United States Animal Feed Additives Market

Market Overview

The United States animal feed additives market size witnessed significant growth in the past and is expected to grow at a CAGR of around 2.6% during the forecast period (2023-2030).

Animal feed additives are things that are good for the animals' health that are put into their food. Some of the things that are added to feed are amino acids, vitamins, and so on. Amino acids are important for several processes, including eating, pregnancy, gut health, and metabolism. Methionine is an amino acid used in the chicken industry, while lysine is used a lot in the pork industry.

Highlights

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

Market Dynamics

The United States Animal Feed Additives Market Drivers

Increasing Demand for the Meat Industry

The meat business in the U.S. is strong and growing, serving both domestic and international markets. The U.S. beef business is a big part of how much meat the country makes and eats. The U.S. Department of Agriculture (USDA) says that in 2020, the United States will have produced about 27.1 billion pounds of beef. Beef is in high demand because of population growth, consumer preferences, and the popularity of goods made with beef. To meet the rising Demand for high-quality beef, the U.S. beef industry uses feed additives to improve animal health, growth, and productivity. For example, feed additives like growth promoters, probiotics, enzymes, and vitamins increase feed efficiency, make it easier for cattle to use nutrients, and improve their general health. These additives help the animals gain weight as needed, save money on feed, and improve the beef quality they make.

The United States Animal Feed Additives Market Restraints:

Stringent Government Regulations Related to the Use of Antibiotics

The FDA's 2017 Veterinary Feed Directive (VFD) rule restricts medically important antibiotics in animal feed. The rule requires veterinary oversight and a written VFD order for antibiotic usage for medicinal purposes, not growth promotion or feed efficiency. This implies that veterinarians must approve antibiotics in animal feed. The VFD rule has significantly reduced antibiotic use in animal feed. According to FDA yearly reports, medical antibiotics for food-producing animals have declined in sales. For instance, from 2015 to 2019, medically relevant antibiotic sales dropped 36% due to regulatory efforts restricting antibiotic use in animal husbandry. The U.S. animal feed additives industry has changed due to these laws.

The United States Animal Feed Additives Market Opportunities:

Rising Focus on Animal Health and Welfare

In the U.S. animal agriculture industry, there has been an increase in consumer demand for natural and organic goods. Animal welfare is a top priority in organic farming procedures, giving animals access to outdoor space and healthy food and free of artificial additives like antibiotics and hormones. The Organic Trade Association reports that the U.S. market for organic livestock and poultry surpassed $1.2 billion in 2019, indicating a sizable consumer demand for animal products raised in line with rigorous animal welfare standards. The USDA National Organic Program (NOP) controls organic livestock production and establishes animal welfare, nutrition, and humane treatment guidelines.

Regional Analysis

The market for animal feed ingredients in the U.S. is expected to grow steadily over the next few years. The market is mostly driven by the growing number of livestock in the U.S. and Mexico. This trend will likely continue in the coming years, keeping the market going.

Aside from this, strict government rules about the quality of meat and the additives in animal feed will become key drivers of sales of safer animal feed options. For example, the U.S. Food and Drug Administration has rules to make sure that cattle, fowl, and aquatic species in aquaculture all over the country are safe.

Also, a well-established farm sector ensures a steady supply of raw materials like maize, corn, and dextrose for making animal feed, making sales even more likely in the market.

Segmental Analysis

The United States 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 2.8% during the forecast period.

Probiotics dominate the market among the functional feed additives type 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 2.8% 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.