Animal Feed Additives Market Size, Share & Trends Analysis Report By Product (Amino Acids, Vitamins, Antioxidants), By Livestock (Pork, Poultry, Cattle), By Region (Europe, Asia Pacific), And Segment Forecasts, 2023 - 2030

Report Overview

The global animal feed additives market size was valued at USD 40.74 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.5% from 2023 to 2030. This is attributed to the rising meat consumption across the world. In addition, increasing consciousness regarding the benefits of feed additives and the recent outbreak of various diseases has positively impacted the industry. Rising consumer awareness about the disease caused in livestock animals including swine flu along with foot & mouth diseases has increased the concerns regarding meat quality and safety, which has prompted the use of feed additives.

However, the restriction on the use of antibiotics in the U.S. and Europe is expected to open the market for substitute products, such as enzymes, acidifiers, and amino acids. The animal feed additive value chain is optimally integrated via multiple players in the industry. Key grain producers, such as BASF SE and Cargill Inc., are integrated along the value chain to provide feed additives and serve as a comprehensive supplier to animal feed manufacturers and reduce sourcing and logistics costs. Companies, such as Alltech and Charoen Pokphand (CP) are also integrated backward to produce raw materials (feed grains) as well as animal feed end-products to cut down on raw material costs.

Livestock production requires significant outputs of feed, land, water, and energy for raising, transporting, and processing the animals. Animal feed is the major constituent in the breeding process of animals as it is responsible for the nutritional values of the product. The increased productivity has been made a success due to growth in feedstock production and factory farming methods, which have been advanced with technological/genetic advances and fertilizers. Moreover, it is estimated that the rising global meat trade will boost industrialization in meat production, especially in the developing parts of the world, such as China, India, and Brazil, which have the benefit of lower cost of meat production.

Increasing consumption of dairy products owing to their associated health benefits, as well as wide applications, is expected to fuel the industry's growth over the forecast period. A sudden increase in cattle farming has been witnessed across various regions on account of cattle being the major source of dairy products such as milk, cream, butter, yogurt, and cheese among others. This is likely to propel product demand in the coming years. Stringent norms laid by the regulatory bodies regarding the use of feed additives are anticipated to hamper the overall market growth. The players, focused on marketing and selling additives across the EU, are required to apply the use, control methods, and data demonstrating the safety & efficacy of the product, which is expected to further restrain the market growth.

Product Insights

The amino acids product segment dominated the global industry in 2022 and accounted for the largest share of 34.70% of the overall revenue. Its high share is attributed to its ability to build immunity and promote animal growth. It aids in preventing nail and skin problems in animals. Furthermore, it plays an important role in preventing cerebral dysfunction, which can cause muscular incoordination in animals. Thus, amino acids are projected to have a high demand from the product industry as a feed supplement, as well as a pet food ingredient. The ability of antibiotics to promote growth in livestock is one of the primary factors triggering its market growth. Antibiotics also improve meat quality and result in high protein content and less fat content.

The excessive use of antibiotics as growth promoters resulted in the local bacterial population becoming resistant to the antibiotics. Traces of antibiotics in the meat can also affect human health because of their excess use as growth promoters. Vitamins naturally exist, but to provide proper nutrition, additional vitamin supplements are mixed in livestock feeds. Majorly used vitamin additives include vitamins A, D, E, & K and riboflavin; and these are added as supplements into the feed to improve and maintain animal health. Vitamins are also given to animals for improving reproductivity. Moreover, rising awareness among consumers regarding the benefits of fat-soluble vitamins is anticipated to drive its demand in the industry.

Livestock Insights

The poultry segment dominated the industry in 2022 and accounted for the largest share of 37.00% of the overall revenue. The segment’s high share is attributed to the continuous growth in broiler production across regions. Different types of poultry feed additives available in the market are enzymes, antioxidants, vitamins, and acidifiers, which are used to increase efficiency and add nutritional value to the product. An increase in consumption is observed in developing countries where increasing income and urbanization are making consumers add variety to their diets. Thus, developing countries will continue to dominate the poultry feed segment due to the growing population and high ratio of meat consumption.

The key parameters impacting the pork industry include high efficiency, productivity, and profitability. Antimicrobials, antioxidants, binders, emulsifiers, enzymes, and pH control agents are some of the major additives used in pork feed. Antibiotics aid in improving growth performance and disease control. Furthermore, fat-soluble vitamins, such as A, K, E, and D, and water-soluble vitamins, such as B12, riboflavin, choline, and niacin, are added to pork feed to enhance the growth performance of the pork. The rapid industrialization of cattle products like meat and dairy products along with the growing population has positively influenced the cattle feed market globally.

