Feed Phytogenic Market Size

Global Feed Phytogenic Market  Outlook

Feed phytogenic Market is projected to register a CAGR of 6.10% and reach a value of USD 1.15 Billion by 2028. 

Feed phytogenic is a combination of plant-based substances added to animal diets for various purposes such as antimicrobial effect, digestibility enhancement, and performance improvement. These substances are known to have a range of bioactive properties. Feed phytogenic can be delivered to the animal body via water or feed. Increasing demand for natural feed additives & negative preference towards feed antibiotics drove the growth of the global feed phytogenic market. Furthermore, the growth of the aquaculture industry & increasing demand for livestock products is further expected to witness the growth of the global feed phytogenic market during the forecast period. However, the availability of substitutes is expected to hinder market growth in the coming years.

COVID-19 Impact Analysis

The outbreak of COVID-19 has resulted in lockdown across regions, border restrictions, and breakdown of transportation networks. The economic uncertainty due to the COVID-19 outbreak is much higher than past outbreaks such as severe acute respiratory syndrome (SARS), avian flu, swine flu, bird flu, and Ebola, owing to the escalating number of infected people and the uncertainty about the end of the crisis.

With the outbreak, there was a spike in essential goods such as sanitizers and masks, and household essentials like toilet paper and bread were stocked up by customers. Most of the customer's budget was shifted to essential goods, and a major downfall in non-essential businesses was observed. As more cities went into lockdown, non-essential businesses were ordered to remain closed during the first half of the pandemic. The COVID-19 pandemic has severely impacted the out-of-home activities with border restrictions and government orders for lockdown, forcing people to stay home. Schools, colleges, and institutions were shut, and corporates across the globe observed work from home. These factors negatively impacted the sales of feed phytogenic during the pandemic. However, with the situation getting back to normal, the demand for feed phytogenic is expected to increase gradually.

Market Dynamics

The global feed phytogenic market has witnessed a significant growth rate over the last few years and is projected to register a 6.10% CAGR during the forecast period. Feed phytogenic are derived from natural sources for livestock feed. Increasing demand for natural feed additives along with negative preference towards feed antibiotics are the key factors driving the growth of the global feed phytogenic market. Additionally, increasing demand for livestock products is driving the market growth. However, the availability of substitute products is hampering the growth of the market. The global feed phytogenic market is estimated to emerge as a lucrative market for vendors operating in developed and developing economies due to the emergence of new technologies such as encapsulation and increasing demand for organic and safe meat.

Drivers

• Increasing Demand for Natural Feed Additives

Natural feed additives such as feed phytogenic promote the growth, health, indigestion, absorption, and assimilation of nutrients. They also affect physiological processes such as reproduction, immune function, and stress resistance. These plant-derived compounds are incorporated in animal feed to improve livestock productivity through the amelioration of feed properties and promotion of the animal’s production performance. Moreover, feed phytogenic also gives a specific flavor or scent to the feed as they contain a cocktail of numerous active principles. Feed phytogenic are known for their flavoring properties, thus having an impact on the palatability of diets. They exert a range of distinct biological properties, therefore having the potential to affect gut health and increase performance positively. The plant-derived compounds have been gaining close attention from livestock feeders because of the ban on antibiotics from many countries. Apart from that, the wide availability of products from different manufacturers is expected to drive the demand for feed phytogenic in the global market.

Restraint

• Availability Of Substitutes

The demand for feed phytogenic is increasing among farmers and growers of livestock as a solution to enhance the quality of feed. However, there are several substitutes available in the market, such as probiotics, prebiotics, additives, and enzymes. Probiotics used in animal feed are globally referred to as direct-fed microbial (DFM). It refers to the feeding of beneficial microbes to livestock to improve their health. The significant parameters on which DFM has a positive impact are milk yield, growth, digestion, rumen fermentation, and overall health. The most widely used DFM in animal feed are Lactobacillus, Bifidobacterium, Bacillus, Streptococcus, and Enterococcus. Prebiotics enhance the performance of an animal by improving feed conversion and daily weight gain. It also improves digestive problems and promotes the general health of livestock animals and pets.

Opportunities

• Emergence Of New Technologies Such as Encapsulation

Feed phytogenic offer several benefits to livestock health. However, it is difficult to properly process the feed. Feed phytogenic might lose their efficiency and effectiveness owing to several factors like high temperatures and unclean environments. Players in the market are incorporating new technologies to enhance efficiency and effectiveness. Encapsulation technology is gaining massive acceptance among manufacturers. This technology helps improve its release and offers a longer shelf life by protecting it from the external environment. Feed phytogenic comes in capsule form after incorporating the encapsulation technique. Encapsulation releases higher quantities of feed phytogenic into the animal’s gastrointestinal (GI), ensuring a healthy gut and leading to improved growth performance.

Segment Overview

By Type

Based ontype, the global feed phytogenicmarket has beendivided into essential oils, herbs &spices, oleoresins, others. The essential oils segment accounted for the largest market share in 2020, while herbs & spices is expected to register the highest CAGR of 9.34% during the forecast period.

By Function

By function, the global feed phytogenic market has been segmented as performance enhancer, palatibility enhancer, and others. The palatibility enhancer segment is projected to exhibit the highest CAGR of 9.34% during the forecast period. Phytogenic feed additives are also known as natural performance enhancers. The growth-promoting properties of feed phytogenic such as essential oils, herbs & spices, and oleoresins are expected to drive the market demand. Essential oils have the potential to increase the palatability of diets, thus stimulating voluntary feed consumption in livestock.

