Animal Feed Organic Trace Minerals Market

Market Overview

The global animal feed organic trace minerals market size was valued at USD 765.9 million in 2023 and is projected to reach USD 1.5 billion by 2032, registering a CAGR of 8.0% during the forecast period (2024-2032). The increasing demand for animal feed drives the growth of the animal feed organic trace minerals market. 

Organic trace minerals in animal feed are essential micronutrients such as zinc, copper, iron, manganese, and selenium derived from organic or naturally occurring compounds. These minerals are necessary for animal physiological functions, including growth, immunity, reproduction, and overall health. Unlike inorganic forms, organic trace minerals are usually bound to organic molecules, making them more bioavailable and more accessible for animals to absorb and use.

The market is expected to grow due to rising demand for trace organic minerals in animal feed, driven by concerns about environmental contamination caused by the widespread use of chemicals in agriculture. Furthermore, the use of copper to increase egg fertility and zinc and amino acids to strengthen chicken eggshells are driving market growth.

Additionally, the market is expected to grow due to rising demand for trace organic minerals in animal feed, driven by concerns about environmental contamination caused by the widespread use of chemicals in agriculture. Furthermore, the use of copper to increase egg fertility and zinc and amino acids to strengthen chicken eggshells are driving market growth.

Highlights

• Zinc generates the highest revenue share by product.
• Poultry dominates the market by application.

Market Dynamics

Global Animal Feed Organic Trace Minerals Market Drivers

Rising Demand for Animal Protein

As the world's population grows and incomes rise, there is a greater demand for high-quality animal protein products like meat, dairy, and eggs. Organic trace minerals are essential in improving animal health, growth, and productivity, allowing for the production of nutritious and safe animal-derived foods to meet rising consumer demand.

According to the OECD-FAO Agricultural Outlook 2021-2030, the United Nations Food and Agriculture Organization (FAO) forecasts that global meat consumption per capita will rise by 0.3% per year to 35.4 kg in retail weight equivalent (r.w.e.) by 2030. This represents an increase of 1.6 kg r.w.e. over the base period. More than half of this increase is attributed to increased per capita consumption of poultry meat. Similarly, as the population and urbanization increase, so will the demand for dairy and egg products.

In addition, livestock producers focus on improving their animals' health, productivity, and efficiency to meet the increasing demand for animal protein. Organic trace minerals, such as zinc, copper, and selenium, are essential for animal growth, reproduction, and immune function, resulting in higher feed conversion rates, milk yields, and meat quality.

Furthermore, studies have shown that organic trace minerals can improve animal performance and productivity compared to inorganic forms. For example, research published in the Journal of Dairy Science found that dairy cows supplemented with organic trace minerals had higher milk yields, better reproductive performance, and improved immune function than cows supplemented with inorganic minerals.

Global Animal Feed Organic Trace Minerals Market Restraints

Limited Availability of Raw Materials

The scarcity of raw materials for organic trace mineral supplements can significantly impact market growth, reducing production capacity, product availability, and cost-efficiency. One example of a challenge is obtaining organic ligands or chelating agents needed for mineral chelation, such as amino acids or peptides. For instance, due to their ability to form stable complexes with minerals, amino acids such as methionine, lysine, and glycine are frequently used as chelating agents in organic trace mineral supplements. 

However, high-quality amino acids suitable for mineral chelation can be limited, especially for specialty or pharmaceutical-grade amino acids used in animal feed applications. In the first quarter of 2023, amino acid prices rose in January but fell in February due to low demand and abundant global supply. Price increases resumed in the second quarter due to high demand. Prices rose steadily in September as demand in the feed sector increased and supply from significant producers decreased. 

Moreover, this scarcity can cause supply chain disruptions, price volatility, and higher production costs for manufacturers of organic trace mineral supplements. Raw material price volatility can impact profit margins and operational costs for companies in the natural feed-added organic trace minerals market, exposing them to financial risk. Furthermore, competition for raw materials from other industries, such as human nutrition, pharmaceuticals, and cosmetics, exacerbates the difficulty of obtaining a consistent and dependable supply of raw materials for animal feed applications.

