Phytogenic Feed Additives Market 2023 – 2030 by Livestock (Poultry, Swine, Ruminants, and Aquatic Animals), Type (Essential Oils, Flavonoids, Saponins, and Oleoresins), Source, Form, Function, Packaging and Region - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : Agriculture & Animal Feed | Pages : 178 Pages | Published On : Jul 2023
The projected value of the Global Phytogenic Feed Additives Market in 2023 is estimated to be approximately $864 million, and it is expected to exceed $1,223 million by the end of 2030, with a compound annual growth rate (CAGR) of around 7.2% during the period from 2023 to 2030.
These figures indicate the rising demand for natural and sustainable feed additives in the animal feed industry, as well as the growing recognition of the advantages associated with using phytogenic additives in livestock nutrition. Phytogenic feed additives, derived from plant sources such as herbs & spices, fruits & vegetables, or flowers, serve as natural growth promoters or non-antibiotic growth promoters. They are incorporated into animal feed to enhance livestock performance and health. These additives cater to various livestock categories across the feed industry and are gaining significant popularity worldwide due to the increasing acceptance of natural additives by consumers.
Phytogenic Feed Additives Market Dynamics
Drivers: Rise in demand for natural additives after the ban on AGP to enhance livestock performance
Livestock diseases have significant impacts on production, profitability, economy, international trade, and human health. The increasing demand for quality meat products, driven by changing lifestyles, improved health awareness, and food safety concerns, has led to a growing need for natural and sustainable feed additives. In particular, phytogenic feed additives derived from plant sources such as herbs, spices, fruits, and flowers have gained popularity in livestock nutrition. These additives act as natural growth promoters and support the overall health and performance of livestock. The ban on antibiotics in the European Union in 2006 further fueled the demand for natural additives, resulting in the development of phytogenic feed additives that offer benefits such as nutrient sparing, improved final product quality, and ease of use in animal feed.
Restraints: Elevated prices of end products resulting in low profit margins
In the animal nutrition industry, achieving a balance between high profits and high margins is a challenging task. Over the past two decades, products with high margins have been sold in lower volumes. The profitability for livestock owners largely depends on the prices of final products like milk and beef in cattle farming. One emerging and specialized market is that of feed phytogenic additives. The demand for these additives has surged significantly following the ban on antibiotics as growth promoters for sustainable livestock rearing. Despite the potential, this market is still in its infancy, and awareness among consumers remains low, resulting in subdued demand. As is typical with low-demand products, their production costs are higher, affecting the overall production cycle. However, with time and increased demand, production is expected to rise, ultimately impacting the prices of the end products. This price fluctuation currently poses a short-term constraint on the phytogenic feed additives market, but it is anticipated to witness steady growth over the next 5–6 years.
Opportunities: Rise in demand for phytogenic feed additives in poultry, swine and pet feeds
Additives play a crucial role in improving the quality of feed for various types of livestock. The demand for poultry and swine meat has been rapidly increasing in the market, as they find application in the processed meat and food industry. However, these animals are susceptible to diseases, which can lead to fluctuations in their consumption. Additionally, the trend of keeping pets is gaining momentum, and pet owners are highly attentive to the quality, safety, and origin of ingredients used in their pets' food.
In light of these trends, livestock farmers are now turning to natural additives like phytogenic feed additives to enhance the nutritional value of feed and promote overall livestock development. Many companies are also innovating by creating feed products sourced from natural ingredients such as plants and microbes.
Furthermore, pet food containing phytogenic additives has proven to be safe and beneficial for the overall health of pets. With the growing pet population and increased concerns among pet owners about their pets' health and nutrition, feed additive players are increasingly motivated to introduce phytogenic feed additives in the pet food segment. One such company, Silvateam SPA from Italy, offers phytogenic feed additives specifically designed for pet food.
Challenges: Prevalence of adulteration and side effects of essential oils
Adulterated essential oils pose significant dangers, with numerous potential side effects that can cause lasting harm to livestock. The high cost of genuine essential oils has contributed to the widespread availability of adulterated and synthetic alternatives. This issue of adulteration has become a major challenge in the essential oil market. Essential oils are potent and volatile compounds, and their side effects often arise when consumers are unaware of the proper application procedures. Furthermore, the lack of transparency in patent protection laws and regulatory compliance in different countries has facilitated product duplication.
To take advantage of the growing demand for phytogenic feed additives, some regional or local manufacturers introduce low-quality products into the market. It's crucial to avoid exposing pets to essential oils, as it can result in skin rashes and nausea. While essential oils offer significant benefits for holistic development, it is vital to use them with wisdom and proper knowledge.
By type, oleoresins is projected to witness significant growth rate during the forecast period.
