Animal Feed Additives Market Trends and Analysis by 2028

[Research Report] The animal feed additives market was valued at US$ 34,583.5 million in 2021 and is projected to reach US$ 49,874.8 million by 2028; it is expected to grow at a CAGR of 5.4% from 2021 to 2028. 

Market Insights and Analyst View:

Feed additives are substances or micro-organisms which are intentionally added to feed to enhance their nutritional quality. The additives might impact feed presentation, hygiene, digestibility, or effect on intestinal health.  The demand for animal feed additives is increasing at a high pace as the consumption of meat and related products is rising globally. The market is characterized by presence of large number of participants resulting in highly fragmented market. The leading market players are focused on expanding business in international and domestic markets for further market penetration.

Growth Drivers and Challenges:

The addition of feed additives is particularly important in specially formulated diets where rapid ingestion is highly desirable. A few additives such as vitamins and amino acids and their metabolites are essential regulators of metabolic activities in animals for resistance to environmental stressors, reproduction, larval metamorphosis, behavior, immunity, growth, maintenance, nutrient utilization, and feed intake. The various benefits of additives have resulted in the growing utilization of additives to target specific health conditions. Therefore, the increasing use of additives in animal feed is fueling the demand for the animal feed additives market.

Moreover, industrial livestock production has undergone a significant transformation due to the advancements in antibiotics and animal vaccinations. The increasing demand for meat-based products propels the production of industrial livestock. Livestock products account for 16% of energy and 34% of the protein in human diets. Also, livestock production accounts for around 19% of the value of food production and 30% of the global value of agriculture. The demand for livestock products is driven by the changing lifestyles and food preferences, increasing urbanization, growing income, and the rapidly rising world population. Therefore, the high demand for livestock products drives the animal feed additives market. However, many developed countries and regions banned or started banning the use of antibiotics as a growth promoter. For instance, the U.S. Food and Drug Administration (FDA) introduced new regulations effective January 1, 2017, to ban the use of antibiotics as feed supplements to help livestock grow faster. Such regulations restrain the demand for animal feed additives and can further hamper the market growth.

Published Report - Animal Feed Additives Market: Strategic Insights

Report Segmentation and Scope:

The “Global Animal Feed Additives Market” is segmented on the basis of product type, application, and geography. Based on product type, the animal feed additives market is segmented into amino acid, vitamins, carotenoids, enzymes, prebiotics & probiotic, minerals, acidifiers, lipids, and others. In terms of application, the market is classified into poultry, ruminants, swine, aquaculture, and others. The animal feed additives market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)

Segmental Analysis:

Based on application, the animal feed additives market is segmented into poultry, ruminants, swine, aquaculture, and others. The poultry segment holds a significant share of the market and is expected to register a significant CAGR in the animal feed additives market during the forecast period. The feed additives are commonly used in poultry diets are antimicrobials, antioxidants, emulsifiers, binders, pH control agents, and enzymes.  These additives are primarily used to improve the efficiency of the bird’s growth and laying capacity. It also helps to prevent disease and improve feed utilization. Furthermore, an increase in demand and consumption of livestock-based products such as dairy, dairy-based products, meat, and eggs is expected to drive the feed additives market in the growth and development of poultry livestock.

Regional Analysis:

Based on geography, the animal feed additives market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global animal feed additives market was dominated by Asia Pacific; the market in this region was valued at US$ 12,713 million in 2022. North America is the second major contributor to the market, which holds more than 20% of the global animal feed additives market share.  South & Central America is expected to register a significant CAGR in the market during the forecast period. The market in APAC is expected to grow during the forecast period due the rising production of animal feed and growing livestock. Asia-Pacific is the largest producers of animal feed globally. The region accounts for the largest human population among all five regions and contains around 60% of global population. Hence, the mass of the region is bolstering the demand for meat and dairy products, which is leading the region for livestock and subsequently favoring the animal feed additives market growth in the region. Moreover, the animal feed additives market in North America is also witness growth during the forecast period due to the rise in demand for quality meat products across the region. the rising production and consumption of animal feed among livestock farms proliferates the growth of the animal feed additives market in North America.

Industry Developments and Future Opportunities:

Various initiatives taken by key players operating in the animal feed additives market are listed below:

1. In November 2021, Archer-Daniels-Midland Company announced the opening of its new animal nutrition laboratory located in Rolle, Switzerland. The new lab will support the growth of science-based feed additives in order to meet customer needs for pet food, aquaculture, and livestock species globally.
2. In December 2022, Adisseo group had agreed to acquire Nor-Feed and its subsidiaries to develop and register botanical additives for use in animal feed.
3. In October 2022, the partnership between Evonik and BASF allowed Evonik certain non-exclusive licensing rights to OpteinicsTM, a digital solution to improve comprehension and reduce the environmental impact of the animal protein and feed industries.

Animal Feed Additives

Published Report - Animal Feed Additives Market Players Density: Understanding Its Impact on Business Dynamics

The Published Report - Animal Feed Additives Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

COVID-19 Impact:

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the food & beverage, animal feed industries. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. Animal feed manufacturers temporarily close their operations or limit their production capacities, negatively impacting the animal feed additives market growth. However, by the end of 2021, many countries were fully vaccinated, and governments announced relaxations in certain regulations, including lockdowns and travel bans. Along with this, the relaxation of trade restrictions aided in import and export operations, positively impacting the animal feed additives market growth.

Competitive Landscape and Key Companies:

A few of the prominent players operating in the global animal feed additives market include ADM, Cargill, Incorporated, Alltech, Land O'Lakes, Inc., EVONIK, Dupont DE Nemours, Inc., Nutreco N.V, NOVOZYMES, KEMIN INDUSTRIES INC among others. These market players are adopting strategic development initiatives to expand, further driving the market growth.