By Livestock

Based on distribution channel, the global feed phytogenic market has been segmented into poultry, swine, ruminants, aquaculture, and others.The poultry segment accounted for the largest market share of 42.97% in 2020 and is expected to register a 9.37% CAGR during the review period. The consumption of feed phytogenic supports the gut health, growth performance, promote feed intake, feed conversion ratio in hot and humid condition, and supports the resilience of poultry to mitigate the specific effects of heat stress. The increasing demand for egg and poultry meat is expected to drive the demand for feed phytogenic among poultry.

Global Feed phytogenicMarket Share, by Region, 2020 (%)Sources: MRFR Analysis

Regional Analysis

B region, the global feed phytogenicmarket has been dividedinto North America, Europe, Asia-Pacific, Rest of the World.Europe accounted for the largest market share of 33.23% in 2020. North America was the second-largest market in 2019 and is projected to exhibit a CAGR of 9.17% during the review period.The market in Asia-Pacific is expected to register the highest CAGR during the forecast period.

North America Market

North America is an attractive region among the manufacturers of feed phytogenic. The region accounted for 28.30% of the market in 2020 and is anticipated to reach USD 458.03 million by 2028. In North America, the US is the major contributor to the growth of the feed phytogenic market and is the second-largest feed-producing country across the globe. In 2017, the Food and Drug Administration (FDA) brought in new rules sharply curtailing the routine use of antibiotics on farms across the US. This increased the demand for feed phytogenic, considering it one of the alternatives for antibiotics. In this region, the production of poultry feed is increasing at a tremendous rate based on escalating broilers population. Moreover, aqua is a potential industry in this region for which the number of fisheries has increased.

Europe Market

Europe dominated the global feed phytogenic market with a share of 33.23% in 2020. In 2006, the use of AGPs in animal feed was banned in the EU, and regulations are implemented to reduce the use of therapeutic antibiotics. This led to an opportunistic market for feed phytogenic manufacturers. The feed industry in Europe has grown significantly in the last few years.

Competitive Landscape

The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have reach across the globe with diverse product portfolios. Companies such as Biomin GmbH, Cargill, Incorporated, DuPont, Kemin Industries, Inc., and Bluestar Adisseo Companydominate the global market due to brand reputation, product differentiation, financial stability, strategic developments, and diversified regional presence. The players are focused on investing in research and development. Furthermore, they adopt strategic growth initiatives, such as expansion, product launches, joint ventures, and partnerships, to strengthen their market position and capture a large customer base.

Prominent players in the global feed phytogenic market include Biomin GmbH (Austria), Cargill, Incorporated (US), DuPont (US), Kemin Industries, Inc. (US), Bluestar Adisseo Company (China), Phytobiotics Futterzusatzstoffe GmbH (Germany), Synthite Industries Ltd. (India), The Himalaya Drug Company (India), Pancosma (Switzerland), ostofarm GmbH (Germany), Delacon Biotechnik GmbH (Austria), NOR-FEED (France), Phytosynthese (France), IGUSOL S.A. (Spain), Natura Feed Ingredients (US), Silvateam S.p.a. (Italy), NUTREX BE (Japan), A&A Pharmachem Inc. (Canada), and Natural Remedies (India).

Recent Developments

Few developments occurred in recent times, influencing the market growth of feed phytogenic are listed below:

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  In 2023, Cargill's acquisition of phytogenic producer Delacon in June 2022 has increased the scope and velocity of innovation in the US company's feed additive sector, allowing for synergistic new product development, according to an executive.Cargill was already present in the phytogenic feed additive field, thus acquiring Delacon and integrating the two firms' expertise resulted in a global market leader.

  
  


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  Biomin, an animal nutrition firm, plans to become the market leader in phytogenic feed additives in 2016 and will introduce a new phytogenic product at VIV Asia. This was disclosed at a press conference immediately before the start of Biomin's biannual event, the 2016 World Nutrition Forum, which is currently taking place in Vancouver.

  
  


• In October 2020, Phytosyn these launched PHYTO AX' CELL, a new product for managing inflammatory reactions in animals. This unique blend combines green propolis, known to regulate immune responses, and a blend of specifically selected and titrated plants for their immunomodulatory activity and their ability to limit the inflammatory and pro-oxidative process.


• In August 2020,Delacon announced the launch of Syrena Boost, a phytogenic solution specifically designed for gut performance and productivity of aquaculture practices. With this, the company enters into the aqua market.


• In June 2020, DOSTOFARM introduced its new PHYTOsolvan, which is a new line of natural solutions for respiratory support. These are the essential oils and extracts which are produced by using the herbs of traditional medicine.

Scope of the Report

Global Feed Phytogenic Market, byType

• Essential Oils


• Herbs & Spices


• Oleoresins


• Others

Global Feed Phytogenic Market, by Category

• Performance Enhancer


• Palatibility Enhancer


• Others

Global Feed Phytogenic Market, by Livestock

• Poultry


• Swine


• Ruminants


• Aquaculture




• Others

Global Feed Phytogenic Market, by Region

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Spain
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia and New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • South America
  
  
  
  

Intended Audience

• Essential Oils Manufacturers


• Herbs & Spices Manufacturers


• Raw Material Suppliers


• Retailers, Wholesalers, and Distributors


• Governments, Associations, and Industrial Bodies


• Investors and Trade Experts