Feed Mycotoxin Binders and Modifiers Market

Market Overview

The global feed mycotoxin binders and modifiers market size was valued at USD 2.18 billion in 2022. It is estimated to reach USD 3.23 billion by 2031, growing at a CAGR of 4.5% during the forecast period (2023–2031). There has been a surge in the cases of mycotoxin infection in agricultural crops across the globe, which has a deteriorating effect on animals and human health. To prevent this infection, there has been an increased demand for feed mycotoxin binders and modifiers, thereby driving the global market growth. Moreover, the surging demand for livestock-based products worldwide is also increasing the demand for mycotoxin binders and modifiers to manufacture high-quality feed.

The term "mycotoxin" is etymologically derived from the Greek words "mykes," which translates to fungi, and "toxicon," which denotes poison. Feed mycotoxin binders and modifiers are additives that mitigate the harmful impacts of mycotoxins in animal feed. Mycotoxins, which are hazardous compounds generated by specific fungi, have the potential to damage a wide range of commodities, such as grains and forages.

Mycotoxin binders are chemical compounds specifically formulated to obstruct the absorption of mycotoxins into the circulation by adsorbing or binding them in the gastrointestinal tract of animals. Similarly, mycotoxin modifiers are additives designed to reduce the toxicity of mycotoxins through detoxification or modification of their chemical structure. Generally, they comprise particular enzymes or microorganisms that can degrade mycotoxins or convert them into compounds with reduced toxicity.

Market Dynamics

Global Feed Mycotoxin Binders and Modifiers Market Drivers:

Rising Mycotoxin Infection

There exists a multitude of more than 200 distinct kinds of molds that possess the capability to generate mycotoxins. Aflatoxins (AF), zearalenone (ZEN), ochratoxin A (OTA), fumonisins (FUM), and trichothecenes are among the mycotoxins that can exert substantial effects on the health and productivity of livestock species. The Food and Agriculture Organization (FAO) reported that 25% of global agricultural products are contaminated with mycotoxins. This contamination can occur before, during, and even after harvest while the crops are still in the field. This suggests that mycotoxins are ubiquitous, existing in both stored food substances and improperly preserved food. Fungal proliferation can result in the formation of mycotoxins when food substances are not adequately preserved.

Additionally, mycotoxins have the potential to arise naturally, facilitating their presence in human environments and rendering them hazardous. The ingestion of mycotoxin-contaminated feed by animals can result in a multitude of health complications and a decline in overall productivity. Thus, the demand for feed mycotoxin binders and modifiers is increasing globally to control this harmful effect of mycotoxin infection.

Growing Demand for Livestock Products

The production of meat on a global scale has increased substantially over the last 50 years. Since 1961, total production has increased by more than fourfold. For instance, according to FAO, the total production of meat worldwide in 1961 was 70.57 million tonnes, which has increased to 352.13 million tonnes in 2021. Similarly, according to a research article in Elsevier, the projected increase in worldwide demand for livestock-derived foods per capita in 2050 is estimated to be 14% higher compared to the levels observed in 2020.

The abovementioned statistics depict an enormous surge in the demand for livestock-based products, which can only be fulfilled by producing healthy animals. Animal health and well-being majorly depend on the feed they consume; hence, it becomes mandatory to feed these animals with high-quality, nutritional feed. Mycotoxin is one type of fungal infection that feed producers must guard against to create high-quality feed, which is predicted to accelerate the expansion of the global market.

Global Feed Mycotoxin Binders and Modifiers Market Restraint:

Unintended Consequences of Mycotoxin Binders and Modifiers

The functionality of mycotoxin binders in feed varies due to their distinct properties. Each binder possesses a distinct binding capacity that varies depending on its origin; for instance, two clay products belonging to the same family of bentonites may exhibit dissimilar levels of efficacy. Some places, such as the European Union (EU), limit the amount of clay allowed in feed to 2% so that it can effectively bind aflatoxin B1. Nevertheless, the potential for binding with the preexisting nutrients in the feed persists, even at reduced inclusion levels. The unintended consequences of this binding phenomenon diminish the efficacy of combating mycotoxins and potentially impede the accessibility of vital nutrients necessary for livestock growth and production. These factors restrain the market growth.

Global Feed Mycotoxin Binders and Modifiers Market Opportunities:

Strategic Initiatives by Key Players

The key players in the market are consistently involved in strategic initiatives like product launches and mergers and acquisitions (M&A) to boost their market share. For instance, in November 2019, Cargill Animal Nutrition and Health introduced a mycotoxin binder called Notox Ultimate Pro. This product aims to assist pig producers in successfully addressing the issues associated with mycotoxin contamination in feed ingredients and straws. According to the company's statement, the newly developed mineral feed exhibits remarkable binding properties and can promote growth even under challenging circumstances.