Global Animal Feed Organic Trace Minerals Market Opportunity

Rising Consumer Demand for Organic Products

Rising consumer demand for organic products, including organic animal protein, represents a significant opportunity for the global animal feed organic trace minerals market. Consumers are increasingly looking for products that are perceived to be healthier, safer, and more environmentally sustainable, which has led to an increase in demand for organic and naturally sourced ingredients in animal feed and food products.

According to the Organic Trade Association's (OTA) 2023 Organic Industry Survey, total organic sales in the United States will reach a record USD 67.6 billion in 2023, including organic non-food products. This represents a significant increase over 2022 when organic food sales were USD 61.7 billion, and organic non-food sales were nearly USD 6 billion. This growth reflects strong consumer demand for organic products in various food categories, including meat, dairy, and eggs.

Similarly, organic trace minerals have several advantages over synthetic or inorganic mineral supplements for meeting the needs of organic animal production systems. Organic trace minerals are derived from naturally occurring sources and processed by organic certification standards, ensuring they meet the requirements for organic feed formulations. For example, Citadel Environmental Solutions, a provider of environmental health and safety consulting services, introduced Biocat OSAA 'L,' an organic surface active agent, in June 2022.

Furthermore, major retailers and food companies are expanding their organic offerings and sourcing ingredients from certified organic suppliers to meet consumer demand for organic products. This trend opens up opportunities for manufacturers and suppliers of organic trace mineral supplements to collaborate with these companies and capitalize on the growing market for organic animal feed ingredients.

Regional Analysis

The global animal feed organic trace minerals market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global animal feed organic trace minerals market shareholder and is estimated to grow at a CAGR of 7.9% over the forecast period. This is due to the presence of many manufacturers throughout the region. APAC has the highest animal feed demand for organic trace minerals, driven by a growing meat industry and key regional manufacturers. China is a major consumer and will lead the Asia-Pacific region in 2023. Demand for meat protein is increasing in the Asia-Pacific region, particularly in China, India, Malaysia, and Thailand, due to the region's rapid economic growth.

Additionally, meat consumption in Asia rapidly increases as incomes rise and dietary preferences change. The region will account for 52% of the global meat trade by 2030. The region's increased demand for meat protein has led to increased production and adoption of organic trace element feed, which is projected to grow significantly. Organic trace elements are becoming increasingly important in the region for improving meat quality by eliminating harmful inorganic alternatives and improving nutritional value. 

North America is anticipated to exhibit a CAGR of 8.1% over the forecast period. North America is expected to have a significant CAGR during the forecast period. This region is home to several major organic trace mineral producers, including Archer Daniels Midland Co., Alltech, and Cargill, Inc. One of the primary drivers of the animal feed industry in this region is the growing demand for meat, which raises the demand for organic trace minerals.

Furthermore, regulatory agencies in North America, such as the United States Department of Agriculture (USDA) and the Canadian Food Inspection Agency (CFIA), promote organic farming practices through certification programs and labelling. Organic trace mineral supplements must meet stringent organic certification requirements before being used in organic livestock production systems, ensuring compliance with organic standards and regulations. For example, the USDA's National Organic Program (NOP) sets standards for organic agricultural product production, handling, labelling, and feed ingredients like organic trace minerals.

Europe holds a significant market share. Organic and natural food products are becoming increasingly popular among European consumers due to food safety, environmental sustainability, and animal welfare concerns. This trend extends to animal products, resulting in increased demand for organic feed ingredients, including organic trace minerals. Furthermore, the demand for animal protein in Europe's food and beverage market is expected to rise in 2023 as people seek healthier options. The European Parliament's protein strategy predicts that protein demand in the EU will continue to rise globally. The strategy advocates for increased EU production and a more diverse food and feed supply chain.

Additionally, according to Rabobank, animal protein production in Europe is expected to increase by 0.5% in 2024, a slower rate than the 1% increase in 2023. According to Rabobank, poultry and aquaculture will be the only species with increased production in 2024, while beef and pork production will continue to decline. Thus, organic trace minerals are gaining recognition for their superior bioavailability and efficacy compared to inorganic forms, resulting in increased adoption in animal feed formulations.

