About the Report
With rising concerns regarding animal health and wellbeing, the demand for high-quality forage is increasing. Forage quality impacts feed intake and thus animal yield. Silage additives are used as stimulants of fermentation to increase nutrient recovery of feed to enhance animal performance and to decrease the risk of heating and molding during storage of feed.
Increasing demand for beef and dairy products is project to drive the market. According to the Food and Agriculture Organization (FAO), the production of beef is anticipated to grow by 7% over the next decade. Lately, developing countries such as India are exhibiting increasing consumption of beef, while some other South Asian countries are reporting a rise in milk consumption. This rise in demand for milk and beef has been fuelling the demand for silage additives for ensuring high quality and quantity of beef and milk.
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for silage additives. The report tracks the global sales of silage additives in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the food and beverage industry in general, and silage additives in particular.
How Does Future Outlook of Silage Additives Market Compare with Historic Sales?
Earlier, the establishment of associations such as the British Association of Feed Supplement & Additive Manufacturers (BAFSAM) and European Feed Additives Manufacturers Association (FEFANA) had created a community of cattle and ruminant owners, due to which they were more aware of the optimum steps to be taken together for the betterment of the dairy industry.
They rigorously studied different types of animal feed additives, such as silage additives and specialty ingredients, and feed ingredients that are expected to enhance the productivity of livestock. These associations also created a communication channel across national borders for the more efficient flow of ideas and innovation which in turn helped the people to know about silage additives. According to FMI’s analysis, silage additives sales have grown at 4.1% CAGR between 2016 and 2020.
Nowadays, global silage additives manufacturers are expected to benefit from market-oriented innovation tactics and by offering value-added services. Among the prominent players, Evonik is known for its investment in services such as silage consulting, feed analysis, formulation support, and research on alternate dosage systems.
BASF has been actively increasing the production capacity of its phytase-based enzymes to respond to the increasing market demand across livestock categories such as pigs and poultry. In this regard, BASF acquired Verenium Corporation in 2013 – a biotechnology company specialized in the production of high performance enzymes – for US$ 62 Mn. FMI expects global Silage Additives market to grow at 5.5% CAGR through 2031.
How is Clean Energy Awareness Aiding Silage Additives Market Growth?
Clean energy has led to the generation and development of sustainable sources of energy such as wind energy, solar power, biogas, and more. Silage additives are extensively used for the production of biogas, as anaerobic digestion of silage additives produces biogas with over 55% of methane. Methane produced by silage additives is as essential as fuel and electricity.
Preservation of silage additives for the production of biogas needs anaerobic conditions such as aerobic degradation, which could lead to a large loss of methane potential. Under these sub-optimal conditions, silage additives such as heterofermentative inoculants improves the aerobic stability of silage additives and thus enhance their shelf life, thereby increasing the global demand for the silage additives market.
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How is Increasing Meat Consumption Affecting Silage Additives Market?
With growing population, the demand for animal protein products is rising as well. The trend of following a healthy fitness regime has also hit consumers, especially the millennial demographic. This has encouraged a higher intake of meat and dairy products among them. In India, the frequency of consumption of meat among youngsters has increased from once a week to almost three times a week. These factors are paving the way for the growth of the silage additives market.
Will Inclination for Organic Food Affect Silage Additives Market?
The increasing consumption of organic food products is encouraging farmers as well as cattle owners to use organic methods for farming activities. To address this rising demand, manufacturers such as Micron Bio-Systems are producing silage additives certified as OF&G, which are suitable for the production of organic and clean label food products.
This certification is primarily available in European countries, however, manufacturers in other regions are also setting up operations according to OF&G guidelines to provide certified organic silage additives and hence increasing the demand for silage additives.
How Big is the Opportunity in U.S. for Silage Additives Sales?
FMI has projected the U.S. to remain one of the most lucrative markets throughout the forecast period. In North America combination product type segment remains on a sturdy pitch, due to steady consumer spending for healthy feed in the country.
Cognizance concerning the role of feed in well-being of the livestock has made consumers in U.S. and Canada more observant towards the ingredients used by manufacturers. Moreover, due to preference towards healthy feed, the North American feed and livestock companies has advance new portfolios which in turn has projected the demand for silage additives market.
Why are Silage Additives Considered Essential Part of U.K. Feed Market?
FMI forecasts U.K. to remain the most profitable market in Europe. Moreover, there is an increasing preference for eco applicators in Europe which helps in saving the use of plastics for the application of silage additives.
For instance- Manufacturer such as Ecosyl (Volac International Limited) have introduced eco applicators in 2019 for the application of liquid as well as dry silage additives.
What is Driving Silage Additives Market in China?
Due to the rising incidence of livestock health illness in the country, there has been a shift in consumption patterns. Customers are showcasing increasing inclination towards products providing adequate labelling. Hence silage additives accounts for about 49% of all of China’s ginseng market and the consumption is constantly increasing every year.
What Has COVID-19 Impacted Australia Silage Additives Market?
FMI has projected Australia to remain one of the most lucrative markets for silage additives in Oceania throughout the course of the forecast period. It holds 84.5% market share in terms of volume in the Oceania silage additives in 2021.
However, as the outbreak is affecting normal lives at such a large scale, growth is likely to get hindered to an extent. Also with an increasing section of consumers switching to vegan diet, growth forecasts for the silage additives market in Australia could be altered.
How Big is the Opportunity in India for Silage Additives market?
