Published On: March 2018
Global Feed Additives Market Research Report - Forecast to 2023
Feed additives have become an essential part of feed manufacture and animal nutrition for the global production of foods of animal origin. They serve as a key ingredient when combined with basic feed. Feed additives enhance the characteristics of the feed leading to better overall performance and animal health, thus improving the quality of human food. Diverse health benefits imparted by the feed additives have raised its demand on a global platform. They are beneficial for livestock animals as they stimulate feed digestion and improve overall gut health. Additionally, they also improve the feed structure such as palatability and enhance the shelf-life by preventing microbial spoilage of feeds. This also improves the feed uptake and reduces the feed loss.
Never ending demand for feed additives from feed industry has made its market lucrative and an opportunity for new players to enter the market. However, keen focus on R&D sector and availability of other economic alternatives might restrict the growth of this market.
Product Marketing: is it a way to success?
Feed additives have been witnessing continuous demand from feed manufacturers of which, poultry and ruminants remain the dominant segment. The increase in poultry and ruminant population serves as a growth opportunity for the feed additives market. Furthermore, the recent growth in equine population can serve as a promising opportunity for the market players in the feed additives market to mark their position in the global market. Rising production of livestock products and farming practices of livestock animals will have a positive influence in the feed additive market. Players can enter the market with new specialty feed ingredients to facilitate the healthy growth and metabolism of the livestock.
Product promotion and marketing at various commercial events and government initiatives through digital media is driving the feed additives market. Furthermore, the potential application of the feed additives in the feed stabilization and shelf-life extension drives its demand. The diverse nutritional attributes imparted to the feed is considered one of the major drivers for its rising sales in the feed industry.
Feed additives market: Is the future as profitable as it seems?
Fluctuating raw material prices is one of the major restraints to the growth of this market. Rising prices of raw material will affect the prices of compound animal feed. This, in turn, will also hinder the growth of the feed additives in the global feed market. Also, the cost of extraction of feed additives from these natural sources will also increase. Plant sources are considered to be the primary raw material for the extraction of natural feed additives. With the decreased supply and rising demand for these raw materials, the production of feed additives will also get highly affected. Volatile prices of raw material can cause a supply-demand gap of feed additives, which can hinder the growth of global feed additives market.
Additionally, one major hindrance to the growth of this market is stringent government regulations followed by the major animal feed producing countries which affect the growth of the feed additives market as they go through thorough testing. Additionally, the use of antibiotics in animal feed is banned as it further affects the human health after consumption of those animal products. Stringent government regulations result in a strict check of animal feed additives. Introduction of new feed additives in the market becomes difficult since it requires approval from the government authorities. Hence, the entry of new players into this market sustains low chance.
Significant contribution from the Asia Pacific market
Growth in the compound feed is high in the Asia Pacific region and so is the consumption of feed additives. The region dominates the global feed additives market and is estimated to hold a major market share during the corresponding period. A significant contribution of the region in the global market is marked by the presence of established players in the region. North America is concentrated with renowned players such as Cargill, Inc., Archer Daniels Midland Company, and Alltech Inc. which have their significant contribution in the feed additives market.
Furthermore, the North American region is identified to be the fastest growing region with intense contribution from countries including the U.S., Canada, and Mexico. The U.S. is leading the region owing to high investments in the agricultural and livestock sector in the country. Rising demand for meat and dairy products have prompted the growth of animal livestock market. The concerns associated with the production of healthy livestock will directly influence the growth of the animal feed market. Application of feed additive as a key nutritional ingredient is experiencing high growth. New players who want to enter into the feed additives market are targeting Asia Pacific region to expand their consumer base. The global demand for high value and quality foods such as meat, eggs, and milk is rising, which is expected to keep the feed additives market growth in the coming years.
Based on the market analysis, it was identified that the key players in the global feed additives market are focusing more on strategic acquisitions and business expansions. Likewise, new entrants who are willing to enter this competitive market are focusing more on the R&D sector for new and improved products with improved efficacy. Likewise, the established market players are inclined towards new product launch and their product promotions to strengthen their marketing base. The promotional strategy aids in retaining the existing customers and also to regenerate new customer base.
Furthermore, growing health concerns among the increasing global population together with increasing awareness about the benefits of feed additives are expected to foster the demand for feed additives. Moreover, increasing demand for feed supplements for livestock animals from the feed manufacturers have raised the demand for feed additives on an exponential level.