North America Animal Feed Additives Market

Market Overview

The North America animal feed additives market size witnessed significant growth in the past and is expected to grow at a CAGR of around 2.5% during the forecast period (2023-2030).

Chemicals in animal feed promote animal health and performance. Antioxidants, enzymes, flavors, sweeteners, and probiotics may be needed to make feed digestible. Livestock produces milk, meat, and farming.

Demand for meat from broilers, turkeys, beef, and pigs should boost the region's markets. Over the next few years, the number of people working in the food and beverage and restaurant sectors is expected to increase meat demand, boosting the North American 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

Market Drivers

Increasing Demand for the Meat Industry

To increase productivity and guarantee the quality of the meat, the beef industry in North America is a significant industry that largely relies on animal feed additives. In beef cattle diets, feed additives enhance growth rates, feed effectiveness, and overall carcass quality. The United States Department of Agriculture (USDA) reports that beef consumption has consistently risen. The average amount of beef consumed annually per person in the United States in 2020 was about 57.2 pounds (25.9 kilograms). Effective livestock production is required to meet the increased demand for beef, made possible using animal feed additives.

Market Restraints

Stringent Government Regulations Related to the Use of Antibiotics

Antibiotics as growth promoters in animal feed are regulated in the U.S. due to antimicrobial resistance concerns. The FDA's 2017 Veterinary Feed Directive requires veterinarian approval for animal feed antibiotics. The VFD restricts antibiotic use as growth promoters to animal health emergencies and under expert care. Legislation and feed limits have reduced antibiotic sales for animal agribusiness. Medically relevant antibiotic sales for animals bred for human consumption plummeted by 40% between 2015 and 2019, according to the FDA. Animal feed additive research is driven by animal health and welfare.

Market Opportunities

Rising Focus on Animal Health and Welfare

The Market for animal feed additives that support animal health and lessen the use of antibiotics in livestock production is expanding due to worries about antimicrobial resistance and consumer demand for products free of antibiotics. Livestock producers increasingly seek feed additives that boost the immune system and improve animal gastrointestinal health. Since they support healthy gut microbiota, aid in digestion, and strengthen the immune system, additives like probiotics, prebiotics, and immune modulators are becoming more popular as antibiotic alternatives.

Regional Analysis

The Market is analyzed by country in the U.S. and Canada. The U.S. dominated the Market and is expected to grow at a CAGR of 2.6% during the forecast period.

The animal agriculture sector is undergoing significant change in North America. As a result of technology and manufacturing economics, the industry is moving toward fewer, larger production units that produce and Market under contract. Domestic consumers want higher-quality beef products that are more consistent, diverse, and convenient. Some are asking for natural, organic, and animal-friendly products and more information on the raising and poultry and their processing. Technology has advanced tremendously in the production sector during the past ten years. Nutrition promotes increased production by focusing on the animal's unique needs during various growth phases. Using antibiotics, other medications, and feed additives as preventative measures have simplified the management of large-scale confinement production systems and boosted the likelihood of financial success.

Rising meat consumption is expected to boost livestock output throughout the projected period, which would help the feed additives market. The United States is anticipated to lead the business due to the enormous output of livestock and the expanding use of animal products.

According to ITC Trade, the country exported 1,360,916 tonnes of animal feed additive in 2019, down from 1,448,583 tonnes in 2018.

Both Cargill, Inc. Inc. and BASF SE. The Kemin Companies Leading companies in the sector include Prinova Group LLC and Lallemand Inc. For instance, in September 2017, Cargill Inc. acquired the animal feed additive division of Southern States Cooperative. The company's enhanced presence in the Southeast, Mid-Atlantic, and Northeast regions of the United States was anticipated to contribute to the acquisition's ability to boost industry sales for North American feed additives.

Segmental Analysis

The North America 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 2.7% during the forecast period.

Among the available feed additives type, Probiotics dominate the Market and are expected to grow at a CAGR of 2.4% 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 2.0% 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 2.7% during the forecast period.

Recent Developments

• March 2023- Nestlé and Cargill will promote sustainable grazing methods on 1.7 million acres in the United States over the next five years in conjunction with the National Fish and Wildlife Foundation.
• January 2023- Alltech will collaborate with Advent Pharma Ltd.