Eubiotics Market - Forecasts from 2022 to 2027

The eubiotics market is expected to grow at a compound annual growth rate of 9.53% over the forecast period to reach a market size of US$11.278 billion in 2027 from US$5.964 billion in 2020.

The aforesaid projection is in part substantiated by awareness of the benefits like enhancing the immune system against bacterial or viral infections along with improving the digestive efficacy, paving the growth of the eubiotics market. For example, the UK-based international producer and distributor of natural animal feed additives for animal health, nutrition, and biosecurity, Anpario PLC, reportedly experienced a rise in sales by 13% to GBP16.2 million (US$20.6 million) and an improvement o f24% in adjusted EBITDA to GBP3.4 million in the six months to June 30. The sales growth was experienced among its phytogenics and acid-based eubiotics products, especially in the regions of the Americas, Asia, and Europe. Further growing strategic investments like acquisitions, as exemplified by the recent acquisition of Erber Group's Biomin and Romer Labs by Royal DSM, a global science-based company in nutrition, health, and sustainable living, in October 2020 for an enterprise value of €980 million is also poised to facilitate the growth of the market. In the context of the market, it is pertinent to note that the acquisition of Biomin, which is Erber Group's speciality animal nutrition and health business and specializes in the management of gut health performance and mycotoxin risk, reportedly augments DSM's expertise and the global recognition as a leading provider of solutions pertaining to animal health and nutrition solutions for farm productivity and sustainability, with an emphasis on feed consumption efficiency, emissions reduction and better use of water and land. Earlier in November 2018, it was reported that Crina® Digest's relatively new poultry-targeted essential oils product was launched by DSM as a part of its commitment to support the industry's efforts to reduce the use of antibiotics and foster proper digestive function that supports animal resilience and welfare. This product reportedly constitutes three essential compounds which are thymol, piperine, and eugenol, which ensures a controlled release of bioactive along the gastrointestinal tract, significantly enhancing poultry digestive function. The promising microencapsulation market, which Knowledge Sourcing Intelligence has reportedly forecasted to grow at a CAGR of 11.94% and reach a market size of US$16.594 billion in 2025 from an estimated value of US$8.434 billion in 2019, is also expected to drive the eubiotics markets. The controlled release of bioactive is facilitated by microencapsulation technologies. Furthermore, increasing investments in research and development to cater to specific solutions are also expected to throttle the market's growth. Moreover, regulatory measures like that of the US Food & Drug Administration (FDA) initiative to reduce antimicrobial resistance with several programs, including the Veterinary Feed Directive (VFD), are also partly responsible for facilitating the demand for essential oils, organic acids, prebiotics, and probiotics as a successful replacement for antibiotics growth promoter (AGP), among others which in turn is poised to drive the growth of the eubiotics market.

The expanding global retail sector, which is driven by increased consumption of processed food, among others, is expected to drive the growth of the market. This is partly due to the increasing availability of disposable income and the growing rate of urbanization. In addition, growing consumer awareness further leads to a surge in meat consumption that has been produced devoid of any antibiotics. Besides, the market prospect is estimated to be promising considering the prospects of livestock outlook as per FAO. To this end, it is pertinent to note that global poultry and ovine meat production are estimated to grow. World ovine meat output is forecast to expand by nearly 1 % in 2020, to 16 million tons. The greater extent of the increase is expected to be concentrated in China with some modest growth which has been forecasted for Africa. In China, production is forecasted to register a 2.3 percent increase, capitalizing on the previous year's expansion of sheep and goat flocks, because high prices attracted more herders into the sector. In 2020 it was estimated that global poultry meat production would be 137 million tons, which is reportedly an increase of 2.4 % compared to that registered in 2019. As far as China is concerned, increases are expected due to the poultry meat output that is projected to expand gradually, which would be buttressed by the comparatively firm demand amid continuing high pig meat prices.

Moreover, world milk production is forecasted to grow by 0.8 % to 859 million tons in 2020, stemming from production expansions in Asia and North America, with moderate increases in almost every continent. Albeit, the downward draft occurred due to COVID-19 along with logistical hindrances and a simultaneous decline in sales of food and beverage. Because of shuttering of food and beverage establishment, the demand for ready-to-eat meat products and dairy products have been catered to increased eCommerce purchase which facilitated robust sales in the food and beverage industry during the lockdown measures. Besides, after the normalization, the demand for meat and dairy is expected to rise, emphasizing animal immunity, which is anticipated to enter the consideration mix further. Additionally, the modernization of farms in China and the engagements of village cooperatives in India are fueling milk output growth in Asia. Conversely, in the Russian Federation, there has been a reported mill product increase which is primarily facilitated by a modern dairy farm. Thus, the aforesaid and recent healthy consumption trends augment the need to ensure feed safety, guaranteeing food security. Hence to effectuate the same degree of quality assurance that is adhered to in the case of food production is expected to fuel the anticipated growth of the market.

Key developments:

• Chr. Hansen Holding AS introduced 'Bovacillus,' a novel probiotic for dairy and beef cattle, in 2020. Bacillus spores resist extreme circumstances throughout feed manufacturing, preparation, and within the gastrointestinal tract, making it a unique sort of probiotic. The company's position in the animal health nutrition sector will be strengthened by the new product.
• Novus International teamed with Agrivida, a biotechnology business based in the United States, for R&D partnerships in 2021. The company will investigate new product development opportunities as a result of this partnership, which might help drive the company's eubiotics business.
• Midori USA Inc., a start-up firm primarily specialised in creating tailored eubiotics that improve the environmental impact and animal welfare, was bought by Koninklijke DSM NV (Royal DSM) in July 2021.

COVID-19 Impact

The eubiotics sector was moderately harmed by the COVID-19 epidemic. The impact on the sector was uneven, with corporations suffering financial losses as a result of societal limitations in important regions. The pandemic, on the other hand, raised awareness about the negative effects of antibiotics on animals, favourably impacting the market growth. In the animal feed sector, eubiotics are emerging as antibiotic alternatives or antimicrobial byproducts, with the goal of boosting livestock immune and intestinal health while also providing nourishment.

Segmentation

• By Type

Organic acids

• Acetic Acid
• Formic Acid
• Fumaric Acid
• Lactic Acid

Prebiotics

• Fructo-oligosaccharides
• Galacto-oligosaccharides
• Inulin

Probiotics

• Bifidobacteria
• Lactobacilli
• Others

Essential oils

Others

• By Function

Gut Health

Immunity

Yield

Others

• By End-Use

Aquatic Feed

Cattle Feed

Poultry Feed

Swine Feed

Others

• By Geography

North America

• United States
• Canada
• Mexico

South America

• Brazil
• Argentina
• Others

Europe

• Germany
• United Kingdom
• France
• Italy
• Russia
• Others

Middle East and Africa

• Saudi Arabia
• South Africa
• Others

Asia Pacific

• Australia
• China
• India
• Indonesia
• Others