July 7, 2015

 

Organic feed additive market now worth half a billion dollars

 

 

Phytogenic (plant-derived, or organic) feed additives have become popular among livestock farmers particularly because of their antimicrobial activity, anti-oxidative effect, enhanced palatability, improved gut functions and growth-promotion functions, a newly released report said.

 

Market research and consulting firm Mordor Intelligence said in its report on the global feed phytogenics market that due to the global population rise, changes in lifestyle in developing economies, and shift in cultural trends, consumption of meat-based and animal-based products has been rising continuously that in turn has led to higher usage of feed phytogenics for better management of animal health.

 

Consumers' preference for organic meat helps the phytogenics market, as it is termed, to become an alternative to feed probiotics. Improper knowledge about the usage and regulatory constraints may hinder growth, but with a very positive outlook of the compound feed industry, the feed phytogenics market is sure to grow, the report said.

 

According to the report, the global feed phytogenics market was worth around $550 million in 2014. The market is expected to breach $675 million by 2020 growing at the CAGR [compound annual growth rate] of 2.8% during the forecast period 2015-2020.

 

Mordor Intelligence said Asia-Pacific leads the global market cornering around 42% share due to the increased need of animal health concerns and accelerated meat consumption in the region. North American region, it added, is growing at an impressive rate owing to high demand of quality products among livestock farmers.

 

Major types of feed phytogenics

 

Herbs and spices, essential oils, and oleoresins (mixture of essential oil and resin) are the major types of feed phytogenics. The essential oils feed market is the major segment with gradual increase in consumption rate in European regions. The poultry segment is the largest consumer of feed phytogenics covering 35% of the market share followed by swine and cattle, while the demand for phytogenics for calves is expected to be highest during the forecast period as a result of attaining the target by protecting them from scours (diarrhea and other gastrointestinal imbalances).

 

Europe is forecast to be the fastest-growing market followed by North America, while Asia and Latin America hold future opportunities for the industry and the companies to grow and expand the business.

 

The report said the market for phytogenic feed additives is expected to grow gradually as more compound-feed manufacturers are opting to offer value-added products to remain competitive.

 

Currently Biomin, Delacon Biotechnik, Pancosma SA and Danisco are the most active companies operating in the feed phytogenics market, based on the research and analysis made by Mordor Intelligence.

 

Other key players include Natural Remedies, Igusol and A&A Pharmachem.

 

Achieving competitive advantage and business expansion are these companies' preferred business strategies, Mordor Intelligence said.