It mainly comprises fodder, legumes, grass, and silage along with hay and dry forages. An increase in consumer awareness toward the safety of meat and milk products from cattle along with the nutritional content of cattle feed emerged as the key factor driving the product segment. Aqua feed is prepared by mixing raw materials and various additives considering the age and species of various aquatic animals, such as salmon, cod, tilapia, shrimp, zander, and oysters. As it is a niche market, there is a high demand for a methodized R&D approach by new entrants in the market. Furthermore, a rise in income, increasing demand for seafood, and growing consumer awareness are projected to stimulate product demand.

Regional Insights

Asia Pacific dominated the global industry in 2022 and accounted for the largest share of more than 33.30% of the overall revenue. This is attributed to the presence of an abundant livestock population along with the presence of various agricultural economies. Key players are likely to develop their poultry feed portfolio owing to the shifting preferences for meat consumption among consumers. The market in Europe is innovation-driven and highly regulated in terms of human health and well-being, as well as the environment.

This results in regular changes in the guidelines for the product, such as bans and restrictions. Free trade agreements in the region for the European Union countries will have a positive influence on product growth over the forecast period. The swine industry in Spain is growing at a significant growth rate owing to lower product prices, reduced hog production costs owing to increased efficiency, and an increase in Spanish pork exports. Growth in the swine population across the country is creating more demand for animal feed for the swine/pork sector, which is projected to boost the market growth.

Rising meat consumption in North America, mainly in the U.S., coupled with stringent regulations regarding meat quality is expected to remain a key driving factor for the market. The strong presence of the mills and pet food manufacturing industries will boost product demand. The rising health consciousness among consumers coupled with the growing per capita meat consumption in the country will further support the industry expansion. In addition, the availability of abundant raw materials, such as maize and dextrose, is also expected to drive the market during the forecast period.

Key Companies & Market Share Insights

The competition in the global industry is highly dependent on the quality of the product, the number of manufacturers & distributors, and their geographical locations. Several participants and stakeholders are also concentrating on increasing their manufacturing capacities. Major market participants including DSM, BASF, Evonik, and Danisco have been highly active in the M&A activities over the last five years. These companies offer a mixed portfolio of products, in comparison to Novozymes and Ajinomoto, which offer specific products, such as enzymes and amino acids. In addition, key companies are engaged in research & development activities to offer consumers efficient products, which is expected to fuel market growth. Some of the prominent players in the global animal feed additives market include:

• Cargill Inc.

• HONG HA NUTRITION

• BASF SE

• Kemin Industries, Inc.

• ANOVA Group

• BIOMIN Holding GmbH

• Olmix Group

• ADM

• Evonik Industries

• Chr. Hansen Holding

• Alltech, Inc.

Recent Developments

• In July 2023, Olmix announced the acquisition of Yes Sinergy to reinforce its animal care portfolio. With this transaction, Olmix pursued international development and positioned itself as a significant supplier of biosourced solutions.

• In June 2023, Altech unveiled the launch of Triad – an advanced solution that supports pig livability and successful farrowing. Triad comprises an appetizing blend of the company’s flagship ingredients.

• In May 2023, Kemin Food Technologies commenced the opening of BITEPod – the company’s center of excellence for food advancements in Asia. This facility was aimed at creating prototypes and enhancing formulations in the food & beverage industry.

• In May 2023, ADM acquired Prairie Pulse Inc. to strengthen associations with pulse growers in Canada. The deal also aimed at expanding ADM’s capabilities to cater to the demand of their downstream end-users looking at pulse as source of protein for both human and animal nutrition.

• In April 2023, BASF announced its collaboration with Schothorst Feed Research for enhancing the environmental impact in the animal feed & protein sector. With the help of this, SFR integrated BASF’s Opteinics digital sustainability platform into its global consultancy services for animal nutrition.

• In March 2023, BASF extended its partnership with Cargill for delivering high-performing animal protein enzyme solutions in South Korea. The advancements in enzyme feed will support farmer sustainability & productivity efforts and animal wellbeing.

• In June 2022, Cargill announced plans to acquire Delacon for developing a remarkable phytogenic plant-based feed additives business for advanced animal nutrition. This transaction was aimed at enhancing global presence, augmenting feed additives expertise, and optimizing food production.

• In May 2021, Chr. Hansen announced the launch of a new product, Bovacillus, in Argentina. Bovacillus is an advanced probiotic solution that withstands severe conditions during production of the feed, processing, and in the gastrointestinal tract.

Animal Feed Additives Market Report Scope

Global Animal Feed Additives Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global animal feed additives market report based on product, livestock, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Antibiotics

  • Vitamins

    • Vitamin A

    • Vitamin E

    • Vitamin B

    • Vitamin C

    • Others

  • Antioxidants

  • Amino Acids

    • Tryptophan

    • Lysine

    • Methionine

    • Threonine

    • Others

  • Feed Enzymes

    • Phytase

    • Non-Starch Polysaccharides & Others

  • Feed Acidifiers

  • Others

• Livestock Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Pork/Swine

  • Poultry

  • Cattle

  • Aquaculture

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • The Netherlands

    • Belgium

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Thailand

    • Vietnam

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia