Animal Feed Phytase Market

Market Overview

The global animal feed phytase market size was valued at USD 570.42 million in 2023. It is estimated to reach USD 1,002.32 million by 2032, growing at a CAGR of 6.7% during the forecast period (2024–2032). The global animal feed phytase market is primarily boosted by the rising demand for livestock products worldwide. The rising focus on the reduction in the use of antibiotics in the livestock industry, owing to its negative impact on animal health, is further estimated to augment the global market expansion. Moreover, there has been a rise in research and development initiatives to learn more about the phytase enzyme, which is anticipated to create opportunities for market expansion.

Animal feed phytase is an enzyme used in livestock and poultry feed to improve phosphorus utilization and reduce environmental pollution caused by phosphorus excretion. Phytase breaks down phytate, a form of phosphorus found in plant-based feed ingredients, into inorganic phosphorus, which animals can absorb more efficiently.

By enhancing phosphorus availability, phytase promotes better bone development, growth, and overall health in animals, leading to improved feed conversion and reduced reliance on inorganic phosphorus supplements. This enzyme is particularly crucial in monogastric animals like pigs and poultry, which cannot utilize phytate-bound phosphorus. The use of animal feed phytase not only enhances the nutritional value of feed but also contributes to sustainable farming practices by reducing the environmental impact of phosphorus runoff from animal waste into water bodies.

Highlights

• Powder phytases dominate the type segment
• North America contributed to the largest market share

Market Dynamics

Animal Feed Phytase Market Drivers

Growing Demand for Livestock Products

The escalating demand for livestock products, such as meat, eggs, and dairy, is a key driver propelling the animal feed phytase market. As the global population burgeons, there's an amplified need for efficient livestock production. Global meat production has experienced a significant boost during the past 50 years. Since 1961, the total production has increased by over four times. According to FAO, global meat output was 70.57 million tonnes in 1961 and climbed to 352.13 million tonnes in 2021.

Moreover, according to a research article in Elsevier, the anticipated rise in global per capita demand for livestock-derived foods in 2050 is forecast to be 14% higher than the levels recorded in 2020. The statistics above illustrate a significant increase in the demand for products derived from livestock, which can only be met by producing animals in good health. This rising demand underscores the significance of phytase as a vital component in animal feed formulations to meet the increasing requirements of the livestock industry.

Health Concerns and Antibiotic Reduction in Animal Production

Antibiotics have been used in animal feed for almost half a century. Antibiotics were commonly administered in animal feed at varying dosages of 2 to 50 grams per tonne to enhance animal performance. However, there has been a global drop in the use of antibiotics in animal feed over the past decade due to many factors. Following a course of antibiotics, livestock harbors antibiotic-resistant bacterial strains. A resistant strain of these bacteria is transmitted to other animals due to their rapid multiplication.

Furthermore, the World Health Organization (WHO) asserts that consumers and the food industry should stop administering antibiotics to promote accelerated growth and prevent animal illness. The guidelines have the objective of maintaining the efficacy of antibiotics. Thus, the shift towards reducing antibiotic usage in animal production, driven by concerns over antibiotic resistance, significantly influences the animal feed phytase market.

Phytase aids in improving gut health and overall immunity in animals, thereby reducing the reliance on antibiotic growth promoters. This trend aligns with consumer demands for safer and more sustainable animal products, prompting producers to seek alternative solutions like phytase to enhance animal health and performance while minimizing antibiotic use.

Animal Feed Phytase Market Restraint

Regulatory Restrictions 

Regulatory restrictions pose a significant restraint on the animal feed phytase market. Governmental agencies impose stringent feed additive regulations for animal, human, and environmental safety. Compliance with these regulations necessitates extensive testing, documentation, and approval processes, which can be time-consuming and expensive.

Furthermore, differing regulatory standards across regions and countries create additional complexities for manufacturers seeking to market phytase globally. Restrictions may limit the types of phytase formulations or dosage levels permitted, constraining product innovation and market expansion. Moreover, changes in regulations or the introduction of new requirements can disrupt existing manufacturing processes and distribution channels, impacting supply chain efficiency.

Animal Feed Phytase Market Opportunities

Rise in Research and Development

Ongoing research in animal nutrition continually identifies new ways to enhance feed efficiency and animal health. Thus, there has been a rise in the research on feed phytase. For instance, in April 2018, NCL researchers identified the yeast strain Saccharomyces cerevisiae (NCIM 3662), which can effectively dephytinize the phytate to free phosphorus and possess probiotic properties. "Saccharomyces cerevisiae is a well-studied yeast and has been used as a probiotic for decades. The probiotic property and phytase-producing ability of yeast can be exploited in the deproteinization of food and animal feed", said Dr. Mahesh Dharne, who led the research team.

