poultry diets/nutrition, animal feed enzymes are pivotal in optimizing nutrient utilization and enhancing overall performance. Poultry diets often contain high levels of cereal grains and plant-based ingredients rich in Non-Starch Polysaccharides (NSPs), impairing nutrient absorption and digestion in birds. Enzymes, including carbohydrases (e.g., amylases, xylanases) and phytases, are specifically employed to break down complex carbohydrates and anti-nutritional factors such as phytic acid. Carbohydrases hydrolyze starches and NSPs into simpler sugars, improving energy release and nutrient absorption efficiency in the small intestine of chickens and other poultry species. This results in better conversion ratios, increased growth rates, and improved uniformity among flocks. On the other hand, phytases enhance phosphorus availability by degrading phytic acid, which is abundant in plant-based diets. Improved phosphorus utilization reduces the need for costly inorganic phosphate supplements and minimizes phosphorus excretion, contributing to environmental sustainability.

In pig nutrition, the incorporation of animal food enzymes aids in overcoming the dietary challenges associated with high-fiber ingredients and cereal grains. Pigs have limited endogenous enzyme production, particularly for breaking down complex carbohydrates such as cellulose and NSPs in corn, soybean meal, and other components. Enzymes, including carbohydrases (e.g., cellulases, xylanases) and proteases, enhance nutrient digestibility and absorption in pigs, improving efficiency and growth performance. Carbohydrases break down starches and fibrous components into simpler sugars and nutrients, facilitating their absorption in the small intestine. Ruminant nutrition involves complex digestive processes that benefit significantly from animal food enzymes to improve nutrient utilization and efficiency. Ruminants such as cattle, sheep, and goats have unique digestive systems characterized by microbial fermentation in the rumen, where microbial enzymes break down fibrous plant materials. Supplementing ruminant diets with fibrolytic enzymes, such as cellulases and hemicellulases, enhances the breakdown of cellulose and hemicellulose in forages and roughages, thus increasing the availability of fermentable sugars for microbial growth and volatile fatty acid production.

Regional Insights

Asia Pacific dominated the market with a revenue share of 41.06% share in 2023. In 2023, feed tonnage in Asia Pacific saw a modest increase of 6.54 MMT, or 1.40%. The broiler, layer, and dairy sectors experienced steady growth, with tonnages rising by 7.07 MMT, 1.34 MMT, and 1.10 MMT, respectively. Factors affecting production include changing consumer behaviors, high production costs, and animal diseases, with Asia Pacific notably impacted by animal diseases. Despite these challenges, there is optimism for poultry farming in Southeast Asia, particularly as raw material costs are expected to stabilize in 2024. Increasing consumer demand for affordable protein sources drives the continued rise in layer animal food tonnage. These factors are anticipated to boost animal feed production in the region, thereby driving the consumption of animal feed enzymes.

China Animal Feed Enzymes Market Trends

The animal feed enzymes market in China held the largest share of 44.65% in Asia Pacific in 2023. According to Alltech, China was the top producer of animal feed, with 262.71 MMT of animal feed produced in 2023, an increase of 1.97% from the previous year. This growth was driven primarily by increases in broiler and layer feed tonnage. Despite facing tight margins and disease challenges, China continues to experience strong demand for feed, fueled by its rapidly expanding middle class and changing preferences for more affordable protein sources.

Europe Animal Feed Enzymes Market Trends

The animal feed enzymes market in Europe is expected to grow significantly during the forecast period. According to the European Feed Manufacturers Federation (EFMF), since 2022, feed production in Europe has been experiencing a persistent downward trend, particularly within the beef sector. Over the past two years, this region has seen the most significant decline in production levels. Europe is grappling with ongoing political and market crises and the increasing demand for sustainable feed solutions to navigate these market dynamics.

Spain animal feed enzymes market held the largest share of the Europe market in 2023. According to Alltech, Spain was ranked seventh in animal feed production globally in 2023, with a total feed production of 27.53 MMT, despite a decrease of 11.88%. The dairy and pig sectors experienced the most significant reductions in commercial feed tonnage. This decline can be attributed to increased animal slaughters, a consistent yearly decrease in livestock census numbers, and a lack of generational change amid the rising average age of livestock farmers. In addition, the pig sector has faced challenges, including shifting consumer preferences partly driven by food price inflation, reduced export markets, and health issues affecting the animal feed industry.

The animal feed enzymes market in Russia is expected to grow at a significant CAGR from 2024 to 2030. According to Alltech, Russia was ranked sixth in global feed production, with 35.46 MMT produced in 2023, reflecting a growth of 1.31% from the previous year. This upward trend is expected to continue, and robust infrastructure and government initiatives support it. For instance, the Russian government is considering granting feed production in eastern Russia the “independent industry” status, which could lead to new state aid programs. This move aims to stimulate development in the sparsely populated eastern regions of the country.

North America Animal Feed Enzymes Market Trends

The animal feed market in North America produced 259.26 MMT of animal feed in 2023. The demand for animal feed enzymes is rising primarily due to the increasing emphasis on enhancing livestock productivity and efficiency. As the livestock industry strives to meet growing food demands, there is a heightened focus on optimizing feed conversion ratios, which directly impact growth rates and overall animal health. Enzymes such as phytase, xylanase, and protease are being incorporated into feed formulations to improve the digestibility of nutrients and reduce feed costs.

