Feed Additives Market by Type (Performance Additives, Specialty Additives), Animal Type (Poultry, Ruminants, Swine, Aquatic Animals), Source (Synthetic, Natural), Form (Dry, Liquid), and Geography - Global Forecast to 2030

The Feed Additives Market is projected to reach $51.2 billion by 2030, at a CAGR of 5.3% during the forecast period of 2023 to 2030. The growth of this market is driven by the consistent growth in the compound feed sector, rising demand for meat and dairy products, and increasing disease outbreaks in livestock. In addition, factors such as the growing industrialization of the livestock sector and increasing utilization of feed additives in developing countries provide a significant opportunity for manufacturers in the global feed additives market. However, the ban on the use of antibiotics in animal feed hinders the growth of the feed additives market.

Rising Demand for Meat and Dairy Products is Driving the Growth of the Feed Additives Market

Urbanization is driving a ‘livestock revolution’ across many developing countries. Urbanization, along with the growing human population, economic growth, and changes in consumers’ dietary preferences, is driving a shift toward more livestock-intensive diets consisting of meat, milk, and eggs. According to OECD-FAO Agricultural Outlook 2021–2030, the global consumption of meat proteins is projected to increase by 14% by 2030 compared to the base period 2018–2020, driven largely by income and population growth. Protein availability from beef, pork, poultry, and sheep meat is projected to grow by 5.9%, 13.1%, 17.8%, and 15.7%, respectively, from 2021 to 2030. Much of the increase in global meat production is attributed to the U.S.; however, Argentina, India, Mexico, the Russian Federation, and Turkey are also major contributors.

In addition, per capita global meat consumption is expected to increase by 0.3% p.a. to reach 35.4 kg RWE (retail weight equivalent) by 2030 from 2021. High-quality feed containing vitamins, minerals, enzymes, and other direct-fed microbials helps improve meat quality and increase production. Moreover, health-conscious consumers are increasingly demanding environmentally safe and chemical-residue-free meat and meat products, which is expected to further increase the demand for feed additives among feed manufacturers.

Moreover, according to the Organisation for Economic Co-operation and Development and the UN Food and Agriculture Organization (OECD-FAO), global milk production is expected to increase by 22% from 2017 to 2027. Most of this increase in milk production (80%) is anticipated to come from developing countries such as Pakistan and India, which are expected to jointly account for 32% of global milk production by 2027, compared to 26% in 2017. Milk production in developing countries is projected to expand at a rate of 3.0% per annum, but most of this additional production is expected to be consumed domestically in the form of fresh dairy products. As the global demand for milk continues to rise, there is a growing need to produce more milk from fewer resources, compelling dairy farmers to increase milk yield and improve livestock health. Dairy animals have very high nutritional requirements during lactation compared to most other species. Feed additives can increase milk production, improve milk quality, and boost immune function in dairy animals. Some feed additives commonly used in dairy farming include probiotics, prebiotics, enzymes, amino acids, vitamins, and minerals. These additives can help improve the digestibility of feed, enhance nutrient absorption, and promote healthy gut bacteria. In addition to improving milk yield and quality, feed additives can help reduce the environmental impact of dairy farming by reducing the amount of feed required per unit of milk produced. Using feed additives can help reduce greenhouse gas emissions and improve the sustainability of the dairy industry.

Thus, the rising demand for meat and dairy products is boosting the utilization of feed additives among feed manufacturers, driving the growth of this market.

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Increasing Disease Outbreaks in Livestock Boosting the Utilization of Feed Additives

Animal health and food safety have become major challenges for the livestock sector due to the increasing complexity of supply chains attributed to globalization and trade liberalization. At the same time, there is an increasing risk of livestock diseases affecting humans, especially due to their pandemic potential, which was recently highlighted by the outbreak of a new strain of influenza, A (H1N1), containing genetic material from humans, swine, and poultry viruses. Furthermore, the International Agency for Research on Cancer (IARC) has classified processed meat as a carcinogen (something that causes cancer) and red meat as a probable carcinogen (something that probably causes cancer).

Moreover, various disease outbreaks in livestock animals (swine flu and foot and mouth disease) during the last decade have raised concerns over meat quality and safety. Additionally, countries such as South Korea and Slovakia banned pork imports from Germany due to the health risks involved. Furthermore, according to the FAO, global pig meat output in 2020 was 109.2 million tonnes, down by 0.8% from 2019, due to the impact of African Swine Fever (ASF) on swine herds in several major pork-producing countries such as China, the Philippines and Vietnam. The impact of these diseases on animals is significant and may lead to direct economic losses due to high morbidity and mortality. These instances have accelerated the usage of feed additives, which help ensure optimal health in animals and the quality of animal-derived products as per the highest standards. During a disease outbreak, animals may become more susceptible to illness due to weakened immune systems, stress, or other factors.

Furthermore, making certain feed additives a part of animal diets can help boost their immune function, support digestive health, and improve their overall well-being. Enhancing animal feed with various nutrients can thus help prevent the occurrence of diseases. For instance, Pipestone Applied Research Institute found that the spread of viral diseases in pigs can be stopped using commercially available feed additives. Some feed additives, such as antibiotics that are added to feed to prevent bacterial infections are specifically designed to prevent or mitigate the effects of certain diseases. Additionally, probiotics, prebiotics, and other additives can help promote gut health, strengthen animals' immune function, and prevent the growth of harmful bacteria.

Thus, increasing disease outbreaks in livestock animals are boosting the need for feed enhanced with feed additives to ensure good health and the quality and safety of animal-derived products, driving the demand for feed additives among feed manufacturers.

