June 13, 2024

Animal Nutrition Market is Estimated to Witness High Growth Owing to Advancements in Animal Feed Additives

Animal nutrition involves providing essential nutritional components to livestock and pets to ensure their overall health and productivity. Feed additives are extensively added to animal feed to enhance palatability, digestibility and nutritional value. Key products under animal nutrition include amino acids, vitamins, minerals, enzymes, antioxidants, carotenoids and prebiotics. These feed additives improve gut health, metabolism and immunity in animals. With rising global meat consumption and increased focus on food safety, there is growing demand for high quality animal feed and feed additives.

The Global Animal Nutrition Market is estimated to be valued at US$ 48100 Mn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.

Key Takeaways
Key players operating in the Animal Nutrition are Archer-Daniels-Midland Company, Adisseo France SAS, Alltech, BASF SE, Cargill Inc., Dow Chemical Company, DuPont, Evonik Industries AG, Tata Chemicals, Novozymes A/S, Royal DSM N.V., Kemin Industries, Inc., and Nutreco N.V. These players are focusing on expanding their production capacities and product portfolios through mergers & acquisitions.
The rise in demand for animal proteins and shifting consumer preference towards natural pet food products present significant growth opportunities in the market. Technological advancements in feed enzymes and single-cell protein production are further driving innovation in animal nutrition solutions.

Market Drivers
Growing consumption of meat and dairy products is a major factor driving the animal nutrition market. According to the Food and Agriculture Organization, global meat production is projected to increase by over 1.7% annually until 2029. Consumers are also increasingly demanding natural and high-quality feed ingredients to ensure animal welfare. Stringent regulations regarding antibiotic use in feed along with growing focus on sustainability are further boosting demand for feed additives. The need to improve feed conversion ratio and productivity is a key market driver.

Current challenges in Animal Nutrition Market
The animal nutrition market is facing few challenges currently which needs to be addressed properly. rising costs of raw materials is one of the major challenges as prices of cereals, oilcakes, and other feed ingredients are highly volatile depending on demand-supply situation in the market. Ensuring quality and safety of feed products is another challenge for manufacturers due to risk of contamination. Growing concerns about antibiotic use is limiting the growth as well. Regulatory pressures regarding sustainability and environmenal impacts of intensive livestock farming is putting pressure on key players.

SWOT Analysis
Strength: Formulation expertise and wide range of product portfolio gives advantage to top players. Growing meat consumption globally increases demand for quality animal feed.
Weakness: Dependency on agricultural commodities makes it vulnerable to price fluctuations. Small players find it difficult to compete against global corporations.
Opportunity: Shift towards natural and organic options provides new growth opportunities. Developing economies with rising meat consumption will drive volume growth in future.
Threats: Strict regulations can adversely impact innovatuon and margins. Climatic changes pose risk of supply disruptions.

Geographical regions of concentration (in terms of value)
North America and Europe account for around 50% of overall market revenue currently led by USA, Germany, France and UK. Asia Pacific is fastest growing region globally with China and India leading demand increase due to large livestock numbers and rising incomes. South America is another high potential region where Brazil dominates animal feed market.

Fastest growing geographical region
Asia Pacific region is forecast to witness highest CAGR during the forecast period from 2023 to 2030. Countries like China and India will be main drivers of growth with rising meat consumption levels and government support for commercial livestock farming. Focus on technology and product innovation will help key global players to tap into opportunities in emerging Asian markets. Transition from unorganized to organized feed sector will create long term prospects in the region.

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  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it