The India compound feed market is the largest and one of the fastest-growing sub-markets for silage additives. An increasing number of manufacturers are taking keen interest in the Asia market, primarily in India. This is owing to the fact that India has a large bovine population and a big issue of storage and preservation of silage additives for the farm cattle due to lack of infrastructure. Hence, increasing awareness about silage additives preservation is helping the silage additives market to grow.
Why are Silage Additives Combination Products More in Demand?
The combination products segment holds the largest share in the overall silage additives market. It is often recommended to choose a silage inoculant which contains both homo- and heterofermentative bacteria for a well-balanced combination of both homo- and heterofermentative strains. This is expected to bode well for the segment.
Why are Silage Additives Preferred More in Liquid Form?
Inclination for liquid additives can be attributable to various benefits they offert. For instance, due to their ease in transport, storage, and handling the demand for liquid silage additives is expected to pick up. Moreover, liquid concentrates are highly chosen for various applications. The segment will also gain from the improved use of chemical additives in emerging countries.
Which is the Key Function of Silage Additives?
Silages with chemical additive showed greater alcohol content than silages with other additives. However, propanol was present in major quantity in these silage additives. Meanwhile, ethanol was found in silages with heterofermentative LAB treatment. Therefore stimulation treatment is preferred and is expected to grow during forecast period.
Which Silage Crop is Preferred More?
Corn segment is anticipated to register maximum rate of growth throughout the forecast period. This is because crop cultivators favor the effectiveness of corn silage above other crops to attain superior results. Increasing manufacturing of corn silage in Europe and North America and increase in usage of corn silage in biofuel commerce will continue aiding expansion within the segment.
Opportunities Abound in Silage Additives Industry
With expansion of the feed additives market, the demand for cold storage warehouses has risen. This is intended to enhance the shelf-life of feed additives and reduce wastage. The highest number of cold storage warehouses are present in the U.S. Thus the country will continue presenting consistent growth opportunities.
Additionally, feed enzymes are being increasingly used in silage additives. They help in the enhancing preservation process and bringing about reduction in feed cost. The two commonly used enzymes in the feed and silage industry are carbohydrases and phytases, as these help in removing the viscous fibers in cereals and targeting phytic acid complexes in plant ingredients. Recently introduced innovative enzymes are based on the maize-soy complex.
These developments are expected bode well for the market in the coming years.
Key manufacturers in the silage additives market are increasingly investing in research & development. Besides this there is ample focus towards expanding product portfolio. For instance:
- In 2018, BASF launched a blend of propionic acid and buffered formic acid under the name of Lupro-Cid® NA.
A key point to consider here is that focus on environment safety and sustainability is increasing among manufacturers operating in this market. Several product development initiatives undertaken in the recent past have been driven by this trend.
Some of the leading companies operating in the Silage Additives market are:
- BASF SE
- Chr. Hansen Holding A/S
- Lallemand Inc.
- DuPont de Nemours, Inc
- Shandong Baolai-leelai Bio-industrial Group
- Schaumann Bioenergy GmbH
- Micron Bio-Systems
- Volac International Limited
- Kemin India
- Addcon Europe GmbH
- Josera GmbH & Co KG
- NWF Group
- American Farm Products
- Microferm Ltd.
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
Historical Data Available for
USD Million for Value and MT for Volume
|Key Regions Covered|| |
North America, Latin America, Europe, East Asia, South Asia, Oceania, MEA
Key Countries Covered
US, Canada, Brazil, Mexico, Rest of Latin America, Germany, Italy, France, U.K., Spain, BENELUX, Nordic, Russia, Poland, Rest of Europe, Japan, China, South Korea, India, Thailand, Indonesia, Malaysia, Singapore, Rest of South Asia, Australia, New Zealand, GCC Countries, South Africa, Rest of MEA
Key Segments Covered
Type, Form, Function, Silage Crop and Region
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, Drivers, Restraints, Opportunities and Threats analysis, Key factors, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered in Silage Additives Report
At What Rate The Demand For Silage Additives Is Expected To Grow?
The global silage additives market is projected to grow at a CAGR of 5.5% in the next 5 years. Increase in production of silage across the world and focus on improving silage quality and shelf life will continue aiding growth of the market.
Which is the Preferred Silage Additives Form?
The liquid form of silage additives is expected to largest share in the market.
Which Are Leading Companies Offering Silage Additives?
Some of the leading companies offering silage additives are BASF SE, Chr. Hansen Holding A/S, Biomin, Nutreco, Lallemand Inc., DuPont de Nemours, Inc, Shandong Baolai-leelai Bio-industrial Group, Schaumann Bioenergy GmbH, Micron Bio-Systems, Volac International Limited among others.
What Are the Key Factors Driving Silage Additives Market?
Some of the factors supporting the silage additives market growth are increasing consumption of beef and dairy products and rising focus on health and fitness.
Enquiry before Buying
Is this research conducted by Future Market Insights?
Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst
What research methodology is followed by FMI?
FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology
Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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Silage Additives Market by Category
- Homofermentative Inoculants
- Heterofermentative Inoculants
- Combination Products
- Acids and Acid Salts
- Molasses or Sugars
- Non-Protein Nitrogen (NPN) Compound
- Stimulation Treatment
- Inhibition Treatment
- Other functions (aerobic stability enhancer, moisture absorbent, and nutrition)
By Silage Crop
- Other Crops (wheat, legumes, clovers, etc.)
- North America
- Latin America
- East Asia
- South Asia
- Middle East & Africa