Global Animal Feed Additives Market Grows at a Staggering CAGR of 3.9%

Introduction

The demand for animal products with high nutritional profiles has increased significantly over the past few years due to the rising concern about health and fitness. Due to this shift in consumer behavior, farm owners are now required to provide premium animal products. Accordingly, farmers are choosing specialty ingredients for their animal feed that can give the feed essential nutritional value, texture, and flavor while also being safe, healthy, and sustainable. Additionally, it has been noted that consuming these additives in a certain amount benefits livestock by enhancing digestion and reproduction. To achieve a profitable balance between feed cost, livestock animal performance, and product quality, certain supplements or additives may be required, depending on the quality of the fodder. Between 3 and 5% of the total feed material fed to the animals is made up of feed additives, depending on the age and type of the livestock animal. Feed costs make up roughly 70–80% of the overall cost of raising livestock. To maximize financial gains, farm animals must receive sufficient amounts of nutrients. Animal feed additives have consequently become more popular in the livestock farming sector.

Market Dynamics

Rising Demand for Meat and Dairy Products Drives the Market

The demand for livestock-based goods such as dairy and dairy-based products, meat, and eggs is expected to rise, increasing the demand for feed additives to support farm animal growth and development. Poultry meat is the main factor driving global meat production growth due to its high demand, low production costs, and low product prices in both developed and developing countries. Furthermore, as knowledge about the dynamics of food nutrients, particularly protein, on overall physical and mental growth and development grows, there is a growing preference for animal-sourced protein in the form of meat, eggs, or milk. This promotes the use of feed additives by increasing the nutritional value of the feed.

The Rising Adoption of Natural Feed Additives gives an Opportunity for Exponential Growth

Antimicrobial ingredients are commonly found in poultry diets to help with growth and disease management. The European Union banned feed-grade antibiotic growth promoters due to the risk they posed to public health and food safety, as well as the risk of cross-resistance. As a result, feed manufacturers are turning to modern science to develop new natural feed additives to supplement antibiotics. This new generation of growth promoters contains botanical additives such as herb or plant extract blends. Herbs and plant extracts used as feed additives contain a variety of bioactive components such as alkaloids, bitters, flavonoids, glycosides, mucilage, saponins, and tannins. Herbs and plant extracts are expected to have a variety of effects because they affect appetite and intestinal microflora. This is due to the fact that they stimulate pancreatic secretions, which boost immune function and endogenous enzyme activity. Many plant products and the elements that make them up have antimicrobial, antioxidant, and sedative properties.

Regional Analysis

Asia Pacific region is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period because of rising population, foreign technology introduction, and increased consumer spending power in China, India, Indonesia, Thailand, and Malaysia According to the Asian-Australasian Journal of Animal Sciences, demand for red meat in developing countries will more than double by 2050. China leads the regional market and is the world's largest producer and consumer of meat. Due to low prices and easy availability of a variety of processed chicken, India has seen a significant increase in demand for poultry meat. The country's animal feed additives market is expanding rapidly as a result of the country's growing urban population, the influence of Western culture, improved storage practices and increased awareness about the nutritional characteristics of meat products.

During the forecast period, Europe's animal feed additives market is expected to grow rapidly. Europe is the world's largest meat consumer, which influences the demand for animal feed additives. The region's high demand for meat is expected to drive the market for animal feed additives in this region over the forecast period. The European Union's new laws prohibiting the routine administration of antibiotics to farmed animals take effect on January 28, 2022; World Animal Protection regards this as the most progressive law in the world. As a result, the use of natural feed additives will increase.

During the forecast period, the animal feed additives market in North America is expected to grow significantly. Strict regulations on animal feed additives and meat quality will play a significant role in the development of safe and secure animal feed alternatives. For example, the United States Food and Drug Administration has put in place rules to ensure the safety of livestock, poultry, and aquatic species used in pisciculture across the country. The presence of a well-established agriculture sector, which supports an adequate supply of raw materials such as maize, corn, and dextrose for the production of animal feed, improves market sales prospects even further.

During the forecast period, the LAMEA region is expected to experience moderate growth in the global animal feed additives market. This growth could be attributed to the need to maintain livestock nutrition and health, as well as government policies to improve agriculture, which should spur industry expansion. The UAE is growing food for local livestock using vertical hydroponics in an effort to reduce its reliance on imports and protect itself from disruptions in global supply chains. This cutting-edge technology will provide dairy and meat producers with fodder. Currently, imports account for up to 80% to 90% of animal feed consumed in the UAE. World of Farming, an Abu Dhabi-based startup, intends to begin on-site operations at neighborhood farms in 2022.

Key Highlights

• The global animal feed additives market was valued at USD 38.85 billion in 2022. It is projected to reach USD 54.81 billion by 2031, growing at a CAGR of 3.9% during the forecast period (2023-2031). 
• Based on feed type, the global animal feed additives market is bifurcated into amino acids, antioxidants, vitamins, minerals, binders, antibiotics, and pigment. The amino acid segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period.
• Based on the application, the global animal feed additives market is bifurcated into dry and liquid. The liquid segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period.
• Based on livestock, the global animal feed additives market is bifurcated into poultry, cattle, pork, and aquaculture. The poultry segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period.
• Asia Pacific region is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period

Competitive Players

Competitive Analysis:

The global animal feed additives market's major key players are Cargill, Incorporated, Alltech, Kemin Industries, Inc., Koninklijke DSM N.V., Novozymes A/S, Archer Daniels Midland Company, Addcon Group, BASF SE, Adisseo France SAS, Hansen A/S, DuPont de Nemours, Inc., Lallemand Inc., Lesaffre, Nebraska Cultures, Inc, AFB International, Elanco Animal Health Incorporated, NOVUS INTERNATIONAL

Recent Developments

Market News:

• In August 2022, Archer Daniels Midland and New Culture entered a strategic partnership to increase the production of alternative dairy products.
• In August 2022, AFP International will build its 3^rd facility in North America to become a more responsive and reliable supplier in the region.

Segmentation

Global Animal Feed Additives Market: Segmentation

By Feed Type

• Amino Acid
• Antioxidant
• Vitamin
• Mineral
• Binder
• Antibiotic
• Pigment

By Application

• Dry
• Liquid

By Livestock

• Poultry
• Cattle
• Pork,
• Aquaculture

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA