The Animal Feed Ingredients Market is projected to rise at a compound annual growth rate (CAGR) of 3.81% to reach a market valuation of US$78.876 billion by 2029, from US$60.704 billion in 2022.
Animal feed ingredients encompass a wide array of components aimed at supplying essential nutrients to livestock, facilitating their growth and productivity. They are commonly administered to animals such as poultry or livestock to enhance their overall output. The animal feed ingredients market is anticipated to be propelled by increasing demand for plant-derived components like corn, wheat, and soybeans as feed ingredients.
Introduction:
The animal feed is classified into cereals, forage, and fodder types and, as a result, nutrient deficiencies are developed, which in turn increases growth and positively impacts health.Another popular pattern is the use of cereal grains, protein sources, silage and roughage, oilseeds and fats, minerals and vitamins, additives, and co-products.The formation of animal foods is based on the type of animal, age, role, function, and unique nutritional needs.
Animal nutritionists and feed makers, in turn, make perfect formulae to support an animal's development, introduction of a new generation, and enhancement of the animal's health.Grain, the number one crop in the US, contributed 52% of the calories used in livestock feeds. Corn plus soybean meal and soluble distillers’ grain made up to 75% of all feed tones.DIS reported on the different ingredients used in the animal diets from wheat middling, to processed plant by-products.
Drivers:
- Global Population Growth:The consistently growing global population necessitates higher food production, particularly in protein-rich sources like meat and dairy. Consequently, there's a surge in demand for superior feed ingredients to support increased livestock and poultry production. For instance, according to the Food and Agricultural Organization (FAO), the demand for dairy products is expected to increase in countries such as India, Pakistan, and parts of Africa owing to rising per capita income and increasing population.
- Growth of Imports and Exports:Trade along with the export of animal feed ingredients from international sources plays an important role in the growth because of the factors that include increasing global demand for livestock and farm products, availability of diverse ingredients, cost optimization, technology transfer, market expansion and globalization of livestock farming. For instance, according to the Agricultural & Processed Food Products Export Development Authority (APEDA), India is one of the major exporters of prepared animal feeder products to the world, in 2022-23 the country exported 7,96,462.12 MT (metric tonnes) of these products to the world for the worth of INR 3,587.04 crores/ US$445.60 million.
- Technological advancements:The modernization of the available knowledge on animal nutrition and the applied technology for their use in large-scale and specialized livestock farming operations, hence, a constant and sustainable supply of animal feeds.
- Increasing demand for raw materials:The demand for raw materials used for the production of corn is increasing to suffice the market demand for animal feed. For instance, according to the Indian agriculture secretary, the country needs to increase its corn production by 10 million tons in the coming years to meet the demand for corn for poultry feed.
- Regulatory Changes:The changing regulatory landscape surrounding animal welfare, food safety, and antibiotic usage in animal agriculture is catalyzing the adoption of feed ingredients that promote enhanced practices for healthier livestock and poultry production within the industry.
- Segment Analysis:Dry additives are known to have a more stable and longer shelf life compared to liquid ones, which makes them convenient during storage and transportation.They provide exact dosage control and hom*ogenous distribution to feeding stuffs, thus, helping to maintain optimum levels of nutrients.Dry additives can be manufactured at a low cost both from the production unit's point of view and the transport and packaging unit of the manufacturer.
- Changing Consumer Preferences:Increasing consumer demand for organic, ethically sourced, and antibiotic-free animal products is driving the market towards plant-based or clean feed ingredients, which offer more sustainable alternatives. For instance, as per data from the United States Department of Agriculture (USDA), the certified organic land in the U.S. designated for cultivating crops or raising livestock surged from 1.8 million acres in 2000 to 4.9 million acres in 2021.
The Asia-Pacific region is expected to dominate the market of the animal feed ingredients market:
The Asia Pacific animal feed market is expected to hold a significant share, owing to factors like rising investment in livestock and animal husbandry industry by farmers and by the governments of countries like India, and China. For instance, the Indian government has unveiled an investment of INR 15,000 crore in the Animal Husbandry Infrastructure Development Fund (AHIDF) as part of the Atma Nirbhar Bharat Abhiyan stimulus package. AHIDF aims to encourage investments from various entities including individual entrepreneurs, private companies, MSMEs, Farmers Producers Organizations (FPOs), and Section 8 companies. These investments will focus on establishing dairy processing and value addition infrastructure, meat processing and value addition infrastructure, as well as animal feed plants.
Furthermore, there is a substantial demand for livestock and poultry production in the region, driving the need for a significant quantity of animal feed ingredients. Additionally, the Asia-Pacific region has a well-established and expanding aquaculture industry, further contributing to the demand for aquatic feed ingredients. Moreover, as awareness of animal health and nutrition grows, there is a trend towards using high-quality feed ingredients to optimize production, which is propelling the market's growth in this region.
Market Developments:
- September 2023:Denkavit Ingredients B.V. and Treibacher Group collaborated to increase the sales and distribution of the feed additive Terragut in the European market. Terragut is a feed supplement approved by ESFA and is shown to contribute to providing support to piglets during the first stage of separation.
- May 2023:Evonik introduced its future version of Biolys® feed additive at the end of the 2nd quarter of 2023. The newly revised product has a higher content of amino acid L-lysine (62.4%) as compared to 60% of the older one. Biolys® fermentation is used in the production process. Sugar from corn, Dextrose, under the action of microorganisms, is transformed into L-lysine.
- In March 2023:IFF launched an animal solution for piglets. Axtra® PRIME is an enzyme blend that is proven to improve nutrient digestion in piglets for better performance. It creates a favorable Nutri biotic state in a piglet’s gut. This further minimizes the susceptibility to disturbances and maximizes performance. Axtra® PRIME is a combination of xylanase, alpha-amylase, and beta-glucanase along with protease enzymes.
- In January 2023:BASF and Cargill announced a partnership leading to the development and distribution of feed enzymes. The companies aimed to provide innovative solutions that generate value for animal feed customers. This promotes sustainability and productivity for the producers.
- June 2022:Innovafeed and Cargill entered a partnership with healthy ingredients for aquafarmers. The global partnership aimed to develop and distribute ingredients that raise sustainable seafood with less environmental impact. They planned to grow planet-friendly ingredients that promote better health in farmed fish.
- December 2021:BASF launched Natupulse® TS. It is a feed enzyme uniquely developed to improve digestion making feed cost-effective and sustainable. It is manufactured in Germany and is available in both powder and liquid form. Natupulse® TS is a non-starch polysaccharide (NSP) enzyme. One of the most common NSP’s are found in soybean meal. Natupulse® TS is proven to have an additional positive effect when it is combined with Natuphos® E and Natugrain® TS.
- March 2021:FGV Holdings Berhad (FGV) launched the high-quality animal feed brand ALMA. ALMA is a palm-based product that was developed with the motive to reduce Malaysia’s dependency on animal feed imports.
Key Players:
- DuPont,a multinational corporation, offers a range of innovative animal feed ingredients, including enzymes, probiotics, and nutritional additives. Leveraging its expertise in biotechnology, DuPont focuses on enhancing animal nutrition and performance while ensuring sustainability.
- Cargill,a leading agricultural company, provides animal feed ingredients such as grains, proteins, and additives. With a global presence, Cargill emphasizes quality and safety in its products, catering to diverse livestock needs. It connects farmers with markets, customers, and families to fulfill their daily needs. It promotes sustainability by reducing methane emissions from feed.
- BASF,a chemical giant, offers animal feed additives like vitamins, carotenoids, and antioxidants. Utilizing advanced research and development capabilities, BASF delivers solutions aimed at improving animal health, welfare, and productivity. It aims to develop a sustainable future.
Segmentation:
By Source
- Plant-Based
- Animal-Based
By Type:
- Corn
- Wheat
- Soy
- Soybean Meal
- Rendered Meal
- Fish Meal
- Preservative
- Fumaric
- Formic
- Prionic
- Lactic
- Colorant
- Flavor
- Others
By Livestock
- Swine
- Cattle
- Poultry
- Aquatic
- Pet
