Feed Additives Market - Growth, Trends, and Forecasts (2023 - 2028)
The feed additives market is projected to grow at a CAGR of 5.4% during the forecast period.
Key HighlightsThe growing demand for livestock products has been driving significant changes on the supply side that are aimed at improving livestock product yields. New capital-intensive technologies have made major changes in poultry and pig meat production in industrial-style production facilities across regions such as North America, Europe, and Asia-Pacific, especially in countries where land is limited.
According to USDA Foreign Agricultural Service, the global cattle population stood at over 996 million, with India having the highest cattle population, followed by Brazil, China, and United States in 2021, demonstrating that cattle production has been rising to meet the accelerating demand for meat. Similarly, the poultry and sheep stocks have also significantly increased during the study period. This rise in numbers was possible majorly because of the highly productive feed additives and technological innovations.
The meat production industry has witnessed an upward trend in recent years, especially in developed countries, such as United States and European countries with reduced land usage. For instance, in 2021, the population of cattle and calves in United Kingdom was approximately 9.44 million, which has increased from 9.36 million in 2020. Thus, the inflating demand for meat is expected to compel producers to higher productivity which would, in turn, aid the demand for feed additives during the study period.
Asia-Pacific Dominates the MarketOwing to the heavy demand for poultry meat augmented by the consumption of processed poultry meat in countries, such as China, India, and Australia, poultry feed additives hold one of the largest shares in the feed additives market, specifically in the Asian-Pacific region. For instance, Godrej Agrovet Limited generated a revenue of over INR 43 billion (USD 3543.61 million) from the animal feed segment in the financial year 2022. The animal feed segment of the company includes products such as cattle, poultry, aqua, and specialty feed. Similarly, according to the Ministry of Fisheries, Animal Husbandry & Dairying (India), the production volume of poultry meat in India amounted to over 4.3 million metric tons in the fiscal year 2020. This was a significant increase over the past years. Maharashtra was the largest contributor to poultry meat production that year, followed by Haryana.
According to the Organisation for Economic Co-operation and Development (OECD), the poultry meat consumption volume in India in 2017 accounted for 3.5 million metric tons, which increased to 4.1 million metric tons by 2021. The demand for processed meat and protein diets is growing due to the rise in household income levels and is anticipated to continue driving the demand for animal feed. This factor, in turn, will lead to the higher usage of feed additives in various poultry farms. To meet the growing demand for animal protein in countries of Asia-Pacific, companies are increasing their investment in research and development, as well as expanding their production base. For instance, Japfa is India's leading commercial poultry feed company, comprising six feed mills with advanced technology. Such developments and increasing demand for meat products, thus an increase in production, are expected t boost the market’s growth at a faster pace.
Feed Additives Market Competitive AnalysisThe feed additive market is fragmented in nature. Evonik Industries, DuPont, BASF SE, Cargill, Novozymes, and Alltech are some of the major players in the feed additives market. These companies majorly focus on expanding their businesses and undertaking strategies, such as mergers and acquisitions, expansions, and novel product innovations.
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