South Africa Animal Feed Additives Market

Market Overview

The South African animal feed additives market size witnessed significant growth in the past and is expected to grow at a CAGR of around 3.7% during the forecast period (2023-2030)

Animal feed additives are substances added to food that are beneficial to the health of the animals. Amino acids, vitamins, and other ingredients are some of the things that are added to feed. Numerous activities, such as digestion, pregnancy, gut health, and metabolism, depend on amino acids. Lysine is a form of amino acid frequently utilized in the pork sector, whereas methionine is frequently used in the chicken industry.

Highlights

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

Market Dynamics

South Africa Animal Feed Additives Market Drivers

Increasing Demand for High-Quality Animal Products

In South Africa, there has been a discernible movement in customer tastes in favor of organic and free-range animal products. Demand for organically farmed meat, eggs, and dairy is rising as consumers become more aware of these goods' possible health and environmental advantages. For instance, the Agricultural Research Council (ARC) found that consumers are becoming more aware of and interested in purchasing organic and free-range meat, eggs, and dairy products nationwide. To protect animal health and satisfy the strict standards of organic certification, the study underlined the significance of feed additives in free-range and organic production systems. Market statistics also show a sharp increase in the demand for organic and free-range goods in South Africa. According to the South African Organic Sector Organization's (SAOSO) Organic Market Report, the market for organic foods and beverages has grown by double digits recently in the nation—the country of South Africa's rising demand for high-quality animal products, particularly organic and free-range goods.

South Africa Animal Feed Additives Market Restraints

Fluctuating Raw Material Prices

The price and supply of the raw materials needed to make feed additives might fluctuate, affecting producers and suppliers. Fishmeal is a common raw material in animal feed additives, particularly aquaculture and poultry feed. It is an excellent source of minerals and protein. However, the supply and cost of fishmeal can fluctuate, largely depending on elements including the world's fish populations, fishing laws, and environmental concerns. Fishmeal is imported from foreign markets and sourced from regional fish processing businesses in South Africa. The availability and cost of fishmeal may change due to changes in fish stocks, weather conditions, and fishing regulations. For instance, if fish supplies are declining due to overfishing or environmental problems, less fishmeal may be available, resulting in higher pricing.

South Africa Animal Feed Additives Market Opportunities

Rising Aquaculture Industry

South Africa's aquaculture business is growing due to ideal coastal conditions, rising seafood consumption, and government backing. Specialized feed additives for farmed fish and shrimp are in demand as aquaculture grows. This allows feed additive makers to develop and supply unique aquaculture-specific solutions. Aquaculture, particularly fish and shrimp farming, is ideal in South Africa due to its coastal topography and good weather. The country's aquaculture business has grown gradually due to rising seafood demand and government backing. Due to this growth, feed additives that improve aquatic species' health, growth, and performance are needed. With South Africa's aquaculture business growing and seafood demand rising, feed additive companies can get into this market area.

Regional Analysis

South Africa's slightly higher feed production and penetration rates helped it get a bigger part of the market. South Africa was also the country in the area with the fastest growth. The largest type of animal in the area was poultry birds, which made up 54.9% of the total value of the feed additives market in 2022. This was because there was more demand for poultry meat, and additives helped animals grow. In 2022, ruminants were the second most popular type of animal, making up 32.8% of the market. The meat value of these animals goes up when feed additives are used. This was a big reason why feed additives were used in these animals. The feed additives market in the region is likely to be driven by the rising demand for meat and meat products and the rise in spending on animal production.

Segmental Analysis

The South African 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 4.8% during the forecast period.

Probiotics dominate the market among the functional feed additives type and are expected to grow at a CAGR of 4.5% 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 4.1% 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 % during the forecast period.

Recent Developments

• 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.