Animal Feed Additives Market Size, Share & Trends Analysis Report By Livestock (Poultry, Swine, Ruminants, Aquaculture, Others), By Product (Vitamins, Amino Acids, Enzymes, Probiotics), By Form (Liquid, Dry) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2033

Market Overview

The global animal feed additives market size is valued at USD 54.56 Billion in 2024. It is projected to reach USD 82.76 Billion by 2033, growing at a CAGR of 6.4% during the forecast period (2024–2033). Driving animal nutrition innovation, the Animal Feed Additives Market meets the growing demand for healthier and more efficient livestock production.

Feed additives also improve the growth performance and health of animals by enhancing the digestibility of feed materials. Feed additives may only be launched in the market if they are authorized following scientific evaluations that demonstrate they have no harmful effects on human and animal health and the environment. Feed additives may be nutritious and non-nutritive and work directly or indirectly on an animal's system. Many products are formulated to influence different systems, and therefore, the effects of one can be additive to another.

The term "feed additives" refers to various classes of molecules, compounds, or organisms that aid in ingesting, absorbing, and assimilating nutrients to guarantee animal growth efficiency and general health. These additives favor physiological processes, such as immune function, stress resistance, and reproduction. Likewise, some common feed additives include feeding attractants, immunostimulants, prebiotics, probiotics, acidifiers, and essential oils. Feed additives are products utilized in animal nutrition to enhance the quality of animal feed and food of animal origin.

Market Dynamics

Market Drivers

Rising Prominence of Probiotics in Animal Feed Additives

Probiotics are a part of eubiotics and are likely to emerge as the fastest-growing segment in the global market. Probiotics are also considered a natural alternative to antibiotic-based growth promoters. Probiotics are known to promote animals' overall health by improving the gut's microbial balance. They are helpful to newborn animals or animals that have been treated earlier with antibiotics.

Additionally, it is used to boost weight gain and feed conversion rates. The demand for probiotics is increasing due to the ban on antibiotic use in the EU in 2006. Factors such as the recent advances in molecular biology, increased investments in livestock management, and the growing popularity of bioengineering are driving the R&D trend in feed additives. Thus, all these factors will propel the demand for probiotics in the animal feed additive industry.

Growing Demand for Antibiotic Alternatives

The primary purpose of using antibiotics in animal feed is to increase livestock's efficiency and growth rate and combat specific diseases. However, the consistent use of antibiotics in livestock creates antibiotic-resistant strains of bacteria that can harm humans and animals. The United States Food and Drug Administration (USFDA) has banned antibiotics as growth promoters and imposed the Veterinary Feed Directive (VFD) to disincentivize manufacturers and consumers from using antibiotics as a growth-promoting agent. In addition, several countries, such as Vietnam, Indonesia, China, India, Brazil, South Korea, the US, the UK, Canada, New Zealand, and European Union countries, have banned antibiotic growth promoters (AGPs). Thus, the stringent regulations and growing consumer awareness of the residual effect of these antibiotics on animal products are key growth drivers for the global market.

Market Restraint

Increasing Demand for Plant-Based Proteins 

With the changing lifestyle and consumption patterns, numerous consumers are reducing their meat intake and shifting to plant-based proteins. Another primary reason for reducing meat consumption is that the younger population is more aware of a sustainable environment and reducing their environmental impact for the betterment of nature and the planet. Almost 25% of the US population and nearly 50% of the UK population are willing to reduce their meat intake or plan to do so over the next few years.

Sensing the vast consumer demand, various players have entered the market, promoting plant and substitute meat proteins. Further, the growing cases of livestock disease outbreaks have compelled numerous consumers to look for alternative meat products. However, consumers still need to learn about the nutritional benefits of livestock products, as many have stopped consuming animal proteins. Such mass consumer changes will affect the meat industry, which in turn will affect the production and farmers. Thus, the feed additives market will be hampered due to the factors mentioned above.

Market Opportunities

Growing Concern for Animal Nutrition and Environmental Impact 

The demand for sustainable food products is a new trend in the market. Consumer awareness of the methods and procedures used in the food production value chain has increased recently. Additionally, consumers have expressed their displeasure against the ill-treatment of animals, poor hygiene practices in livestock production facilities, and inhumane slaughter practices, as these factors adversely affect their health. Consumers are also increasingly concerned about the environmental impact of the livestock industry. Consequently, several campaigns and public awareness programs on sustainable animal farming practices are being launched worldwide.

Nowadays, consumers are more concerned about issues associated with animal welfare and nutrition and their impact on the environment. All these factors have contributed to a favorable change in the animal feed industry, propelling the global demand for additives and acting as a global market catalyst. The market for animal feeds and additives is highly fragmented, and therefore, by adopting these practices, manufacturers will tap the vast opportunities and differentiate themselves from their competitors.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global animal feed additives market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global animal feed additives market shareholder and is expected to grow during the forecast period.Asia-Pacific emerged as the largest market for feed additives globally. The large livestock population and a massive requirement for animal feeds drive the demand for feed additives in the region. The growing organized market, high awareness of better animal farming techniques, and presence of rural economies also drive the demand for feed additives in the region. In addition, China is Asia-Pacific's largest feed additives market, followed by India, Australia, Japan, and South Korea. They are the critical markets for feed production and consumption and feed additives. Asia-Pacific accounts for approximately 60% of the global population; thus, the region's food demand is expected to grow significantly by 2030. Likewise, the rising demand for protein will fuel the need for animal meat during the forecast period.

