Feed Additives Market Analysis

Global Feed Additives Market Overview

Feed Additives Market Size was valued at USD 32.70 billion in 2023. The Feed Additives market industry is projected to grow from USD 34.71 Billion in 2024 to USD 55.17 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.96% during the forecast period (2024 - 2032). The market is expected to grow due to the growing demand for meat and concern over livestock diseases. Additionally, these additives provide livestock with essential nutrients and improve metabolic activities, which are the key market drivers enhancing feed additives market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Feed Additives Market Trends

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  Increasing demand for livestock-based products to boost the market growth

  
  

The use of feed additives in feed for farm animals is expected to increase as livestock-based products such as dairy and dairy-based products, meat, and eggs become increasingly popular. As a result of its high demand, low production costs, and lower product prices, poultry meat accounts for the majority of the growth in meat production in developed and developing countries. Also, because there is a growing awareness that food nutrients, especially protein, play an important role in overall physical and mental development and growth, there is a growing trend toward animal-derived protein sources, such as meat, eggs, or milk. As feed's nutritional quality increases, feed additives are used more frequently.

In order to raise, transport, and process livestock, significant amounts of feed, land, water, and energy are required. Animal feed is an important component in animal breeding since it determines the product's nutritional value. Due to technological/genetic advances, fertilizers, and feedstock production, increased productivity has been made a success. Additionally, it is predicted that the rising market for meat will increase industrialization in the meat industry, particularly in developing countries, such as China, India, and Brazil, where meat production costs are less.

Demand for livestock products is driving significant changes on the supply side to improve livestock product yields due to the growing demand for livestock products. Across North America, Europe, and Asia-Pacific, poultry and pig meat production has changed dramatically due to new capital-intensive technologies, especially in countries with limited land. According to USDA Foreign Agricultural Service, cattle numbers in 2021 were estimated at over 996 million, with India having the highest cattle numbers, followed by Brazil, China, and the United States. In response to the rapid increase in meat demand, cattle production has increased. Similarly, poultry and sheep stocks have also risen significantly during the study period. Therefore, increasing demand for animal products has enhanced the feed additives market CAGR globally in recent years.

However, in the forecast period, the industry is expected to grow due to increased consumption of dairy products due to their health benefits and wide range of applications. Since cattle are the primary source of dairy products such as milk, cream, butter, yogurt, and cheese, a sudden increase in cattle farming has been observed across various regions, another factor driving the growth of the feed additives market revenue.

Feed Additives Market Segment Insights

Feed Additives Type Insights

The feed additives market segmentation, based on type, includes amino acids, vitamins, carotenoids, enzymes, prebiotics & probiotics, minerals, acidifiers, lipids, and others. The amino acids feed additives segment held the majority share in 2022, contributing to around ~34-37% with respect to the feed additives market revenue. The high share is attributed to its ability to promote animal growth and build immunity. Additionally, amino acids are essential in preventing cerebral dysfunction, which can cause muscular incoordination in animals and prevent nail and skin problems. Thus, amino acids will be in high demand as feed supplements and pet food ingredients in the future.

Feed Additives Form Insights

The feed additives market segmentation, based on form, includes dry and liquid. The dry segment dominated the feed additives market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Higher demand for the dry form is seen among livestock producers due to their ease of mixing with feed, storage, and handling. Additionally, pellets and mashes are available, giving consumers more choices in mixing techniques and supporting the feed additives market growth.

Recent News:

April 2024: Zoetis Inc. and Phibro Animal Health Corporation announced in April 2024 that they have entered into a definitive agreement whereby Phibro Animal Health will acquire for $350 million, subject to customary closing adjustments, Zoetis' medicated feed additive (MFA) product portfolio, certain water-soluble products, and related assets. The anticipated completion date for this transaction is the second half of the calendar year 2024. Phibro Animal Health and Zoetis both have an extensive history of dedication to the production animal health industry. The product portfolio that was acquired in 2023 produced an estimated $400 million in revenue and consists of over 37 product categories distributed across around 80 countries. The agreement also encompasses six manufacturing facilities, four of which are located in the United States, one in Italy, and one in China. It is anticipated that over 300 employees of Zoetis who provide support for manufacturing, distribution, and commercial operations will transfer to Phibro Animal Health. This transaction exemplifies the disciplined capital allocation strategy employed by Zoetis, which prioritizes investments in animal health, productivity, and sustainability solutions. Zoetis can reallocate its livestock investments towards alternative solutions, such as vaccine, biologic, and genetic programs, consequent to this divestiture.

April 2024: The Danish government announced that in April 2024, it will assist farmers in financing a feed additive that is projected to decrease methane emissions from cattle by as much as 30 percent. This agreement is part of Denmark's ambitious climate objectives. With widespread political support, Denmark, a significant exporter of dairy products, could become the first nation to price agricultural emissions, including methane emissions from cow burping. Methane, an environmentally hazardous byproduct of metabolism in bovine species (including cows and other ruminants), is more potent than carbon dioxide. In comparison to 1990 levels, the Nordic nation has pledged to reduce emissions by 70% by 2030. Concito, a Danish climate think firm, estimates that agriculture contributes to approximately one-third of the nation's carbon emissions and that farming covers more than half of Denmark's land. It is anticipated that the feed additive, which the government has allocated $74 million to fund, will reduce methane emissions from the nation's approximately 550,000 dairy cows by 30% by 2030.

