global-animal-feed-enzymes-market-industry
Published

August 2017

Feed Enzymes Market - Growth, Trends and Forecasts (2017 - 2022)

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Feed Enzymes Market

Feed enzyme is one of the crucial parts of commercial animal feeds. The market for feed enzymes is expected to reach USD 1578 million by 2022, registering a CAGR of over 7.4% during 2017-2022 (the forecast period). Enzymes are natural proteins secreted by animals as a part of the feed digestion process, i.e. the digestion of carbohydrates, lipids, proteins, and mineral complexes. 

GROWING USAGE OF FEED ENZYMES = BETTER FEED CONVERSION RATE

Feed enzymes are vital for the better feed conversion in animals. Further, they increase productivity and quality of feed and represent an active contribution to animal welfare. A decade ago, the acceptance of feed enzymes was limited to phytase applications for the reduced phosphorus excretion. At present, the research on its usage has observed scope beyond the feed enzyme technology. As the global demand for high-quality protein is growing, coupled with the advancements in management and technology, the producers are required to maximize the time efficiently. Moreover, they are searching ways for sustainable optimizing animal production to meet the increased protein requirements. Further, feed enzymes utilization offers a pragmatic solution to the same. For instance, poultry and swine diets contain high amounts of corn and soybean meal as their base ingredients. This corn-soybean meal diet is only 85% digestible where almost 15% is unavailable to the animal. The indigestible portion is higher in young animals as they have less endogenous enzymes production within their digestive tracts. Furthermore, these expensive ingredients are not being utilized to their full and can cause detrimental effects like gut irritation and diarrhea. Besides, nutritionists in North America are looking for alternative ingredients to the conventional feed, owing to the commodity price fluctuations that are posing challenges like low digestibility and contain an increased amount of anti-nutritional factors. These challenges, therefore, are creating suboptimal conditions that affect the nutrient absorption. The addition of feed enzymes helps to combat these indigestible ingredients, thus, offering more productivity with higher feed conversion rate.

  • The DSM-Novozymes Feed Enzymes alliance

DSM Nutritional Products and Novozymes restated their commitment to the feed market by renewing the strategic alliance agreement. The alliance has been a driving force in innovation and expansion of the global markets for animal feed enzymes. The aim of this alliance is a better animal performance with less feed and improved raw material utilization.

  • The Use of Added Feed Enzymes in Promoting Gut Health in Swine and Poultry

The value of added feed enzymes (FE) in promoting growth and efficiency of nutrient utilization is well recognized in single-stomached animal production. Manufacturers are completely focusing on the benefits of feed enzymes in the increasing productivity of animals, particularly swine and poultry including the cost reduction.

FEED ENZYME TECHNOLOGY AIMS TO REDUCE FEED COSTS

With the fluctuating prices of feed ingredients, the livestock farmers and feed manufacturers can practically use feed enzyme technology, matching inclusion rates with cereal grain feeding values. It is proved that by increasing the accurate reformulated feed with enzymes, feed costs can be reduced by around USD 4.2 per ton, at current prices. Moreover, Danisco Animal Nutrition represents one new tool that serves the same purpose. The differences in varieties of wheat arise from soil types, climatic growing conditions and agronomic inputs. Variations in wheat feeding value, results into variable animal performance, costing an excess of 1.50 per animal in reduced net margin to the producer. Research from the UK, Denmark, and Australia illustrates the problem of variability in feed ingredients on animal performance. For instance, in the UK, a trial was conducted with six varieties of wheat, where they were grown on a similar plot of land and were incorporated into identical pig diets. There was a variation of 18% in pig daily gain between the best and the worst wheat samples. Moreover, with differences in feed conversion ratios ranging from 1.28 to 1.47, pig performance was even more variable in similar trials that were conducted in Australia and Denmark, with variations in growth rates of about 30 %. These excess costs trend can be avoided by the usage of feed enzymes, thereby, boosting the market.

FEED ENZYMES IMPROVING POULTRY PRODUCERS’ PROFITABILITY

Nigeria has the potential to be a poultry producer of global significance, but chicken meat production is being held back by a failure to adopt the feed practices of more developed markets. Recently, the country hit the feed media headlines as the industry’s big players, notably Nutreco and Cargill investing heavily. Though poultry was considered to be a luxury in the past, there is a growing local demand for the meat now, which is anticipated to increase by more than 33%, during 2017-2022 (the forecast period). The country is the largest producer of egg in Africa. However, the local supply outstrips demand resulting in downward pressure on pricing and export. Addressing the infrastructure issues and safety concerns are expected to improve the exports of poultry meat and eggs. However, with the feed costs accounting for approximately 80% of total production costs, the high cost of common feed grains, such as soybean meal and maize, is holding back the growth. One of the primary strategies that can be employed by Nigerian poultry producers to improve production efficiency and reduce the costs is to embrace the advances in feed enzyme biotechnology. More than 2,500 independent tests have been conducted in broilers to prove that feed enzymes like phytase, xylanase, amylase and protease can improve profitability. These optimized enzyme combinations can minimize raw material variability and viscosity from more complex diets containing wheat, sorghum, and lower quality protein sources, thus, significantly improving digestibility and performance.  As Nigeria strives to improve the performance and uniformity of its flocks and their liveability, the use of multi-enzymes is expected to improve the cost and quality of locally produced Nigerian chicken. Further, these improvement will reduce the need for imported products and ensure profits to the poultry feed enzyme producers.

HUVEPHARMA LINKS UP WITH INTREXON ON FEED ENZYMES

Huvepharma’s research tie-up with Intrexon will result in cheaper and more effective enzymes targeted at animal nutrition. It has teamed up with the US Company to leverage its fungal production platform to produce a targeted feed enzyme. The global feed additives market is expected to exceed USD 37 billion by 2022, due to the increased demand for animal protein. To optimize the nutritional value and the digestibility of animal feed, efficient industrial production of enzymes and other protein-based additives is needed. Fungal systems are ideal production platforms, owing to their high protein yield and substantial secretion capacity. The R&D tie-up has reached the stability and performance testing stage on one particular feed enzyme. Similarly, leading companies are focused on acquiring small scale enzyme manufacturing units for expansion of their feed enzymes business in local as well as foreign market. 

Some of the Major Market Players Include:

  • Danisco A/S
  • Royal DSM N.V.
  • Novozymes
  • BASF SE
  • ENMEX S.A. de C.V.
  • Advanced Enzymes
  • Adisseo
  • Elanco
  • BioResource International, Inc.
  • AB Vista

NOTABLE MARKET DEVELOPMENTS

  • NutriAd opens new plant in China
  • A new factory, with a capacity of 10,000 Mt /year, has been started and is operated under the FFI (Feed Flavor International) brand. Building on strong experience in swine nutrition, this new plant will also be utilized for ruminant and aquaculture applications, including multi-enzymes as growth promoters.

Our Report on Feed Enzymes Market Covers:

  • Global Feed Enzymes trends & dynamics
  • Latest News & developments
  • Geographical insights
  • Porter’s five force analysis
  • Investment scope
  • Deep-dive insights
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