Key Players

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios and geographic presence and the key growth strategies adopted by them in the last 3–4 years. Some of the key players operating in the feed additives market are Bluestar Adisseo Co. (China), Koninklijke DSM N.V. (Netherlands), BASF SE (Germany), Cargill, Incorporated (U.S.), Kemin Industries Inc. (U.S.), Alltech Inc. (U.S.), Nutreco N.V. (Netherlands), International Flavors & Fragrances Inc. (U.S.), Evonik Industries AG (Germany), Archer Daniels Midland (U.S.), ADDCON GROUP GmbH (Germany), Biovet S.A. (Spain) Royal AgriFirm Group. (Netherlands), Altilis Animal Nutrition (France), and Land O’Lakes Inc (U.S.).

Key Findings in the Feed Additives Market Study:

In 2023, the Performance Additives Segment is Expected to Dominate the Feed Additives Market

Based on type, the global feed additives market is segmented into performance additives, specialty additives, and other types. In 2023, the performance additives segment is expected to account for the largest share of the global feed additives market. The large market share of this segment is attributed to the increasing awareness among the farmers about the benefits of amino acids, minerals, and vitamins; the rising demand for compound animal feed with higher nutrient contents to improve feed intake; and the growing use of performance additives to metabolism and efficiency of feed utilization for economic and eco-friendly livestock production.

However, the specialty additives segment is projected to register the highest CAGR during the forecast period. The growth of this market is mainly attributed to increasing feed utilization, the growing technological innovation in the livestock industry, and the increasing need to improve the quality and digestibility of feed.

In 2023, the Poultry Segment is Expected to Dominate the Feed Additives Market

Based on animal type, the global feed additives market is segmented into poultry, ruminants, swine, aquatic animals, and other animals. In 2023, the poultry segment is expected to account for the largest share of the global feed additives market. The large market share of this segment is attributed to the growing demand for micro-nutrients in poultry production, consumers’ preference for poultry meat & eggs, low production as well as product cost of poultry meat, and high production of compound feed for poultry.

However, the aquatic animals segment is projected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the rising consumption of fish and fish-based products, the growing demand for high-quality aqua feed, and the advent of more sustainable technology in aquaculture.

In 2023, the Synthetic Feed Additives Segment is Expected to Dominate the Feed Additives Market

Based on source, the global feed additives market is segmented into synthetic feed additives and natural feed additives. In 2023, the synthetic feed additives segment is expected to account for the larger share of the global feed additives market. The large market share of this segment is attributed to the easier availability of synthetic raw materials, lower production costs, and stronger market penetration.

However, the natural feed additives segment is projected to register a higher CAGR during the forecast period. Natural feed additives reduce environmental impact and are considered a safer and more sustainable alternative to synthetic additives. Furthermore, there is a growing market for natural and organic food products. These factors contribute to the growth of this segment.

In 2023, the Dry Feed Additives Segment is Expected to Dominate the Feed Additives Market

Based on form, the global feed additives market is segmented into dry feed additives and liquid feed additives. In 2023, the dry feed additives segment is expected to account for the larger share of the global feed additives market. The large market share of this segment is attributed to the increased demand for powdered enzymes, vitamins, and probiotics due to their ease of use, administration, transport & storage, and cost-effectiveness.

However, the liquid feed additives segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the shift towards liquid supplements due to their improved shelf life and versatility for various applications.

Asia-Pacific: The Dominating Market in the Region

Based on geography, the feed additives market is segmented into five major regions, namely North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, Asia-Pacific is expected to account for the largest share of the global feed additives market. Asia-Pacific’s major market share is attributed to the enormous demand for animal-derived products, including milk, meat, eggs, and seafood; the high livestock population; the rise in the knowledge of health and well-being; and the huge production of compound feed.

However, North America is projected to register the highest CAGR during the forecast period. The growth of this market is attributed to the increasing awareness about the benefits of additives for animal feed, the increase in outbreaks of diseases, and the increasing focus on animal productivity.

Scope of the Report:

Feed Additives Market Assessment, by Type

• Performance Additives
  • Amino Acids
    • Lysine
    • Methionine
    • Threonine
    • Other Amino Acids
  • Minerals
    • Macro Minerals
    • Trace Minerals
  • Vitamins
    • Fat-Soluble Vitamins
      • Vitamin A
      • Vitamin E
      • Vitamin D
      • Vitamin K
    • Water-Soluble Vitamins
      • Vitamin C
      • Vitamin B Complex
• Specialty Additives
  • Acidifiers
  • Probiotics
    • Lactobacillus
    • Bifidobacterium
    • Yeast and Other Microbes
  • Enzymes
    • Phytase
    • Carbohydrase
    • Protease
  • Antioxidants
    • Ethoxyquin
    • BHT
    • BHA
    • Other Antioxidants
  • Antibiotics
• Other Types

Feed Additives Market Assessment, by Animal Type

• Poultry
  • Broilers
  • Layers
  • Turkey
  • Other Poultry Birds
• Ruminants
  • Beef Ruminants
  • Dairy Ruminants
• Swine 
• Aquatic Animals
• Other Animals

Feed Additives Market Assessment, by Source

• Synthetic Feed Additives
• Natural Feed Additives

Feed Additives Market Assessment, by Form

• Dry Feed Additives
• Liquid Feed Additives

Feed Additives Market Assessment, by Geography

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Europe
  • Spain
  • Russia
  • Germany
  • France
  • Italy
  • U.K.
  • Netherlands
  • Poland
  • Rest of Europe
• North America
  • U.S.
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa

Key Questions Answered in the Report: