Feed Additives Market by Livestock, Type (Phosphates, Amino Acids, Vitamins, Acidifiers, Carotenoids, Enzymes, Flavors & Sweeteners, Mycotoxin Detoxifiers, Minerals, and Antioxidants), Form, Source, and Region - Global Forecast to 2028
[384 Pages Report] The global feed additives market is estimated to be valued at USD 42.2 billion in 2023 and is projected to reach USD 55.8 billion by 2028, at a CAGR of 5.8% from 2023 to 2028.
The feed additives market has gained significant traction, primarily driven by the relentless pursuit of improved feed efficiency in the agriculture and livestock sectors. Feed efficiency has emerged as a central concern in animal husbandry due to its profound implications for both producers and the environment. Feed additives play a pivotal role in this quest by enhancing nutrient utilization, promoting optimal growth, and ensuring overall health in animals. These additives encompass a range of substances, including probiotics, enzymes, amino acids, and vitamins, which facilitate the digestion and absorption of nutrients. Improved feed efficiency translates to reduced feed costs for farmers, making production more economically viable. Moreover, it reduces the environmental footprint of agriculture, as less feed is required to produce the same amount of meat, thereby lowering greenhouse gas emissions and conserving resources. As global food demand continues to surge, the significance of feed additives in boosting feed efficiency cannot be overstated, as they represent a sustainable solution to meet the world's growing protein needs while mitigating the environmental impact of livestock production.
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Drivers: Rise in awareness about feed quality
As consumers become more conscious of the quality and safety of animal-derived products, such as meat, milk, and eggs, there has been a growing demand for healthier and more sustainable livestock production practices. Owing to this, farmers and producers have become increasingly cognizant of the fact that the nutritional content and safety of animal feed directly impact the health, growth, and overall performance of their livestock. This rising awareness has spurred a growing demand for feed additives, as they are essential in enhancing the nutritional value of animal feed and ensuring its safety. Moreover, the occurrence of disease outbreaks in the livestock industry has further fueled this awareness. Outbreaks like avian influenza and swine fever have highlighted the immense importance of maintaining stringent feed quality standards to prevent the spread of diseases and safeguard animal health. As a result, farmers are now investing more in high-quality feed additives to bolster their animal nutrition programs, reduce disease risks, and optimize production efficiency.
Restraints: Ban on antibiotics in different nations
In recent years, several countries have taken stringent measures to curb the use of antibiotics in animal feed due to growing concerns about antibiotic resistance and its potential impact on human health. These bans have not only limited the use of antibiotic-based feed additives but have also spurred a paradigm shift in the industry towards more sustainable and responsible alternatives. While this move aligns with global efforts to safeguard public health and promote responsible livestock farming practices, it poses challenges to the feed additives market. Producers and suppliers have had to adapt by developing innovative non-antibiotic additives that can maintain animal health and promote growth without relying on antibiotics. Additionally, complying with diverse regulations across different nations has added complexity to the global feed additives market, impacting production and distribution dynamics. As the industry continues to navigate these challenges, it strives to strike a balance between animal welfare, food safety, and market sustainability.
Opportunities: Shift toward natural growth promoters
Natural growth promoters, such as probiotics, prebiotics, and botanical extracts, have gained immense traction as alternatives to traditional antibiotics and synthetic additives. These natural additives not only enhance animal health and performance but also mitigate the risk of antibiotic resistance and residual chemical residues in animal products. Consequently, the opportunities in the feed additives market have expanded significantly, driven by the rising demand for clean-label and organic animal products.
The adoption of natural growth promoters is poised to have a profound impact on the feed additives market. As consumers become increasingly conscious of the food they consume, the demand for products derived from animals raised with natural additives is on the rise. This shift is reshaping the dynamics of the market, with companies focusing on research and development to innovate and introduce new, bio-based additives. For instance, in February 2023, major players such as Evonik Industries AG (Germany) launched their first plant-based premix, PhytriCare IM to expand their market share. Furthermore, stringent regulations regarding the use of antibiotics in animal feed have bolstered the demand for natural alternatives. Consequently, stakeholders in the feed additives industry are not only presented with lucrative opportunities but are also compelled to adapt and invest in sustainable and eco-friendly solutions to meet the evolving preferences of the modern consumer.
Challenges: Sustainability of feed and livestock chain
As consumers and regulators increasingly prioritize environmentally responsible practices, the demand for sustainable feed additives has surged. This shift places substantial pressure on manufacturers to develop and implement eco-friendly production processes and source sustainable raw materials. Moreover, ensuring the safety and efficacy of these additives while meeting stringent regulatory requirements remains a significant hurdle. The sustainability of the feed and livestock chain has a profound impact on this market. Suppliers must address issues such as reducing greenhouse gas emissions, optimizing resource utilization, and minimizing waste. Failure to do so can lead to reputational damage and market exclusion. Additionally, the rising costs associated with sustainable practices and compliance with stringent regulations can strain profit margins. Therefore, the feed additives market faces the dual challenge of meeting evolving sustainability demands while maintaining competitiveness and profitability, making innovation and sustainability key drivers for future success in this industry.
