Compound Harmless Feed Additive Market - Forecast(2024 - 2030)

Compound Harmless Feed Additive Market Overview

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 additives are a diverse group of molecules, substances or living things that help animals take food, absorb it, assimilate it into their bodies, grow and stay healthy. They have an impact on physiological processes like reproduction, stress resistance and immune system performance. Feed additives can be immune stimulants, probiotics, prebiotics, essential oils, acidifiers or others. The anticipated rise in demand for feed additives as a consequence of the growing demand for animal feed is one of the major factors driving the market for compound harmless feed additives during the forecast period of 2023–2028. According to European Feed Manufacturers' Federation, farm animals in the EU27 consumed an estimated 701 million tonnes of feed in 2021, of which about 22 % are produced by Compound Feed manufacturers.

Compound Harmless Feed Additive Market Report Coverage

The report: “Compound Harmless Feed Additive Market – Forecast (2023-2028)” by IndustryARC, covers an in-depth analysis of the following segments in the Compound Harmless Feed Additive Market.

By Type: Technological additives, Sensory additives, Nutritional additives, Zootechnical additives, Coccidiostats and Histomonostats.
By Additive Type: Antibiotics, Vitamins, Antioxidants, Amino Acids, Enzymes, Mycotoxin Detoxifiers, Prebiotics, Probiotics, Flavors and Sweeteners, Pigments, Binders Acidifiers and Minerals.
By Livestock: Pork/Swine, Poultry, Cattle, Aquaculture and Others.
By Form: Dry and Liquid.
By Source: Synthetic and Natural.
By Geography: North America (the U.S., Canada and Mexico), Europe (the UK, Germany, France, Italy, Spain, Russia and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia and New Zealand and the Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

• Geographically, North America dominated the Compound Harmless Feed Additive market in 2022, owing to the rising livestock production in Mexico and the United States. Asia-Pacific is anticipated to be the fastest growing market during the forecast period 2023-2028, owing to the heavy demand for natural poultry feed additives augmented by the consumption of processed poultry in countries such as China, India and Australia.
• The increase in the demand for and consumption of livestock-based products as well as the growth in animal feed production is anticipated to grow over the forecast period of 2023–2028.
• The standardization of meat products as a result of disease outbreaks and the implementation of innovative animal husbandry practices to improve meat quality are projected to drive the market.
• A detailed analysis of strengths, weaknesses, opportunities and threats would be provided in the Compound Harmless Feed Additive Market Report.

Compound Harmless Feed Additive Market Segment Analysis – by Additive Type

Based on additive type, the Compound Harmless Feed Additive market is further segmented into antibiotics, vitamins, antioxidants, amino acids, enzymes, mycotoxin detoxifiers, prebiotics, probiotics, flavors and sweeteners, pigments, binder acidifiers and minerals. The amino acids segment held the largest revenue market share in 2022, owing to the rising global demand for meat and the growing population of animals, both of which are responsible for its significant percentage. According to the National Library of Medicine, despite the fact that nature contains hundreds of different amino acids, the majority of other living things and the human body only require roughly 20 to 22 amino acids to produce all of the proteins.

The antibiotics segment is estimated to grow at the fastest CAGR of 5.5% over the forecast period of 2023–2028. According to an article published by the National Library of Medicine, pigs supplemented with antibiotics in animal feeds require 10-15% less feed to reach the optimal level of growth. It is known that animals receiving antibiotics in animal feeds supplements grow 1–10% faster each day than animals not receiving antibiotics in animal feeds.

Compound Harmless Feed Additive Market Segment Analysis – by Livestock

Based on livestock, the Compound Harmless Feed Additive market is further segmented into pork and swine, poultry, cattle, aquaculture and others. The poultry segment held the largest revenue market share in 2022, owing to the rise in demand for natural poultry feed additives and poultry-based items including meat and eggs. According to the U.S. Poultry Organization, $14.9 million was the estimated value of chicken sales in 2021 where 180 million chickens were sold. However, the Pork and Swine segment is anticipated to grow at the fastest CAGR of 5.6% over the forecast period of 2023–2028, owing to the fact that pork meat is widely consumed and has a larger demand among livestock producers. It is used to prepare a variety of cuisines all over the world. Antimicrobials, antioxidants, binders, emulsifiers, enzymes and pH-controlling substances are among the most frequently used feed additives for pork. These chemicals support the meat industry's high levels of productivity, efficiency and profitability.

