Global Phytogenic Feed Additives Market - 2023-2030

Overview:

Global Phytogenic Feed Additives Market reached US$ 869.2 million in 2022 and is expected to reach US$ 1585.1 million by 2030, growing with a CAGR of 7.8% during the forecast period 2023-2030.

Rising awareness about animal health and feed quality, the emergence of new technologies such as feed phytogenics encapsulation, consumer demand for more natural products, and increased affordability of phytogenics due to increased availability and commoditization of various herbs used in photogenic products are some of the key factors expected to drive demand for phytogenics feed additives during the forecast period.

Increasing demand for phytogenic feed additives for animal nutrition, particularly in pets and aquatic species, is creating opportunities for phytogenic feed additives. For instance, in July 2022, global agricultural major Cargill announced a contractual deal to buy Delacon, the world's foremost specialist in plant-based phytogenic additives.

Rapid economic growth and rising disposable income have raised a demand for high-quality dairy and poultry products such as eggs, milk, meat, and more, which is likely to drive the global market for phytogenic feed additives. According to the OECD/FAO 2021 study, worldwide consumption of beef proteins is expected to increase by 14% by 2030 compared to the base period average of 2018-2020, owing mostly to income and population growth.

Dynamics:

Rising Demand for Phytogenic Feed Additives as Alternatives to Antibiotic Growth in Poultry

Plant secondary metabolites, phytochemicals, probiotics, or botanicals are plant-derived compounds that contain a wide range of substances such as herbs, spices, and essential oils that have been found to have growth-promoting and therapeutic characteristics. The use of phytogenics as an alternative reduces the likelihood of antibiotic-resistant infections in poultry.

Concerns about antibiotic resistance prompt it to investigate other antibiotics with growth-promoting properties. As a feed ingredient, this antibiotic is not predicted to cause bacterial resistance and has no possible negative effects on poultry. In addition, the use of feed additives to increase the efficiency of growth and egg production, prevent illness, and improve feed utilization is a technique to improve the poultry industry's efficiency.

Furthermore, due to rising meat demand, global poultry meat production increased from 9 to 133 million tonnes between 1961 and 2020, while egg production increased from 15 to 93 million tonnes, according to FAO. In 2020, poultry meat accounted for about 40% of world meat output. In developing countries, nearly 80% of rural families keep poultry. Photogenic feed additives market growth would be driven by the poultry industry during the projected period.

Stringent Regulations on Antibiotic Feed Additives

Farmers and the economy as a whole view the use of antibiotics in poultry and animal production as beneficial since it has typically increased poultry performance economically and efficiently. However, the potential spread of antibiotic-resistant strains of pathogenic and non-pathogenic organisms into the environment, followed by transmission to people via the food chain, might have major consequences for public health. In such a way that, on January 28, 2022, the European Union's new legislation prohibiting the routine feeding of antibiotics to farmed animals goes into effect.

Furthermore, the use of antibiotics to increase animal growth is prohibited in the United States. Also, the use of the antibiotic Colistin in animal feed, poultry, and aqua farms is prohibited by the Indian government. In India, for instance, the West Bengal Fisheries Department banned 20 antibiotics and other active compounds routinely used in shrimp aquaculture in August 2022. As a result of these prohibitions, new creative phytogenic feed additives will be required as an alternative to antibiotics.

Expensive Price of Raw Materials

The key raw materials utilized in the production of phytogenic feed additives are extracts from various spices and essential oils such as herbs and spices, which all serve as sources of bioactive substances like phenols and flavonoids. However, the high cost of essential oil limits the expansion of the phytogenic feed additives market. Aromaaz International, for instance, sells aniseed spice oil for $8.50 per 100 mL.

Furthermore, the process of phytogenic feed additive products is expensive owing to the participation of blending those various additives into combination products, which increases the value of the final products.

Segment Analysis:

The global phytogenic feed additives market is segmented based on type, livestock, source, form, distribution channel, packaging, function and region.

Herbs & Spices Demand in Phytogenic Feed Additives Market

The herbs and spices category accounts for a significant share of the globally phytogenic feed additives market. Herbs and spices are used to make essential oils. Herbs and spices have lately garnered a lot of attention in feed manufacturing due to their medicinal effects, culinary appeal, and the limitation on particular antibiotics as growth promoters. They are also becoming increasingly important since long-term ingestion does not harm animals. Herbs and spices assist animals in maintaining a healthy digestive tract when utilized as phytogenic feed additives in animal nutrition.

