Feed Modifiers Market

Feed Modifiers Market Sizes By Type (Natural and Synthetic), By Form (Dry and Liquid), By Livestock (Ruminants, Pets, Swine, Aquaculture and Others), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2024 to 2033

Base Year: 2023 Historical Data: 2020-22
  • Report ID: TBI-14570
  • Published Date: Oct, 2024
  • Pages: 239
  • Category: Consumer Goods
  • Format: PDF
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The global feed modifiers market was valued at USD 3.4 Billion in 2023 and is anticipated to grow at a CAGR of 5.2% from 2024 to 2033. Feed modifiers, known as feed additives or animal feed supplements, are ingredients added to animal diets to enhance nutrition, facilitate digestion, support growth, and improve livestock health. They've become crucial in contemporary livestock production systems by optimizing feeding efficiency and boosting performance while ensuring the sustainability of food production systems. These modifiers help meet the increasing global demand for animal protein—including meat, milk, and eggs—by enhancing agricultural productivity and addressing various nutritional health challenges alongside environmental concerns.

Market Introduction:

Feed modifiers are substances incorporated into animals' primary diets, often cereals, grains, and forages. Their purpose is to enhance feed quality and supply vital nutrients that might be lacking in the natural ingredients. These substances fall into various categories: nutritional supplements such as vitamins, minerals, and amino acids; growth promoters; gut health enhancers; preservatives; and performance boosters. The ultimate goal of using feed modifiers is to maximize animals' nutritional intake, improve feed conversion efficiency, bolster immune function, and support growth along with reproductive functionality. Feed modifiers serve a complex purpose. Their main function is to rectify nutritional gaps that can occur with plant-based feeds, which frequently miss essential amino acids, vitamins, or minerals vital for the healthy growth of livestock. By supplementing these nutrients, feed modifiers help ensure animals maintain a balanced diet, resulting in enhanced weight gain and improved meat quality while boosting milk or egg output. Furthermore, some feed modifiers act as promoters of gut health by aiding digestion and enhancing nutrient absorption through maintaining balanced gut microbiota—minimizing harmful bacteria while encouraging beneficial microbes.

Feed Modifiers Market Size

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Recent Development
  • In September 2022: BASF SE and Evonik Industries AG have partnered to lessen the environmental impact of animal feed production and the animal protein industry. This collaboration merges BASF's extensive experience in sustainability across the value chain of animal nutrition with Evonik's comprehensive expertise in feed formulation and understanding of customer needs.        

Market Dynamics:

Drivers

Increasing Consumer Focus on Food Safety and Quality - Today's consumers, with their increasing focus on food quality and safety, are driving a significant change. Their demand for safe, high-quality animal products has led to the adoption of feed modifiers in livestock production. These additives are crucial in raising animals under healthy conditions, reducing reliance on antibiotics or harmful substances. By using probiotics, prebiotics, organic acids, and other additives as feed modifiers, we can improve gut health and enhance immune function, producing safer meats such as pork, beef, lamb, poultry, and fish, as well as milk and eggs. Numerous countries have enacted strict regulations on the use of antibiotics in animal feed to address consumer worries about food safety. Since 2006, for instance, the European Union has prohibited antibiotic growth promoters in livestock production. The U.S. and other countries have implemented comparable restrictions as well. This change in regulation has led to a heightened demand for alternative feed additives like probiotics, enzymes, and organic acids that enhance animal growth and health without relying on antibiotics. This factor is stimulating the market growth and development.

Restraints:

Stringent Rules and Regulatory Compliances– A major restraint in the global feed modifiers market is navigating the complex and strict regulatory frameworks that govern their use across various regions. In numerous countries, especially in North America and Europe, obtaining approval for feed additives involves rigorous processes that are often lengthy and expensive. Organizations like the European Food Safety Authority (EFSA) and the U.S. Food and Drug Administration (FDA) impose stringent guidelines related to safety, efficacy, and environmental impact before these products can be marketed. The regulatory procedures involved can delay the commercialization of new feed modifier products, potentially stifling innovation. However, they also open the door for market expansion, offering a promising future. Additionally, the substantial expenses related to fulfilling regulatory requirements—such as conducting safety trials, toxicological studies, and adhering to labelling standards—can be a barrier for smaller or new companies trying to enter the market. This factor is limiting the market growth.