Compound Harmless Feed Additive Market Segment Analysis – by Geography

Based on geography, the North American Compound Harmless Feed Additive market accounted for 36% of revenue share in 2022, due to the rising demand and consumption of meat in the region. According to an article on meat consumption in 2021, the average annual meat consumption in America is 274 pounds.

However, the Asia-Pacific region is estimated to grow at the fastest CAGR during the forecast period of 2023–2028, owing to the constantly rising population, increased consumer power and a significant concentration of livestock producers in the region. It is projected that the demand for antibiotics in animal feeds would continue to increase as a result of the rising demand for processed meat and protein-rich diets. This aspect would consequently result in more Animal Feed Additives being used on diverse chicken farms.

Compound Harmless Feed Additive Market Drivers

Rising Production of Industrial Livestock is Accelerating Market Growth

Livestock refers to farm animals like sheep, cows and others. According to Eurostat, in December 2021, there were 142 million pigs, 76 million cattle, 60 million sheep and 11 million goats living in Europe. The growing demand for livestock products has led to significant supply-side changes aimed at boosting animal product outputs. Livestock is currently one of the sectors in developing countries with the fastest growth rates. The demand for animal products is rapidly increasing as a result of population growth, urbanization and rising levels of income in developing countries. Given that domestic production meets the bulk of demand, the combination of rising demand in emerging countries and stagnant demand in industrialized countries creates a substantial opportunity for livestock keepers.

Increasing Consumption of Meat and Dairy Products is Anticipated to Boost the Market

The demand for animal-derived protein is rising as the world's population expands. Feed additives, which were a major factor in the expansion of the global market for compound harmless feed additives, met the high nutritional demand from such a large number of animals. Both fresh and processed types of meat contain various nutritional and health benefits. According to the Food and Agriculture Organization, in 2020, the world's milk production was approximately 906 million metric tons. According to research on meat consumption, the global consumption of meat has reached over 328 million metric tons in 2021. Such growing demand and consumption of meat and dairy products drives the compound harmless feed additive market over the forecast period of 2023–2028.

Compound Harmless Feed Additive Market Challenges

Inadequate Labeling of Food Supplements to Stymie the Market

In order to confirm that food supplements contain the stated amount of active substances, it is also possible to evaluate them for compliance with their specifications. This is especially crucial when a product is said to support a particular element of health, such as joint health. This may depend on the amount of specific active substances present in the product. According to a study, it was discovered that oral joint supplements with glucosamine did not always correspond to the amount of this active ingredient they had been labeled to contain. In this study, 39% of the goods that were evaluated were found to have less glucosamine than what the manufacturer had claimed and 17% had less than 30% of the advertised amount. Furthermore, it is not unusual for substances in specialized food supplements to have a low or nonexistent level of bioactive substance. Thus, the market is being hampered by improper labeling of food supplements.

Compound Harmless Feed Additive Industry Outlook:

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Compound Harmless Feed Additive Market. The top 10 companies in the Compound Harmless Feed Additive Market are:

1. BASF SE
2. Koninklijke DSM N.V.
3. DuPont de Nemours, Inc.
4. Bluestar Adisseo
5. DeKalb Feeds Inc.
6. Cargill, Incorporated
7. Evonik Industries AG 
8. Ajinomoto Co., Inc.
9. Danisco
10. Nutreco N.V.

Recent Developments

• In August 2022, BASF and Corteva Agriscience formed a long-term alliance to develop new soybean weed management options for growers all over the world. Both companies think that having better access to the $7.1 billion global market for soybean seeds and characteristics as well as the $5 billion soybean herbicide industry would spur the creation of new product lines.
• In May 2022, DSM and Firmenich announced their business partnership agreement with the goal of creating the top collaborator for innovation and creation in nutrition, beauty and well-being. DSM-Firmenich would profit from complementing skills in flavor, texture, nutrition and scent.
• In February 2020, Calyseo, a joint venture between Bluestar Adisseo and Calysta Inc., was founded in order to develop FeedKind, a cutting-edge feed solution for aquaculture to offer exclusive supply for Asian markets.

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