Feed Additives Market: Value Chain Analysis
Ecosystem Analysis
The market ecosystem for feed additives encompasses various stakeholders and components involved in the production, distribution, and end users of feed additives products. Various regulatory bodies are also involved in this market, and they are one of the significant stakeholders.
Ecosystem Map
Based on livestock, the poultry segment is estimated to account for the largest market share of the feed additives market.
The global demand for poultry products, such as chicken and eggs, has witnessed remarkable growth due to changing dietary preferences and increasing population. To meet this soaring demand for poultry, farmers have increasingly turned to feed additives to enhance the overall health, growth, and productivity of their birds. As a result, the poultry industry has become a major driver for the feed additives market.
Additionally, the efficiency and rapid turnover rate of poultry farming make it particularly well-suited to benefit from feed additives. Poultry, especially broilers, have shorter production cycles compared to other livestock like cattle or swine. Feed additives, including antibiotics, probiotics, and growth promoters, can quickly yield visible results in terms of weight gain, disease prevention, and feed conversion efficiency, thereby providing farmers with a compelling incentive to use these products. Furthermore, the poultry sector has been at the forefront of adopting innovations and advanced technologies in animal nutrition, including precision feeding and nutrigenomics. This forward-thinking approach has further solidified the poultry sub-segment's dominance in the feed additives market.
Based on the source, the synthetic segment is anticipated to dominate as well as grow at the highest CAGR in the feed additives market.
The synthetic sub-segment is poised to dominate and experience the highest growth within the source segment of the feed additives market. Synthetic additives excel in extending the shelf life of feed products, significantly reducing the risk of spoilage and wastage, a critical concern in the agricultural industry. This longevity translates to substantial cost savings for both feed manufacturers and livestock producers, as it minimizes the need for frequent replacements and large-scale storage facilities. Furthermore, synthetic additives often benefit from streamlined production processes, resulting in lower unit costs. These cost advantages are passed on to farmers and producers, enhancing their operational efficiency without compromising product quality.
By form, the dry segment is estimated to dominate as well as grow at the highest CAGR in the feed additives market.
Dry forms of feed additives offer superior stability and longer shelf life compared to their liquid counterparts. This stability is crucial for manufacturers and farmers alike, as it ensures that the additives maintain their efficacy throughout the supply chain and during storage, thereby minimizing potential wastage. Additionally, the convenience of handling and transportation plays a significant role in the ascent of dry feed additives. Dry forms are easier to store, measure, and incorporate into animal feed, making them a preferred choice for feed manufacturers. Their reduced transportation costs and logistical ease contribute to their higher market share. Moreover, dry feed additives are generally more adaptable in various feeding systems and are compatible with a wide range of animal diets, providing versatility to farmers. This adaptability increases their demand among livestock producers, further bolstering their market dominance and growth prospects.
Asia Pacific is estimated to grow at the highest CAGR in the global feed additives market.
The region's burgeoning population, coupled with rising income levels, has led to an increased demand for meat and dairy products. As a result, the livestock industry is experiencing unprecedented growth, creating a parallel surge in the need for efficient animal nutrition, driving the demand for feed additives.
Moreover, Asia Pacific boasts a diverse agricultural landscape, with countries like China and India emerging as significant players in livestock production. The adoption of modern farming practices and a growing awareness of the importance of animal health and nutrition have further fueled the demand for feed additives. Additionally, the presence of a large number of feed manufacturers and a rapidly expanding aquaculture sector in countries like Indonesia and Vietnam contribute to the region's dominance.
Key Market Players
Cargill, Incorporated (US), ADM (US), International Flavors & Fragrances, Inc. (US), Evonik Industries AG (Germany), BASF SE (Germany), DSM (Netherlands), Ajinomoto (Japan), Novozymes (Denmark), CHR. HANSEN (Denmark), and TEGASA (Spain) are among the key players in the global feed additives market. To increase their company's revenues and market shares, companies are focusing on launching new products, developing partnerships, and expanding their production facilities. The key strategies used by companies in the feed additives market include geographical expansion to tap the potential of emerging economies, strategic acquisitions to gain a foothold over the extensive supply chain, and new product launches as a result of extensive research and development (R&D) initiatives.
