The Total Addressable Market (TAM) for feed phytogenic was valued at USD 780 million in 2022. It is estimated to reach USD 1386.47 million by 2031, growing at a CAGR of 6.60% during the forecast period (2023–2031). Feed phytogenic is a mix of plant-based ingredients that are added to an animal's diet for several reasons, such as to kill germs, make the animal's food easier to digest, or make the animal perform better. Many different bioactive properties of these substances are known to exist. Water or feed are two ways to administer phytogenic feed to an animal.
Feed Phytogenic is available in dried, strong, and ground form, extracted from essential oils. Encapsulation is a technological advancement that makes feed phytogenics last longer and protects them from significant changes in the weather. The sales of phytogenic feed are going through the roof because it makes animals work and perform better and is suitable for their health. More livestock producers are asking for higher feed conversion rates and additives free of antibiotics.
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Increasing Demand for Natural Feed Additives
Natural feed additives like feed phytogenic help animals grow, stay healthy, digest, absorb, and use the nutrients they eat. They influence physiological functions like stress tolerance, immune response, and reproductive health. These compounds come from plants and are added to animal feed to improve livestock production by changing how the feed works and making the animals more productive. Additionally, because feed phytogenic contains various active principles, it also imparts distinct flavors or scents to the feed.
Dietary palatability is influenced by the well-known flavoring properties of feed phytogenic. They have various biological effects that could influence gut health and enhance performance. The fact that many nations have banned antibiotics has caused livestock feeders to pay close attention to the compounds derived from plants. In addition, the broad availability of goods from various producers is anticipated to fuel demand for feed phytogenic in the global market. The demand for natural feed additives is driven by the many benefits they have for the health and growth of livestock and by the fact that more people want plant-based or natural feed additives.
Negative Preference towards Feed Antibiotics
Animal feed has included antibiotics for more than 50 years. Antibiotics were regularly used in animal feed at rates ranging from 2 to 50 grams per tonne to improve animal performance. However, for several reasons, antibiotics in animal feed have declined globally over the past ten years. After being fed antibiotics for a period, livestock retains bacteria strains resistant to the antibiotics. These bacteria multiply rapidly, and the resistant bacteria are transmitted to other animals. In addition, the World Health Organization (WHO) states that consumers and the food industry should stop using antibiotics to make healthy animals grow faster and keep them from getting sick. The guidelines aim to preserve the effectiveness of antibiotics.
On the other hand, the European Union banned antibiotics as growth promoters from 2006 onward. The antibiotic ban in livestock production is expected to increase the use of antibiotic substitutes. Feed phytogenic is one of the major substitutes for feed antibiotics. Many developing and underdeveloped economies have banned antibiotics in animal feed over the last few years. The aforementioned elements are anticipated to propel the global feed phytogenic market's expansion during the anticipated time frame.
Availability of Substitutes
Farmers and livestock growers are increasingly interested in feed containing phytogenic ingredients to improve feed quality. However, several substitutes are available on the market, such as probiotics, prebiotics, additives, and enzymes. Probiotics used in animal feed are globally referred to as "direct-fed microbial" (DFM). It refers to feeding beneficial microbes to livestock to improve their health. DFM positively affects milk production, growth, digestion, rumen fermentation, and animal health. Lactobacillus, Bifidobacterium, Bacillus, Streptococcus, and Enterococcus are the DFM used most often in animal feed.
Prebiotics improve an animal's performance by using its food better and gaining weight daily. It also helps with digestive problems and generally makes animals and pets healthier. Mannan-oligosaccharides (MOS) made from the yeast Saccharomyces cerevisiae is a prebiotic used in animal feed. Moreover, there is continuous research on the benefits of prebiotics on livestock health, which is expected to increase the usage of prebiotics. So, the fact that there are many alternatives is likely to slow the growth of the feed phytogenic market over the forecast period.
Emergence of New Technologies
Feeding phytogenics has many benefits for livestock health, but it can be challenging to process the feed properly. Feeding phytogenic animals may lose efficiency and effectiveness due to various factors, such as high temperatures and dirty environments. The use of encapsulation technology is rapidly expanding among manufacturers. This technology shields it from the outside environment to improve its release and give it a longer shelf life. Feed phytogenic is now offered in capsule form after encapsulation was added. Encapsulation increases the amount of phytogenic feed that gets into the animal's digestive system (GI), which is good for the animal's gut health and improves its ability to grow, thereby creating an opportunity for the market to grow.
The global feed phytogenic market is segmented by type, function, and livestock.
By type, the global market is divided into essential oils, herbs and spices, oleoresins, and others.
The essential oils segment is the highest contributor to the market and is anticipated to grow at a CAGR of 9.37% over the forecast period. Essential oils are one of the most common sources of phytogenic feed. Essential oils have a lot of benefits, such as the ability to kill germs, protect cells from damage, and improve digestion. In addition to these, it has a positive impact on meat quality, gut health, and growth performance. Carvacrol and thymol, the two main phenols in essential oils, are responsible for the oils' high antioxidant activity. They are widely used in poultry nutrition because they maintain good metabolism.
Herbs and spices are used in feed phytogenic because of their unique aroma and medicinal properties. These compounds have shown positive effects in poultry production, such as antioxidants, antimicrobials, and regulators of gut flora. A few of the most popular spices and herbs in phytogenic feed are nutmegs, cinnamon, cardamom, cumin, anise, parsley, pepper, capsicum, ginger, garlic, mustard, rosemary, thyme, sage, and mint. Herbs and spices are incorporated into the poultry diet to replace synthetic products and accelerate the effective use of feed nutrients. Also, active components in herbs and spices improve digestion and the immune system in livestock. The growing demand for meat and meat products and the benefits offered by herbs and spices to livestock are anticipated to propel segmental demand.
By function, the global market is divided into performance enhancer, palatability enhancer, and others.
The performance enhancer segment owns the highest market share and is anticipated to grow at a CAGR of 9.42% over the forecast period. Phytogenic feed supplements are also referred to as organic performance boosters. The growth-promoting properties of feed phytogenic, such as essential oils, herbs and spices, and oleoresins are expected to drive market demand. Essential oils could make food taste better, making livestock more likely to eat their feed on their own. Also, adding phytogenic additives to diets increased feed intake in the lactation period.
Antibiotics are replaced with feed phytogenic additives and are employed in livestock production as a growth simulator, increasing feed intake and dietary acceptability while enhancing gut health. Essential oils extracted from thyme, origanum, rosemary, clove, and cinnamon are growth promoters, preventing coccidial multiplication and reducing the intestinal wall's damaging effect. Their stimulatory effect on feed intake is probably due to the improved dietary palatability resulting from the enhanced flavor and odor, especially with essential oils. Digestarom Dairy, a Biomin product produced with essential oils and extracts of specific herbs and spices, is used to enhance feed palatability for dairy cattle. Furthermore, Fresta Protect, a product by Delacon, enhances the palatability and feed intake of piglets in the post-weaning phase.
By livestock, the global market is divided into poultry, swine, ruminants, aquaculture, and others.
The poultry segment is the highest contributor to the market and is anticipated to grow at a CAGR of 9.57% over the forecast period. The consumption of phytogenic feed supports gut health, growth performance, feed intake, feed conversion ratio, and the resilience of poultry to mitigate the specific effects of heat stress. The increasing demand for eggs and poultry meat is expected to drive the demand for feed-containing phylogenies among poultry. For instance, according to the United Nations Food and Agriculture Organization (FAO), the consumption of poultry meat was 119.7 million tons in 2016 and increased to 127.31 million tons in 2018. Furthermore, the nutritional benefits of poultry products, such as highly digestible proteins, unsaturated lipids, B-group vitamins, and minerals, are driving the growth of the feed phytogenic market. Moreover, innovative product launches by various manufacturers are anticipated to drive the demand for feed containing phytogenic ingredients for the poultry industry.
