Global Essential Oils in Animal Nutrition Market - 2022-2029

Market Overview

Essential Oils in Animal Nutrition Market were growing at a CAGR of 7.4% during the forecast period (2022-2029).

Essential oils are a mixture of volatile lipophilic secondary metabolites. Essential oils are extracted from plant material by boiling water and steam distillation, but other methods include solvent extraction, supercritical CO2 extraction, and expression extraction. Essential oils also known as ethereal oils used in food flavoring and feed production. Essential oils are used for their therapeutic properties to help with health issues such as insomnia, stress, and anxiety-related digestive disorders such as irritable bowel syndrome and constipation. Essential oil improves the quality characteristics of products and protects consumers against oxidation and bacterial spoilage effects. The rising adoption of plant-based feed additives drives the market growth of essential oils in animal nutrition in the forecast period.

Market Dynamics: Increasing demand for essential oils due to their functional properties

The essential oil has antimicrobial, anti-parasitic, antioxidant, immuno-stimulating, and anti-inflammatory properties, which are beneficial for animal nutrition. Essential oils are commonly used as aromatic and flavoring agents but also have antimicrobial properties. Thymol and Carvacrol have an antimicrobial activity related to the lipophilic nature of the active compounds, which disrupt bacterial cell membrane and mitochondria, inhibit the energy metabolism and membrane-bound electron flow that disintegrates the proton pump and drains out the ATP pool. The antimicrobial properties of the essential oil are very effective against gram-positive than gram-negative food spoiling microorganism as gram-negative microorganisms. Essential oils are used in the poultry industry as coccidiostat due to the prevailing resistance of anticoccidial drugs. Plant species like Dichroa febrifuga and Sophora flavescens are rich in alkaloids that act against coccidiosis. It has been found that essential oils from Carvacrol, thymol and oregano have effective anticoccidial action against different paracites. Essential oils are a possible alternative to control parasitic load in the animal. Essential oil act as natural antioxidants, providing health benefits against animal oxidative stress. The essential oil has Immuno-stimulating properties, which is good for the animal. Including garlic in chicken diets increases the antibody production against Salmonella enteritidis, Pasteurella multocida and Leptospira Pomona. The use of garlic in the diet of broiler increases antibody titer against new castle disease and infectious bursal disease virus. Also, the essential oil has anti-inflammatory properties. The anti-inflammatory effect of essential oils can be attributable to their ability to scavenge reactive oxygen species, which decreases oxidative damage in tissue and thereby reduces inflammation. Terpenoids and flavonoids are major substances of essential oil that possess anti-inflammatory activities.

However, the shortage of raw materials and price volatility in plant extracts are the major factors that hamper the market growth.

Market Segmentation: Thyme segment accounted for the highest share in global essential oils in animal nutrition market

Thyme segment dominates the market due to its stimulating effect on the animals digestive system which is responsible for improving animals productivity. Thyme is and evergreen herb which is used as medicinal purpose. Thyme essential oil has antibacterial, antimicrobial, and antiseptic properties which inhibit the growth of yeast and fungi and making animal healthy and disease free. It also stimulates animal's appetite which is crucial for the young animals. Thyme essential oil increase the protein in the animals which is essential to animal growth. Due to its aromatic properties feed intake of the animal is also increased. These health benefits of the consumption of thyme essential oil increase the segment growth in forecast period.

On the basis of application, ruminant segment has significant market share in the forecast period. The use of antibiotics is increased in ruminant due to the emerging antibiotic resistance and its transmission to human. Essential oils can be used as alternatives to antibiotics due to their antimicrobial properties and its consumption at the rate of 0.2 to 2g/kg of feed improves nitrogen and energy utilization in ruminants. Increase the application of essential oils in the ruminant feed drives segment growth.

Geographical Penetration: Europe is the dominating region during the forecast period

Increased demand for essential oils in the region's major countries, such as Spain, Germany, and France, drives the North America regional growth in the forecast period. Spain is the leading animal feed manufacturer. The industrial production of compound animal feed was 26,278,430 tons in 2019, which is a 3.8% increase from 2018 and made Spain the largest animal feed producer in Europe. Moreover, the increasing demand of consumers for natural ingredients feed for their animal's drives the market growth in the European region. Increase the trend of essential oils in the European region due to substitute antibiotic growth promoters, which have been completely banned as feed additives. An improvement in digestion due to essential oils feed consumption in ruminants resulted in reduced methanogenesis and nitrogen excretion. The antioxidative activity of essential oil compounds contributes to the stability and palatability of animal feed. These factors show positive market growth in the region.

Competitive Landscape:

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are Cargill Incorporated, ADM, Dupont, Evonik, BASF SE, DSM, Ajinomoto Co., Inc., Novozymes, Chr. Hansen Holding A/S, TEGASA and Kemin Industries Inc., among others. Some major key players launched a new product in the market to expand their product portfolio. For instance, in October 2021, Cargill Incorporated launched a new poultry feed made with essential oils to maximize egg production. These poultry feeds are named Nutrena, and Naturewise poultry feeds. These products offer FlockShield proprietary ingredient mix that helps maintain a healthy gut and strengthen the immune system. It contains prebiotics, probiotics and yeast culture to support digestion and nutrient absorption. Vitamin D3 in the product promotes more calcium absorption and strong eggshells. Some key players follow merger and acquisition strategies to expand their business. For instance, in September 2022, DSM acquired an animal nutrition and Technology Company in Brazil named prodap. Prodap is a well-known animal nutrition and technology company that offers consulting services and customized nutritional solutions to grow the efficiency and sustainability of animal farming. By utilizing Prodaps, these digital solutions, DSM strengthen and further develop its digital solutions to reach more markets globally.

COVID-19 Impact: Negative impact on the global essential oils in animal nutrition market

The Covid pandemic resulted in a decrease in the market growth of essential oils in animal nutrition in 2020 because of the disruption of national and international supply chains and lower consumer spending capacity in most parts of the world. Though the growth of essential oils in the animal nutrition market is expected to recover after the pandemic due to the vaccination, the impact of the COVID-19 pandemic on the essential oils in the animal nutrition market is expected to be most severe in developing countries because of low purchasing power. The movement restrictions and illnesses result in labor shortages and a reduced supply of raw materials. The disruption in supply routes has further led to delays in feed supply.

The global essential oils in animal nutrition market report would provide an access to approximately 56 market data tables, 49 figures and 170 pages.