Furthermore, in October 2020, Royal DSM, a worldwide scientific organization specializing in Nutrition, Health, and Sustainable Living, declared the acquisition of Erber Group for an enterprise value of EUR 980 million. DSM acquired the Biomin and Romer Labs of Erber Group. Biomin, an animal nutrition and health division of Erber Group, is principally concerned with the management of mycotoxins and the performance of gastrointestinal health. In contrast, Romer Labs is primarily concerned with developing food and feed safety diagnostic solutions. Both broaden DSM's selection of specialized solutions with increased value-added. Such initiatives by key players are expected to generate opportunities for market growth.

Regional Analysis

North America Dominates the Global Market

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

North America is the most significant global feed mycotoxin binders and modifiers market shareholder and is expected to expand substantially during the forecast period. The region's expanding per capita meat consumption and rigorous meat quality regulations will contribute to the market's expansion. It is anticipated that the presence of key market participants such as Archer Daniels Midland, Kent Nutrition, Cargill Incorporated, and others in the United States will stimulate market growth. In addition, the North American region is growing significantly because of the rising meat consumption. For instance, according to FAO, the meat consumption in the North American region was 19.58 million tonnes, which surged to 65.09 million tonnes in 2021. Similarly, according to a statistic published by Statista, North America had the highest per capita meat consumption between 2020 and 2022, with an average of 78.6 kilograms per person.

Furthermore, 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. Therefore, the market players in the animal feed industry must provide extremely efficient feed to offer animals optimal nutrition. As a result, the market for feed mycotoxin binders and modifiers is experiencing growth in the region.

The Asia-Pacific market is expanding due to soaring disposable income, increasing urbanization, and shifting consumer tastes toward natural and organic goods. The presence of nations like India, China, Japan, and Australia is driving the organic feed additives market in the region. The hot and humid climate prevalent in growing economies like India and China provides a suitable environment for fungus growth. Mycotoxins do not undergo growth; rather, the fungi (molds) responsible for their production flourish under such conditions. In the All India Weather Summary and Forecast bulletin released by the India Meteorological Department, it was observed that a majority of India, specifically 22 states and Union Territories, encountered maximum temperatures that exceeded the normal range in April 2023. These factors are estimated to augment the regional market growth.

Segmental Analysis

The global feed mycotoxin binders and modifiers market is segmented by type, source, and livestock.

Based on type, the global feed mycotoxin binders and modifiers market is bifurcated into feed mycotoxin binders and feed mycotoxin modifiers. 

Mycotoxin binders, alternatively known as mycotoxin adsorbents or mycotoxin sequestrants, are compounds or substances employed in animal nutrition to alleviate the harmful impacts of mycotoxins. Mycotoxin binders inhibit the absorption of mycotoxins into the bloodstream and mitigate their deleterious effects by adhering to these toxins in the digestive tract of animals. The binding process exhibits reversibility, and upon binding to the binder, the mycotoxins are eliminated from the body via excretion.

Bentonite clay, modified clays, activated carbon, silicates, aluminosilicates, and yeast cell walls are prevalent mycotoxin binders. Moreover, it is important to note that the effectiveness of different mycotoxin binders might vary. Therefore, it is essential to carefully choose the appropriate binder based on the specific mycotoxin challenge that a particular group of animals may face.

Based on source, the global feed mycotoxin binders and modifiers market is segmented into inorganic and organic. 

Natural or organic substances supplemented into animal feed with organic feed mycotoxin binders and modifiers alleviate the harmful impacts of mycotoxins. A limited selection of organic mycotoxin modifiers and binders comprise yeast-derived substances, mannan oligosaccharides (MOS), activated charcoal, etc. Additional investigations have been undertaken to ascertain the potential efficacy of particular botanicals and spices, such as oregano, turmeric, and garlic, in lessening the impact of mycotoxins in animal feed. Moreover, in organic animal production, organic feed additives must comply with the norms and criteria set forth by organic farming practices.

Based on livestock, the global feed mycotoxin binders and modifiers market is divided into ruminants, swine, poultry, aquatic animals, and others.

The primary objective of mycotoxin binders and modifiers is to mitigate the adverse impacts of mycotoxins by bolstering the overall well-being and immune response of pigs. Antioxidants like vitamin E, vitamin C, and selenium have been shown to possess the ability to alleviate the oxidative stress induced by mycotoxins. Certain products, such as beta-glucans or mannan-oligosaccharides (MOS), can enhance the pigs' immune system and serve as effective moderators of mycotoxins. In addition, the global production of pigmeat has constantly been rising. The pigmeat production reached 120.37 million tonnes in 2021 from 24.74 million tonnes in 1961. It has grown 4-5-fold. This increase in the demand for pigmeat drives the swine segment growth in the global market.

Recent Developments

• April 2022- A novel mineral-based mycotoxin binder, Animax, was introduced by the Manaseer Group of Jordan. It is composed of hydrated sodium aluminosilicate (HSCAS) combined with 74 distinct rare earth elements (REE).
• February 2023- National Agricultural Advisory Research Organization (NARO) scientists created a viable remedy for aflatoxins. Dr. Ambrose Agona, director general of NARO, asserts that the organization has patented and developed the "NARO Aflatoxin Binder" and "Aflasafe" products.