The Compound Harmless Feed Additive Market is estimated to reach $29.2 billion by 2028, growing at a CAGR of 5.1% over the forecast period 2023-2028. Feed technology is a crucial component of animal production systems that produce high-quality, nutrient-rich food by processing components and creating animal feeds. According to the American Feed Industry Association (AFIA), there are more than 5,800 establishments in the US that manufacture animal feed, generating more than 284 million tons of finished feed and pet food annually. The goal is to improve the nutritional utilization of compound feeds by converting low-quality constituents into higher-value feed components. Therefore, animal feed has a social obligation to support more environmentally friendly food production methods. In order to more precisely address the nutritional needs of animals, it is important to have a deeper understanding of the structural and functional characteristics of feed components, their changes with various primary and secondary processing and their conditions. If livestock output is to increase quickly and profitably, both feed production and grain quality must be improved. Modern technology significantly raises the quality of the feed. Animal productivity is increased when properly formulated feed is used. 

Compound Harmless Feed Additive Market – Drivers

Growing Production of Natural Poultry Feed Additives:

According to the US Poultry Organization, in 2021, the value of production from chickens, including broilers, eggs and turkeys, as well as the value of chicken sales, totaled $46.1 billion, an increase of 31% from $35.1 billion in 2020. The growing production has led to rising awareness and strong demand for natural poultry feed additives. Phenolic compounds found in plants have drawn interest from the research community as a potential natural antioxidant source owing to their anticipated future role as natural poultry feed additives in the production of pigs and poultry. According to scientific investigations, the increased growth rate and improved feed conversion ratio in poultry feed with phenolic compounds were caused by changes in the intestinal surface area and the activity of the digestive enzymes, which improved nutrient absorption. Given the strong odor, reduced feed intake was also seen in pigs at higher inclusion levels of phenolic compounds, approximately over 1500 mg/kg diets. As a result, it was advised to avoid using higher dosages in pig diets given their strong, sensitive palates.

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An Outbreak of Foodborne Diseases has Generated the Need for Additives in Poultry, Aqua and Other Animal-Based Products:

According to the World Health Organization, eating unhealthy food annually results in the loss of 33 million healthy lives. There are 600 million foodborne disease cases and 420,000 fatalities worldwide each year. Children under 5 account for 30% of mortality from foodborne illnesses. The consumption of red meat, fish and other animal-based food products is receiving more and more attention owing to the potential health hazards posed by cytotoxins produced during the processing of food. The lipid and protein oxidation processes play an important role in meat quality, nutrition, safety and organoleptic qualities. It also covers animal production and meat processing techniques that use natural antioxidants to increase the nutritional value and health benefits of meat, as well as the use of mixed or purified natural antioxidants to prevent or reduce the formation of carcinogens for the chemical safety of cooked and processed meats. The safety of ingredients for ingestion by animals, particularly livestock and poultry, is ensured by the proper labeling of animal feed additives. These components frequently consist of grains, legumes, minerals and extra vitamins. These factors are driving the Compound Harmless Feed Additive market.

R&D Investment:

In January 2022, BASF boosted the capacity for the manufacture of feed enzymes at its Ludwigshafen (Germany) facility. BASF's annual production has increased significantly as a result of the expansion of the current facility. With the additional capacity for production, BASF is able to meet the growing demand from customers for a steady supply of the feed enzymes Natuphos E (phytase), Natugrain TS (xylanase and glucanase) and the recently launched Natupulse TS (mannanase).

Major Players in the Market:

The major companies in the Compound Harmless Feed Additive market include BASF SE, Koninklijke DSM N.V., DuPont de Nemours, Inc., Bluestar Adisseo, DeKalb Feeds Inc., Cargill, Incorporated, Evonik Industries AG, Ajinomoto Co., Inc., Danisco, Nutreco N.V. and Others.

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