Global Organic Feed Additives Market Grows Steadily at a CAGR of 5.22%

Introduction

Organic feed additives are supplementary substances integrated into animal feed with the dual purpose of improving livestock's overall health, performance, and welfare. These additives adhere to the principles and regulations of organic farming and livestock production. Within organic farming, these additives are utilized as supplementary materials or replacements for synthetic additives to ensure that animals receive essential nutrients and promote their general welfare. Organic feed additives are carefully selected and formulated to meet the specific needs of livestock production, which places a premium on natural and sustainable practices.

Market Dynamics

Rising Demand for Organic Food Drives the Global Market

The flourishing prevalence of diseases caused by the excessive chemical contamination found in conventional food and the health benefits associated with organic food consumption contribute to a substantial increase in the demand for organic food. The increasing prevalence of organic food integration into the daily dietary routines of the world's affluent further substantiates the bright prospects that this sector will experience in the coming years.

The global organic food commerce experienced a significant increase from 2000 to 2021, as reported by Statista. There was a substantial surge in organic food sales, which escalated from an estimated 18 billion dollars in 2000 to an estimated 132.74 billion U.S. dollars in 2021. This figure illustrates a substantial expansion in the organic food sector, which is anticipated to propel the global market for organic feed additives.

Declining Use of Antibodies in Livestock Industry Creates Tremendous Opportunities

A potential consequence of the excessive use of antibiotics in veterinary medicine, particularly as growth promoters in animal nutrition, is the development of resistance. This presents a substantial hazard to the welfare of individuals. In 2017, the World Health Organization strongly advised against the expansion of antibiotic use in animals utilized in the food industry. As the risk of antibiotic-resistant bacteria continues to rise, the World Health Organization (WHO) strongly advised that the use of antibiotics for growth promotion and on healthy animals be discouraged.

In addition, acknowledging the significance of antibiotic preservation, the World Organisation for Animal Health has warned against a complete prohibition of antibiotic use in animal production. Similarly, the Centers for Disease Control and Prevention estimate that annual healthcare expenditures associated with antibiotic resistance amount to approximately USD 2.2 billion. Therefore, the potential disadvantage of antibiotics raises the need for natural feed additives, such as organic feed additives, which aim to enhance the animals' health and overall welfare. This is anticipated to create opportunities for the expansion of the market.

Regional Analysis

North America is the most significant global organic feed additives market shareholder and is expected to expand substantially during the forecast period. North America is expected to dominate the organic feed additives market because of the region's dominant milling and pet food manufacturing industries and rising health consciousness among consumers. Similarly, the market will experience growth due to the region's increasing per capita meat consumption and stringent regulations regarding livestock quality.

North America is the largest market for organic food, accounting for about half of global retail sales of organic food; the United States is primarily responsible for this portion. Annual growth in organic food sales relative to total food sales has been observed in the United States since 2008. In 2020, an approximate six percent share of the total food sales in the United States were attributed to organic products. All of these factors influence the expansion of the regional market.

Key Highlights

• The global organic feed additives market size was valued at USD 29.62 billion in 2022. It is estimated to reach USD 46.82 billion by 2031, growing at a CAGR of 5.22% during the forecast period (2023–2031).
• Based on type, the global organic feed additives market is bifurcated into amino acids, vitamins, minerals, acidifiers, antioxidants, pre and probiotics, flavors and sweeteners, and others.
• Based on livestock, the global organic feed additives market is divided into ruminants, swine, poultry, aquaculture, and others.
• Based on form, the global organic feed additives market is segmented into dry and liquid organic feed additives.
• North America is the most significant global organic feed additives market shareholder and is expected to expand substantially during the forecast period.

Competitive Players

Competitive Players

The key global organic feed additives market players are Evonik Industries AG, Archer Daniels Midland (ADM), Cargill, Chr. Hansen Holdings A/S, Adisseo, BASF SE, Nutreco, Invivo NSA, and others.

Recent Developments

Market News

• In December 2022, Merit Functional Foods established a novel benchmark in the plant protein industry for transparency and sustainability by introducing Organic Peazazz C 850, its inaugural protein ingredient, to obtain USDA Certification.  
• In June 2023, Cosmos Health Inc. unveiled Terra Creta, the most recent product to be added to the Mediterranation line. The Company's premium line of nutritional supplements, Mediterranation, contains organic plant extracts and botanicals from Greece and the Mediterranean, including crataegus, hibiscus, dittany of Crete, oregano, mastic, and kritamos.

Segmentation

Global Organic Feed Additives Market: Segmentation

By Type

• Amino Acids
• Vitamins
• Minerals
• Acidifiers
• Antioxidants
• Pre and Probiotics
• Flavors and Sweeteners
• Others

By Livestock

• Ruminants
• Swine
• Poultry
• Aquaculture
• Others

By Form

• Dry
• Liquid

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa