Organic Feed Additives Market Size, Share & Trends Analysis Report By Type (Amino Acids, Vitamins, Minerals, Acidifiers, Antioxidants, Pre and Probiotics, Flavors and Sweeteners, Others), By Livestock (Ruminants, Swine, Poultry, Aquaculture, Others), By Form (Dry, Liquid) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global organic feed additives market size was valued at USD 29.62 billion in 2022. It is estimated to reach USD 46.82 billion by 2031, growing at a CAGR of 5.22% during the forecast period (2023–2031). The key aspect bolstering the expansion of the global organic feed additives market is the surging demand for organic food worldwide owing to its positive health impact on humans. Moreover, the use of organic feed additives in the animal feed industry also enhances the health and well-being of the livestock, thereby fuelling the market expansion.

Organic feed additives encompass supplementary compounds incorporated into animal feed to enhance livestock's holistic health, performance, and welfare while conforming to organic farming and livestock production principles and regulations. In organic farming, these additives are employed as substitutes or supplements for synthetic additives to guarantee the provision of vital nutrients to animals and promote their overall well-being.

Organic feed additives are meticulously curated and designed to fulfill the distinct requirements of livestock production that prioritize sustainable and natural methods. Following organic certification standards, which may differ by country or region, the application of organic feed additives is regulated. Livestock producers who want to guarantee that their feed additives meet organic farming standards can consult their certifying agencies.

Market Dynamics

Global organic feed additives market drivers:

Rising demand for organic food

The preference for organic food is experiencing significant growth due to the flourishing prevalence of diseases cused by the excessive chemical contamination found in conventional food and the health benefits of organic food consumption. The progressive adoption of organaic food as a fundamental component of the daily dietary regimen among the affluent demographic in the world is further evidence of the promising prospects that this industry will witness over the forecast period.

According to Statista, from 2000 to 2021, there was a notable surge in the worldwide organic food trade. Organic food sales experienced a significant increase from nearly 18 billion dollars in 2000 to approximately 132.74 billion U.S. dollars in 2021. This statistic depicts an enormous surge in the organic food industry, expected to drive the global organic feed additives market.

Health benefits of organic food

Organic feed additives can provide poultry and livestock with numerous health benefits. Probiotics and prebiotics, which are organic feed additives, can potentially enhance the intestinal microbiome of animals. These additives can reduce the risk of gastrointestinal diseases, promote digestion, and enhance nutrient absorption. Botanical extracts and essential oils are examples of organic additives that possess immune-boosting properties. They can reduce the need for antibiotics and enable animals to resist infections.

Certain organic feed additives, including adaptogenic botanicals, have the potential to assist animals in managing stressors such as transportation, temperature fluctuations, and dietary changes. A reduction in tension can enhance both productivity and overall well-being. Similarly, compounds in organic feed can potentially affect the quality and composition of animal products. They may enhance the flavor, consistency, and nutritional value of meat, milk, and eggs, among other things. Such advantages of organic feed additives increase their use in the animal feed industry, which is expected to expedite global market growth.

Global organic feed additives market restraint:

High cost of organic feed additives

Organic and natural feed additives are generally more expensive than their conventional counterparts, owing to the additional expenses incurred in their procurement and production. Organic feed additives with non-GMO and organic components may incur higher procurement costs than their conventional counterparts.

Furthermore, implementing organic agriculture practices reduces yields per acre, while the scarcity of organic ingredients may contribute to elevated costs. Additional precautions must be taken to preserve the quality and integrity of organic feed additives, including the avoidance of non-organic substance contamination. The implementation of quality control procedures may result in cost increases. These factors restrain the market growth.

Global organic feed additives market opportunities:

Declining use of antibodies in the livestock industry

The overutilization of antibiotics in veterinary medicine, specifically as growth promoters in animal feed, could potentially result in the emergence of resistance. This poses a significant risk to the well-being of human beings. The reduction of antibiotic usage in animals utilized in the food industry was firmly recommended by the World Health Organization in 2017. The World Health Organization (WHO) firmly recommended that antibiotics used for growth promotion and on healthy animals be restricted as the risk of antibiotic-resistant bacteria continues to rise.

Furthermore, the World Organisation for Animal Health has cautioned against an entire ban on antibiotic use in animal production, recognizing the importance of safeguarding antibiotics. The Centers for Disease Control and Prevention report that antibiotic resistance is responsible for roughly USD 2.2 billion in healthcare costs annually. Such potential drawback of antibiotics increases the demand for natural additives like organic feed additives to facilitate the health and well-being of the animals. This is expected to generate opportunities for market growth.

