Animal Feed additives (AFA) are the materials of nutritional value that are fed to animals. It acts as vitamins for farm animals that get insufficient nutrients from regular meals. The global market for AFA is growing tremendously owing to the growing demand for meat and related products over the past few years. Asia Pacific is expected to lead the global AFA Industry attributed by more number of farm animals in this region. Major contributors in the Asian market include emerging economies such as India and China. Europe is expected to remain at second place after Asia Pacific in terms of revenue generation. India, China, and Brazil contributed around 23% share in 2011 in the global market. This share is expected to rise to 39% by 2018.
Increasing demand for protein rich meat and dairy products, industrialization in meat production, rising rate of meat consumption, outbreak of livestock diseases, and growing awareness about meat safety and quality are some important factors driving the growth of the AFA market.
Regulatory structure and increasing cost of raw materials are some major challenges restraining the growth of this industry. However, rising cost of natural feed products is creating some opportunities for the AFA. Restriction on the use of some harmful feed additives and environmental concerns are also creating opportunities for the use of AFA. Most manufacturers of feed industry are engaged in improving production processes to develop the products at lower cost and increase the production capacity.
The global AFA market is categorized into two major categories:
· Nutritional feed additives
· Non-nutritional feed additives
Amino acids, minerals, and vitamins fall under the category of nutritional feed additives while hormones, antibiotics, enzymes, prebiotics and probiotics, immunomodulators, and feed acidifiers fall under the non-nutritional feed additives category. Nutritional feed additives provide essential nutrients in appropriate proportion. This helps in improving the muscle mass at a quicker rate and gain lean meat. Non-nutritional feed additives helps in improving immunity, strengthens the digestive system of animals and aids in reproduction and reducing phosphate content in livestock waste. North America is leading the amino acids market as there is huge demand for consumption of chicken and beef in the region. Asia and Europe are the largest consumers of chicken.
Leading manufacturers in the AFA market are focusing on expansion of business across regions and are setting up new plants for increasing the production capacity and product lines. Most companies are engaged in mergers and acquisitions to penetrate the untapped markets of Latin America and Asia Pacific.
Some of the major players in the global AFA market include Addcon Group GmBH, BASF SE, Chr. Hansen, Danisco A/S, Evonik Industries AG, Kemin Industries, Novozymes, and DSM among others.
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