The Global Essential Oils and Plant Extracts for Livestock Market size is projected to grow at a CAGR of 2.9% during the forecast period.
Essential oils and plant extracts are consistently being incorporated in the animal feed as an important ingredient. Plant extracts help in improving the quality of feed, which enhances the health performance of animals. Essential oils are highly concentrated compounds that are obtained from plants with a specific scent, which is why they are extensively used in aromatherapy.
Plant extracts are enriched with proteins, peptides, vitamins, micro minerals, fatty acids, and oligosaccharides. The extracts, including capsicum, clover, and cinnamon, benefit animals by improving average daily gain and feed conversion rates. In addition, it is considered that feeding natural extracts to cow helps in reducing dairy farm odor and overall feed costs. Moreover, favorable government regulations, such as a ban on the use of antibiotics in the U.S. and Europe,are expected to unlock new opportunities for substitute products.
The consciousness regarding the health and wellness of the animals across the globe is rising, which is further driving the demand for the best quality fodder. Consumers are inclined towards feeding their animal’s high nutrient food, such as essential oils and plant extracts. These extracts help to cure reduced appetite and diarrhea, among others. Various diseases among animals, such as lumpy skin disease, Newcastle disease, Q fever, Brucellosis, African swine fever, Bovine Viral Diarrhea (BVD), HaemophilusSomnus, and Infectious Bovine Rhinotracheitis (IBR), are emerging as a critical issue, which is further driving the market growth.
The plant extract segment holds the largest market share on account of its ready availability and rising awareness among consumers. Plant extracts, such as natural extracts, phytochemicals, flavors and fragrances, and spices, are a rich source of phytochemicals, which enables them to resists attacks by insects and microorganisms. These extracts offer good growth-promoting effects on animals and are consistently replacing antibiotic growth promoters in livestock.
Essential oils are obtained from plants and have several health benefits for humans and animals. These oils have therapeutic properties and are extensively used for aromatherapy to treat farm animals. However, due to lack of availability and high price, the demand for essential oils is comparatively less. Essential oils are concentrated and have more aroma than extracts, which can harm the livestock. Apart from this, the mixture of essential oils and plant extracts are used as feed additives in the fodder to improve performance in the livestock, further driving the segment growth.
Source: RM Analysis, Secondary Research
The poultry and cattle feed segments held around half of the market shares in 2019, on account of the rising population and surging demand for milk and milk products across the globe. Farmers are actively working to provide products that enhance the performance and production of milk, which is further raising the demand for essential oils and plant extracts. The poultry industry, on the other hand, is growing at a fast pace across the globe, owing to the increasing consumption of chicken in the consumer’s diet and dietary supplements. The demand for poultry products is increasing mainly from the bodybuilding and health and fitness sector, further driving the market growth.
Asia-Pacific holds the largest market share as the region is backed by the presence of leading countries, such as India, China, and Japan, and ranks highest in livestock production. In India, the agriculture sector contributes around 70% of the country’s source of income. Moreover, Australia and New Zealand are emerging as the leading milk and dairy products producing countries. The first A2 milk company was also established in New Zealand. In addition, China leads the global meat market, and it is the largest consumer as well as producer of meat in the world, which is further driving the market growth.
North America’s essential oil and plant extracts market is largely driven by the increasing consumption of meat products in the U.S. The country is the leading contributor and holds around 60% of the market share in the region. Rising animal health and wellness awareness in the region has surged the demand for high nutrition products, further driving the market growth.
Source: RM Analysis, Secondary Research
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