The U.S. animal feed enzymes market is ranked among the top consumers of animal feed enzymes globally. According to Alltech, the U.S. produced 238.09 million metric tons (MMT) of animal feed in 2023, although this represents a decrease of 1.13% compared to the previous year, i.e., 2022. Despite this decline, the U.S. agriculture sector, confronted with rising costs and a growing population, actively seeks strategies to enhance feed resource efficiency. Consequently, there is a projected growth in animal feed production, which is expected to drive an increased demand for animal feed enzymes in the near future.

Key Animal Feed Enzymes Company Insights

The market is characterized by the dominance of a few globally established players, including Novozymes, BASF SE, DSM, Danisco, and Adisseo. These key players have a significant market share and play a pivotal role in shaping the industry's competitive landscape. The industry is witnessing strategic partnerships, collaborations, and joint ventures among major players to enhance their market presence and expand their product offerings.

Some key players operating in the market include Novozymes, BASF SE, DSM, Adisseo, and Danisco.

• Novozymes A/S is one of the world’s leading providers of enzymes and biosolutions. The company has established its dominance by forward integrating its business across various stages of the value chain, from R&D and innovation to commercial execution and distribution of its products via direct sales channels. The company operates through its five business segments: Household Care; Food, Beverages & Human Health; Bioenergy; Grain & Tech Processing; and Agriculture, Animal Health & Nutrition.

• DSM is a global leader in health, nutrition, and biosciences, with a robust portfolio in the animal feed enzymes sector. The company focuses on enhancing animal nutrition and improving feed efficiency through innovative enzyme solutions. DSM's enzymes are designed to optimize the digestion and absorption of nutrients, thereby promoting animal health and performance. Its products address various challenges in animal nutrition, including the breakdown of complex carbohydrates, proteins, and fats, enabling the efficient utilization of feed ingredients.

• BASF SE, a leading global chemical company, offers a comprehensive portfolio of animal feed enzymes designed to enhance feed efficiency and animal performance. Its enzyme products are developed to improve nutrient digestion and absorption, thereby maximizing the nutritional value of feed ingredients. BASF SE's enzyme solutions target a wide range of feed components, including carbohydrates, proteins, and fats, helping animals better utilize these nutrients and promoting overall health and growth.

Behn Meyer Holding AG, Bioproton Pty Ltd., and AB Vista are some of the emerging players operating in the global market.

• Bioproton Pty Ltd. is a leading provider of innovative enzyme solutions for the animal feed industry. The company develops and manufactures enzymes that enhance animal nutrition and improve feed efficiency. Established in 1997, it has built a reputation for its enzyme technology expertise and commitment to advancing animal health and productivity.

• AB Vista is a global provider of innovative feed additives and nutritional solutions. The company focuses on enhancing animal nutrition and feed efficiency through advanced research and technology. Established as a division of AB Agri, AB Vista combines expertise in animal nutrition with a strong commitment to delivering cutting-edge products and services.

• Behn Meyer Holding AG is a leading international company specializing in the distribution & manufacturing of specialty chemicals and animal nutrition products. It has a long history of providing high-quality products and solutions across various industries, including animal feed. The company emphasizes innovation, customer service, and sustainability in its operations.

Recent Developments

• In June 2024, BASF SE announced the sales of its bioenergy enzymes business, including the Spartec product line, to subsidiaries of Lallemand. Lallemand is expected to integrate the business into its Lallemand Biofuels and Distilled Spirits unit. This move aligns with Lallemand's focus on the fuel ethanol industry, based on its collaboration with BASF SE since 2017. BASF SE is expected to continue focusing on enzyme activities in animal feed and detergents, while Lallemand aims to expand its biofuels portfolio.

• In December 2023, Kerry Group plc announced an agreement to acquire a portion of the global lactase enzymes business of Novozymes on a carve-out basis. This acquisition is expected to introduce enzyme technology that aids in manufacturing lactose-free and sugar-reduced dairy products while maintaining their authentic, clean taste. The acquisition is expected to cost around USD 161.81 million.

• In February 2024, Adisseo announced the acquisition of France-based Nor-Feed Group and its subsidiaries. This acquisition is significant in the expansion of Adisseo into the special ingredients market. Nor-Feed specializes in designing, manufacturing, and selling plant-based specialty ingredients and plant extracts for animal feed. Bluestar Adisseo plans to develop Nor-Feed into a significant supplier of functional plant extracts for animal feed and enter the market for specialty animal feed ingredients, with an annual growth rate of nearly 10%. Nor-Feed will continue independently managing its research and development, production, and sales networks.

Animal Feed Enzymes Market Report Scope

Global Animal Feed Enzymes Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global animal feed enzymes market report based on product, formulation, application, and region.

• Product Outlook (Revenue, USD Million, 2018 - 2030­)

  • Phytase

  • Carbohydrase

  • Proteases

  • Other Products

• Formulation Outlook (Revenue, USD Million, 2018 - 2030)

  • Dry

  • Liquid

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Poultry

  • Pigs

  • Ruminants

  • Pets

  • Aqua

  • Equine

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

  • Europe

    • Spain

    • Russia

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East and Africa

    • South Africa