Animal Feed Additives Market

2021 Analysis and Review: Animal Feed Additives Market by Source Type – Plant, Animal, and Micro-Organisms for 2021-2031

Animal Feed Additives Market Snapshot

The animal feed additives market totaled US$ 16.36 Bn in 2021, as per a latest market survey by ESOMAR-certified consulting firm Future Market Insights (FMI). Overall animal feed additives demand is anticipated to grow at a steady pace, exhibiting a 2.70% CAGR through 2031.

With an increasing focus on the inclusion of probiotics and proteins in animal feed additives, product innovations in the market are on rise. Efforts to control feedstock contamination are anticipated to result in better product offerings, leading to market expansion at 1.70% by volume.

Key Points Covered in Animal Feed Additives Market Survey

  • Market estimates and forecast 2021-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Animal Feed Additives and how to Navigate
  • Recommendation on Key Winning Strategies

Animal Feed Additives Market Historic Sales Compared to 2021-2031 Forecast Outlook

As per FMI’s analysis, the animal feed additives market experienced stagnant growth between 2016 and 2020 at a 2.10% CAGR. Excessive use of antibiotics in animal feed was a key factor restraining market growth.

To cater to the ever-increasing demand for animal products including eggs, meat, and milk, the incorporation of antibiotics in animal feed gained traction, resulting in negative health impacts on human beings. In response to these concerns, the European Union has restricted the use of growth promoters in livestock.

As a result, manufacturers operating in the animal feed additives market are intent on finding healthier ways to fulfill the nutritional gaps in animals to improve yield. Besides this, the onset of several diseases in livestock has underpinned the need for healthier animal feed options.

With the unprecedented outbreak of COVID-19 pandemic, sales of meat, poultry, and fish witnessed a sharp decline in 2020. Disruptions in the supply chain and the global lockdown further stagnated the animal feed additives market growth.

However, with the expedited vaccine drives and improvements in food safety across the globe, the market experienced y-o-y growth by 2.70% in 2020-2021. With an uptick in animal products demand, leading producers in the market are engaging in intensive research and development for efficient feed additives, which will further augment the market growth through 2031. 

Will Increasing Livestock Product Remain a Chief Growth Driver?

Increasing livestock production across various countries has brought major public health issues into light, such as use of sub-therapeutic antibiotics as growth promoters and the onset of foodborne diseases including salmonellosis and E.coli infections.

As the European Union has banned the use of antibiotics in animal feed, probiotics or direct-fed microbials are significantly gaining traction in the animal feed market. Usage of probiotics in animal feed effectively maintains gut health in animals, thereby improving overall productivity and well-being.

Probiotics also prevent and control enteric pathogens in animals, promoting the microbial ecology of the gastrointestinal tract. With studies claiming beneficial results in terms of digestion and immune system of cattle, ruminants, and poultry, probiotics will experience rapid adoption in animal feed additives in the coming years.

For instance, inclusion of probiotics during weaning and lactation period in ruminants promotes better gut health and reduces the risk of acidosis. Yeast-based probiotics are actively being used among swine, poultry, and ruminants as they target the animals' colon, caecum, and other hideouts for diverse microbial populations.

Common types of bacteria in animal feed probiotics include lactobacillus, streptococcus, bacillus, pedicoccus, and Bifidobacterium. Most commercially available probiotic-based animal feed additives contain one or more of these microorganisms for better health benefits.

An increasing shift towards antibiotic-free meat will further promote the use of probiotics in animal feed, encouraging producers and farmers to discover safer and reliable animal food additives in the coming years.

Adequate Feed Labelling To Improve Sales Prospects

Increasing incidence of foodborne diseases such as salmonella, listeria, and norovirus has compelled government bodies to impose stringent labeling laws for food products and animal feed. These regulatory processes ensure proper labeling of feed ingredients including common definitions and full ingredients lists.

Proper labeling of animal feed additives ensures the safety of ingredients for animal consumption, especially in livestock and poultry. These ingredients commonly include grains, legumes, minerals, and additional vitamins.

As per government regulations, commercial feed labeling should comprise product name, brand name, product purpose statement, levels of nutrients provided, list of ingredients, and feeding directions. Additional information includes manufacturer/distributor information, net weight of the package, and species to which the product is meant to be fed.

Feed labeling further allows buyers to select products deemed fit to meet their production requirements. Uniform labeling formats provide a level field play for both purchaser and the distributor, which in turn improves sales prospects of animal feed additives.

