February 18, 2014

Global feed additives market to reach US$19.54 billion by 2020

The global market for animal feed additives is expected to reach US$19.54 billion by 2020, driven by growing protein demand, especially in Asia Pacific and Latin America, according to a new study by Grand View Research, Inc.

The study says that over the next six years, the key issue will arise from concerns over raw material and product cost, especially over specialty products such as enzymes, acidifiers and trace minerals.

In the past decade, further use of feed additives was prompted by increased regulations on meat quality and safety, which are resulted from various disease outbreaks in livestock animals, such as swine flu and foot and mouth diseases (FMD).

Amino acids, such as lysine, methionine, tryptophan and threonine, which are essential for the growth of animals, especially swine and poultry, emerged as the leading product segment, accounting for 31.2% of total market revenue in 2012. Industrial lysine has been driving the global market for its advantages over the natural substitute (soybean).

Antibiotics came as second, which accounted for 26.8% of total market revenue in 2012. Having been banned in the US and Europe, primary demand for antibiotics are expected to come from unregulated markets, especially in Asia and Latin America.

At an estimated CAGR of 6.4% from 2014 to 2020, feed acidifiers are expected to be the fastest growing products in the overall market.

Key findings of the study also points out that the poultry industry is the leading livestock sector for feed additives, accounting for 38.2% of total market revenue in 2012. Swine is the second largest sector, which accounted for over 30% of total market revenue in 2012.

Asia Pacific has become the largest market for animal feed additives, accounting for 32.6% of total market revenue in 2012. At an estimated CAGR of 4.2% from 2014 to 2020, Asia Pacific is also expected to be the fastest growing market, while countries like China and India are expected to drive the Asian feed additive demand over the next six years.

Europe animal feed additive demand is expected to reach USD 5.81 billion by 2020, growing at a CAGR of 4% from 2014 to 2020.

The top four companies, including DSM, BASF, Evonik and Danisco, accounted for over 60% share of the global animal feed additives market in 2012. Other major players include Elanco, Novozymes, Kemin Industries, Novus International and Cargill.