The revenue of the Animal Feed Additives Market is expected to grow at 5.5% CAGR through 2023 to 2029, boosted by growing meat consumption, health concerns and recent disease outbreaks, a new report has concluded.
The report called Animal Feed Additives Market – Industry Analysis and Forecast (2023-2029) and published by Maximize Market Research revealed that the market was expected to reach nearly $26.48bn in 2029 - up from $18.20bn in 2022.
It said that while animal feed additives play a “vital role” in enhancing animal performance and health, such as improving digestion and reproduction, they also indirectly influence the quality of human food products.
The research predicted that the use of additives, such as amino acids, enzymes and acidifiers which help with the growth and development of farm animals, will increase as demand for livestock-based products for human consumption such as dairy and dairy-based products, meat, and eggs rise.
"Increased demand for poultry feed additives has resulted from growing concerns about animal health and consumer demands for a specific hue of yolk and meat"
But the largest and fastest-growing sector in the feed additives market will be in poultry. This will be driven by “great demand, cheap production costs, and reduced product pricing” of poultry meat and the “rapid pace” of growth in worldwide chicken meat production.
“Increased demand for poultry feed additives has resulted from growing concerns about animal health and consumer demands for a specific hue of yolk and meat,” it said.
“As a result of the rise in diseases such as avian flu, stricter laws and standards have been implemented, driving greater demand for specialised chemicals.”
In particular, the report said probiotics or direct-fed microbial, are “rapidly gaining popularity” especially with the concerns around the use of antibiotics in animal feed. It highlighted the example of the European Union which has already prohibited the use of antibiotics in animal feed in response to these concerns.
However, while the use of feed additives is expected to increase in response to rising demand, the market may face challenges due to production costs and price fluctuations of additives, the report added.
The Asia Pacific is estimated to hold the largest share in the global animal feed additives market owing to growing consumption of animal products in the region.
It said China is expected to reach a market size of $4.4bn in 2029, with a compound annual growth rate of 6.2%.
It forecasts Japan and Canada growth rates of 3.4% and 4.2%, respectively. North America is estimated to generate the highest CAGR, with the market for expected to reach $2.8bn by 2023. In the global market, the country currently holds a 20.43% stake.
Major operators in the feed additives market include companies such as BASF SE, Alltech, Cargill and Novozymes.