Animal Feed Additives Market by Additive Type, Livestock: Global Opportunity Analysis and Industry Forecast, 2018 - 2025
Feed additives are food supplements used for farm animals, which include vitamins, amino acids, fatty acids, and minerals. There is an increase in the adoption of safe and affordable feed additives with the rise in the global demand for meat and poultry products in the end-use sectors. In addition, feed additives gain traction in the pet food segment, as the trend of pet humanization promotes health and well-being of pets.
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Increase in demand for meat and meat products results in livestock production on an industrial scale. Mergers and acquisitions adopted by companies such as BASF SE and ADM lead to expansion of the livestock industry. Policies related to the development of livestock have favored industrialization of the animal industry. According to a study conducted by the World Bank, the demand for industrialized meat production is expected to rise six times faster than the traditional meat production methods. Industrialization of meat production has promoted the concept of landless meat production facilities. Thus, there is a rise in the meat production in developed countries owing to optimum usage of land and allied resources. For instance, in the U.S., the concept of concentrated animal feed operations (CAFO) has gained popularity in the past, and similar kinds of models are actively adopted in other parts of the world. This popularity is due to increase in support of government and other financial organizations. Industrialization of this industry leads to adoption of advanced production processes to manufacture high-quality feed for livestock, which in turn fuels the demand for feed additives.
The market is witnessing significant opportunities owing to surge in demand for processed meat, which increased the consumption of feed additives, thereby boosting the demand for additives in the animal nutrition and feed industry. However, different government regulations toward use of certain synthetic additives and increase in production cost of effective feed additives restrict the growth of animal feed additives industry.
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The amino acids segment accounted for the 23.4% share, in terms of volume, in 2017. Amino acids can be provided via feedstuffs such as soybean meal, cereals, and others. The ongoing R&D activities to determine the exact requirement of each essential amino acid for animals contributes toward the global animal feed additives market growth. These requirements depend on livestock species, their life stage, and health status. For instance, the amino acid requirement for piglets will be different from that of the growing pig. Therefore, feed additive manufacturers are focused on formulating the best available diets to ensure optimal performance with the lowest environmental impact.
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