Growing Focus on Balanced Animal Diet Will Support Growth

Just like humans, livestock animals need proper nutrition and a balanced diet to sustain themselves. Proper nutrition in animals is essential for growth, development, and reproduction. Inclusion of nutrients, fluids, minerals, and vitamins in animal feed facilitates disease prevention in livestock, further promoting profitable and sustainable agriculture.

Dietary requirements differ from animal to animal. For instance, ruminants have different dietary requirements than pigs, and cows have different requirements than calves. It is imperative to have a proper analysis of such varying dietary needs and to incorporate adequate animal feed additives that enhance nutritional content.

Lack of nutrients in the animal feed results in malnutrition and vitamin deficiencies that severely impact animals' growth and development, and some extreme cases can even result in irreversible health damage and fatalities. Farming practices to maximize yield lack essential minerals and vitamins in animal feed, which underscores the need for high-value animal feed additives.

Besides this, growing consumer preference for high-quality food products has encouraged farmers to incorporate sustainable methods in cultivation. The livestock industry is particularly under pressure for humane animal breeding practices as substance abuse in animals is a punishable offence.

A rich diet not only improves livestock yield but also enhances the quality of end products such as eggs and milk. As animals are highly sensitive to what they consume, animal feed additives producers are actively investing in research and development to produce nutrient-rich animal feed additives. 

Country-wise Insights

How Will Animal Feed Additives Sales Fare in the U.S.?

As per FMI’s regional analysis, the animal feed additives market in the U.S. is anticipated to expand at a steady pace between 2021 and 2031. The market is majorly driven by increasing livestock production in the U.S. and Mexico and the trend is expected to prevail in the coming years, keeping the market afloat.

Besides this, stringent government regulations regarding meat quality and animal feed additives will emerge as key factors driving sales of safer animal feed alternatives. For instance, the U.S. Food and Drug Administration has imposed regulations to ensure the safety of cattle, poultry, and aquatic species in pisciculture across the country.

Additionally, the presence of a well-established agriculture sector supports an adequate supply of raw materials such as maize, corn, and dextrose for animal feed production, further improving sales prospects in the market.

What Will Be the Demand Outlook for Animal Feed Additives in China?

China is one of the largest producers and consumers of meat in the world. Rapid urbanization and changing consumers' preferences regarding consumption of meat are key factors shaping the demand outlook for animal feed additives in China.

Increasing per capita expenditure on high-quality food products in China has also created lucrative growth prospects for players operating in the market. As per FMI, rising disposable income will continue spurring demand for nutrition-rich animal source foods, translating into better growth prospects in the animal feed additives market.

What are the Prospects for Growth of Animal Feed Additives Sales in Germany?

Germany is anticipated to lead the animal feed additives market in Europe, exhibiting a 3% CAGR through 2031. Increasing sales of ready-to-eat and packaged meat products have led to implementations of stringent food regulations in the country, which is further shaping the demand outlook.

Expansion of the livestock and agriculture industry is providing tailwinds to animal feed additive sales in the country. Animal feed additives play a crucial role in safeguarding the health of livestock as well as those who consume animal-derived products.

These factors have made it essentials for players operating in the market to maintain high-quality standards in the production of animal feed additives for sustaining sales through 2031.

What will Support Animal Feed Additives Market Expansion in India?

Growing population and urbanization in India are driving sales of animal feed additives, opines FMI. Increasing consumption of animal protein is promoting sales of milk, eggs, and meat in the country, becoming staple foods in households and the restaurant industry.

India is home to a flourishing livestock industry that adequately supports dairy, poultry, and meat industry. Rising disposable income in the country, coupled with evolving lifestyle patterns in Indian citizens have spurred the demand for high-quality, nutrient-rich foods in recent years.

In addition, growing awareness regarding health and well-being has led to a shift in food preferences from a vegetarian diet to milk, eggs, and meat, which is a major factor driving sales of animal feed additives. Apart from this, high emphasis on prevention of animal diseases and rising concerns regarding the quality of animal products will keep driving sales in the market in the upcoming years.

Category-wise Insights

Amino Acids Will Be the Most-Preferred Product Type

On the basis of product type, amino acids will dominate the market during the assessment period. Amino acids are building blocks of protein and polypeptides which are majorly responsible for muscles and tissues in animals.

Amino acids are also essential for fluids such as milk, making them beneficial animal feed additives. Apart from being the building blocks of body protein, amino acids are important for biochemical and metabolic processes in livestock. These factors further promote reproduction and the overall health of animals, making amino acid-based animal feed additives highly sought after during the forecast period.

