April 11, 2014
 
Global feed additives market to reach US$20 billion by 2020

 

 

The global market for feed additives, valued at US$14.9 billion in 2013, is estimated to reach US$20 billion by 2020, according to a report by Allied Market Research.

 

According to a new research report by Allied Market Research, titled "Animal Feed Additives Market (Product, Livestock, Geography) - Global Industry Size, Analysis, Growth, Trends, Share, Opportunities and Forecast 2013 - 2020", the global animal feed additives market was valued at US$14.9 billion in 2013 and is estimated to reach US$20 billion, registering a CAGR (compound annual growth rate) of 4.2% from 2013 to 2020.

 

The increase in global meat consumption has boosted the demand of animal feed and the feed additives market. The demand for highly nutritional meat that is available at low cost throughout the globe is also driving this market and this trend in the market is considered as the key factor supporting the industrialisation of meat production across the globe.

 

Animal feed additives add value to animal life and the quality of their meat. Due to positive impacts that the additives have on animals, the product is gaining momentum across the globe. For example, Asia Pacific and LAMEA (Latin America, Middle East and Africa) regions are greatly demanding meat products of better quality.

 

The other factors driving the market are consumer concerns over meat quality and safety of meat products following recent disease outbreaks. Their concerns have compelled meat producers to focus on the quality of feed provided to the animals. The variation in regulations across the globe is having an unfavourable impact on the worldwide meat market, particularly in developed and advanced developing economies. For example, consumption of antibiotic, which is a development promoter, was banned by the European regulatory authorities due to its adverse effects on the consumer and animal health. The opportunity for this market is the rising demand for feed additives in the Asia Pacific region, due to the increase in meat production and export: India has started subsidies for meat exporters as an encouragement for its animal husbandry industry, providing huge opportunities for its feed additive market.

 

Amino acids as growth amplifiers have high popularity among meat producers as they help in faster growth of livestock, expediting their ROI (return on investment). Amino acid feed additives held the largest revenue share of the animal feed additives market in 2013. Lysine is the predominant amino acid feed additive currently being used, accounting for about 70% of the amino acid feed additives market. Tryptophan, methionine and threonine are other major amino acid feed additives.

 

Though antibiotics had been banned in major European countries, it will continue to be the second largest revenue generating segment for the animal feed additives market followed by feed acidifiers and vitamins. Antioxidants and feed enzymes are expected to have notable growths during the forecast period though having smaller market sizes.

 

The livestock segment of the animal feed market is segmented into pork, seafood, cattle and poultry. The poultry segment is the highest revenue generating market among the segments. This is due to increase in demand in developing nations, which is the highest poultry meat producing region. The leniency in the regulations for this market has also contributed to the increase in demand and has encouraged multinational companies to invest in this market, thus making the market even more competitive.

 

The geography segment of the animal feed market is segmented into North America, Europe, Asia Pacific and LAMEA. The geography market is dominated by the Asia Pacific region. This is due to the increase in demand for meat and various animal products, thus increasing the demand of feed additives in these regions. The European market is expected to have the highest CAGR compared to the other regions during the analysis period. This is due to the increase in regulatory concerns and increase in meat consumption in the region.

 

The key strategies that are implemented by manufacturers to increase the adoption of the feed additives are product launch, merger and acquisition, and partnership and agreement.

 

The most applied strategy is product launch. With more and more product launches, various additives that can improve animal health, meat quality, quantity and reduce pollution are increasingly available in the market.

 

For example, Novus International, Inc. and Verenium Corporation launched a new phytase enzyme product, Cibenza Phytaversetm. The enzyme is specifically used to extract benefits from the nutritional value in phytate for animal well being and improvement of animal growth. The key companies profiled are Addcon Group GMBH, BASF SE, Adisseo France S.A.S, Kemin Industries, Inc., BIOMIN Holding GmbH, Elanco Animal Health, Inc., DSM, Novus International, Inc., Nutreco N.V and Novozymes.