Healthy demand for phytogenic feed additives (PFAs) in livestock production should cause annual global sales to grow four-fold by 2030, according to calculations by BIOMIN.
The botanicals market has grown rapidly in recent years, having already topped US$500 million in global sales in 2015. Worldwide sales will cross the US$1 billion threshold by 2023 and could reach US$2 billion annually by 2030.
"Improving feed efficiency is a perennial concern for the livestock industry," Noonan added. Feed costs represent anywhere from 50% to 80% of production costs, depending on the livestock species and country.
"Particularly in the context of competitive global animal-protein markets, efficiency matters. The feed conversion ratio (FCR) improvement that Digestarom® delivers makes it an indispensable tool for animal performance and profitability," Noonan explained.
Although around 3% of the 1.2 billion tonnes of feed used worldwide today include these plant-based products, PFA inclusion in livestock feed should grow considerably by 2030. This represents growth in global market demand of 8% to 10% per year on average.
"Some of the largest and most sophisticated livestock operations have been early-adopters of phytogenic feed additives, and have continued to use them in light of the benefits that they have achieved," said Noonan.
Consumer preferences have shifted considerably in recent years, as efforts to phase out antibiotic growth promoters (AGPs) and coccidiostats have accelerated in countries worldwide, including Brazil, China and the US. Antibiotic reduction and the uptake of novel growth promoters (NGPs) to optimise feed costs, improve efficiency and reduce emissions should boost demand worldwide for PFAs in the future, according to BIOMIN.