In Europe, there is growing demand for protein-rich food has fueled an increase in meat production in the region, thereby driving the need for animal feed and feed additives. Further, the European market is witnessing a significant rise in livestock production owing to a vast demand for meat with higher nutritional value. This is positively driving the demand for animal feed additives in Europe. Likewise, the ban on antibiotic growth promoters by the European Commission is propelling the need for eubiotics and digestive enzymes in the animal feed additive market across the region. Furthermore, the increasing investment in the domestic markets in Hungary, Poland, and Romania have also fuelled the demand for feed additives in the region. However, in Russia, the government has encouraged the domestic production of meat; hence, the need for feed additives from the Russian market is expected to grow during the forecast period.

North America is among the most important markets for feed additives as it is home to major producers such as Cargill, Alltech, ADM, and Kemin Industries, among others. The significant growth in livestock production, increasing meat consumption, and intense use of animal husbandry for crop production due to water shortage in the region are the key factors driving the demand for feed additives in North America. The North American feed additives market has a high potential with rising demand for innovative and new feed additives. Moreover, natural and organic feed additives will gain more traction in the market during the forecast period. In addition, farmers want to use more chemical-free feed additives due to the changing consumer demand. Fast-food chains such as KFC have stopped using antibiotic-fed chicken for their products, driving the market growth.

Latin America is one of the vital meat producers in the world. Brazil, Mexico, and Argentina are the key markets in the region for animal feed and feed additives. The increasing meat production, rising exports, and growing feed cost drive the demand for feed additives in the region. However, bad infrastructure, issues related to supply chains, and the threat from natural calamities or poor harvest restrain the growth of the animal feed additives market in the region.

The Middle East and Africa is the smallest market for animal feed additives. Also, the Middle East and Africa region is a lucrative market for poultry feed additives as it is the most popular meat type in the region, followed by cattle. The growing population, increasing animal farms in Africa, and rising government aid to the agricultural sector are driving the demand for feed additives in the region. Further, better infrastructure, animal hygiene, and growing investment in the feed industry are fueling the growth of feed additives in the region.

Segmental Analysis

The global animal feed additives market is bifurcated into species, products, and forms.

Based on species, the global market is bifurcated into poultry, swine, aquatic animals, cattle, and other species.

The poultry segment dominates the global market. The word "poultry" is used for birds humans raise for eggs, meat, feather, or work. Poultry is raised worldwide, with chickens being the highest production among all poultry. The global poultry farming industry has accelerated due to the expanding human population and the rising demand for nutrient-dense food. In addition, the growth of poultry farming has led to the economical production of high-quality chicken meat, eggs, and poultry bioproducts. The use of feed additives, either synthetic or natural additives, has been an essential part of achieving success in poultry farming regarding poultry health and production, thereby driving the market growth.

Cattle is growing substantially in the global market. The demand for cattle products, including meat and milk, essential dietary protein sources for human beings, is proliferating. The need for milk and dairy products is constantly rising. Thus, to meet the growing demand for animal-based products, cattle must be provided with all the essential minerals, trace elements, and health supplements for enhanced growth performance. Although regular animal feeds result in more output, certain feed additives must be added to increase the cattle's production levels and overall health.

Based on product, the global market is bifurcated into vitamins, amino acids, antibiotics, enzymes, minerals, eubiotics, and others. 

The amino acids segment owns the highest market share. Amino acids are the principal component of animal muscles and tissue and form a significant source of protein for animals. Amino acids are an essential nutrient that is an integral part of animal feed. It helps increase the production of milk and eggs in livestock and poultry, respectively. However, the amount of amino acids required to supplement the feed differs based on species. For instance, 415gm of methionine amino acids must be added daily in laying hens' diets to achieve maximum production.

Vitamins are organic substances that form an indispensable part of micronutrients that an organism requires in small quantities. In animal feed, vitamins are added in the form of premix and small quantity small quantities. Vitamins are essential to feed additives that are used in all livestock feeds. Vitamins help in the growth, maintenance, and lactation of livestock. Thus, cattle, sheep, and goats need to properly balance vitamins in their meals to enhance their milk production. Regular grazing and feeding do not meet all the essential vitamins these animals require; hence, vitamins are used as an additive in their feed.

Based on form, the global market is divided into liquid and dry feed additives.

The liquid segment is the most significant contributor to the market. Liquid feed additives are molasses-based products designed to feed feedlot and grass-fed cattle using different formulations. The demand for liquid form increases due to easy handling and mixing with animal feed. Further, they are excellent carriers of feed and are rich in nutrients. They are also convenient and cost-effective when compared to the dry form. Due to their high palatability and increased animal consumption, liquid feed additives help lower feed waste and labor costs.

The dry feed segment is growing fastest in the form type segment. The rising demand for dry feed additives is attributable to the high requirement for additives in the dry form amongst livestock farmers, as they are spill-proof and can be handled and stored easily. The sales of such dry feed additives are most likely to happen through traditional channels only. The main points of sale are shops that sell agricultural goods and livestock. Likewise, the rising awareness and animal farming camps will drive the demand for dry feed additives.

Impact of covid-19

Patients on renal replacement therapy are expected to experience a shortage of supplies due to the COVID-19 outbreak. Recently, the American Society of Nephrology (ASN) conducted a webinar on the topic with recommendations for hospital management. Other studies and news reports highlight the rising demands and shortage of dialysis supplies in hard-hit COVID-19 areas. 

Recent Developments

• March 2023- Volac established a new feed additives division as part of its efforts to assist the global animal feed industry in meeting the net-zero challenge.

• January 2023- Nutreco and BiomEdit entered a long-term research and commercial partnership to develop and market novel feed additives. The partnership will combine BiomEdit's microbiome science and "bioinformatics platform" with Nutreco's feed to develop novel feed additives that will benefit animal feed.