Essential Oils in Animal Nutrition Market to Reach USD 2.45 Billion by 2036, Brazil - CAGR 10.0%, Mexico - CAGR 9.2%, United States - CAGR 8.9%, Netherlands - CAGR 6.7%, United Kingdom - CAGR 6.1%

The phase-out of antibiotic growth promoters and new European Union import requirements are increasing demand for standardized plant-based feed additives, according to Fact.MR.

The global essential oils in animal nutrition market is projected to grow from USD 1.13 billion in 2026 to USD 2.45 billion by 2036, registering a compound annual growth rate (CAGR) of 8.0%, according to Fact.MR. The market reached USD 1.05 billion in 2025. The forecast implies an incremental opportunity of approximately USD 1.32 billion between 2026 and 2036, based on the published market values.

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The shift away from antibiotic growth promoters is creating a commercial opening for phytogenic feed additives. Feed manufacturers and livestock producers are evaluating essential oils as part of programs designed to support gut health and feed efficiency. Brazil, Mexico and the United States are among the faster-growing national markets, while the Netherlands and the United Kingdom represent established European markets with comparatively mature antibiotic-reduction policies.

European Union requirements increase pressure on exporters

Export compliance is becoming a more immediate consideration for poultry producers supplying European markets. Commission Implementing Regulation (EU) 2026/1189, dated June 4, 2026, amends the European Union's rules concerning restrictions on certain antimicrobial medicinal products. The supplied report states that requirements applying from September 3, 2026, require exporting countries to guarantee that animals were not given antimicrobials for growth promotion.

The European Commission removed Brazil's poultry listing for entry into the EU in June 2026 after it had not received the required guarantees, according to the report. This development increases the importance of documented feed programs and production practices for export-oriented poultry integrators.

The underlying demand shift is broader than trade compliance. In May 2025, the World Organisation for Animal Health reported that 71% of countries in its survey had stopped using antimicrobials for growth promotion, while 22% continued to use them. Separately, the OECD-FAO Agricultural Outlook 2025-2034, released in July 2025, projected a 17% increase in global meat, dairy and egg production through 2034.

These changes create opportunities for suppliers of blended oils, standardized active compounds and encapsulated formulations. Commercial adoption will still depend on consistent trial results, competitive ingredient costs and the ability to maintain active compounds through feed processing and storage.

Where growth is fastest

Fact.MR's country forecasts show the strongest growth in Latin America, followed by the United States. European markets have lower projected CAGRs but remain relevant to suppliers operating across multiple regions.

Brazil - 10.0% CAGR: Poultry export requirements and expanding production support demand. Instituto Brasileiro de Geografia e Estatística reported that 6.69 billion chickens were slaughtered in 2025, an increase of 3.1% from 2024.
Mexico - 9.2% CAGR: A growing commercial poultry sector supports adoption. Mexico's national statistics agency, INEGI, reported in March 2025 that the country had 531.5 million chickens in 2022, with poultry stocks increasing 46.4% from 2007.

United States - 8.9% CAGR: Antibiotic-free broiler programs create opportunities for non-antibiotic gut-health inputs. The U.S. Food and Drug Administration reported that sales of medically important antimicrobials for food-producing animals rose 16% between 2023 and 2024, although they remained 27% below the 2015 peak.

South Korea - 7.7% CAGR: Stable poultry production supports demand for feed additives. The Ministry of Data and Statistics reported 110.9 million broilers on farms in June 2026, up 1.0% year over year.

Netherlands - 6.7% CAGR: Established antibiotic-reduction policies support continued use of phytogenic products. Statistics Netherlands reported 35.4 million broilers in the 2025 agricultural census, up 0.8%.

United Kingdom - 6.1% CAGR: Already-low antibiotic sales limit the scope for further replacement-driven growth. The Veterinary Medicines Directorate reported that antibiotic sales for food-producing animals reached 15.6 mg/kg in 2024, down 57% from 2014.

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What leads the market

Blended oils, poultry applications and feed additives are expected to account for the largest shares of their respective segments in 2026. The figures below reflect Fact.MR's published segment estimates.

Product type - Blended oils: 62.8%. Combining plant compounds allows formulators to develop products around multiple nutritional and gut-health objectives. Single oils account for the remaining 37.2%.

