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The South America premix market is segmented by type of ingredient into antibiotics, vitamins, antioxidants, amino acids, minerals, and others. Based on the animal type market is segmented into ruminants, poultry, swine, aquaculture, and others and based on geography into Brazil, Argentina, and the rest of South America.
2016 - 2026
The South American feed premix market is projected to register a CAGR of 4.2% during the forecast period. The increasing demand for high-value animal protein and declining feed conversion rates are driving the animal feed premix market. Additionally, increasing the production of compound feed and feed additives is driving the market further as feed premixes are the substance used to enhance the nutritional content of the feed. In the studied market, Brazil dominates the market as it accounts for higher feed production driven by increasing meat consumption and production. As reported by the Brazilian Beef Exporters Association (ABIEC) in 2018, the beef cattle GDP accounted for USD 119.99 billion, marking an 8.3% up on the USD 110.78 billion in 2017. The South American feed premix market is highly concentrated with the dominance of a few international players accounting for the major share in the market. Some of the major players operating in the market are Cargill Incorporated, Nutreco, CCPA group, ICC, and Kemin Industries, Inc.
A premix is a value-added solution to livestock feed consisting of a mixture of requisite vitamins, minerals, diluents, and other nutrients. The increasing demand for high-value animal protein and declining feed conversion rates are driving the South American animal feed premix market. The scope of the premix market includes segmentation based on the type of ingredients such as antibiotics, vitamins, antioxidants, amino acids, minerals, and others and also based on animals into ruminants, poultry, swine, aquaculture, and others. Additionally, the report presents a detailed analysis of the markets based on geography.
|Other Ingredient Types|
|Other Animal Types|
|Rest of South America|
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The demand for high-quality compound feed from the livestock industry due to increased industrial production of meat and dairy products has triggered an increase in the consumption of the compound feed and feed additives. According to the Food and Agriculture Organization (FAO), in 2017, the cattle population in the region was 358.17 million that increased to 358.61 million in 2018. This growing population is creating demand for feed. According to the Alltech feed survey, in 2019 Argentina produced compound feed amounting to 21 million metric tons of which 5.5 million metric tons was broiler feed and 5.1 million metric tons was beef feed. Furthermore in Brazil, compound feed production amounted to 70 million metric tons of which 32.1 million metric tons was a broiler feed. Large-scale producers and meat manufacturers use additive premixes to ensure a steady supply of nutrients to the animals and to enhance production and performance. Thus, the rise in demand for feed and feed additives is driving the market for feed premixes.
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The need for increasing meat production capacity to cater to the local demand and export market has given a boost to the feed industry in the country. The feed premix market is expected to grow with increased demand for meat, as Brazil is one of the major exporters of meat. According to ITC Trade, in 2016 Brazil exported bovine meat that accounted for USD 3,587.6 million that has increased significantly to reach USD 5,610.76 million in 2019. China, Hongkong, and Egypt are the major export destinations for Brazil with a share of 47.7%, 13.1%, and 8.2% in 2019. Thus with the rising opportunity in the export market, the production in the country is increasing which in turn is driving the market for feed premix during the study period. This has led to leading players to invest more in the country. For instance, in 2016 June MiXscience formed a strategic alliance with Brazilian feed additive and premix player, Salus Group. The alliance will help the company to improve the feed additive portfolio and premix R&Ds.
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The market for feed premix is concentrated with the dominance of a few international players accounting for a major share in the global market. Some of the major players are Cargill Incorporated, Archer Daniels Midland Company, CCPA GROUP, Nutreco, and Kemin Industries, Inc. For Instance, in 2018 Neovia, acquired Biomix a leading premix manufacturer in Colombia. This allows the company to strengthen its positions on the premix market with a portfolio brand toxibond and biocalcio and gain a significant market position in South America.
1.1 Study Assumptions & Market definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Force Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.4 Amino Acids
5.1.6 Other Ingredient Types
5.2 Animal Type
5.2.5 Other Animal Types
5.3.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Competitor Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Cargill, Inc.
6.3.3 CCPA GROUP
6.3.5 Kemin Industries, Inc.
6.3.6 Archer Daniels Midland Company (ADM)
6.3.7 BASF SE
6.3.9 Invivo Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19