Press release
Fueling Growth: Dynamics of South America's Feed Nutrient Market
Introduction:The South American feed nutrient market is on a trajectory to register a Compound Annual Growth Rate (CAGR) of 1.4% over the forecast period. This growth is propelled by several factors, including the industrialization of the animal industry, the expansion of the animal meat market, and concerns about animal health amid disease outbreaks.
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Brazil stands out as a dominant force in the market, driven by a burgeoning animal population and increased meat consumption. The market's expansion is further fueled by increased feed production, growing concerns for animal health, and the imposition of bans on antibiotic use. Key players in this competitive landscape include Alltech Inc., BASF SE, DSM Nutritional Products AG, Archer Daniels Midland Co., and Guabi Nutrição e Saúde Animal SA.
Key Market Trends:
Increasing Feed Production Drives Market Growth:
Animals necessitate essential nutrients for normal bodily functions, growth, and reproduction. For instance, vitamin A deficiency in adult hens results in reduced egg production. Addressing these deficiencies often involves incorporating nutrient additives into animal feed. According to FAO in 2018, the poultry population in South America reached 2521.7 million compared to 2684.7 million in 2016.
The Alltech feed survey in 2019 reported that feed production in Brazil and Argentina reached 70 million metric tons and 21 million metric tons, respectively. In Brazil, broiler feed accounted for 32.1 million metric tons, followed by pig feed at 17 million metric tons. Consequently, the growing animal population and increasing compound feed production are driving the demand for nutrients used as feed additives.
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Brazil Dominates the Market:
OECD reports highlight that poultry meat is highly consumed in Brazil, with per capita poultry meat consumption reaching 40.3 Kg in 2019 compared to 40 Kg in 2016. The shift towards commercial livestock production is driven by rising meat consumption. In 2018, the poultry bird population in Brazil was 1383.4 million compared to 1505.6 million in 2016.
Changing meat consumption patterns, combined with large-scale animal production, are leading to the inclusion of nutrients in animal feed to produce quality meat. In February 2020, Brazil's Ministry of Agriculture, Livestock, and Supply (MAPA) prohibited the use of antibiotics such as tylosin, tiamulin, and lincomycin in pig production, resulting in increased use of other feed additives, including nutrients.
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Competitive Landscape:
In the South American feed nutrient market, companies are not merely competing based on product quality and innovation but are also focused on strategic moves to retain larger market shares. Heavy investments are being made in Research and Development (R&D) activities to foster new products and collaborations, and acquisitions of other companies. Key players such as Cargill Incorporated, Alltech Inc., BASF SE, DSM Nutritional Products AG, Archer Daniels Midland Co., and Guabi Nutrição e Saúde Animal SA are shaping the competitive landscape in the South America feed nutrient market.
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