Feed additives are defined as products used in animal nutrition for the purpose of improving the quality of feed and the quality of food from animal origin, or to improve animals’ performance and health. MarketsandMarkets expects the global feed additives market to grow from USD 33.0 billion in 2018 to USD 44.3 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 6.1% during the forecast period. Increase in the demand and consumption of livestock-based products; growth in feed production; and implementation of innovative animal husbandry practices to improve meat quality and output of other livestock-based products are expected to drive the growth of the feed additives market.
Increase in demand and consumption of livestock-based products driving the feed additives market
Increase in demand and consumption of livestock-based products such as dairy & dairy-based products, meat, and eggs is expected to drive the usage of feed additives in feed for the growth and development of farm animals. According to FAO data, it has been stated that the global meat production is projected to be 16% higher by 2025. Poultry meat is the primary driver for the growth of the overall meat production, owing to its high demand, low production cost, and lower product prices, both in developed and developing countries. According to FAO statistics, it has been stated that the production of poultry meat reached 120.5 million tonnes in 2017, whereas swine meat recorded 118.7 million tonnes, bovine meat recorded 70.8 million tonnes, and ovine meat recorded 14.9 million tonnes. Furthermore, owing to the increasing awareness about the role and dynamics of food nutrients, especially protein, on overall physical and mental growth and development, there is a growing trend toward animal-sourced protein in the form of either meat, eggs, or milk. This drives the usage of feed additives in feed as it increases its nutritional quality
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The dry segment is estimated to dominate the market for feed additives, by form, in 2018. Dry feed additives have higher demand among livestock producers, as they are easy to mix with the feed, and are easy to store and handle. Additionally, unavailability of modern feed mills and equipment for using liquid feed additives makes the dry form more preferable among the livestock farmers. Amino acids, flavors & sweeteners, minerals, probiotics, phosphates, carotenoids, acidifiers, mycotoxin detoxifiers, antioxidants, and vitamins are a few types of feed additives that are mostly preferred in a dry form.
The synthetic segment is projected to be the faster-growing segment, by source, in the feed additives market, during the forecast period. Feed additives are synthesized on a large scale to meet the requirements of the growing livestock industry. Natural feed additives are unstable in their natural forms and not readily available for use, thus making synthetic feed additives more preferable for use.
In terms of geographical coverage, the feed additives market has been segmented into 5 regions, namely, North America, Europe, Asia Pacific (APAC), South America, and RoW. Asia Pacific is projected to be the fastest-growing segment during the forecast period. This is due to large livestock population and higher consumption of levels of meat and dairy in the region. Developments and innovations in the production processes in countries such as China have further improved the output and capacity of the meat industry in the region. Increasing demand for processed meat, protein diet, and dairy products, due to growth in household income levels, also continue to drive the demand for feed additives in this region. Shift toward the usage of natural growth promoters and increase in demand for nutrition supplements for monogastric animals are expected to create an opportunity for the feed additives market in the coming years.
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The major vendors in the global market include Cargill (US), DowDuPont (US), ADM (US), Evonik (Germany), BASF (Germany), DSM (Netherlands), Solvay (Belgium), Ajinomoto (Japan), Novozymes (Denmark), Chr. Hansen (Denmark), InVivo (France), Nutreco (Netherlands), Kemin (US), Adisseo (France), and Alltech (US). These players have broad industry coverage and strong operational and financial strength; they have grown organically and inorganically in the recent past.