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Report Metric |
Details |
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Market size estimation |
2023–2028 |
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Base year considered |
2022 |
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Forecast period considered |
2023–2028 |
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Units considered |
Value (USD), Volume (KT) |
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Segments Covered |
By Type, By Livestock, By Source, By Form, and By Region |
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Regions covered |
North America, Europe, Asia Pacific, South America, and RoW |
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Companies studied |
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Feed Additives Market:
By Type
- Amino acids
- Phosphates
- Vitamins
- Acidifiers
- Carotenoids
- Enzymes
- Mycotoxin detoxifiers
- Flavors & sweeteners
- Antibiotics
- Minerals
- Antioxidants
- Non-protein nitrogen
- Phytogenics
- Preservatives
- Probiotics
By Source
- Synthetic
- Natural
By Form
- Dry
- Liquid
By Livestock
- Poultry
- Ruminants
- Swine
- Aquatic animals
- Other livestock
By Region
- North America
- Europe
- Asia Pacific
- South America
- Rest of the World (RoW)
RoW includes the Middle East & Africa.
Recent Developments
- In January 2023, Evonik Industries AG (Germany) invested USD 26.5 million in expanding its methyl mercapto-propionaldehyde (MMP) production plant in Wesseling, Germany, strengthening its global methionine production network. MMP is a key component in producing MetAMINO (DL-methionine), used to enhance livestock farming in animal feed. This investment bolsters the European methionine network, ensuring a stable supply of MMP to the MetAMINO production hub in Antwerp, Belgium, and reaffirming Evonik Industries AG's commitment to the global DL-methionine market. The expansion is enabled by a new production process that eliminates the need to store chemical intermediates on-site, prioritizing safety and efficiency. This expansion enhances Evonik Industries AG's position in the competitive feed additives market.
- In September 2022, DSM completed its acquisition of Prodap, a prominent Brazilian animal nutrition and technology company. Prodap specializes in providing technology solutions, consulting services, and tailored nutritional solutions for enhanced efficiency and sustainability in animal farming. DSM aims to leverage Prodap's digital solutions to advance its Precision and personalization initiative, offering smarter nutritional decision-making through artificial intelligence and other tools on a global scale. This acquisition not only enhances DSM's animal nutrition expertise and advisory capabilities but also aligns with their commitment to achieving a double-digit reduction in on-farm livestock emissions by 2030.
- In May 2022, ADM (US) acquired a feed mill in Polomolok, South Cotabato, from South Sunrays Milling Corporation (Philippines), marking a strategic move to meet Asia's increasing demand for innovative and high-quality animal nutrition products. This acquisition expands ADM's regional production capacity in the Philippines, complementing their existing facilities in Cebu and Bulacan. It enables ADM to offer a diverse range of cutting-edge solutions, including pet food, complete feed, aquaculture, and premix products, supporting customer growth in the region. Additionally, the investment contributes to local economic development by creating over 100 new jobs. Through this acquisition, ADM strengthens its position in the feed additives market, enhancing its ability to provide high-quality, responsibly produced animal nutrition solutions to customers in the Philippines and beyond.
Frequently Asked Questions (FAQ):
Which region is projected to account for the largest share of the feed additives market?
The Asia Pacific region accounted for the largest share, in terms of value, of USD 14.4 billion, of the global feed additives market in 2022 and is expected to grow at a CAGR of 6.7%.
What is the current size of the global feed additives market?
The feed additives market is estimated at USD 42.2 billion in 2023 and is projected to reach USD 55.8 billion by 2028, at a CAGR of 5.8% from 2023 to 2028.
What are the key players in the market?
The key players in this market include Cargill, Incorporated (US), ADM (US), International Flavors & Fragrances, Inc. (US), Evonik Industries AG (Germany), BASF SE (Germany), DSM (Netherlands), Ajinomoto (Japan), Novozymes (Denmark), CHR. HANSEN (Denmark), and TEGASA (Spain).
What are the factors driving the feed additives market?
Increase in demand and consumption of livestock-based products and growth in feed production.
Which segment by livestock accounted for the largest feed additives market share?
The poultry segment dominated the market for feed additives market and was valued at USD 18.3 billion in 2022. This is due to its widespread consumption, high production volumes, and the demand for additives to enhance growth, health, and feed efficiency in poultry farming.
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This research study involved the extensive use of secondary sources directories and databases such as Bloomberg Businessweek and Factiva—to identify and collect information useful for a technical, market-oriented, and commercial study of the feed additives market. In-depth interviews were conducted with various primary respondents—such as key industry participants, subject matter experts (SMEs), C-level executives of key market players, and industry consultants—to obtain and verify critical qualitative and quantitative information as well as to assess prospects.
