Probiotics in Animal Feed Market

Probiotics in Animal Feed Market Size

According to MarketsandMarkets, the global probiotics in the animal feed market was valued at USD 4.2 billion in 2022. It is estimated to reach about USD 4.6 billion in 2023 and is projected to grow at a CAGR of 9.1% to reach USD 7.1 billion by 2028. The consumption of probiotics in the animal feed industry has significantly shown a positive impact on livestock health, as it enhances immune function, improves digestive health, and helps in growth performance and feed conversion ratio. The major drives for probiotics in animal feed market include the prevalence of disease outbreaks, pressure on feed productivity and feed conversion rate, and an increase in demand for livestock-based food products. However, high R&D costs for developing new probiotic strains pose a challenge for the market.

The Asia Pacific region is projected to be one of the fastest-growing regions. Modernization in animal feed production in this region provides immense growth opportunities for feed additives manufacturers in the feed industry, hence driving the growth. Probiotics in animal feed are widely used in livestock, including ruminants, poultry, swine, aquaculture, and pet animals, for enhancing their gut health, carcass yield, immunity, and productivity.

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Market Dynamics

Driver : Increase demand for animal protein and other livestock products

According to the OECD-FAO Agricultural Outlook 2021-2030, increase in the consumption of meat and meat products over the next decade on a global basis is projected to increase by 14% by 2030 compared to 2018-2020. Countries such as India, China, and Japan witness a relatively elevated demand for poultry meat and other poultry products. Despite the COVID-19 pandemic and subsequent slump in consumer demand, countries such as China are still focused on increasing poultry production to satisfy the consumer demand.

The increase in demand for meat and meat products coerces livestock breeders to invest in natural and quality feed additives, such as probiotics that would improve livestock health and eventually productivity thereby driving the overall market growth.

Restraint : Non-standardized international quality regulations for probiotics in animal feed products

International bodies such as the US Food and Drug Administration (FDA), World Health Organization (WHO), US Center of Veterinary Medicine (CVM), European Food Safety Authority (EFSA), European Commission (EC), Natural Health Product Directorate (NHPD), the National Health Surveillance Agency (ANVISA), and Australian Pesticides and Veterinary Medicines Authority (APVMA) regulates the usage of various additives in feed products and issue stringent regulations for probiotic manufacturers. These organizations control the use of different chemicals and ingredients used in feed processing.

Rules and regulations regarding the utilization of probiotics in animal feed are becoming increasingly stringent. Discrepancies in regulations have adverse effects on the global meat trade, especially between developed and developing economies in the form of standard issues, such as animal welfare, environmental protection, meat quality

Opportunity: Abolition of Antibiotic Growth Promoters (AGPs)

In 2006, the European Union (EU) implemented a ban on antibiotics in animal feed. AGPs are chemicals or drugs that are added in animal feed in order to improve growth and the quantity of animal produce. According to the EU, the use of these drugs led to the development of antibiotic-resistant microbes to treat infections in humans and animals.

Antibiotic residues in meat and other animal products affect human health, due to which the human body becomes vulnerable to diseases when antibiotic-resistant microbes enter the system, resulting in weaker immunity. Along with the EU, the FAO has also restricted the use of antibiotics in animal feed. Such actions have made lucrative prospects of huge investment for probiotic manufacturers, as feed manufacturers are exploring alternatives to enhance the quality of animal feed and one such alternative being probiotics.

Challenge: High popularity of other feed additives

With the rise in animal health awareness and livestock production globally, the demand for feed products enriched with various feed additives is on the rise. Previously known and well-commercialized feed additives such as amino acids, phosphates, acidifiers, carotenoids, enzymes, mycotoxin detoxifiers, antibiotics, antioxidants, and vitamins, and mineral premixes are also tapping the feed market opportunities. These feed additives also aid in nutritional deficiency, growth, digestion, flavor enhancement and feed efficiency. These alternative feed additives have also received fair benefits from the high livestock products demand.

Probiotics in Animal Feed Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of probiotics in animal feed. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include ADM (US), Chr. Hansen Holding A/S (Denmark), Evonik Industries AG (Germany), Land O’Lakes Inc. (US), DSM (US), and Novozymes (Denmark).

Pressure on feed productivity and feed conversion rate to drive the demand for probiotics in animal feed market

Feed conversion rate/ratio can be defined as, efficiency with which the bodies of livestock convert animal feed in the desired output. With a significantly high demand for livestock products, there has been increasing pressure on the livestock sector to meet the growing demand for high-value animal protein. This has subsequently increased the livestock population, which has resulted in increased consumption of probiotics in feed as they optimize the nutritional value of feed. The probiotics act as bactericidal and thus helps in further enhancing the performance of livestock by improving gut health and acting as a growth promoter. Therefore, feed incorporated with probiotics helps increase the feed conversion rate/ratio thereby catering to the demand.

Probiotics in animal feed act as an important aid to improve livestock health and production while improving digestion and feed efficiency. Thus, increased pressure on feed productivity and high demand for faster feed conversion rate is fueling the market for probiotics in animal feed.