Segmental Analysis

The global animal feed organic trace minerals market is segmented based on product and application.

The market is further segmented by product into Zinc, Iron, Copper, and Selenium.

The zinc segment dominated the market, accounting for 35% of revenues. Zinc is an essential trace mineral that regulates many animal physiological processes, including growth, immune function, reproduction, and metabolism. Zinc is commonly supplemented in animal nutrition to support overall health and performance, especially in young animals experiencing rapid growth and development. Zinc deficiency can cause poor growth, decreased feed efficiency, and an increased susceptibility to disease. Organic zinc sources, such as zinc methionine or zinc proteinate, have higher bioavailability than inorganic forms, ensuring optimal animal absorption and utilization.

Additionally, the segment's growth is attributed to its ability to boost animal immunity and metabolism. Zinc, copper, iron, selenium, manganese, and cobalt are essential minerals in livestock feed. The market for organic trace minerals in animal feed is expected to grow in response to rising global demand. 

The iron segment had the second-largest revenue share in 2023. Like zinc, iron is required for oxygen transport, energy metabolism, and cellular function in animals. Iron deficiency can cause anaemia, slowed growth, and impaired immune function. Iron supplementation in animal feed is critical, particularly for young animals with higher iron requirements for blood formation and tissue growth. Organic iron sources, such as iron glycine or iron proteinate, are preferred over inorganic iron supplements due to higher bioavailability and lower risk of gastrointestinal upset. Iron deficiency causes an imbalance in tissue metabolism, leading to anaemia. Growing awareness of the benefits of this essential micronutrient in animal feed is expected to drive up demand during the forecast period.

The market can be bifurcated by application into Dairy cattle, Poultry, Horses, and Pigs.

The poultry application dominated, accounting for 45% of revenue. Poultry production, which includes broilers, layers, and turkeys, relies on balanced nutrition to promote rapid growth, egg production, and immunity. Organic trace minerals are essential components of poultry feed formulations, helping to promote skeletal development, feather quality, and disease resistance. Zinc, copper, and selenium supplements improve poultry's bone strength, feather pigmentation, and antioxidant defences. Organic trace minerals are preferred for poultry diets because of their superior bioavailability and efficacy, resulting in optimal growth performance and egg quality in poultry flocks.

Additionally, the segment's growth is due to increased global consumption of meat products such as chicken, eggs, and turkey. Over the years, growing demand for animal protein sources has fueled the poultry market. In 2023, China slaughtered 16.82 billion birds, up 4.2% from the previous year. The country produced 25.63 million tons of poultry meat, up 4.9%, and 35.63 million tons of poultry eggs, up 3.1%. Growing markets in China and the United States have contributed significantly to this revival. This has increased the demand for animal feed and organic trace minerals. Organic trace minerals are fed to dairy cattle, poultry, horses, pigs, and other animals. Other applications include aquaculture and pet food. 

Pork is the world's second most consumed meat, after poultry. Swine production requires well-balanced nutrition to support growth, reproduction, and carcass quality. Organic trace minerals are critical for swine diets that improve performance and profitability. Zinc, iron, copper, and selenium are essential for pigs' bone development, immune function, and meat quality. It is considered a high-protein source. Growing demand for high-quality pork and rising pork consumption have long been major drivers of pork feed production. Pork is widely consumed in European and Asian Pacific countries because it is a good source of protein. 

Furthermore, African swine fever (ASF) is a highly contagious viral disease that can lead to 100% mortality in pigs. In 2023, six countries reported their first cases of ASF, while five countries saw the disease resurgence. As of June 2023, ASF had been confirmed in 23 European countries, with 18 Asian regions reporting the disease. ASF is not harmful to humans but can devastate pig populations and the farming industry. Disease outbreaks in this sector are common, making manufacturers and pork processors aware of the importance of high-quality feed containing trace minerals and other nutrients. 

Recent Developments

• April 2024- Alltech distributed and sold Agolin® directly in the United States and Canada, partnering with Feedworks USA.
• April 2024- ADM Animal Nutrition expanded the recall to include 17 more lots of chicken, swine, and rabbit feed products.