Global Animal Growth Promoter Market Size USD 31.83 Billion By 2031 | CAGR of 5.4%

Introduction

Animal growth stimulants and performance enhancers are substances administered or used in animal nutrition. These products are administered because they improve animal feed utilization. Thus, animal growth promoters and performance enhancers enhance intestinal nutrient absorption. The objective of the majority of livestock-related industries worldwide is to increase feed conversion efficiency into food products without incurring significant risk. This can be achieved through animal growth promoters and performance enhancers with improved efficacy and decreased toxicity.

Market Dynamics

Accelerating Industrialization in the Livestock Industry Drives the Global Market

According to the World Bank, industrialized meat production is expanding at a rate that is six times faster than traditional methods. With the increase in mass production of meat, a shift toward agronomically unsustainable meat production facilities is evident. The meat production industry is consolidating, especially in developed nations like the United States and Europe, to produce more meat using less land. For instance, the number of concentrated animal feed operations (CAFO) in the United States has significantly increased over the past ten years. Comparable models are becoming more well-known worldwide thanks to support from the government and other financial institutions.

The significant increase in global livestock production has been primarily attributed to the industrialization strategy used by the livestock industry over the past 50 years. Beef production has more than doubled, while chicken meat production has increased tenfold. Most of the year is spent inside for animals raised in feedlots. They are given compound feed, growth promoters, and other feed additives to hasten their growth and supply essential nutrients. Due to this, a rise in the demand for and consumption of compound feed is the primary driver of the growth promoters market.

Reduced Overall Feed Costs Create Tremendous Opportunities

There is much room for overall feed cost reduction at the farmer level. Since the price of feed additives, such as growth promoters, has a significant impact on the cost of compound feed, there is potential to reduce feed costs for individual farmers. Businesses that promote animal growth are constantly looking for innovative ways to reduce feed costs. Optimizing production systems is one method that companies use to reduce costs. The inputs to the animal growth promoter industry are impacted by the price of primary raw materials like maize and soybeans and primary processed materials like fish oil, fishmeal, fats, and similar products. Businesses enter forwarding agreements with suppliers more frequently based on their annual requirement for these commodities.

By reducing their production costs, companies in the animal growth promoter industry can negotiate more effectively with feed mills that utilize feed additives, such as growth promoters. This is especially useful for additives such as probiotics, prebiotics, vitamins, minerals, growth regulators, and other ingredients for which there is significant room for cost-reduction improvements in production techniques. Due to the intense competition in the market, businesses pass on savings from increased cost efficiencies to their direct customers, which benefits the entire animal nutrition value chain.

Regional Analysis

Asia-Pacific is the highest revenue contributor and is anticipated to expand at a CAGR of 5.8% during the forecast period. China is the largest and most influential consumer of pork in the area, which is the primary driver of the country's meat production. Due to its expanding population, China consumes double the amount of meat that Americans consume. Animal growth promoters are in high demand because Hong Kong has Asia's highest per-capita meat consumption. China is the world's largest producer of pork meat, accounting for more than 50% of global production. Due to China's unorganized fish production industry, the aquaculture sector has a tremendous opportunity. Due to the abovementioned factors, the market for animal growth promoters is expected to expand during the forecast period. China's market for animal growth promoters is increasing due to rising urbanization, domestic meat demand, and opportunities for meat export.

Europe is anticipated to grow at a CAGR of 4.9% during the forecast period. With a sizable market share in pig meat production, Spain is the second-largest producer of animal meat in the world. The demand to produce pigs and cattle has increased along with the demand from developing nations like Algeria, Libya, and Lebanon. The affordable price of cattle feed has also helped to drive up the growth rate of cattle production over the past few years. Animal slaughter rates across the country have increased, which has led to a rise in demand for animal feed and, in turn, for animal growth promoters. The high livestock production has increased the demand for specific animal growth promoters, such as prebiotics, probiotics, yeast products, and enzymes. Antibiotics are given to animals to promote growth and prevent disease. As a result, consumer preferences and awareness, as well as growing concerns about the overuse of antibiotics, are the major factors driving the animal growth promoter market in the country.

Key Highlights

• The global animal growth promotor market was valued at USD 19,829.1 million in 2022. It is expected to reach USD 31,832.3 million by 2031, growing at a CAGR of 5.4% during the forecast period (2023–2031).
• Based on type, the global animal growth promoter market is bifurcated into probiotics, prebiotics, phytogenics, and acidifiers. The probiotics segment is the highest contributor to the market and is expected to grow at a CAGR of 5.6% during the forecast period.
• Based on animal type, the global animal growth promoter market is bifurcated into ruminant, poultry, swine, and aquaculture. The poultry segment is the highest contributor to the market and is expected to grow at a CAGR of 5.8% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 5.8% during the forecast period.

Competitive Players

1. DSM
2. Cargill Inc.
3. Elanco Animal Health Inc
4. Zoetis Inc
5. Alltech Inc
6. Bluestar Adisseo
7. Kemin Industries Inc
8. Guangdong VTR Bio-Tech Co. Ltd
9. Dupont De Nemours Inc
10. Novozymes A/S
11. Lotus Minechem Resources Pvt. Ltd
12. Biomin GmbH
13. Novus International Inc
14. BASF SE
15. Hansen Holding A/S

Recent Developments

• November 2022- At a ceremony held in Hanoi, Cargill and CARE International signed a Memorandum of Understanding (MoU) for a two-year program called "She Thrives." By providing farmers and producers with the tools and resources they need to improve their livelihoods sustainably, the "She Thrives" initiative seeks to enhance sustainable living conditions for rural smallholders, particularly women and members of ethnic minorities from Vietnam's Dak Lak province.
• September 2022- Zoetis reported that its acquisition of Jurox, a significant livestock and companion animal product supplier, had been completed.

Segmentation

1. By Type
   1. Probiotics
   2. Prebiotics
   3. Phytogenics
   4. Acidifiers
2. By Animal Type
   1. Ruminant
   2. Poultry
   3. Swine
   4. Aquaculture