Market Dynamics
Market Drivers
Inclination Growing Towards Animal Protein
Due to the rising desire for more dietary variety and protein intake, the demand for higher-value and higher-quality foods—such as meat, eggs, and milk—is rising relative to plant-derived meals, such as cereals. The total market for animal products has increased significantly in many emerging nations due to these changes in consumption and significant population growth, which is expected to continue. Meat includes high-quality protein, amino acids, minerals, and vitamins, because of which the market for meat products is expanding quickly. Manufacturers of medicated feed additives now have a market opportunity to increase output due to the rising demand for processed meat and other animal products worldwide.
Market Restraint
Difficult Regulatory Conditions
The main obstacles for the industry of medicated feed additives are regulatory difficulties. In most nations, laws governing feedstuffs apply to the manufacturing of animal feed. The regulatory environment is becoming stricter, as seen by the bans on using specific feed additives as animal growth promoters in 2006 and 2009, respectively, in the European Union and the United States. Increased regulations on these products are being implemented to protect animal health due to the advancement in our understanding of the GIT microbial ecology and the mechanism of probiotic action. No internationally recognized framework regulates medicated feed additives, such as probiotics and antibiotics, which varies between nations.
Market Opportunities
Rise in the Production of Industrial Livestock
The World Bank estimates that industrialized meat production is expanding six times faster than conventional meat production techniques. With rising mass production, a move toward landless meat production facilities is seen. To increase meat production while using less land, the meat production industry is moving toward consolidation, particularly in developed regions like the United States and Europe. The extrinsic quality characteristics of the meat ingested are becoming more and more important to consumers because they are more informed and aware of them.
Regional Analysis
Asia-Pacific Dominates the Global Market
The global medicated feed additives industry is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant revenue contributor and is expected to exhibit a CAGR of 5.90% during the forecast period. The demand for food products containing meat is increasing in Asia, particularly India, due to the countries' rapid economic development. Medicated feed additives and enzymes are consumed more frequently due to the rising demand for meat protein. In addition to increasing nutritional value, feed enzymes are becoming more significant due to their function in enhancing meat quality and environmental concerns. Companies are boosting their investment in R&D and extending their production capacity to meet the country's and South Asia's growing demand for animal protein. The new site's integrated organic mineral manufacturing technology ensures highly effective organic trace minerals for animals in various combinations.
Europe is expected to grow at a CAGR of 5.40% during the forecast period. The demand for medicated feed additives is rising because the nation is home to numerous top compound feed manufacturers. Additionally, there is a growing emphasis on innovations and product line extensions in the market for medicated feed additives, which helps to prevent outbreaks of various diseases in livestock. The United Kingdom has a higher meat consumption rate than the global average. However, this practice is waning due to the nation's shifting consumer preferences for vegan food and several recent disease outbreaks. The most popular meats consumed by the government are chicken and white meat.
Canada regulates livestock feed using a single-component feed schedule IV or V, which the Canadian Animal Health Institute oversees. The legislation states that pre-market approval is necessary to evaluate absolute safety and efficacy, which also affects the production and marketing of feed products. Currently, 15 businesses in the nation are engaged in the manufacture of medicated feeds and hold licenses as medicated feed mills. The country's population is becoming more cognizant of their health, increasing the rate at which processed and high-quality meat is consumed. This is expected to fuel the nation's market for medicated feed additives during the forecast period.
Brazilian consumers are consuming and exporting more meat, and there is a growing consciousness about the quality of meat and dairy products. These factors are driving the market for medicated feed additives in Brazil. The industrialization of meat production is also fueling the nation's demand for medicated feed additives. According to a study in Saudi Arabia, dietary supplementation with psychobiotic feed additives (PFAs) can be as beneficial as the antibiotic adriamycin in preserving growth performance and enhancing the meat attributes of broilers exposed to S. Typhimurium. Amino acids must be included in animal feed to increase the productivity of animal protein production and the supply of protein.
Segmental Analysis
The global medicated feed additives industry is segmented by type, mixture, and animal.
Based on type, the global market is bifurcated into antibiotics, antioxidants, amino acids, vitamins, prebiotics, probiotics, enzymes, and other classes.
The amino acids segment is the highest contributor to the market and is estimated to exhibit a CAGR of 5.90% during the forecast period. Methionine is now used more frequently in animal feed, primarily for maintaining optimal metabolic rates in cattle, due to growing knowledge about the advantages of healthy animal diets and an increase in the prevalence of animal diseases. One of the necessary amino acids is DL-methionine. Additionally, when added to the feed for pigs and poultry, it lowers the amount of crude protein in the diet, improving animal health while minimizing environmental effects. Concerns over animal welfare and the environment and higher protein content in broiler diets have been linked to the chicken business. A high-protein diet may cause damp litter, which raises the severity and frequency of breast blisters and dermatitis of the footpads.
Antioxidant nutrients, like beta-carotene, and trace elements found in enzymes, including selenium, copper, zinc, and manganese, are crucial for preventing oxidative damage to an animal's tissues. This protective benefit also leads to a better immunological response, which lowers infectious diseases in stressed cattle after shipment and mastitis in dairy cows. Many government agencies are assisting businesses in developing BHA, which has various advantages and usage restrictions. For instance, Jubilant Life Sciences creates BHA, which prolongs animal feed's shelf life while preventing rancid fat oxidation. However, the U.S. Food and Drug Administration allows 200 ppm of BHA in finished feed. The antioxidants are included to avoid oxidation and rancidity of the long-chained marine fatty acids.
Animal reproduction, skeletal growth, and development are all influenced by vitamin A. It controls how proteins, lipids, and carbohydrates are metabolized. It is crucial for preventing growth problems in young animals, while its protective role for the epithelium is crucial for older animals. These essential qualities of vitamin A expand its use as a medication in feed additives. One of the issues produced by vitamin B insufficiency is poor growth in turkeys and cobalt deficiency in cattle, which is likely to increase its use in the future. China is the world's top producer of vitamins used as feed additives. The nation is the leading producer of the B1, B3, B8, B11, and B12 vitamins. 60% of the vitamins made in China are typically traded internationally. Coccidiostats are used in medicated chick starters to reduce the occurrence of coccidiosis in young birds.
Based on mixture type, the global market is bifurcated into supplements, concentrate, premix, and base mixes.
The supplements segment owns the highest market and is estimated to exhibit a CAGR of 5.55% during the forecast period. As they help fend against infectious ailments, medication added to the diet can increase growth rates. A medicated feed includes animal medication and many vitamins, minerals, and other nutritional components. The feed's healthy members must account for at least 25% of its weight. Topdressing the spread in the trough or mixing the feed are two methods of supplementation. When combined to generate Type C, Type B medicated additives provide a medicated supplement. Most cow-calf enterprises and smaller beef operations commonly employ manufactured supplements, which do not require any FDA registration.
Medicated feed concentrates are compounds combined with other components to create a complete meal or a supplement. Concentrates are more easily digestible and less bulky. According to mixture type, the concentrates segment is anticipated to increase at the highest rate in the market for medicated feed additives. Type A medicated feed additives are the most concentrated. A medication source and a carrier component are typically present. It can make a Type B, Type C feed, or another Type A medicated product. Large companies that employ specific highly potent drugs may need to register with the FDA and receive a license for a medicated feed mill.
Premixes are complex mixtures of vitamins, minerals, trace elements, and other nutritional additives that are added to feed at concentrations ranging from 0.2% to 2% (micro premixes) or 2% to 8% (standard premixes) (macro premixes, including proteins, salts, and amino acids). In Europe, feed premix products are widely used. The area is home to several significant industry firms, including Dansk Landbrugs Grovvareselskab AMBA (DLG) and Danish Agro. Premixes are added to animal nutrition to improve the characteristics of the feed for animal health benefits by improving feed digestibility, increasing nutritional content, and enhancing feed palatability.
Based on animal type, the global market is bifurcated into ruminants, swine, poultry, aquaculture, and other animal types.
The poultry segment is the major contributor to the market and is estimated to exhibit a CAGR of 5.60% during the forecast period. Medicated feed additives are added to feed regimens to increase growth and feed efficiency, prevent or treat disease, or for other reasons such as ruminant estrus suppression. Due to their enormous populations of cattle and other ruminants and the high demand for milk and meat brought on by rising family disposable income, the United States, China, & India are the top three producers of ruminant feed. For instance, according to the Alltech Feed Survey, the United States produced 19 million metric tonnes of compound feed for dairy cattle and 21 million metric tonnes for beef cattle in 2018.
Growing regional demand for products like poultry meat and other goods made it necessary to boost performance to increase production. This led to the development of scientific feeding procedures. The region's market is expanding mainly as a result of rising worries about animal health, rising poultry production, and a growing industrialization of cattle. According to the Food and Agriculture Organization, between 2016 and 2018, the number of poultry birds climbed from 2,225 million to 2,225.5 million. The demand for controlling and monitoring the feed and feed additives administered to livestock has arisen due to expanding poultry meat consumption and growing health consciousness. According to the agency's VFD regulations, using the Veterinary Feed Directive (VFD) medicine in farm animal feed requires a licensed veterinarian's approval.
Top Key Players
Phibro Animal Health Corporation
Provimi Animal Nutrition
Zoetis Inc.
Cargill Inc.
Archer Daniels Midland Company
CHS Inc.
Purina Animal Nutrition (Land O Lakes)
Bluestar Adisseo Co. Ltd
Kemin Industries Inc.
Alltech Inc.
Biostadt India Limited
Zagro
HI-PRO Feeds (Nutreco)
Others