Feed Additives Livestock Insights

The feed additives market data has been bifurcated by poultry, swine, ruminants, and others. The poultry segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period 2022-2030. As a result of the continuous growth in broiler production across regions, the segment has a high share. Several types of poultry feed additives are available on the market, including enzymes, antioxidants, vitamins, and acidifiers. These additives enhance efficiency and add nutritional value to poultry feed. In developing countries, where income and urbanization are increasing, consumers are adding variety to their diets, increasing consumption. The growing population and high meat consumption ratio will continue to drive the growth of poultry feed in developing countries.

Figure 1: Feed Additives Market, by Livestock, 2022 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Feed Additives Regional Insights

By Region, the study provides feed additives market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe's feed additives market accounted for USD 14.0 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. The growth of the swine industry in Spain will be positively impacted by free trade agreements in the region for countries of the European Union. Increasing efficiency, lower product prices, and increased Spanish pork exports have led to a significant growth rate in the swine industry.

Further, the major countries studied in the feed additives market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Feed Additives Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North American feed additives market accounts for the second-largest market share. Increasing meat consumption in North America, primarily in the U.S., coupled with stringent legislation concerning meat quality, is one of the main growth factors in the market. The mills and pet food manufacturing industries will also support growth in the market. Further, the U.S. feed additives market held the largest market share, and the Canada feed additives market was the fastest-growing market in the North American region

The Asia-Pacific feed additives market is expected to grow at the fastest CAGR from 2022 to 2030. Considering consumers' shifting preferences for meat consumption, key players will likely expand their poultry feed portfolio due to abundant livestock populations and various agricultural economies. Moreover, the China feed additives market held the largest market share, and the India feed additives market was the fastest-growing market in the Asia-Pacific region

For instance, in the Indian feed additives market, with abundant livestock populations and various agricultural economies, key players are likely to expand their poultry feed portfolio due to shifting consumer preferences for meat consumption. Because of abundant livestock populations and various agricultural economies, key players are likely to expand their poultry feed portfolios in response to changing consumer preferences for meat consumption.

Feed Additives Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the feed additives market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key feed additives market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the feed additives industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the feed additives industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the feed additives industry has provided medicine with some of the most significant benefits. The feed additives market major players such as Cargill Inc, DSM Nutritional Products AG, Bluestar Adisseo Co. Ltd, BASF SE, and others are working on expanding the market demand by investing in research and development activities.

The BASF SE chemical company operates across six segments: chemicals, plastics, performance products, functional solutions, agricultural solutions, and oil and gas. Chemicals, automobiles, construction, agriculture, oil, plastics, electrical, electronic, furniture, and paper are among the products BASF offers, and it also provides a range of services and system solutions. In January 2022, Increasing BASF's feed enzyme production capacity in Ludwigshafen (Germany) resulted from expanding the existing plant. By expanding BASF's production capacity, BASF can meet the increasing demand for reliable, high-quality supplies of BASF feed enzymes, Natuphos E (phytase), Natugrain TS (xylanase and glucanase), as well as Natupulse TS (mannanase).

Also, Cargill, Incorporated is a provider of agricultural products. In addition to producing grains and oilseeds and offering farmers services and risk management solutions, Cargill also offers animal nutrition, biofuels, meat, poultry, food, and industrial products. In June 2022, Delacon, a plant-based additive manufacturer acquired by Cargill, will expand Cargill's portfolio with considerable experience in feed additives, a footprint, and more nutritional food.

Key Companies in the Feed Additives market includes

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  Cargill Inc

  
  


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  DSM Nutritional Products AG

  
  


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  Novus International

  
  


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  Evonik Industries

  
  


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  Nutrition NV

  
  


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  Bluestar Adisseo Co. Ltd

  
  


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  BASF SE

  
  


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  Sumitomo Chemical, among others

  
  

Feed Additives Industry Developments

March 2021: Ajinomoto Co. partnered with Pegasus Tech Ventures, a venture capital firm, to take advantage of emerging food and healthcare trends by partnering with Silicon Valley start-ups. By collaborating, the company will be able to expand its reach to 16 locations.

July 2020: The NutriPass L supplement is the first rumen-stable and intestinally accessible lysine supplement for cows by ADM. It provides metabolizable lysine for lactating cows and growing cattle through effective encapsulation.

Feed Additives Market Segmentation

Feed Additives Type Outlook

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  Amino Acids

  
  


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  Vitamins

  
  


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  Carotenoids

  
  


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  Enzymes

  
  


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  Prebiotics & Probiotics

  
  


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  Minerals

  
  


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  Acidifiers

  
  


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  Lipids

  
  


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  Others

  
  

Feed Additives Form Outlook

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  Dry

  
  


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  Liquid

  
  

Feed Additives Livestock Outlook

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  Poultry

  
  


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  Swine

  
  


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  Ruminants

  
  


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  Others

  
  

Feed Additives Regional Outlook

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  North America

  
  
  
  
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    US

    
    
  
  
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    Canada

    
    
  
  
  
  

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  Europe

  
  
  
  
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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  

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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin Americ