Market Research Report
India Feed Additives Market - Growth, Trends and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||392156|
|Published||Content info||120 Pages
Delivery time: 2-3 business days
|India Feed Additives Market - Growth, Trends and Forecast (2020 - 2025)|
|Published: June 1, 2020||Content info: 120 Pages||
The feed additives market in India is projected to register a CAGR of 6.1%, during the forecast period. According to FAO, India is a global leader in terms of the Ruminant population and milk production. This gives the market a lot of scopes to grow in the feed additives industry. Fuelled by the rise in population, favorable demographics, increased demand for animal produce, higher disposable incomes, growth in end-user industries, and untapped market potential, the future of the market looks promising. This growth is largely fuelled by the increasing meat consumption and rising concern over its quality and safety. Some major drivers of the Indian feed additives industry identified in this report are the rise in meat consumption, increasing awareness towards meat quality and safety, increasing mass production of meat, and recent livestock disease outbreaks.
Increased Milk Production
India is the largest milk-producing country, globally. However, milk yields per cow are low, with Indian farmers relying on raw crop residues, such as cotton cake or husks, for feeding their animal. To improve animal productivity, in order to meet the growing demand for milk, the demand for processed feed is likely to increase in the coming years, thereby, propelling the demand for feed additives in the country. Livestock farming and feeding practices, quality of the end-product, such as milk, and supply chain efficiencies, are the key factors driving the livestock industry in the country. The price of available raw materials is a major factor influencing the price of compound feed. The prices of important raw materials used in the feed industry in India, like maize, corn, and soya, rose in the early months of 2017, on account of back-to-back droughts in the last couple of years, adversely impacting the nation's feed industry. This, in turn, impacted the feed additive manufacturers in the Indian market, such as Cargill, CP Foods, and Godrej Agrovet.
Changing Demographics and Food Habits Among Consumers
The demand for meat-based food products is rising in Asia-Pacific regions, especially in India, with rapid economic growth in the regions. This increased demand for meat protein has triggered increased uptake of feed additives and feed enzymes. Apart from improving nutritional value, feed enzymes are gaining importance for their role in meat quality improvement, with concern over the environment. The increase in demand can be attributed to the continuous economic growth of countries in these regions that have led to change in demographics, food habits, and lifestyle; the impact of globalization and urbanization tend to change the mindset of people in the region, where consumers experiment more in terms of their food habits. The food habits and eating patterns have shifted from cereal and vegetable-based to more meat protein-based currently. Hence the increasing demand for animal protein among consumers tends to increase the need for quality compound feed which in turn tends to increase the demand for feed additives market.
The feed additives market is highly concentrated, with the top ten companies accounting for the majority of the market share. The leading players in the market studied are focused on business expansion. They are targeting countries in Asia-Pacific like India for business expansion, by either investing in new production units or acquiring established small players in the region. For instance, in April 2019, Kemin Industries expanded its production facility in Chennai, India, to increase the production of metal propionate trace minerals, and other feed additives.