Europe Feed Additives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Feed Additives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The European feed additives market is expected to register a CAGR of 4.3% during the forecast period (2021-2026). The compound feed production has decreased, subsequently decreasing the feed additives market due to the spread of animal diseases and the indirect impact of COVID-19, which led to a shift in consumer demand for products of animal origin. All main feed categories, including poultry feed, were estimated to decrease in 2020. According to the FEFAC, cattle feed production is estimated to decrease by 2.9%. The feed category is suffering most from COVID-19, mainly due to the closure of the feed production plants and HORECA chain and the resulting drop in demand.

Food safety concerns, especially about meat and dairy products, have led to increased consumption of feed additives in the region. Increased meat consumption and increasing meat prices are further expected to drive the growth of the market.

In Europe, the poultry industry’s development as a leading livestock segment for the consumption of feed additives has catalyzed the feed additives market. This can be attributed to the steadily increasing demand for poultry products in the region.

Furthermore, the rise of food safety concerns regarding dairy and meat products has increased the use of feed additives in countries like Germany, Spain, and Poland. Moreover, the leading manufacturers are rapidly investing in research and development (R&D) activities to upgrade their manufacturing technologies to improve the yield and quality of the products.

Therefore, the growing consumption of animal-derived products has encouraged farmers to use feed additives to prevent disease outbreaks in livestock and enhance their value for human consumption thereby resulting in the significant growth of the market

Key Market TrendsGrowing Meat Consumption

The rising demand for animal products and processed meat has created an opportunity for feed additive manufacturers to enhance animal productivity. An increase in demand for various animal products, such as milk, dairy products, eggs, and other non-food items, has led to the increase in usage of feed additives, thereby boosting the market's growth in the coming years. According to the EU agricultural and rural development, the consumption of poultry meat is estimated to reach 12,443 thousand metric ton by 2030 as consumers consider poultry cheap, healthy, and sustainable. As demand is also anticipated to increase in various key export destinations, the increased production demand for healthy and nutritive poultry meat is anticipated to propel the growth of the market. Although the various global concerns regarding the issues in the livestock industry meat consumption are increasing every year, according to the Organisation for Economic Co-ordination and Development, meat consumption had risen over the years. Poultry meat is the most consumed with per capita consumption of 30.81 kilograms per year, followed by pork with per capita consumption of 20.71 kilograms per year in 2020. The rising demand for animal protein and healthy meat has toad the growers to use various feed additive products to ensure the health of the animal and to reduce the feed cost.

Poultry Segment Dominates Market

Poultry meat is the second most produced and consumed meat in the region. Poultry sector emplys one of the most intensive farming systems, with some farms numbering more than 100,00o birds. Due to the increasing demand from consumers, broiler farmers had to increase the application of feed additives in their diet. Due to this, the major players in the market are focusing on various strategies, such as product launches, expansions, partnerships, and mergers and acquisitions. For instance, BASF SE, in 2018, established a plant in Ludwigshafen, Germany, for the expansion of the existing vitamin A plant. About 600 machines and devices, 4,000 pipelines, and 5,000 measuring points will be integrated into the process control system. This, in turn, is leading to the increased capacity of vitamin feed additives for all animal types, including broilers.

In the region, there have been numerous cases of disease outbreaks, such as avian influenza virus H5N8, resulting from consumption of infected animals. In addition to veterinary care for avoiding these occurrences, the suitable animal feed additives, if used in the right amount and administered efficiently, have a potential to enhance the overall health of broilers. This factor is leading to the growth in the demand for the same in the region.

Competitive Landscape

The European feed additive market is fairly consolidated with many players active in the manufacturing of feed additives. Nutreco NV, Cargill, BASF, Evonik Industries, Elanco Animal Health and Archer Daniels Midland Co. (ADM) are the major players in the European market. The companies enhance their market shares through various activities, including mergers and acquisitions, expansion of the facilities, and investments in R&D.

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Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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