Opportunities:

Growth Demand for Feed Modifiers - The global feed modifiers market is closely tied to the expansion of the meat and dairy industries. Increasing demand for these products, locally and internationally, drives livestock producers to use feed modifiers to enhance operational efficiency and boost production levels. This trend is especially strong in North America, Europe, and Asia-Pacific, where industrialized farming increasingly depends on supplements and additives to improve feed conversion rates, accelerate growth, and promote animal health. In the meat industry, feed modifiers promote muscle growth, enhance feed efficiency, and increase overall growth rates. This practice is especially crucial in intensive livestock farming systems where feed expenses constitute a major part of production costs. By enhancing how animals use their food, these modifiers help lower feeding costs and contribute to more sustainable practices in meat production. In the dairy sector, supplements like vitamins, minerals, probiotics, and enzymes are essential for boosting milk yield and quality while ensuring the health of dairy cows remains robust. This factor is anticipated to provide lucrative growth opportunities in the upcoming years.

Regional Segmentation Analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific region emerged as the most prominent Feed modifiers market, with a 34.0% market revenue share in 2023. This significant market share can be credited to the expanding animal food industry, increasing concerns about animal health, rising demand for animal nutrition products, and enhanced awareness and adoption within the market. Moreover, the region hosts numerous domestic and international companies specializing in manufacturing animal food, which is substantially driving up product demand. In 2023, China dominated the feed modifiers market with a 43% market share within the Asia Pacific region. The country's substantial livestock sector has driven this trend, especially in swine/pork and cattle production. As the demand for meat products rises within the nation, there is an increased emphasis on enhancing animal food quality and taste. Feed modifiers are essential for improving animal feed's flavor, scent, and texture to make it more appealing to livestock and boost intake levels. The regional market players also engage in various market strategies such as product innovation, product differentiation, mergers, acquisitions, partnerships, and strategic alliances to maintain their competitive edge.

Asia Pacific Region Feed Modifiers Market Share in 2023 - 34.0%

 

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  • In February 2023: Adisseo has announced the acquisition of Nor-Food, a French company that produces plant-based specialty ingredients and extracts for the animal nutrition industry.
Type Segment Analysis

The type segment includes natural and synthetic. The synthetic segment dominated, with a market share of around 58% in 2023. Synthetic feed modifiers are frequently more cost-effective than their natural feed modifiers, making them a compelling choice for livestock producers, especially in large-scale operations. Due to their reduced production costs, farmers can maintain profitability while supplying essential nutrients to their animals. Synthetic additives offer greater consistency and precision in nutritional formulations, enabling livestock producers to customize their feed mixtures according to specific dietary needs and enhance animal performance.

Form Segment Analysis

The form segment includes liquid and dry. The dry segment dominated, with a market share of around 56% in 2023. Dry feed modifiers are generally more manageable and storable than their liquid counterparts. Thanks to their stable composition, they enjoy a longer shelf life, minimizing spoilage risks and enabling producers to keep inventory without worrying about degradation. Dry form feed modifiers are frequently more economical than their liquid counterparts. Their reduced production and transportation costs appeal to livestock producers, especially in regions where markets are sensitive to pricing. Dry form feed modifiers can be readily integrated into diverse feed formulations, making them adaptable for numerous livestock species and production systems. This flexibility promotes their use across various sectors of the animal husbandry industry.

Livestock Segment Analysis

The livestock segment includes ruminants, pets, swine, aquaculture and others. The poultry segment dominated, with a market share of around 37% in 2023. Poultry species have specific taste preferences and nutritional requirements, leading to the need for customized feeding solutions. For example, adding sweeteners and other additives to poultry diets can enhance flavor and meet certain dietary needs, improving overall growth and performance. The market offers a wide range of products designed specifically for different poultry species, highlighting the dynamic nature of this specialized sector within the industry.