Moreover, the team isolated the yeast strain from rhizosphere soil and screened its phytase activity. The phytase production process was scaled up to a 10-L fermenter scale. S. cerevisiae strain reported by us has high cell-bound phytase producers with the activity of 164 IU/DCG (International Units/Dry Cell Gram) compared to other phytase-producing probiotic yeasts. This research is projected to generate opportunities for vendors operating in the animal feed phytase market, as it can help develop novel products.

Regional Analysis

Based on region, the global animal feed phytase market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America Dominates the Global Market

North America is the most significant global animal feed phytase market shareholder and is expected to expand substantially during the forecast period. The market's growth will be driven by the region's increasing per capita meat consumption and the stringent regulations governing meat quality. The market expansion in the United States is expected to be stimulated by the presence of major market players such as Kent Nutrition, Archer Daniels Midland, Cargill Incorporated, and others. Moreover, the North American market is experiencing significant expansion due to the increasing demand for meat. According to the FAO, meat consumption in the North American region increased from 19.58 million tonnes to 65.09 million tonnes in 2021. Similarly, according to a report by Statista, North America had the highest per capita meat consumption from 2020 to 2022, averaging 78.6 kg per person.

Furthermore, the existing infrastructure in the region has also played a role in the heightened animal feed production. This is additionally reinforced by the region's firmly established existence of feed producers. The American Feed Industry Association reported that there were around 5,715 animal feed mills in the United States as of 2017. This number is expected to rise in response to the augmented demand for meat, milk, and dairy products. Similarly, the Animal Nutrition Association of Canada has calculated that Canada's yearly feed production exceeds 30 million tons. The commercial feed business generates an annual net revenue of approximately USD 4 billion. These factors are estimated to drive the North American animal feed phytase market.

Asia-Pacific is expected to grow at a significant pace. There has been a growing emphasis on the health of animals, which has led to the ban of antibiotics in several countries in this region. For instance, in 2018, The Chinese government initiated a pilot initiative to eradicate antibiotics in livestock feed by 2020. Implementing this new legislation is expected to significantly affect the feed sector in the country and stimulate growth in the Asia-Pacific animal feed phytase market.

Furthermore, the prominent market players are introducing novel feed phytases in this region. For instance, in March 2019, BASF introduced Natuphos® E, the latest phytase version designed for the Indonesian feed industry. BASF, the pioneer in introducing a phytase for animal feed over 27 years ago, has once again established a new benchmark in feed phytase technology by developing a unique hybrid bacterial 6-phytase. Natuphos E exhibits exceptional stability both in premix and during the rigorous pelleting process, even at pelleting temperatures as high as 95°C. It maintains its stability for a shelf-life of 18 months. This is estimated to create opportunities for market expansion.

Segmental Analysis

The global animal feed phytase market is bifurcated into types and applications.

Based on the type, the global animal feed phytase market is segmented into granular phytases, powder phytases, liquid phytases, and thermostable phytases. 

The powder phytases segment dominates the global market. The dominance of the powder phytase segment can be attributed to its numerous advantages in enhancing animal nutrition and production efficiency. The powdered nature of powder phytases facilitates easy and accurate mixing into feed formulations, ensuring uniform distribution throughout the batch. This homogeneity optimizes the enzyme's activity, leading to consistent and predictable results in improving animal phosphorus utilization and overall nutrient absorption. Moreover, the powdered form offers better stability and prolonged shelf life than liquid or granular formulations, reducing the risk of enzyme degradation and loss of efficacy over time.

Additionally, powdered phytase allows for flexible dosing adjustments to meet specific nutritional requirements of different animal species and production stages. Its concentrated form also reduces transportation costs and storage space requirements. Therefore, powder form animal feed phytase provides convenience, efficacy, and cost-effectiveness, contributing to improved animal health, growth performance, and environmental sustainability in livestock production systems.

Based on the application, the global animal feed phytase market is bifurcated into swine, poultry, ruminants, aquatic animals, etc.

Animal feed phytase is used in the poultry industry primarily to enhance the digestibility of phosphorus in poultry diets. Supplementing poultry diets with phytase increases the release of phosphorus from phytic acid, improving its availability for absorption by birds. This results in better growth performance, bone development, and overall poultry health while reducing the environmental impact of phosphorus pollution from poultry waste. Moreover, there is an increasing global demand for poultry meat. Statista reports that global consumption of poultry meat reached approximately 132.3 million tons in 2021, establishing it as the most widely consumed meat type globally. This is expected to boost the segment growth.

Recent Developments

• March 2024- Isobionics®, a brand of Aroma Ingredients owned by BASF, introduced a novel natural product to the flavor industry.
• July 2023- Danisco Animal Nutrition & Health, a division of IFF, received approval for the use of its highly effective phytase enzyme, Axtra® PHY GOLD, in animal feed within the European Union.