Feed Additives Market

[384 Pages Report] The Feed Additives Market is estimated at USD 42.1 billion in 2023 and is projected to reach USD 55.8 billion by 2028, at a CAGR of 5.8% from 2023 to 2028.

Feed additives are crucial for animal nutrition because they enhance feed quality, improve the growth efficiency of livestock, prevent diseases, and optimize feed utilization. These additives encompass many ingredients, including probiotics, prebiotics, vitamins, minerals, amino acids, enzymes, and antibiotics. They play a vital role in ensuring the efficient growth, health, and well-being of livestock, which directly impacts the quality and quantity of animal products such as meat, dairy, and eggs. As the world's population grows, there is an increased demand for animal protein products, leading to the need for higher livestock productivity and health, making feed additives a critical component to meet these requirements.

The feed industry is constantly focusing on innovative feed formulations and research and development collaborations to serve the ever-evolving feed additives market. For example, Novozymes and Bactolife have partnered to launch Ablacto+, a new feed additive aimed at reducing post-weaning diarrhea (PWD) in weaner pigs. Ablacto+ stabilizes piglet gut health with binding proteins, minimizing the severity of PWD and reducing the need for antibiotics. This addresses a major health issue in the pork industry. Scheduled for release in 2026, this collaboration marks a significant advancement in the feed additives market, offering a sustainable solution to improve animal welfare and combat antibiotic resistance.

Enzyme feed additives supplements are pivotal in improving the digestibility of feed components such as starch, protein, and fibre. They help in maximizing nutrient utilization and reducing feed costs, making them essential in feed formulations. Companies have acknowledged the need and requirements for it. For example, Novozymes specializes in enzymes for various applications, including improving digestibility and nutrient utilization in animal feed. In January 2022, the DSM-Firmenich-Novozymes Alliance launched its new generation phytase, HiPhorius. It is a complete phytase solution for poultry, swine and aquaculture species and designed to help farmers achieve sustainable and profitable animal protein production.

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Drivers: implementation of innovative animal husbandry practices to improve meat quality.

Recent disease outbreaks in livestock have led to the use of feed additives to improve meat quality. Meat quality is determined by the lean-to-fat ratio and palatability (appearance, juiciness, tenderness, and flavor) of meat. Meat and dairy processors must adhere to labeling and packaging rules due to the rise in concerns about E. coli and Salmonella infections. Types of meat such as lamb and mutton are graded by two USDA grading systems—quality and yield grade. These grading systems help rank lambs both as live animals and meat products, and are useful in pricing and marketing. Government monitoring agencies like the US Food and Drug Administration (USFDA) and the European Food Safety Authority (EFSA) have imposed regulations on food quality. Meat quality attributes, such as composition, fat content, color, flavor, and protein content, are influenced by feed additives. Innovative animal husbandry practices, including the use of antibacterial feed additives, enhance the quality of livestock products. There are two common systems unique to the use of antibacterial agents in animal production.:

• In-feed use of performance-enhancing agents
• In-feed (or in-water) use of disease prophylactic programs

Antibacterial feed additives have three defined roles in modern intensive animal production:

• Enhancing the performance of clinically “normal” animals.
• Maintaining health and performance in the face of diseases and environmental stress.
• Veterinary therapy of disease, particularly in younger animals.

Hence, the implementation of new animal husbandry techniques could lead to the production mandate and consumption of better-quality meat. This, in turn, would drive the market for feed additives.

Restraints: Ban on antibiotics in different nations

Antibiotics have been used in animal feed for decades, and now these antibiotics are ending up in human food, raising mounting concerns about antibiotic resistance. In January 2022, the EU introduced a regulation to ban the routine use of antibiotics in the diets of farmed animals. This move was aimed at addressing the growing global concern over antibiotic resistance, which causes up to 3,500 human deaths daily due to antimicrobial-resistant infections. The ban in the EU has major implications for the feed additives market that uses antibiotics, particularly in Europe, and also has a global impact due to the EU's role as the world's largest food importer. It means that administering antibiotics to farmed animals to compensate for poor welfare conditions and promote rapid growth is now illegal. This decision has the potential to reshape the market, as it encourages other countries to reconsider their antibiotic use in animal farming. The EU's stance on banning antibiotics in animal farming serves as a call to action for other nations to address the global superbug crisis and transition to more humane and sustainable farming practices. In many countries, restrictions on the use of antibiotics as a growth promoter in feed forced companies to stop using antibiotics in feed additives. This acts as a major restraint for manufacturers that offer antibiotic-based feed additives.

Opportunities: Increase in demand for nutritional supplements for monogastric animals

Monogastric animals, such as poultry and swine, have a single-chambered stomach, making them reliant on external sources of nutrition to meet their dietary needs. Unlike ruminants, they cannot produce vitamin B complex compounds within their bodies, leading to a significant demand for vitamin and mineral supplements in this sector. This demand is driven by consumers' increasing preference for high-quality animal products, which in turn boosts the need for nutritional supplements to enhance the quality of meat, eggs, and other animal-derived products.

Nutritional supplements play a crucial role in improving the health and productivity of monogastric animals, as they are prone to various health issues and diseases that can impact production efficiency. These supplements often contain vitamins, minerals, and additives that boost the animals' immunity and overall well-being, reducing the risk of disease outbreaks and the need for antibiotics. This focus on disease management benefits both animal welfare and the sustainability of the industry.

Key players are establishing their presence in the poultry and swine sectors, particularly in the developing markets of the Asia Pacific and South American regions. The feed production industry is also witnessing growth in these regions, with Asia Pacific leading globally in 2022, according to the Alltech Global Feed Survey results. The Alltech Agri-Food Outlook 2023 report indicates that China is a global leader in the compound feed market, with an annual production volume of over 286.8 million tons in 2022. As the demand for compound feed increases in these regions, there is also a significant need for additives in these developing markets.

Challenges: quality control of genetic feed additives products manufactured by Asian companies

In the Asia Pacific region, livestock plays a critical role in overall agricultural development and has been growing at an unprecedented rate in the last few decades. According to the World Health Organization (WHO), Asia ranked first in livestock production in 2022. Additionally, the per capita consumption of livestock products in Asia is projected to increase from 94.6 pounds in 1999 to 154.4 pounds by 2030. The Asian livestock industry has experienced significant changes in terms of population growth, resource availability, environmental impact, and the increasing demand for animal products. According to the FAO, by 2030, per capita meat consumption is expected to rise by 45% in developing countries and 14% in developed countries compared to 2015. Feed manufacturers in Asia are producing large quantities of feed to meet the growing demand. China is a major feed producer and consumer in the East Asian region, experiencing rapid expansion in livestock production and serving as a significant feed exporter to North America and Europe. However, the lack of an integrated quality control system in feed analysis is one of the main issues faced by Asian feed manufacturers. The testing of feed additive products and data from many laboratories in Asian countries is not considered reliable due to the absence of integrated quality control systems and good laboratory practices in their feed analysis. To address these issues, the FAO has produced a manual (FAO 2011) to guide science managers and feed industries in ensuring that quality control systems and good laboratory practices are consistently used in feed analysis laboratories.

Market Ecosystem

Based on the livestock, poultry is estimated to account for the largest market share of the feed additives market.

The OECD-FAO Agricultural Outlook 2021-2030 predicts that global meat production will increase by 44 million tons by 2030, reaching 373 million tons. The report highlights poultry meat as the main contributor to this growth, driven by high demand, low production costs, and lower prices in both developed and developing countries. The rising demand for poultry meat production is expected to boost the feed additives market, driven further by concerns about animal health and consumer preferences for specific meat and yolk colors. Poultry feed additives such as enzymes, antioxidants, amino acids, carotenoids, probiotics, antibiotics, and mycotoxin detoxifiers are commonly used to meet these demands.

Based on the type of feed additive, yellow split peas is anticipated to have the highest growth rate in the feed additives market.

Amino acid supplementation in animal feed provides a sustainable solution to reduce the environmental impact of livestock farming while improving performance and cutting costs. By adding essential amino acids like methionine to animal nutrition, growth rates and feed conversion efficiency can be enhanced. This targeted approach minimizes excess crude protein in feed, lowering nitrogen excretion into the environment and conserving valuable resources. It also reduces the reliance on arable land and costly artificial fertilizers. This environmentally responsible strategy benefits the planet and boosts profitability for farmers, making it a crucial element in modern, sustainable animal agriculture.

For example, an article published by All About Feed cited a certified lifecycle assessment by TÜV Rheinland (Germany) in 2021, demonstrating that low-protein diets with balanced amino acid profiles for broilers, laying hens, and pigs saved approximately 7.7 million tons of CO2 equivalents, reduced nitrogen emissions by 128,000 tons to water and soil, and spared 590,000 hectares of arable land annually. These reductions not only benefit the environment but also help farmers cut operating costs and enhance profitability. Additionally, the cost of producing amino acids has significantly reduced with advancements in biotechnology, driving the demand for amino acids as a feed additive. Chemical synthesis for amino acid extraction is being replaced by more efficient fermentation processes, using microbial strains and a medium containing glucose or other nutrients. Amino acids used in feed include lysine, methionine, threonine, and tryptophan..

