The increasing cost of feed inputs and forage is boosting the entrance of feed premix into the market. Premix is an important component in animal nutrition, as it improves the compound feed quality and nutrition, particularly in weaning animals. This improved nutritional quality enhances the animal performance and health; subsequently, improving the yield and quality of animal-derived products.
The global feed premix market revenue is expected to register a CAGR of 5.27%, during 2017-2022 (the forecast period) and account for USD 14.52 billion by 2022. The Asia-Pacific is driving the market sales and expected to hold 33.56% of the global market revenue by 2022. The South American market is expected to register a CAGR of 5.86%, owing to the growing demand for meat products and increasing domestic meat production. With rapid economic growth, the demand for meat protein is increasing, especially in China, India, Malaysia, and Thailand. North American market is mature and expected to occupy a share of 22.82% by 2022, owing to the increasing per-capita meat consumption and on-farm mixing.
GROWING DEMAND FROM CATTLE AND SWINE INDUSTRIES
In 2017, the world cattle inventory values at approximately 998.3 million head. India has the largest cattle inventory in the world, followed by Brazil and China. India has 303 million cattle as per records of 2017, followed by Brazil at 226 million, and China with 100 million, making up 30.3%, 22.6%, and 10%, respectively. The world pig population in 2013 was 977,274,246. China has the largest pig inventory in the world with 482,398,000 animals, making up to roughly 50% of the world's population. The United States ranks second with 64.7 million pigs, and Brazil with 36.7 million pigs. The level of income and consumption of animal protein are co-related. Therefore, the increasing level of income in developing countries and urbanization have led to the global surge in meat production. Thus, accelerating the demand for feed premix, across the world, compared to the past five decades.
World Cattle Population, By Country (in million)
INCREASED AWARENESS REGARDING SAFETY OF MEAT AND MILK PRODUCTS
Food safety is one of the important issues for governments across the world, especially in North America and Europe. The use of feed premix, particularly, the ones containing antioxidants, antibiotics, enzymes, and, vitamins provide balanced nutrition to animals and protect them against the disease-causing environmental influences. Certain pathogenic and parasitic contaminations in meat products (salmonella, listeria and E. coli), and various disease outbreaks in livestock animals (swine flu and foot and mouth disease), over the past decade, have raised concerns over meat quality and safety. For example, in January 2011, a meat quality issue emerged in Germany, where cancer-causing dioxin was found in meat products, thus, prompting the countries to take safety steps towards tightening food safety. Countries, such as South Korea and Slovakia, banned pork imports from Germany, due to the health risks involved. These instances accelerated the usage of supplements, like feed premix, as a safe alternative to induce the increased protein in animal breeds.
ALTERNATIVES TO ANTIBIOTICS IN EU AND US
With the ban of certain antibiotics that were used as growth promoters in the EU and the United States, the open new business opportunities are expected to boost the animal feed premix market. Moreover, this ban is expected to increase the uptake of feed premixes containing enzymes, feed acidifiers, and other direct fed microbial, to improve meat quality and production. Moreover, an increasing number of health-conscious consumers are demanding environmentally safe and chemical-residue-free meat, meat products, milk & milk products. The market for organic feed premix is expected to grow with the stringent ban and continuous expansion of organic meat market in the western regions.
The ban has led livestock producers to identify new ways, to stimulate production among animals, and deliver the same benefits provided by antibiotic growth promoters. However, there is no direct replacement available for antibiotic growth promoters and, thus, offering opportunities for research to find, and develop effective alternative products. Several different feed premixes such as enzymes, amino acids, probiotics, prebiotics, organic acids, and proprietary blends are emerging as potential alternatives.
Feed Premix Market Strategies
NEOVIA ACQUIRES APLIGÉN
Neovia acquired Apligén, a Mexican company that specializes in the production of premix, specialty feed, and additives. This acquisition is expected to complete Neovia’s premix business, with technological and high-quality products & services under the Wisium Brand, to meet the Mexican nutrition market demand for technology, technical expertise, and quality. Apligén is a family-run company known for its quality products (premix, specialty feed, and additives) & services. The company has an annual turnover of around EUR 30 million and dominates the ruminants and swine segments. The animal feed additives industry is highly concentrated with the top ten companies, accounting for more than 50% of the market share. These companies are targeting countries in Asia-pacific region for business expansion, either by investing in new production unit or acquiring established small players in the region. Investment in the R&D activities, to introduce new efficient products, is another strategy adopted by manufacturers to stay ahead in the competition, with the matured market of North America and Europe. The leading players in the market are focused on the expansion of their respective businesses.
LIST OF MAJOR MARKET PLAYERS INCLUDES
NOTABLE MARKET DEVELOPMENTS
Nature of questions answered in the report :