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Functional Feed Market Size is Expected to Boom at a CAGR of 6.6%, and reach USD 53.8 Billion by 2034 | Transparency Market Research Inc.

11-15-2024 02:18 PM CET | Chemicals & Materials

Press release from: Transparency Market Research

Functional Feed Market

Functional Feed Market

The Functional Feed Market refers to the segment of animal feed that is enhanced with additives, nutrients, and bioactive compounds to improve the overall health, performance, and productivity of livestock, poultry, aquaculture, and pets. Functional feed provides more than just basic nutrition; it addresses specific needs such as immunity boosting, gut health improvement, disease resistance, and growth promotion.

The global functional feed market has been growing steadily, driven by the rising demand for high-performance animal nutrition and the increasing focus on sustainable livestock farming. Functional feed encompasses a variety of ingredients such as probiotics, prebiotics, essential fatty acids, vitamins, minerals, enzymes, and amino acids, which are added to conventional feed formulations to enhance animal health and performance. It is estimated to grow at a CAGR of 6.6% from 2024 to 2034 and reach US$ 53.8 Bn by the end of 2034.

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Top Companies:

Cargill, Incorporated
ADM
Alltech
Nutreco
Evonik Industries
dsm-firmenich
Kemin Industries, Inc.
De Heus Animal Nutrition
Novus International, Inc.

Key Market Drivers:

Rising Demand for High-quality Animal Protein: The global demand for animal protein-such as meat, dairy products, eggs, and fish-has been growing due to population growth, rising incomes, and changing dietary patterns. As consumers increasingly prioritize food quality and safety, the use of functional feed helps farmers produce healthier and more productive livestock, improving the overall quality of animal-derived products.

Functional feed, enriched with additives that promote faster growth, better nutrient utilization, and disease resistance, supports farmers in meeting the growing demand for high-quality, sustainable protein sources.

Antibiotic Restrictions and Shift Toward Natural Alternatives: The rising awareness of the dangers of antibiotic overuse in animal farming, particularly the role it plays in the development of antimicrobial resistance (AMR), has led to increasing restrictions on antibiotics as growth promoters in many regions. Regulatory authorities such as the European Union (EU) and U.S. Food and Drug Administration (FDA) have implemented bans or limitations on the use of antibiotics in animal feed.

This shift has created a strong demand for natural alternatives such as probiotics, prebiotics, enzymes, and phytogenics that can boost immunity and promote growth without the need for antibiotics. Functional feed formulations enriched with these alternatives help farmers comply with regulations while maintaining animal health and productivity.

Focus on Gut Health and Nutrient Absorption: Gut health is a critical factor in the overall health and productivity of livestock. Functional feed ingredients such as probiotics, prebiotics, yeast extracts, and enzymes help improve gut microflora, enhance nutrient absorption, and strengthen the animal's immune system. Improved gut health not only results in better digestion and feed conversion ratios but also reduces the incidence of diseases, leading to healthier livestock and better economic outcomes for farmers.

Functional feeds that support gut health have become increasingly popular as farmers seek to optimize feed efficiency and reduce the costs associated with poor digestion and disease outbreaks.

Sustainability and Environmental Concerns: Sustainable livestock farming practices are gaining importance due to growing concerns about the environmental impact of animal agriculture. Functional feed can help reduce the environmental footprint of livestock production by improving feed efficiency and reducing waste, such as methane emissions in ruminants.

For example, feed additives like enzymes and essential oils are used to enhance nutrient utilization, leading to lower nitrogen and phosphorus excretion in manure. This contributes to improved environmental sustainability and aligns with the increasing focus on reducing the ecological impact of livestock farming.

Recent Developments:

Increased Use of Phytogenic Feed Additives: Phytogenic feed additives, derived from plant-based compounds such as essential oils, herbs, and spices, have gained significant attention as natural growth promoters and alternatives to antibiotics. These additives help improve digestion, reduce gut inflammation, and enhance overall animal performance. They also offer antioxidant, anti-inflammatory, and antimicrobial properties, contributing to better animal health.

Growing Importance of Omega-3 Fatty Acids in Aquaculture: In the aquaculture sector, there has been an increased focus on the inclusion of omega-3 fatty acids in functional feed formulations. Omega-3s are essential for fish health and are known to improve the quality of fish products, particularly in terms of nutritional value and consumer health benefits. This trend is particularly important in aquaculture, where consumer demand for sustainably farmed, high-quality seafood is rising.

Functional Pet Food on the Rise: The growing trend of pet humanization, where pet owners treat their pets as family members, has led to increased demand for functional pet food that supports overall health and longevity. Functional pet food includes ingredients that promote joint health, digestive health, weight management, and immune support, similar to functional feed for livestock. This segment is seeing robust growth as pet owners become more conscious of their pets' well-being.

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Key Segmentation:

By Ingredient
Probiotics
Prebiotics
Enzymes
Minerals
Vitamins
Amino Acids
Essential Oils
Others

By Form
Dry
Liquid

By Source
Plants
Animals
Microbial

By Livestock
Poultry
Swine
Ruminants
Aquatic Animals
Pets
Others

By Region

North America
Europe
Asia Pacific
Middle East & Africa
South America

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Conclusion: The functional feed market is poised for continued growth as the global demand for high-quality, sustainable animal products rises. Key drivers such as the shift away from antibiotics, increasing focus on gut health, and the need for sustainable livestock farming are shaping the market's trajectory. Technological advancements and innovations in natural feed additives, particularly probiotics, enzymes, and phytogenics, are expected to further propel the market.

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About Transparency Market Research

Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.

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Transparency Market Research Inc.
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Suite 1200, Wilmington, Delaware 19801 USA
Tel: +1-518-618-1030
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