Some of the Key Market Players:
  • Alltech, Inc.
  • Pancosma SA
  • Kemin Industries, Inc.
  • BASF SE
  • ADM
  • Cargill, Incorporated
  • Nutriad
  • Novus International
  • Nutreco NV
  • Perstorp Holding AB
  • BIOMIN Holding GmbH

Report Description: 

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2023 USD 3.4 Billion
Market size value in 2033 USD 5.64 Billion
CAGR (2024 to 2033) 5.2%
Historical data 2020-2022
Base Year 2023
Forecast 2024-2033
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Segments Type, Form, Livestock

Frequesntly Asked Questions

As per The Brainy Insights, the size of the global feed modifiers market was valued at USD 3.4 billion in 2023 to USD 5.64 billion by 2033.

The global feed modifiers market is growing at a CAGR of 5.2% during the forecast period 2024-2033.

Asia Pacific region became the largest market for feed modifiers.

The rising awareness regarding food safety is driving the market's growth.

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This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global feed modifiers market based on below-mentioned segments:

Global Feed Modifiers Market by Type:

  • Natural
  • Synthetic

Global Feed Modifiers Market by Form:

  • Dry
  • Liquid

Global Feed Modifiers Market by Livestock:

  • Ruminants
  • Pets
  • Swine
  • Aquaculture
  • Others

Global Feed Modifiers Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa

Methodology

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Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.

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Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:

MARKET RESEARCH PROCESS

Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:

  • The organizational databases such as D&B Hoovers, and Bloomberg that helps us to identify the competitive scenario of the key market players/organizations along with the financial information.
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Secondary Research: The secondary data sources includes information published by the on-profit organizations such as World bank, WHO, company fillings, investor presentations, annual reports, national government documents, statistical databases, blogs, articles, white papers and others. From the annual report, we analyse a company’s revenue to understand the key segment and market share of that organization in a particular region. We analyse the company websites and adopt the product mapping technique which is important for deriving the segment revenue. In the product mapping method, we select and categorize the products offered by the companies catering to domain specific market, deduce the product revenue for each of the companies so as to get overall estimation of the market size. We also source data and analyses trends based on information received from supply side and demand side intermediaries in the value chain. The supply side denotes the data gathered from supplier, distributor, wholesaler and the demand side illustrates the data gathered from the end customers for respective market domain.

The supply side for a domain specific market is analysed by:

  • Estimating and projecting penetration rates through analysing product attributes, availability of internal and external substitutes, followed by pricing analysis of the product.
  • Experiential assessment of year-on-year sales of the product by conducting interviews.

The demand side for the market is estimated through:

  • Evaluating the penetration level and usage rates of the product.
  • Referring to the historical data to determine the growth rate and evaluate the industry trends

In-house Library: Apart from these third-party sources, we have our in-house library of qualitative and quantitative information. Our in-house database includes market data for various industry and domains. These data are updated on regular basis as per the changing market scenario. Our library includes, historic databases, internal audit reports and archives.

Sometimes there are instances where there is no metadata or raw data available for any domain specific market. For those cases, we use our expertise to forecast and estimate the market size in order to generate comprehensive data sets. Our analyst team adopt a robust research technique in order to produce the estimates:

  • Applying demographic along with psychographic segmentation for market evaluation
  • Determining the Micro and Macro-economic indicators for each region 
  • Examining the industry indicators prevailing in the market. 

Data Synthesis: This stage involves the analysis & mapping of all the information obtained from the previous step. It also involves in scrutinizing the data for any discrepancy observed while data gathering related to the market. The data is collected with consideration to the heterogeneity of sources. Robust scientific techniques are in place for synthesizing disparate data sets and provide the essential contextual information that can orient market strategies. The Brainy Insights has extensive experience in data synthesis where the data passes through various stages:

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Market Deduction & Formulation: The final stage comprises of assigning data points at appropriate market spaces so as to deduce feasible conclusions. Analyst perspective & subject matter expert based holistic form of market sizing coupled with industry analysis also plays a crucial role in this stage.

This stage involves in finalization of the market size and numbers that we have collected from data integration step. With data interpolation, it is made sure that there is no gap in the market data. Successful trend analysis is done by our analysts using extrapolation techniques, which provide the best possible forecasts for the market.

Data Validation & Market Feedback: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helps us finalize data-points to be used for final calculations.

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Moreover, we always validate our data and findings through primary respondents from all the major regions we are working on.

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