Eubiotics Market

Market Overview

The global eubiotics market size was valued at USD 4.87 billion in 2022. It is estimated to reach USD 10.49 billion by 2031, growing at a CAGR of 8.9% during the forecast period (2023–2031). The growing demand for meat and meat products and favorable regulatory scenarios stimulate eubiotics market growth.

Symbiotics or Eubiotics are a mixture of probiotics and prebiotics. Manufacturers and distributors of Eubiotics include feed mills, pre-mixers, and specialized distributors. Companies involved in Eubiotics production sell their products directly to consumers or integrated feed producers. The Eubiotics products reach the livestock producers in either case. The production of Eubiotics, such as organic acids, includes fermentation and chemical synthesis. Chemical synthesis is typically favored for animal feed applications such as silage and feed additives.

The availability of basic materials, agroclimatic conditions, regional regulations, etc., primarily influences Eubiotics prices. Due to the prevalence of price-conscious customers, the manufacturers compete based on pricing. The manufacturers are concentrating on process innovation and sourcing inexpensive raw materials to gain a competitive advantage in the eubiotics market. In addition, the rapid expansion of end-use applications such as feed and pharmaceuticals and the rising production of Eubiotics, likely to close the supply-and-demand gap, is anticipated to increase prices over the forecast period moderately. Eubiotics products such as prebiotics and probiotics are integral to the nutraceuticals' value chain.

Market Dynamics

Global Eubiotics Market Drivers:

Growing Demand for Meat and Meat Products

This trend is expected to continue over the forecast period due to factors such as changes in diet and food consumption patterns toward livestock derivatives and the growth of the global population. This situation has prompted participants in the livestock industry to optimize their resources to increase their output. Meat is considered an essential component of the diet because it contains numerous essential nutrients that are extremely beneficial to health. Meat and meat products contain growth- and development-promoting protein, micronutrients, and minerals. In addition, meat processing improves food safety, lowers costs, and extends expiration life.

Eubiotics optimize resources because it results in faster growth, a healthy balance of gut microflora, appropriate mineral absorption, and efficient vitamin synthesis. This results in increased production for livestock farmers, allowing them to meet the increasing demand for meat. Certain inherent advantages of Eubiotics are advantageous to livestock. Probiotics introduce advantageous microorganisms into the digestive tract. Prebiotics promote the development of beneficial bacteria in the digestive tract. The presence of organic acids inhibits bacterial proliferation. The health benefits of essential oils include the stimulation of digestive enzyme production and the fortification of the immune system.

Favorable Regulatory Scenario

The European Union has prohibited the use of antibiotics as growth promoters because animal meat poses health risks. This restriction has led to the use of probiotic alternatives, such as Eubiotics, which provide an effective, safe, and healthful alternative to antibiotics. The Eubiotics formic acid, lactic acid, sorbic acid, and fumaric acid stabilize health and improve performance. The European Union classifies and approves them as feed preservatives. Probiotics prevent pathogenic bacteria' attachment, reduce toxic amines' production, and enhance immunity.

Essential oil compounds, active ingredients in spices and plants, provide a viable alternative to antibiotics, enhancing gastrointestinal and digestive health. Due to rising demand and concerns about the quality of livestock, businesses are collaborating with research institutes to explore Eubiotics as an alternative. The market for Eubiotics is anticipated to expand due to extensive research and commercial experience.

Global Eubiotics Market Restraint:

Unbalanced Supply of Raw Material

The demand for eubiotics products, such as probiotics, prebiotics, organic acids, and essential oils, from applications such as food and beverages, cosmetics, and dietary supplements is anticipated to restrain eubiotics market growth. Essential oils are extracted from plant matter and are subject to stringent quality controls, which makes the scarcity of raw materials a significant obstacle for eubiotics manufacturers. The expiration life of raw materials is dependent on moisture, heat, and stability, and the quality of probiotics degrades when improper environmental conditions prevail.

The high demand for probiotic cultures from the food and beverage industry restricts their use in animal feed, as they require specific environmental conditions and lengthy development and commercialization processes. Companies have developed sophisticated extraction and manufacturing techniques to maximize the utilization of basic materials. Rising demand for Eubiotics in the animal feed industry compels major raw material producers to develop products such as organic acids for compound feed.

Global Eubiotics Market Opportunities:

Growing Demand for Natural Feed Additives

There has been an increase in the demand for natural and sustainable animal husbandry practices because consumers are becoming more mindful of the necessity to maintain a healthy lifestyle and are worried about the safety of the food supply. This is a direct result of the increased awareness that can be seen among consumers. Following this evolution, Eubiotics generated from natural sources, such as probiotics, prebiotics, and essential oils, give alternatives to conventional feed additives, such as antibiotics and growth stimulants, that are risk-free and beneficial to the ecosystem in which they are found. These Eubiotics can be found in conventional feed additives, such as probiotics, prebiotics, and essential oils.

Regional Analysis

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

Europe Dominates the Global Market

Europe is the most significant global eubiotics market shareholder and is estimated to exhibit a CAGR of 6.9% over the forecast period. The eubiotics market in Europe is expected to grow due to the increasing consumption of processed meat and livestock production in countries like Germany, France, and Italy. This demand for high-quality animal products is expected to drive the feed additives market, fueling the consumption of eubiotics ingredients in the feed industry. The poultry feed market accounts for a major share of the region's compound feed market, representing approximately one-third of the total compound feed market. The aquaculture industry in the region is also experiencing significant demand for chelated minerals due to the high consumption of seafood products.

Additionally, the European Commission reports that Italy, France, and Spain exhibit high expenditure on fish consumption, leading to a demand for aquafeed additives and zinc methionine chelates in feed formulations. Italy's aquaculture sector is characterized by modern techniques and industrialization, with the growing consumption of sea bass, sea breams, and White Sea breams boosting production. Market participants such as BioMar, Nutreco, and Provimi are expected to bolster aquafeed demand, driving the demand for eubiotics ingredients in the feed industry.

Asia-Pacific is anticipated to exhibit a CAGR of 7.4% over the forecast period. Rising production and export of feed additives to the region from important nations like China and Japan are projected to support market expansion. Zinc methionine chelates are generally employed in animals to improve health, boost reproduction, and lower the incidence of certain disorders. The need to focus on animal health and hygiene due to the region's increasing meat consumption has increased the need for feed additives. As a result, the market for zinc methionine chelates in the area is projected to develop as demand for feed additives increases. One of the key factors influencing the demand for animal feed and feed additives in the region is the increase in pig and beef consumption in China, Japan, South Korea, and India.

In North America, the growing demand for animal products and the quickly expanding animal feed sector contribute to the growth of the North American eubiotics market. Increased awareness of animal health due to expanding meat and meat-related product consumption in the United States, Canada, and Mexico has increased demand for animal feed products. However, the strict rules governing animal feed manufacture in North America are anticipated to impede industry expansion. Some top feed producers are based in the United States, including Cargill, Incorporated, Proxima North America, Inc., Alltech, ADM, and Land O'Lakes, Inc. In the upcoming years, the presence of significant players in the nation will further increase the growth prospects for the industry.

In Latin America, the increased consumption of meat and meat products is blamed for the market expansion. Among the top meat eaters in the area are nations like Brazil and Ecuador. One of the main producers and exporters of meat worldwide is Brazil. Significant meat eaters and consumers in the region include Argentina and Ecuador. The nation is constantly working to produce high-quality, disease-free beef products. Common illnesses like bovine spongiform encephalopathy (BSE), which can be dangerous for humans to consume, seriously threaten meat processors. One of the notable nations free of BSE is Argentina. The nation is also focusing on improving animal health and hygiene and meeting the nutritional demands of animals. As a result, the country's animal feed sector has grown, which has increased the demand for feed additives like eubiotics in animal feed formulations.

In the Middle East and Africa, growth is driven by rising meat consumption and the rapidly developing animal feed industry. Major meat-consuming countries include Saudi Arabia, the UAE, Egypt, Dubai, Oman, and Qatar, major meat processing centers. Most meat consumed in Saudi Arabia is poultry-sourced. However, most meat and meat products are exported from other countries due to inadequate processing facilities and underdeveloped feed-formulating industries. This lack of adequate animal feed production and the absence of players in the market provide opportunities for new players to produce and distribute functional animal feed ingredients like eubiotics domestically.

Segmental Analysis

The global eubiotics market is bifurcated into product, form, application, and end-user.

Based on the product, the global eubiotics market is bifurcated into probiotics, prebiotics, organic acids, phytogenic, and others (enzymes). 