Regarding the type of phytogenic feed additives, oleoresins are experiencing the second-highest growth rate in the market. These additives are increasingly being consumed worldwide due to their desirable characteristics, which include adding color, flavor, and aroma to livestock feed, thereby enhancing its palatability. It is expected that the consumption and acceptance of oleoresins will continue to rise significantly during the forecasted period, leading to substantial market growth.
By livestock, swine segment accounts for the second-largest market share in the phytogenic feed additives market
In terms of livestock, swine holds the second-largest segment in the phytogenic feed additives market. The consumption of swine meat, or pork, has seen a significant increase in recent years, which has, in turn, fueled the demand and application of feed phytogenic products in swine. Swine farmers utilize phytogenic feed additives for various purposes, such as promoting increased feed intake, improving gut function, and boosting resistance to various diseases. These factors have contributed significantly to the market's growth in this segment.
By source, the fruits & vegetables segment account for significant market share in the phytogenic feed additives market
Regarding the source of phytogenic feed additives, fruits and vegetables account for the second-largest segment. Utilizing fruit and vegetable waste in these additives not only promotes sustainability but also addresses waste recycling and reduction issues. Berries, citrus fruits, and onions are some examples of fruits and vegetables used as sources to extract essential oils, flavonoids, and saponins. These oils are considered excellent phytogenic additives, driving their demand and fostering market growth in the industry.
By function, antimicrobial properties segment accounts for the second-largest market share in the phytogenic feed additives market
Regarding their function, antimicrobial properties hold the second-largest segment in the phytogenic feed additives market. These additives are extensively utilized in feed products for their antiviral and antimicrobial capabilities. Their primary role is to regulate potential pathogens and modulate intestinal microflora. Given their substantial antimicrobial and antifungal properties, they are increasingly recognized as a viable substitute for antibiotic growth promoters. The favorable attributes of phytogenic feed additives are expected to drive their market growth and demand during the forecasted period.
Europe has emerged as the fastest-growing region in the phytogenic feed additives market. The region's growth can be attributed to the growing awareness of livestock health and wellness, along with the ban on antibiotic growth promoters, which has further boosted the demand for phytogenic feed additives.
Several factors are likely to drive significant growth in the European market. The increased production of livestock, including cattle, poultry, and swine, plays a key role. Additionally, the easy availability of raw materials and the presence of major feed manufacturing companies in the region are expected to contribute significantly to the expansion of phytogenic feed additives in Europe during the forecasted period.
Key Market Players:
Key players in this market include Cargill (US), ADM (US), DuPont (US), DSM N.V. (Netherlands), Land O’ Lakes (US), Adisseo (France), Nutreco (Netherlands), Kemin Industries (US), Natural Remedies (India), and Nor Feed (France).
Phytogenic Feed Additives Market Segmentation
This research report categorizes the phytogenic feed additives market based on type, livestock, source, form, function, packaging (qualitative), and region
- Essential oils
- Other types (tannins, pungent substances, bitter substances, and mucilages)
- Other poultry (ducks and game birds)
- Dairy cattle
- Beef cattle
- Other ruminants (sheep and goats)
- Aquatic animals
- Other aquatic animals (miscellaneous fish species and diadromous fish)
- Other livestock (equine and companion animals)
- Herbs & spices
- Fruits & vegetables
- Performance enhancers
- Antimicrobial properties
- Palatability enhancers
- Other functions (anti-inflammatory properties and better feed conversion rate (FCR))
By packaging (Qualitative)
- Other packaging (poly bags, foil seals and chipboard packaging)
- North America
- Asia Pacific
- South America
- Middle East
- In June 2022, Cargill (US) made an announcement about acquiring Delacon (Austria) following a successful five-year partnership. This acquisition aims to leverage Delacon's expertise in feed additives on a global scale. By combining Cargill's animal health technology with Delacon's phytogenic feed additives, the company aims to enhance animal productivity and promote sustainable production practices.
- In January 2021, Cargill (US) expanded its operations by establishing a new facility in Ohio, US. The focus of this facility is to produce a variety of animal feed products, including feed premix and additives. This expansion enables Cargill to increase its output of high-quality livestock products and better meet the growing market demand.
- In October 2020, DSM N.V. (Netherlands) strengthened its product portfolio, expertise, and nutrition solutions for farm productivity and sustainability by acquiring Biomin Holding GMBH (Austria). This strategic move bolsters DSM's animal product portfolio and enables the company to broaden its business segment with phytogenic feed additives products.
- In August 2020, DuPont (US) announced the inauguration of a new animal nutrition manufacturing facility in Wuxi, China. This state-of-the-art production plant is dedicated to providing tailored solutions for the local animal production industry, catering to their specific needs and requirements.
Table and Figures
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