Increase in Industrial Feed Production and Demand from Emerging Markets Drives the Animal Feed Additives Market, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Animal Feed Additives markets. The global market for Animal Feed Additives is forecast to reach US$23.5 billion by the year 2018, driven by the demand for meat products from the populous Asian and Latin American economies as well as persistent demand for high quality animal health products from North America and Europe. Demand is also expected to be driven by factors such as continued rise in the share of industrial production in the Animal Feed market.

Animal Feed Additives: A Global Strategic Business Report

Follow us on LinkedIn – Feed additives help optimize the yield potential of animal production by aiding in superior digestibility of feedstuffs and meeting the nutritional needs of companion and farm animals. Feed-grade additives also improve the living environment of animals by preventing or reducing the pollution caused due to animal manure. Animal feed additives are rapidly rising in popularity based on its vast medicated as well as non-medicated applications for poultry, pig, aquaculture, companion animals, and ruminant feed. Increasing health-consciousness of consumers, continued breakthroughs, especially in research and clinical applications areas, and expanding commercial applications will help ensure sustained growth in the market. Advancements in feed manufacturing technology, and new feeding concepts unraveled possibilities to manufacture a range of novel products for companion and livestock.

Megatrends centered on the burgeoning global population are fuelling the requirement for protein rich foods. Agricultural commodity production is unable to keep pace with rapid population expansion, handicapped by the scarcity of arable land, soil erosion and limited productivity of land. In particular, population explosion and rising per capita incomes of developing economies are propelling the consumption of beef, fish, poultry and swine products skyward, and thereby the demand for animal feeds and feed additives for improving the efficiency of meat, egg and dairy production. However, the demand for meat, particularly for swine, poultry and fish products, is escalating persistently. Mushrooming hypermarkets and supermarkets are catalyzing meat retail, and in turn fuelling demand. The global push for higher protein diets will inevitably lead to a spurt in per capita consumption of meat, thereby propagating demand for natural and organic feed additives and ingredients.

Industrial feed production is expected to increase in the near future as developing economies become less dependent on rural and farm feed production. Rural production will also be affected with tightening traceability and regulatory norms, reflecting growing consumer apprehensions about safety of consumable products. Rising demand for high quality feed additives is compelling manufacturers to develop efficient and integrated solutions. In addition, government authorities in China and other emerging economies are promoting the use of manufactured feeds in place of forage and food scraps. Price volatility of raw materials in animal feeds market over the recent years has adversely affected competitive variables in the global animal feed market, taking a toll on corporate profit margins and bottom lines. Factors influencing raw material prices include efficacy and quality of the product, outbreak of animal disease, currency fluctuations, number of competitors, and the oversupply or undersupply of basic raw materials.

Growing restrictions in North America and Europe on livestock waste disposal is prompting manufacturers to use amino acids in animal diets to overcome protein deficiencies. Feed additives generated more than two-thirds of revenues of the billion-dollar vitamin industry in the near term, with demand from emerging economies countering the decline from mature markets. Vitamins A, C and E represent the most lucrative segments for the animal feeds market. Demand for methionine, lysine, threonine and tryptophan in animal feed is predicted to gain momentum in the short-term. Growing demand from swine industry boosting sales of lysine, with more and more swine feed producers opting for lysine in place of crude proteins. China is expected to power the global lysine market in the near term, reflecting the growing affluence in the population and the adoption of better livestock farming methods. The majority of the recent lysine production capacity additions are targeted at the growing Chinese livestock market. Animal feed-grade enzymes represent one of the biggest and fastest-emerging markets for enzyme producers. The swine and poultry markets account for over three fourths of the total feed-grade enzyme market. Due to environmental and cost-containment benefits, phytase is expected to continue to dominate feed enzymes market.

The livestock farming sector is drawing flak from activists and health regulatory bodies the world over for the overuse and misuse of antibiotics and AGPs (antibiotic growth promoters) thereby giving rise to several strains of antibiotic-resistant microbes. The ban is expected to sales volumes as animal-grade antibiotics market accounts for a significant share of the huge antibiotics industry. Since the ban on antibiotics, livestock producers have been seeking ways to promote animal production and deliver similar benefits offered by antibiotic growth promoters, thus translating into a strong business case for alternative feed additives. Over the years, various feed additives such as acidifiers, enzymes, amino acids, probiotics, organic acids, as well as proprietary blends have emerged as potential alternatives.

As stated by the new market research report on Animal Feed Additives, the Asia Pacific region led by China is the global hotspot in terms of sheer size and pace of growth. Demand for animal feed remains high in North America and Europe, though consumption has reached the saturation point in these regions. Due to improving living standards, demographic growth, and relatively low per-capita meat consumption, developing countries provide ample potential for growth. In terms of product segments, feed-grade antibiotics and amino acid additives markets account for more than half of global sales, while the amino acids segment is forecast to witness the overall fastest CAGR of 8.8% over the analysis period.

Key players profiled in the report include Adisseo France SAS, Ajinomoto Co Inc., Alltech Inc., BASF SE, Danisco A/S, DSM Nutritional Products, Lallemand Inc., Lesaffre Feed Additive, Lonza Group Ltd., and Novozymes A/S, among others.

The research report titled “Animal Feed Additives: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of trends, issues, growth catalysts and restraints shaping the present-day animal feed additives market. The report also outlines strategic industry activities, competition, and profiles of major companies worldwide. The report provides market estimates and projections (in US$ million) for the period 2010-2018 with breakdown of major geographic markets including the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific, Middle East, and Latin America. Key product segments analyzed include Antibiotics/Antibacterials, Vitamins, Antioxidants, Amino Acids, and Others (comprising enzymes and acidifiers among others). The study also provides historic data for an insight into market evolution over the period 2004 through 2009.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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