The probiotics segment dominates the global market and is projected to exhibit a CAGR of 7.3% over the forecast period. Probiotics such as Enterococcus faecium are utilized in numerous animal applications, including maintaining gastrointestinal health and promoting immunity. Increasing awareness regarding the use of probiotics and competitive strategies adopted by major market participants to generalize the use of probiotics in animal feed are anticipated to drive segment growth. The increasing significance of animal proteins and the fortification of animal feed with bacteria that enhance the gut health of animals are anticipated to increase demand for prebiotics in animal feed. Including prebiotic ingredients in animal feed prevents the growth of harmful microbes and promotes the growth of beneficial microbes, thereby improving gastrointestinal health.

In addition, it improves an animal's performance by increasing the rate of feed conversion and daily weight gain, ultimately improving the animal's overall health. The use of prebiotics in animal feed is rigorously regulated globally, and all nations must adhere to the established rules.

The global market is segmented into liquid and solid based on form. 

The liquid segment dominates the global market and is predicted to exhibit a CAGR of 7.1% during the forecast period. The liquid form is gaining popularity among feed formulators because it contributes to increased performance and health of animals at a greater rate than solid forms and exhibits lower prices than solid formulations. This is because liquid forms contribute to enhanced performance and health of animals at a greater rate than solid forms. Additionally, the liquid form of these feed additives is chosen over the solid form because of its capacity to lower gastric pH and enteric infections, as well as because of the cost-effectiveness of the liquid form.

Currently, liquid forms are very popular among dairy products and beef producers in the major producing countries, such as the United States and Brazil. On the other hand, it is slowly gaining acceptance in several developing countries due to the greater focus those nations are placing on improving animal health.

Based on application, the global market is bifurcated into gut health, immunity, yield, and others. 

The gut health segment owns the highest eubiotics market share and is predicted to exhibit a CAGR of 7.1% over the forecast period. Eubiotics are mostly utilized to raise domesticated animals' health and productivity levels. The antibacterial actions and the product's capacity to change gut flora determine its effectiveness. Beta-glucan, fructo-oligosaccharide, mannan-oligosaccharide, probiotics, and prebiotics are all known to improve gut health. A class of polysaccharides called beta-glucan is generated by fungus or yeast. Animals are given it to have an immunomodulatory impact and as an antibiotic substitute. Many different beta-glucan dietary supplements are on the market, including powder, chewable tablets, and liquid. Attaching to their receptors activates white blood cells and macrophages' antimicrobial and anti-tumor defense mechanisms. Beta-glucan is commonly found in baker's yeast, which is also utilized as a cheap ingredient in animal meals.

Additionally, beta-glucan derived from yeast has more active links than beta-glucan derived from mushrooms, which is why it is used in veterinary supplements. Due to the use of technology based on algae to extract beta-glucan, the sector has shown signs of increased demand. The demand for beta-glucan as a gut health enhancer is anticipated to increase throughout the forecast period due to the prevalence of gut health problems in animals and a growing preference for preventative healthcare.

Based on end-users, the global market is divided into cattle feed (dairy, meat), poultry feed, swine feed, aquatic, and others. 

The poultry segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 7.2% over the forecast period. The increase in demand for meat and poultry products worldwide is responsible for the expansion. The poultry segment includes, among other things, chicken, duck, turkey, and boilers. Chicken meat is the most popular since it is inexpensive compared to other meats, has a low-fat content, and is consumed with fewer religious and cultural restrictions. According to USDA research, the United States, China, and Brazil are some of the top consumers of chicken meat, with consumption totaling 19,941, 13,750, and 13,690 thousand metric tons, respectively. Additionally, there is a significant demand for chicken meat and poultry eggs in developing nations due to growing urbanization, improved lifestyles, and rising incomes.

As a result, poultry producers are forced to concentrate on maintaining animal health. Feed additives like zinc methionine chelates have significantly expanded in poultry feed compositions. Ingredients from eubiotics are frequently used in feed formulations to boost defenses, promote gut health, lessen oxidative stress, and increase output. Although the species only needs a minimal amount of each, their absence can result in poor performance, slow reproduction, and higher mortality rates.

Recent Developments

• July 2021- Koninklijke DSM NV (Royal DSM) acquired Midori USA Inc., a start-up company primarily involved in developing targeted eubiotics that improve the environmental impact and health of the animals. The company introduced a new technology that recognizes glycans sourced from natural food sugar and modulated how the microbiome in the gut functions in animals. The glycans help provide a consistent and effective impact on the gut health of animals, further leading to improved animal health and enhanced nutrient usage from the feed.
• December 2021- Novus International partnered with Agrivida, a US-based biotechnology company, for R&D collaborations. Through this partnership, the company will explore possibilities in new product developments, which may drive the company’s eubiotics business.