Regional Analysis

North america dominates the global market

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

North America is the most significant global organic feed additives market shareholder and is expected to expand substantially during the forecast period. The market for organic feed additives in North America is anticipated to be the most prominent due to the substantial influence of the milling and pet food manufacturing sectors, as well as consumer health consciousness. Similarly, the region's expanding per capita meat consumption and rigorous meat quality regulations will contribute to the market's expansion. North America is also the largest market for organic food, accounting for nearly half of global retail sales of organic food; the United States is primarily responsible for this proportion. Since 2008, organic food sales have increased annually in the United States relative to total food sales. Organic food constituted an estimated six percent of the overall food sales in the United States in 2020. All these factors contribute to the regional market expansion.

In Europe, the animal feed business is highly developed and adheres to rigorous rules on animal nutrition and welfare. Over 300 million caged farmed animals and 7.2 billion meat poultry are produced annually throughout Europe. Antibiotics are added to the feed and water of the majority of these animals in factory farms to prevent them from contracting diseases due to their inhumane treatment. As many as 3,500 human fatalities per day are attributed to antimicrobial-resistant infections (superbugs) caused by the excessive use of these antibiotics, which is a global public health emergency. To overcome this issue, implementing the European Union's new legislation on January 28, 2022, signifies the prohibition of the customary practice of administering antibiotics to farmed animals as part of their regular diet. This development, regarded by World Animal Protection as the most advanced globally, represents a significant step forward in animal welfare. Therefore, Strict rules banning antibiotics and other synthetic chemicals in animal feed are driving up demand for organic feed additives 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 market for organic foods in Australia is thriving. In 2021, the organic market was projected to have a minimum retail value of USD 2.3 billion. Since 2012, Australia has experienced a compound annual growth rate of 13%, and since 2011, the number of certified organic operations has surged by 38%. The annual growth rate of consumer demand for organic products is between 20 and 30 percent. An estimated six out of ten Australian households now occasionally purchase organic foods. This is expected to boost the overall organic feed additives market in the region.

Segmental Analysis

The global organic feed additives market is segmented by type, livestock, and form.

Based on type, the global organic feed additives market is bifurcated into amino acids, vitamins, minerals, acidifiers, antioxidants, pre and probiotics, flavors and sweeteners, and others. 

Amino acids are essential components of organic feed additives used in animal nutrition to improve animal feed quality and nutritional value. There are several amino acids commonly included in organic feed additives, and they can be classified into two main categories: essential amino acids and non-essential amino acids. Essential amino acids cannot be synthesized in adequate quantities by animals to fulfill their nutritional needs. Therefore, these amino acids must be supplied via their diet.

Non-essential amino acids are amino acids that animals can synthesize in their bodies, so they are not typically supplemented in feed additives. However, certain non-essential amino acids may be included in specific formulations to meet the nutritional needs of animals under certain conditions. The specific amino acids and their concentrations in feed additives may vary depending on the type of animal, its age, weight, and the intended purpose of the feed (e.g., for broilers, layers, swine, or cattle).

Based on livestock, the global organic feed additives market is divided into ruminants, swine, poultry, aquaculture, and others. 

Organic feed additives are employed in poultry production to enhance the well-being, development, and overall efficacy of chickens. Numerous organic herbal supplements, such as oregano, garlic, and thyme, can be used in chicken feed. These herbs possess inherent antibacterial qualities and can potentially enhance the overall well-being of organic chickens. They also have the potential to augment the taste of poultry products. The utilization of essential oils derived from herbs and spices has been recognized for their potential as natural growth boosters and antibacterial agents. They can exert a beneficial influence on the gastrointestinal well-being of avian species, particularly hens, hence potentially mitigating the necessity for using synthetic antibiotics.

Based on form, the global organic feed additives market is segmented into dry and liquid organic feed additives.

The dried form of organic feed pertains to dehydrated, solid, or dry organic animal feed, in contrast to its liquid or moist counterpart. Organic dry feed generally comprises a diverse array of organic components, including cereals, vegetables, herbs, and other elements that have undergone drying and processing to eliminate moisture. Typically, pellets, crumbles, mash, or whole cereals comprise dry organic feed. It is simple to transport, store, and manipulate these solid forms.

Dry organic feed typically exhibits an extended storage life compared to moist or liquid feeds, owing to its reduced moisture content. This may prove crucial for organic producers who are required to store feed for a prolonged duration.

Recent Developments

• December 2022- Merit Functional Foods established a novel benchmark in the plant protein industry for transparency and sustainability by introducing Organic Peazazz C 850, its inaugural protein ingredient, to obtain USDA Certification.
• June 2023- Cosmos Health Inc. unveiled Terra Creta, the most recent product to be added to the Mediterranean line. The Company's premium line of nutritional supplements, Mediterranation, contains organic plant extracts and botanicals from Greece and the Mediterranean, including crataegus, hibiscus, dittany of Crete, oregano, mastic, and kritamos.