January 23, 2015

 

Animal feed additive, feed premix markets to grow steadily in next 5 years

 

 

The global markets for animal feed additives and feed premix are expected to grow steadily in terms of revenue at a compound annual growth rate (CAGR) of 3.8% and 3%, respectively, in the next four to five years.

 

Revenues derived from the sales of animal feed additives--substances added to feeds to control and prevent infectious diseases, enhance weight gain, ensure the supply of vitamins and other nutrients, and enhance feed digestibility, among other--are estimated to total $20.23 billion by 2018 from around $16.18 billion in 2012.

 

On the other hand, the market for feed premix--vitamins, minerals, amino acids and antibiotics mixed with additives and other ingredients of grains--is projected to reach the value of $9.94 billion by 2019 from the estimated $8.59 billion in 2014.

 

The report "Animal Feed Additives Market by Types (Antibiotics, Vitamins, Antioxidants, Amino Acids, Feed enzymes), Livestock (Swine, Poultry, Cattle, Aquaculture, Others) & Geography-Trends & Forecasts (2011-2018)" says the main restraints of the feed additive industry are the rising cost of raw materials and the regulatory structure by governments.

 

However, the increasing prices of natural feed products are creating opportunities for the animal feed additives, the report says. Environmental concerns and regulatory ban over some harmful additives are other opportunities for animal feed additives.

 

The report says manufacturers are developing innovative production techniques to lower the cost of products and increase their production capacity.

 

It says leading manufacturers are looking at expanding businesses across regions and setting up new plants to increase production capacities and product lines. They are also involved in mergers and acquisitions to penetrate the untapped markets in Asia-Pacific and Latin America.

Feed premix's largest market

 

Asia-Pacific is the largest market for feed premix as of 2013 and is projected to grow to $3.18 billion by 2019 at a CAGR of 3.5%, according to studies in 2014. North America is the second-largest market and is projected to grow at a CAGR of 3.1%.

 

Due to a range of innovative products developed to target specific animal needs, the feed premix market has gained more global presence and acceptance among customers.

 

Key feed premix market participants include Netherlands-based Nutreco N.V. and Koninklijke DSM N.V., US-based Cargill Inc., DLG Group of Denmark and InVivo NSA of France.

Poultry feed premix

 

The global poultry feed premix market is expected to exceed $2 billion by 2020 at a CAGR of 3.4%. Since poultry is the most widely consumed meat in the world, its industrial production is more widespread than other meats. Increased demand for poultry meat has also been spurred by the shift in consumption pattern from red to white meat especially in developed countries. Increased consumption of processed poultry will also require continuous supply of high-quality meat. These factors are expected to drive the market for compound feed, which in turn will drive the market for feed premixes.

 

North America accounts for the largest market share while Asia-Pacific and South America are potential markets due to their lenient feed-related regulations.

Swine feed premix

 

The global swine feed premix market is estimated to reach $1.52 billion by 2020 at a CAGR of 3%. While China accounts for around 40% of total pork production, the North American feed premix market accounts for around 35% of the global swine feed market. Asia-Pacific, which is the fastest-growing region, is seen as a potential market, with China holding the maximum share in the Asia-Pacific region.

 

The increased demand for compound feed, which in turn has driven the growth of the feed premix market, is being driven by the rising pork trade and concerns over food safety.