Poultry Will Emerge as the Dominant Category based on Application

As per FMI’s market analysis, growth in the adoption of animal feed additives in the poultry segment will consistently rise in the forthcoming years. Chicken and eggs are among the most-consumed animal-derived products across various countries. Demand for high-quality poultry-based products will sales of animal feed additives.

Additionally, rising incidence of diseases in poultry farming facilities such as bird flu has compelled farmers to make conscious efforts to maintain the well-being of animals in such settings. Also, rising per capita income will drive demand for high protein animal products, which will lead to higher usage of feed additives in the poultry sector,

Plant-Based Animal Feed Additives to Gain Traction

Plant-based additives, known as phytogenic substances, are widely being adopted by animal feed additives producers for improving digestive and reproductive functions in animals. The medicinal and antimicrobial effects of plant-based animal feed additives are significantly promoting their adoption.

Phytogenic feed additives are suitable replacements for antibiotics in ruminants and swine as they improve growth performance, particularly in the first weeks of post-weaning. Plant-based animal feed additives also improve the flavor and odor of feed, thereby becoming a prominent choice in the animal feed additives market.

Competitive Landscape

The global animal feed additives market is highly consolidated with the presence of major global and regional players. Amid soaring competition, top 5 players comprising BASF SE, EVONIK INDUSTRIES AG, Cargill, Inc., Koninklijke DSM N.V., and Nutreco N.V. are anticipated to account for approximately 30-40% of the total market share.

As a part of their growth strategies, leading players in the market are emphasizing on strategic partnerships, mergers, and acquisitions to establish a firm foothold in the market. Apart from collaborations, profound emphasis on research and development for better product rollout will help solidify growth prospects during the assessment period. For instance:

  • In March 2021, Ajinomoto Co. collaborated with Pegasus Tech Ventures, a global venture capital firm to tap into Silicon Valley-based start-ups in the market to capitalize on emerging trends in the food and healthcare sector. The collaboration will allow the company to expand its geographical footprint across 16 locations around the world.
  • In June 2021, Biomin GmBH, a global animal nutrition, and feed additive producer announced its involvement in a four-year-long US$ 11.9 Mn EU-backed research consortium effort to address the challenges in pig and poultry production. The project called 3D’omics is looking to create a new technology to analyze animal microbiota interactions at the microscale by creating 3D visualizations for a better understanding.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Additive Type, Livestock Type, Source Type, and Regions

Key Companies Profiled

  • Ajinomoto Co., Inc.
  • Akzo Nobel N.V.
  • Alltech Inc.
  • Archer Daniels Midland Company
  • BASF SE
  • Biomin GmbH
  • Cargill Inc.
  • Chr.Harsen Holding A/S
  • CP Group
  • E. I. du Pont de Nemours and Company
  • Evonik Industries AG
  • Invivo Group
  • Koninklijke DSM N.V.
  • Kemin Industries
  • Lallemand Inc.
  • Norel S.A.
  • Novozymes A/S
  • Nutreco
  • Phibro Animal Health Corporation
  • Novus International Inc.
  • Tyson Foods, Inc.
  • Solvay Group

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current animal feed additives market value?

    The animal feed additives market reached a valuation of US$ 16,364.1 Mn in 2021.

  • At what rate did the animal feed additives market grow between 2016 and 2020?

    The animal feed additive market experienced stagnant growth, exhibiting a 2.10% CAGR between 2016 and 2020.

  • What are the key trends driving animal feed additives sales?

    Increasing adoption of protein and probiotics in animal feed, coupled with product labeling requirements are key factors driving animal feed additives sales.

  • Who are the leading players in the animal feed additives market?

    BASF SE, EVONIK INDUSTRIES AG, Cargill, Inc., Koninklijke DSM N.V., and Nutreco N.V. are the leading players operating in the animal feed additives market.

  • What will be the demand outlook for North America animal feed additives market?

    North America animal feed additives market is anticipated to witness sluggish growth at a 2.90% CAGR.

  • What is the market share of leading players in animal feed additives market?

    Top players in the animal feed additives market are estimated to account for approximately 30-40% of the total market share.

  • What will be the animal feed additives market share in Europe?

    The animal feed additives market in Europe is expected to grow at a slow pace, exhibiting a 3% CAGR through 2031.

  • What is the current market share of Japan and South Korea in the global animal feed additives market?

    Japan and South Korea will collectively account for 13% of the total market share.

Animal Feed Additives Market by Category

By Additive Type: 

By Application Type:

  • Ruminants
  • Poultry
  • Swine
  • Aquatic

By Source Type:

  • Plant
  • Animal
  • Micro-organisms

By Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific Excluding Japan
  • Japan
  • Oceania
  • MEA

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Animal Feed Additives Market