Livestock - Poultry: 48.0%. Large broiler flocks and short production cycles make feed conversion an important commercial consideration. Other livestock categories collectively account for 52.0%.

Application - Feed additives: 58.3%. Direct incorporation into compound feed and premixes supports consistent inclusion rates across production batches. Other applications account for 41.7%.

Sales channel - Specialty stores: 39.2%. Technical guidance on dosage and species suitability supports the channel's position. Online stores and veterinary clinics provide alternative routes to market.

The product opportunity is increasingly linked to formulation performance rather than the natural origin of ingredients alone. Blends containing compounds such as carvacrol, thymol and cinnamaldehyde can be formulated for different species and production stages. Encapsulation can also help protect volatile compounds during pelleting and storage.

Regulatory authorisations are another consideration. Commission Implementing Regulation (EU) 2025/1417, dated July 17, 2025, authorised Spanish type origanum essential oil from Thymbra capitata for use as a feed additive for all animal species. The report notes a recommended maximum of 15 mg per kg of complete feed for chickens for fattening.

The hurdle: proving consistent results at a competitive cost

Uneven efficacy across species and farm conditions remains a key restraint. A formulation that performs under one feeding program may not deliver identical results under different diets, management practices or production conditions.

Botanical raw material prices and supply fluctuations can also affect product economics. In addition, volatile compounds may be lost during pelleting and storage if formulations are not adequately protected.

For suppliers, these constraints make species-specific trials, standardized active-compound content and reliable delivery systems important commercial differentiators. Buyers need evidence that a formulation can maintain its intended performance under the conditions in which it will be used.

Industry investment and recent developments

Three developments illustrate the regulatory and commercial changes relevant to the market:

July 17, 2025 - European Commission: Commission Implementing Regulation (EU) 2025/1417 authorised Spanish type origanum essential oil from Thymbra capitata as a feed additive for all animal species.

February 9, 2026 - dsm-firmenich: The company announced an agreement to divest its Animal Nutrition & Health business to CVC Capital Partners, with closing expected at the end of 2026.

July 24, 2026 - European Commission: Commission Implementing Regulation (EU) 2026/1777 renewed the authorisation of a preparation containing carvacrol, cinnamaldehyde and capsicum oleoresin as a feed additive for chickens for fattening. The authorisation holder is ADM International Sàrl, represented in the EU by ADM Specialty Ingredients (Europe) B.V.

Fact.MR identifies the following key companies in the market:

Cargill, Incorporated, including Delacon
dsm-firmenich, including its Animal Nutrition & Health business, whose sale to CVC Capital Partners is pending
Archer Daniels Midland Company
International Flavors & Fragrances Inc.
Nutreco, including Selko
EW Nutrition GmbH

The competitive environment includes diversified animal nutrition businesses and specialist phytogenic formulators. The report identifies products such as Delacon's Biostrong and Fresta, Selko's Fytera Perform, dsm-firmenich's Digestarom, ADM's Xtract range, IFF's Enviva EO and EW Nutrition's Ventar D. Product registration, trial evidence, formulation consistency and technical support are relevant factors in supplier selection.

Analyst opinion

Shambhu Nath Jha, Principal Consultant at Fact.MR, states:

"Essential oils are now bought as a measurable gut-health input in antibiotic-free feed programs. Nutritionists will favor standardized blends with species-specific trial data and coatings that hold carvacrol and thymol through pelleting. Suppliers that pair registered products with on-farm technical service will gain the most from poultry integrators and exporters."

What this means for feed manufacturers and livestock producers

Require evidence specific to the target species. Compare essential oil programs using documented trial results relevant to poultry, swine or other livestock. Feed conversion and the consistency of results across farm conditions should inform procurement decisions.

Evaluate formulation stability alongside ingredient price. Standardized active-compound content and encapsulation may help limit losses during processing and storage. Buyers should assess the delivered formulation and its performance, rather than comparing products on ingredient cost alone.

Strengthen documentation for export-oriented production. Poultry integrators and their feed suppliers should review applicable antimicrobial requirements, product authorisations and records of feed-program use. This is particularly relevant for businesses supplying markets with specific growth-promoter restrictions.

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About Fact.MR

Fact.MR is the research source identified in the supplied market material. The report covers essential oils and phytogenic compounds used in animal feed and supplements, including blended oils, single oils and encapsulated formulations across poultry, swine, ruminants and aquaculture.

This release was published on openPR.