Increased prevalence of disease outbreaks to augment the market growth

Unsafe and adulterated feed ingredients reduce the immunity of animals, thereby causing productivity loss by affecting the quality of animal products. The increased prevalence of disease outbreaks has encouraged livestock farmers to purchase superior-quality feed products with additives. Safety and quality of products have always been a high priority for customers, as disease outbreaks can affect the production, trade, and consumption of livestock products, such as dairy products, meat, egg, and other by-products. Furthermore, regions affected by such outbreaks are banned from exporting products for a prolonged period until completely quarantined and controlled. In the recent past, the Asia Pacific region experienced outbreaks of SARA-CoV-2 virus (2019), H5N1 influenza virus (2014) and foot-and-mouth disease (2011), which impacted trade, and livestock producers incurred heavy losses due to increased awareness about animal welfare.

Health deterioration in animals due to the use of pharmaceuticals in animal feed has been a matter of concern, which has ultimately increased the demand for nutritive products by livestock farmers. Thus, the demand for probiotic animal feed is likely to rise at a rapid pace.

Asia Pacific is expected to dominate the market during the forecast period

Countries such as China, India, Japan, Australia & New Zealand, and rest of the Asia Pacific have been considered in this study. Some of the factors for the high demand of the market in Asia Pacific region includes growing population, rise in disposable incomes, and rapid urbanization. Increasing demand for meat and animal products among the growing population of the Asia Pacific region along with the rising affluence in the region resulted in high consumption of meat products. This has also resulted in intensified livestock production for meat, which in turn drives the need for improved animal health and performance.

The growth of the meat industry in developing economies such as India and China, as well as the increased consumption of quality meat products, are primary drivers for the Asian market. Augmented concern over livestock diseases and outbreaks of infections has further highlighted the importance of animal health and wellness to ensure the safety of end users. The advent of globalization and urbanization has caused a shift in consumer preferences, where consumers opt for nutritious, quality food products and like to experiment with food choices. These factors are expected to continue in the coming years, driving demand the for probiotics in animal feed market.

Probiotics in Animal Feed Market Trends

Here are some key trends shaping the probiotics in animal feed market:

• Growing Awareness of Animal Health: There is an increasing awareness among livestock producers about the importance of maintaining animal health for optimal production. Probiotics are recognized for their potential to improve gut health, boost immunity, and enhance overall well-being in animals.
• Shift Towards Natural Alternatives: With the rising concern over the use of antibiotics in animal agriculture and the development of antibiotic resistance, there is a growing inclination towards natural alternatives. Probiotics, being beneficial bacteria, are considered a viable solution to promote animal health without resorting to antibiotics.
• Focus on Gut Health: Probiotics play a crucial role in maintaining a healthy gut environment in animals. As a result, there is a heightened focus on gut health management in the animal feed industry. Probiotics help in balancing the gut microbiota, improving nutrient absorption, and reducing the risk of digestive disorders.
• Regulatory Support and Guidelines: Governments and regulatory bodies are recognizing the significance of probiotics in animal nutrition. This has led to the development of guidelines and regulations that support the use of probiotics in animal feed. Compliance with these standards is becoming a key factor for market players.
• Advancements in Research and Development: Ongoing research and development activities are driving innovations in probiotic strains and formulations. Manufacturers are investing in creating more effective and stable probiotic products that can survive the harsh conditions of the digestive system and deliver maximum benefits to the animals.
• Expansion of Probiotics Applications: Probiotics are not limited to traditional livestock like poultry and cattle. There is an expanding use of probiotics in aquaculture and other niche markets. This diversification is contributing to the overall growth of the probiotics in animal feed market.

Probiotics in Animal Feed Market Share

The key players in this include ADM (US), Chr. Hansen Holding A/S (Denmark), Evonik Industries AG (Germany), Land O’Lakes Inc. (US), DSM (US), and Novozymes (Denmark). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.

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Scope of the Report

This research report categorizes the probiotics in animal feed market, based on Livestock, Source, Form, Distribution Channel, Function, and Region.

By Livestock

• Poultry
• Swine
• Ruminants
• Aquaculture
• Pets
• Other Livestock

Market By Source

• Bacteria
• Yeast and Fungi

By Form

• Dry
• Liquid

By Distribution Channel

• Direct Sales to Distributors
• Direct Sales to Livestock Growers
• Other Distribution Channels

By Function

• Nutrition
• Gut Health
• Immunity
• Productivity

By Region

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

Probiotics in Animal Feed Market Industry News

• In May 2021, Chr. Hansen Holding A/S launched a new product named, “Bovacillus” in the Argentinian market that was a new and innovative solution to support dairy and beef cattle health as well as increase their performance. This product launch would not only expand the company’s product portfolio for probiotics in the animal feed segment but also increase the consumer reach in the geographical location as well.
• In February 2021, International Flavors & Fragrances Inc. merged with DuPont’s Nutrition & Biosciences business in order to deliver consumer-oriented products for food and beverage, personal care and health & wellness market. The strategic initiative would strengthen the product portfolio and R&D capabilities in probiotics segment and various other segments such as nutrition, enzymes, soy proteins, and culture among others.

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