The Asia-Pacific market is projected to contribute the largest share of the global feed additives market.

The Asia Pacific region has seen an increase in the number of feed mills and feed production, especially in countries like India and Japan. This rise in feed mills reflects the overall growth in feed production. China is the largest feed producer in the region, with Thailand and Indonesia emerging as significant feed-producing countries. India and Japan show consistent growth in feed production as well. There is also a growing demand for meat and meat products, attributed to the increasing demand for a protein-rich diet. Pork and poultry are the most consumed meats in the Asia Pacific region. The demand for poultry is expected to increase in India and China due to a focus on meat quality and public health campaigns promoting the consumption of lower-fat protein options. Fish consumption is also on the rise due to similar health trends. Additionally, pork, seafood, and dairy consumption and production have increased in the region. The modernization of animal livestock production in this region provides growth opportunities for feed additive manufacturers. The international feed additives market, once dominated by major Western countries, is now seeing promising growth in Asian markets. However, major innovations are still expected to come from European and US markets.

Key Market Players

The key players in this market include Cargill, Incorporated (US), ADM (US), International Flavors & Fragrances (US), Evonik Industries AG (Germany), BASF SE (Germany), DSM (Netherlands), Ajinomoto (Japan), Novozymes (Denmark), CHR. HANSEN (Denmark), TEGASA (Spain), Nutreco (Netherlands), Kemin Industries Inc (US), Adisseo (France), BRF (Brazil), Solvay (Belgium), Global Nutrition International (France), Centafarm SRL (Italy), Bentoli (US), Nuqo Feed Additives (France), Novus International Inc. (US), Palital Feed Additives B.V. (Netherlands), VITAFORMS (US), ALLTECH (US), Neospark Drugs and Chemicals Private Limited (India), and Tex Biosciences (P) Ltd. (India). These players in this market are focusing on increasing their presence through expansion and collaboration. These companies have a strong presence in North America, Asia Pacific, and Europe.

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Scope of the Report

Key stakeholders

• Feed manufacturers
• Dairy, poultry farms, and livestock farms
• Feed importers and exporters
• Intermediary suppliers such as traders and distributors of feed additives such as amino acids,  phosphates, enzymes, vitamins, acidifiers, carotenoids, mycotoxin detoxifiers, flavors & sweeteners, antibiotics, minerals, nonprotein nitrogen, phytogenics, preservatives, and probiotics.
• Government and research organizations
• Associations and industry bodies:
  • Food and Agriculture Organization (FAO)
  • United States Department of Agriculture (USDA)
  • European Food Safety Authority (EFSA)
  • European Association of Specialty Feed Ingredients and their Mixtures (FEFANA)
  • International Feed Industry Federation (IFIF)
  • Organisation for Economic Co-operation and Development (OECD)
  • Animal Feed Manufacturers Association (AFMA)
  • The Irish Grain and Feed Association (IGFA)
  • National Grain and Feed Association (NGFA)
  • The Compound Feed Manufacturers Association (CLFMA)
  • Brazilian Poultry Association and the Brazilian Chicken Producers and Exporters Association (UBABEF)
  • Japan Feed Manufacturers Association (JAFMA)
  • Animal Nutrition Association of Canada (ANAC)

By Type

• Amino Acids
• Phosphates
• Vitamins
• Acidifiers
• Carotenoids
• Enzymes
• Flavors & Sweeteners
• Antibiotics
• Minerals
• Antioxidants
• Nonprotein Nitrogen
• Phytogenics
• Preservatives
• Probiotics

• By Source

• Natural
• Synthetic

By Livestock

• Ruminants
• Swine
• Poultry
• Aquatic animals
• Other livestock

By Form

• Dry
• Liquid

By Region:

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In September 2023, Novozymes and Bactolife joined forces to significantly reduce post-weaning diarrhea and antibiotic use among weaner pigs, thus launching Ablacto+. This bio-solution uses binding proteins to stabilize the gut of piglets, thereby reducing the need for antibiotic consumption. With this, the company has a new antibiotic-based feed additive in its product portfolio
• In April 2023, Kemin Industries launched Pathorol for farmed shrimp health in multiple Asian countries, such as India, Thailand, Vietnam, Indonesia, and Singapore, thus strengthening its footprints in Asia.
• On february 2023, Adisseo acquired Nor-Feed for USD 1.82 billion, a French group that designs, produces, and markets plant-based specialty ingredients and plant extracts for animal nutrition. This acquisition has helped Adisseo Group’s strategy to become a leader globally by providing solutions for animal nutrition.

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