Latin America Animal Feed Additives Market

Market Overview

The Latin America animal feed additives market size witnessed significant growth in the past and is expected to grow at a CAGR of around 2.1% during the forecast period (2023-2030)

Animal feed additives are an important part of animal nutrition because they improve the output and quality of feed and the health and performance of the animals. Animal feed stops dangerous microbes from growing and helps good microbes grow, improving gut health and the digestive and immune systems. Farmers are getting more financial help to run livestock, poultry farms, and other agribusinesses. This is expected to increase the demand for cost-effective animal nutrition products and grow Latin America's animal feed additives market.

Highlights

• Functional feed additives dominate the market by type.
• Dry dominates the market by form
• Pork dominates the market by distribution.

Market Dynamics

Latin America Animal Feed Additives Market Drivers

Rising Meat Consumption

Meat consumption has increased a lot in Latin America because of a growing population, more people living in cities, and changed tastes in food. This trend drives the need for feed chemicals to help animals grow meat more efficiently. The Brazilian Animal Protein Association (ABPA) says that in 2020, Brazil produced about 27.3 million metric tons of meat. This includes beef, chicken, and pork. Over the years, the number of people living in Brazil, their wages, and the growth of cities have all led to a steady rise in meat consumption.

Latin America Animal Feed Additives Market Restraints

Volatility in Price

Animal feed is mostly corn. Weather, global markets, and government actions can affect Latin American grain prices. Corn is a key ingredient in many animal feed additives. Therefore, price fluctuations affect their cost. Latin American grain prices fluctuate, according to FAO data. Brazil, the region's top maize producer, had its corn price per metric ton fluctuate over the past few years. In 2020, corn in Brazil cost USD 190 per metric ton, up from USD 152 in 2019. Corn-based animal feed additives can be affected by these price changes.

Latin America Animal Feed Additives Market Opportunities

Growing Demand for Quality Animal Protein

High-quality meat, poultry, and dairy products are in demand due to increased population, income, and diet. The Mexican Meat Council reports that meat consumption has continuously increased. Meat per capita increased by 6.1% to 81.8 kilos in 2020. Due to their affordability and variety in Mexican cuisine, poultry, and pork consumption has increased. Meat consumption is expected to rise across Latin America. According to the FAO, Latin American meat consumption is anticipated to rise by 17% between 2017 and 2027—population growth, urbanization, and an increasing middle class with more spending power fuel this growth. Latin American demand for high-quality animal protein presents opportunities for producers of animal feed additives.

Regional Analysis

The market is analyzed by country in Brazil, Mexico, Argentina, and the Rest of Latin America. The rest of Latin America dominated the market and is expected to grow at a CAGR of 1.9% during the forecast period.

The Latin American market is also growing because more people are using natural feed products for animals. Natural animal feed ingredients, made up of parts that come from organic bioactive chemicals, are good for the health and growth of animals. Over the next few years, the need for natural animal feed products will likely grow as livestock owners learn more about the importance of animal safety and health and as worries about the quality of food grow.

The number of people eating meat is increasing, which is good for the growth of the cattle business. As people worldwide become more health aware, they are more likely to live a healthy lifestyle and eat foods high in protein daily. Demand for ready-to-eat and processed meat products is also likely to increase due to people spending more time at their desks, having busy schedules, not having enough time to cook and eat, and changing eating habits. This will help the South American animal feed additives market grow.

Segmental Analysis

The Latin American animal feed additives market is segmented based on type, form, distribution, and country.

The market is further segmented by Type into Feed sanitizers, Antibiotic, Amino Acids, Vitamins, Minerals, Mycotoxin Binders, Feed Acidifiers, Functional Feed additives (Enzymes, Probiotics, Antioxidants, Vitamins), and Others.

The functional Feed additives segment dominates the market and is expected to grow at a CAGR of 2.3% during the forecast period.

Probiotics dominate the market among the functional feed additives type and are expected to grow at a CAGR of 1.9% during the forecast period.

The market is further segmented by form into dry and liquid.

Dry dominated the market and is expected to register a CAGR of 1.6% over the forecast period.

The market is further segmented by distribution channel into Poultry, cattle, pork, and Aquaculture.

The pork segment dominates the market and is expected to grow at a CAGR of 2.3% during the forecast period.

Recent Developments

• January 2023- Alltech will collaborate with Advent Pharma Ltd.
• March 2023- DSM released a tool for measuring color called Digital SalmoFanTM.
• May 2023- ADM and Air Protein signed a strategic agreement to speed up developing and producing a unique protein that can be grown without land.