Feed Binders Market is Anticipated to Touch a CAGR of 3.8% During the Forecast Period (2021-2031).
Find binders are mostly employed in holding together different feed components and are made up of plants and cereals. Feed binders play a key role in animal nutrition and help in increasing the gut health of animals, mitigate antibiotic growth promoters(AGP), and improve digestion and other benefits sustainably. Feed binders are also used to bind feed into various compact pellets of food that help reduce dust, waste, and bulkiness of feed by 15 to 18%.
Growing population, increasing disposal income, and surging investments by key market participants in research and development to create superior feed binders are projected to create upswings for market growth. However, fluctuations in the raw material prices due to trade wars, macro-economic factors, and the recent pandemic are projected to have a considerable effect on the market growth in the coming future.
Meat consumption is associated with higher incomes and a shift in food consumption patterns due to rapid urbanization. Increasing demand for more protein-rich diets has nudged the consumers into consuming more meat. A significant increase in demand for pork is witnessed in North America, Europe, and Asia-Pacific. As per the U.S. International Trade Commission, the U.S. is the world’s third-biggest producer of pork and tops in the export.
China, on the other hand, is the largest producer and consumer of pork. The demand for meat has doubled in the past 30 years by almost four-fold since the 1960s. The production and consumption are expected to grow and reach a volume of around 570 million by the year 2050. Growing consumer awareness about well-reared meat has increased the demand for feed binders that help in sustainably growing healthy animal stock. Hence, the growth of the meat industry is key to the growth of the feed binders market.
Figure 1: Top Meat Consumption Countries Globally
Source: The World Counts
The dairy industry is primarily a supplier’s market, where the demand usually exceeds the supply. The demand for dairy is growing at an average of 2.7% per year. As per the Food and Agriculture Organization of the United Nations (FAO), the global milk output was estimated to be 843 million tonnes, which is an increase of 2.2% as compared to 2017. This increase in production can be primarily attributed to economies, such as Turkey, India, the European Union, Argentina, the U.S., and Pakistan. However, the growth rate was restricted by China and Ukraine, owing to the downscaling of small-scale farms and the reduction in producer margins in the countries, respectively.
In addition to this, there has also been a considerable increase in demand for meat and other products, which is projected to lead to an increase in cattle farming activities, further driving the number of cattle population and boosting the growth of the feed binders market. For instance, globally, the number of cattle (in a million head) was around 975 in the year 2016 and is expected to reach over 1,005 in the year 2019.
Several global authorities are actively involved in investing in livestock farming and spreading sustainable practices with regards to cattle breeding around the globe, especially in developing countries. For instance, the World Bank has around USD 1,400 million worth of active investments in livestock, most of which are in Africa and South Asia, which are home to major emerging economies around the globe. All these factors are likely to create upswings for feed binders market growth during the forecast period.
The growing demand for a protein-rich diet due to numerous essential nutrient deficiencies is nudging the growth of meat consumption and the growth of feed binders for livestock. Increasing disposal incomes, surging demand for dairy products, and the growing popularity of super diets, such as the keto diet, are propelling the market growth for feed binders. As per the Australian Department of Agriculture, the global meat consumption increased by around 60%, and China’s consumption surged by around 71%, which also accounts for around 34% of the total global consumption.
The market in China and India is driven by an expanded dairy herd to improve milk collection systems and higher productivity, leading to significant consumption of feed additives for the diets of the cattle. For instance, as per the Department of Animal Husbandry and Dairying, the 20th livestock census showed that the total livestock population increased by 4.6% from census-2012 and reached 535.78 million in 2019. The total bovine population (Cattle, Buffalo, and Yak) reached 302.79 million in 2019, a 1% increase from the last census. Also, the number of sheep and goats witnessed a significant growth of 14.1% and 10.1%, respectively, from the previous year's census.
The livestock sector, over the past few decades, has been undergoing significant change at an unprecedented rate due to rising demand for meat and dairy products from emerging economies in Asia-Pacific, and their burgeoning urban middle-class population. In addition to this, livestock contributes around 40% of the global value of agricultural output. It is one of the primary factors in supporting the needs of around 1.3 billion people involved in livestock farming. This presents a significant number of opportunities for the growth of the feed binders market.
However, the recent coronavirus pandemic has caused disruptions in the global economy and affected all industries. This has led to a decrease in the export demand for meat and is projected to affect the feed binders market in the coming future.
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