Ruminants include species such as cattle, sheep, and goats. These mammals acquire nutritional benefits from feed by fermenting it in the stomach before digestion, mainly through microbial action. The demand for phytogenic feed is likely driven by the rising demand for dairy products like milk, cheese, and cream. The intake of phytogenic feed improves milk production, gut health, immune response, and metabolism and stimulates the ruminant's feed intake. Also, feed phytogenic, especially herbs and spices, reduces methane emissions in ruminants, increasing the demand for feed phytogenic among ruminants. Moreover, the growing population and increasing food demand further propel the market's growth.
Europe Dominates the Global Market
By region, the global feed phytogenic market is divided into North America, Europe, Asia-Pacific, and Rest of the world.
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Europe is the most significant shareholder in the global feed phytogenic market and is anticipated to grow at a CAGR of 9.14% during the forecast period. AGPs were banned from being used in animal feed in the EU in 2006, and regulations were put in place to limit the use of therapeutic antibiotics. Manufacturers of feed phytogenics benefited from the favorable market this created. The feed industry in Europe has grown significantly in the last few years. Spain, Russia, France, and Germany are some of the most significant contributors to this region. The growing demand for organic meat and meat products among the population will likely increase the demand for plant-based feed additives, driving the market growth. Moreover, Europe is the top pet food-producing region, fueling the market growth. Various development strategies among the key players, including R&D, product launches, partnerships, and geographical expansion, are expected to boost market growth during the forecast period.
North America is expected to grow at a CAGR of 9.37% over the forecast period. In North America, the US is the major contributor to the growth of the feed phytogenic market and is the second-largest feed-producing country globally. In 2017, the Food and Drug Administration (FDA) introduced new rules that sharply curtailed the routine use of antibiotics on farms across the US. As an alternative to antibiotics, this increased the demand for feed containing phytogenic compounds. This region's poultry feed production is increasing tremendously based on the escalating broiler population.
Moreover, aquaculture is a potential industry in this region, where the number of fisheries has increased. The feed phytogenic market in this area is growing because of this aquaculture industry. Mexico also has an efficient feed industry with more than 400 feed mills and is the fourth-largest feed producer globally. Furthermore, the US and Canada are significant producers of horse feed, which boosts the sales of phytogenic feed in the region. The adoption of innovative technologies and strategic collaborations of the existing players will upsurge the market growth in the coming years.
In Asia-Pacific, countries like China and Japan eat a lot of pork, which is helping to grow the feed phytogenic market in the swine feed segment. In addition, the feed phytogenic market in India has been growing at a healthy rate. The continuous growth of India and Japan in animal husbandry will reflect the overall growth of this region in the phytogenic feed market. Growing numbers of people and a preference for high-protein foods have made the area suitable for organized livestock farming. The phytogenic feed market is also growing because the government is doing things to help commercial livestock farming.
The rest of the world includes the Middle East and Africa and South America. South America has seen a noticeable growth in the poultry industry with increased broiler feed production. Brazil is the biggest buyer of phytogenic feed in South America, and this is expected to stay the case over the next few years. In addition, South America is primarily experiencing growth in the poultry industry and aquafeed production, driving the country's feed phytogenic market growth. Moreover, there is an increase in dairy, layer, and broiler feed production in Africa, which will further boost regional market growth during the forecast period.
The key players in the global feed phytogenic market are
Biomin GmbH, Cargill Incorporated, DuPont, Kemin Industries, Inc., Bluestar Adisseo Company, Phytobiotics Futterzusatzstoffe GmbH, Synthite Industries Ltd., The Himalaya Drug Company, Pancosma, ostofarm GmbH, Delacon Biotechnik GmbH, NOR-FEED, Phytosynthese, IGUSOL S.A., Natura Feed Ingredients, Silvateam S.p.A., NUTREX BE, A&A Pharmachem Inc., and Natural Remedies.