Furthermore, research and development activities for the spare derive the best performance of herbal poultry nutrition from a wide range of herbs and spices like thyme, oregano, black cumin, coriander, garlic, ginger, and black cumin. As a consequence, employing these spices and herbs will result in a new novel option for phytogenic feed additives.

Geographical Penetration:

Increasing Demand For Natural and Organic Products in Europe

Europe has the fastest-growing market for photogenic feed additives. The region's market is expanding due to a variety of causes, including an increase in demand for natural and organic products. Organic food and farming have grown year after year in the EU over the previous three decades and continue to do so. The organic market in the EU is quite dynamic, with growth rates varied by country. Policies can have a favorable influence on both production and consumption growth.

Further, The total area of organic farms in the EU increased to 14.9 million hectares by 2020. According to IFOAM Organics Europe, the number of organic farmers in the EU rose by 1.6% year on year to 349,499 in 2019. According to FAO, the European market for organic food products will grow by 12% by 2021, reaching US$ 58.6 billion.

Germany has the largest share of the European photogenic market due to the large number of companies operating in the country. Furthermore, the EU prohibits the routine use of antibiotics in farm animals; as a result, phytogenic feed additives will fuel market growth throughout the projection period.

Competitive Landscape

The major global players include: Cargill, Incorporated., ADM, Koninklijke DSM N.V., Delacon Biotech Nik Ges.m.b.H., Adisseo, Trouw Nutrition, Kemin Industries, Inc., Natural Remedies, Orffa International Holding B.V. and Danisco Animal Nutrition & Health (IFF)

COVID-19 Impact Analysis:

The supply chain of animal feed additive raw materials has been harmed as a result of animal movement limitations caused by pandemic-caused lockdowns. Regular production processes, supply, and consumption patterns were drastically disturbed.

On the other hand, the post-pandemic market will see a surge in organic product demand. The innovative nature of organic food and farming, expanding regulatory backing, and European residents' increasing desire for high-quality, sustainable food production all played a part in 2020 and 2021. This is reflected in the rising per capita consumption of organic goods, which now stands at 102 EUR on average.

According to the Organic Trade Association, the COVID-19 pandemic has continued to be a significant driver of organic sales, notably in the United States and the European Union. France and Germany are the two largest organic marketplaces in Europe, accounting for 60% of the European market. Organic food sales in Europe grew by 4 billion in 2021, reaching $58.5 billion.

Russia-Ukraine War Impact Analysis

The ongoing conflict can create economic instability in the region. Uncertainty and disruptions in trade and commerce can impact consumer confidence and purchasing power. As a result, individuals may prioritize essential needs over non-essential purchases like phytogenic feed additives products, leading to a potential decline in demand.

Furthermore, Russian phytogenic feed additive (PFA) development has been stalled for several decades since the dissolution of the Soviet Union; however, due to rising antibiotic resistance, the country is now prioritizing phytogenic research and investment; however, the conflict war creates a delay in the production of phytogenic feed additive in Russia.

By Type

• Essential Oils
• Flavonoids
• Saponins
• Oleoresins
• Tannins
• Others

By Livestock

• Poultry
• Swine
• Ruminants
• Aquatic Animals
• Others

By Source

• Herbs & Spices
• Fruits & Vegetables
• Flowers

By Form

• Dry
• Liquid

By Distribution Channel

• E-Commerce
• Specialty Stores
• Hypermarket/Supermarket
• Others

By Packaging

• Flexible
• Rigid
• Other

By Function

• Performance Enhancers
• Antimicrobial Properties
• Palatability Enhancers
• Digestion Enhancers
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On June 23, 2022, Cargill signed a binding agreement to acquire Delacon, a globally leading expert in plant-based phytogenic additives. The acquisition combines Cargill's global network and deep expertise in animal nutrition technologies with Delacon's pioneering knowledge and market experience in phytogenic feed additives.
• On January 17, 2020, Kemin Industries a global ingredient manufacturer launched VANNIX C4, a novel phytogenic feed additive that joins the comprehensive lineup of poultry gut health solutions from Kemin Animal Nutrition and Health North America.
• On November 1, 2022, RAVIOZA BIOTECH launched PHYTOGOLD, a next-generation Phytogenic, and FORTIBAC in Indian Market.

Why Purchase the Report?

• To visualize the global phytogenic feed additives market segmentation based on type, livestock, source, form, distribution channel, packaging, function and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of phytogenic feed additives market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global phytogenic feed additives market report would provide approximately 93 tables, 104 figures and 225 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies