Animal Nutrition Market

Market Overview

The global animal nutrition market size was valued at USD 23.47 billion in 2023. It is estimated to reach USD 39.14 billion by 2032, growing at a CAGR of 5.85% during the forecast period (2024–2032). In recent years, there has been a rise in the demand for livestock-based products as they are rich in protein. This is expected to drive the demand for animal nutrition to produce healthy animals. A rise in the outbreak of animal diseases is further estimated to augment the market growth. Moreover, the market leaders are involved in various strategic initiatives to improve their presence in the market, which is estimated to generate market growth opportunities.

Animal nutrition studies how animals acquire and utilize nutrients to support their growth, reproduction, and overall health. Like humans, animals require a balanced diet of proteins, carbohydrates, fats, vitamins, minerals, and water to thrive. The process of animal nutrition involves ingestion, digestion, absorption, metabolism, and excretion of nutrients. Different species have varying dietary requirements based on age, size, activity level, and physiological status.

Key nutrients such as carbohydrates, proteins, fats, vitamins, minerals, and water are carefully considered to ensure animals receive the appropriate amounts for their physiological needs. Factors like age, breed, reproductive status, and environmental conditions are also considered when designing nutrition plans. By providing animals with proper nutrition, animal nutritionists enhance livestock productivity, maintain pets' health, and support conservation efforts for wildlife populations.

Highlights

• Amino acids dominate the nutrient type segment 
• Poultry dominates the species segment 
• Farms dominated the application segment
• Asia-Pacific is the highest shareholder in the global market

Market Dynamics

Animal Nutrition 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 nutrition 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 necessitates efficient and sustainable animal nutrition practices to meet the rising demand for high-quality protein sources.

Outbreaks of Animal Diseases

Over the past few years, there has been a rise in the global incidence of animal diseases. As per the World Organization for Animal Health (OIE), around 20% of farmed animals are lost yearly due to sickness. In addition, since the late 20th century, zoonotic diseases, which the WHO has identified, have increasingly become a threat to public health. Zoonosis may account for as much as 75% of newly emerging infectious diseases (EIDs). Annually, zoonoses result in 2.5 billion instances of human sickness and 2.7 million human fatalities worldwide.

Zoonoses encompass significant modern illnesses such as Ebola virus disease, salmonellosis, swine flu, bird flu, COVID-19, and others. HIV was formerly a zoonotic disease that was passed from animals to humans in the early 20th century. However, it has subsequently undergone evolutionary changes and is now exclusively a disease that affects humans. The prevalence of animal and zoonotic diseases contributes to the increased demand for feed additives or supplements to enhance disease resistance and mitigate production losses. This is estimated to drive the global animal nutrition market.

Animal Nutrition Market Restraint

Price Volatility of Raw Materials 

Price volatility of raw materials presents a significant restraint in the animal nutrition market due to its direct impact on production costs and pricing strategies. Raw materials such as grains, soybean meal, and fishmeal are essential components of animal feed, and their prices are subject to fluctuations influenced by various factors, including weather conditions, global supply-demand dynamics, and geopolitical tensions.

Sudden spikes in raw material prices can significantly increase production costs for feed manufacturers, leading to reduced profit margins or necessitating price adjustments that may affect market competitiveness. Moreover, the unpredictability of raw material prices makes long-term planning and budgeting challenging for market players, hindering investment decisions and strategic initiatives.

Animal Nutrition Market Opportunities

Strategic Initiatives by the Key Players 

The key market players are involved in several strategic initiatives like mergers and acquisitions, collaborations, expansions, and product innovation, amongst others. For instance, in August 2023, Berg + Schmidt - Animal Nutrition established a new subsidiary called Berg and Schmidt Middle East Trading LLC in Dubai. The company's strategic decision would enable it to meet the increasing demand for feed additives and provide clients with improved customer service in the Gulf Cooperation Council states (GCC).

Furthermore, in July 2023, Nuproxa Brasil, a business that specializes in natural solutions for animal nutrition and health, introduced NuxaFen® to the Brazilian market. This new product provides significant advantages in poultry and swine production. NuxaFen® is a product that is made from dried grape extract and has a large number of polyphenols, particularly proanthocyanidins. These polyphenols provide NuxaFen® a stronger antioxidant ability than synthetic vitamin E. Such initiatives create opportunities for market expansion.

Regional Analysis

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

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global animal nutrition market shareholder and is expected to expand substantially during the forecast period. The region encompasses 60% of the global population and includes China and India, the two most densely populated nations globally. The huge population size results in a swift surge in sustenance demand, propelling the livestock sector, encompassing poultry, cattle, swine, aquaculture, and other related industries. In Asia-Pacific, the overall sales value of poultry meat experienced a 12.13% increase in 2019 and has been growing at an annual rate of 5.56% from 2016 to 2021. The main reason for this growth was the increasing meat consumption in the region, especially in Southeast Asia and Oceania. Asia is projected to experience a surge in demand for chicken meat, reaching 154 million metric tons by the year 2031. Therefore, the expansion of the livestock sector necessitates the use of improved animal nutrition, thereby driving the regional market expansion.

Furthermore, the regional key players are involved in various strategic initiatives to thrive in the highly competitive market. For instance, in January 2024, ADM announced its intention to acquire PT Trouw Nutrition Indonesia, a subsidiary of Nutreco. PT Trouw Nutrition Indonesia is a prominent company in Indonesia that specializes in offering functional and nutritional solutions for cattle husbandry. Established in 2007, PT Trouw Nutrition Indonesia is a prominent maker of premixes, offering advanced and extensive nutrition solutions for the animal market. Their premix production facilities have advanced automation systems that incorporate intelligent process optimization. They have also implemented industry 4.0 technologies and possess expert project management and execution capabilities. Thus, the factors above are expected to foster regional market expansion.

The North American region is growing substantially. Individuals residing in the North American region have shown a growing inclination towards prioritizing the well-being of animals on par with their health concerns. Thus, the market players in the animal nutrition industry must provide extremely efficient feed to offer animals optimal nutrition. Moreover, the market players from other regions are expanding their footprints in this region via strategic initiatives. For instance, in February 2024, South Korea-based EASY BIO acquired a 100% stake in Devenish Nutrition LLC, a U.S. corporation specializing in feed additives, to strengthen its feed additive and premix business in North America. Specifically, the former's U.S. subsidiary, EASY BIO USA, took over Devenish Nutrition from its parent company, Devenish Holdings Ltd., located in Northern Island. This is predicted to boost the regional market expansion.

Segmental Analysis

The global animal nutrition market is segmented by nutrient type, species, and applications.

Based on nutrient type, the global animal nutrition market is divided into antioxidants, eubiotics, carotenoids, amino acids, fiber, enzymes, medicated feed additives, fatty acids, lipids, minerals, vitamins, and others. 

The amino acids segment owns the highest market share. These play a vital role in animal nutrition, serving as the building blocks of proteins necessary for growth, development, and overall health. In animal feed formulations, essential and non-essential amino acids are utilized to ensure balanced nutrition. Basic amino acids such as lysine, methionine, and threonine must be provided through diet, as animals cannot synthesize them sufficiently. The animal's body can synthesize non-essential amino acids like glutamine and glycine but may still be supplemented to optimize growth and performance.

Proper amino acid balance in feed is crucial for maximizing protein utilization, promoting muscle development, supporting immune function, and enhancing reproductive performance in various animal species, including poultry, swine, cattle, and aquaculture. Thus, understanding and optimizing amino acid composition in animal diets is essential for achieving optimal production and maintaining animal welfare.

Based on species, the global animal nutrition market is divided into poultry, ruminant, aquaculture, swine, and others.

The poultry segment dominates the global market. The term "poultry" describes domesticated birds, especially turkeys, ducks, chickens, and geese, that are raised for their flesh and eggs. These birds are vital to agricultural practices worldwide, providing a significant protein-rich food source. Poultry nutrition involves providing the right balance of nutrients such as proteins, carbohydrates, fats, vitamins, and minerals through formulated diets. These diets are made to meet the specific requirements of different stages of poultry growth, including starter, grower, and finisher phases. Statista reports that the global consumption of poultry meat in 2021 amounted to approximately 132.3 million tons, establishing it as the most prevalent meat type consumed globally. Furthermore, poultry is expected to represent 47% of the protein consumed from meat sources. This is expected to drive the segment's growth.

Based on application, the global animal nutrition market is bifurcated into veterinarians, animal feed manufacturers, farms, households, and others. 

The farm segment owns the highest market share. Animal nutrition is crucial in the well-being and productivity of farmed animals across various agricultural sectors. Proper nutrition ensures optimal growth, reproduction, and overall health. For instance, precise nutrition programs are developed in poultry farming to efficiently support egg production or meat yield. Similarly, dairy farming requires specific diets to maintain milk production and health.

Moreover, advancements in animal nutrition science have led to the development of specialized feeds and supplements, improving feed efficiency and reducing environmental impacts. Farmers can enhance animal performance, reduce disease risks, and increase profitability by optimizing nutrition. Thus, animal nutrition serves as a cornerstone in modern farming practices, ensuring the welfare and productivity of farmed animals.

Recent Developments

• February 2024- DSM-Firmenich declared its intention to commence a procedure to detach its Animal Nutrition & Health (ANH) division from the rest of the company. The Swiss-Dutch ingredients specialist states that its ANH business is influenced by distinct dynamics compared to the rest of the group.
• February 2024- Indutrade, a global technology and industrial business group, acquired ATLINE ApS, a company that designs and produces robotics for the pet food and animal feed sectors.