Secondary Research
The secondary sources referred for this research study include government sources, the EU Commission, the European Food Safety Authority, the German Federal Institute of Risk Assessment, the Food Safety and Standards Authority of India (FSSAI the Food and Agricultural Organization (FAO), United States Department of Agriculture (USDA), European Food and Fermentation Cultures Association (EFFCA), American Feed Industry Association (AFIA), Organization for Economic Co-operation and Development (OECD), and others were referred to, to identify and collect information for this study. The secondary sources also included feed additives manufacturers' annual reports, press releases & investor presentations of companies, white papers, food journals, certified publications, articles from recognized authors, gold & silver standard websites, regulatory bodies, trade directories, and paid databases.
Secondary research was used to obtain key information about the industry’s supply chain, the total pool of key players, and market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both market and technology-oriented perspectives. The secondary data was collected and analyzed to arrive at the overall market size, which was further validated by primary research. It was also used to obtain information on the key developments from a market-oriented perspective.
Primary Research
The feed additives market comprises multiple stakeholders, including raw material suppliers, processed food suppliers, and regulatory organizations in the supply chain. Various primary sources from the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary interviewees from the supply side include research institutions involved in R&D to introduce to the manufacturers, and importers & exporters of feed additives from the demand side include distributors, wholesalers, and key opinion leaders through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
The following approaches represent the overall market size estimation process employed for the purpose of this study.
Both top-down and bottom-up approaches were used to estimate and validate the total size of the market. These approaches were also used extensively to estimate the size of various dependent submarkets. The research methodology used to estimate the market size includes the following:
Top-down approach:
The key players in the industry and the market were identified through extensive secondary research.
The revenues of major feed additives manufacturers were determined through primary and secondary research, such as paid databases, which were used as the basis for market estimation.
Based on the market share analysis of key industry players from all regions, the final market size of the feed additives market has been arrived at.
Feed Additives Market Size Estimation By Type (Top-Down Approach)
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Bottom-up approach:
Based on the share of feed additives for each site at regional and country levels, the market sizes were analyzed. Thus, with a bottom-up approach to the site at the country level, the global market for feed additives was estimated.
Based on the demand for feed additives, type of feed additives, offerings of key players, and the region-wise market share of major players, the global market for feed additives was estimated.
Other factors considered include the penetration rate of feed additives, the demand for consumer awareness, functional trends, the feed consumption rate, patents registered, and organic & inorganic growth attempts.
From this, market sizes for each region were derived.
All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
All macroeconomic and microeconomic factors affecting the growth of the feed additives market were considered while estimating the market size.
All parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.
Feed Additives Market Size Estimation (Bottom-Up Approach)
The following sections (bottom-up & top-down) (supply-demand) depict the overall market size estimation process employed for this study.
Data Triangulation
After arriving at the global market size from the estimation process explained above, the total market was split into various segments and subsegments. The data triangulation and market breakdown procedures were employed, wherever applicable, to estimate the feed additives market and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying a range of factors and trends from the demand and supply sides. Additionally, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
According to the European Commission, “feed additives are defined as products used in animal nutrition for the purpose of improving the quality of feed and the quality of food from animal origin, or to improve the animals’ performance and health, e.g., providing enhanced digestibility of the feed materials. Feed additives may not be put on the market unless authorization has been given, following a scientific evaluation demonstrating that the additive has no harmful effects on human and animal health and the environment.”
Stakeholders
- Feed manufacturers
- Dairy, poultry farms, and livestock farms
- Feed importers and exporters
- Intermediary suppliers such as traders and distributors of feed additives such as amino acids, phosphates, enzymes, vitamins, acidifiers, carotenoids, mycotoxin detoxifiers, flavors & sweeteners, antibiotics, minerals, non-protein nitrogen, phytogenics, preservatives, and probiotics
- Government and research organizations
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Associations and industry bodies:
- Food and Agriculture Organization (FAO)
- United States Department of Agriculture (USDA)
- European Food Safety Authority (EFSA)
- European Association of Specialty Feed Ingredients and their Mixtures (FEFANA)
- International Feed Industry Federation (IFIF)
- Organization for Economic Co-operation and Development (OECD)
- Animal Feed Manufacturers Association (AFMA)
- The Irish Grain and Feed Association (IGFA)
- National Grain and Feed Association (NGFA)
- The Compound Feed Manufacturers Association (CLFMA)
- Brazilian Poultry Association and the Brazilian Chicken Producers and Exporters Association (UBABEF)
- Japan Feed Manufacturers Association (JAFMA)
Report Objectives
Market Intelligence
Determining and projecting the size of the feed additive market, based on type, livestock, form, source, and regional markets, over a five-year period, ranging from 2023 to 2028
Identifying attractive opportunities in the market by determining the largest and fastest-growing segments across regions
Analyzing the demand-side factors based on the following:
- Impact of macro- and microeconomic factors on the market
- Shift in demand patterns across different subsegments and regions
Competitive Intelligence
- Identifying and profiling the key players in the feed additives market.
- Determining the share of key players operating in the feed additive market
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Providing a comparative analysis of market leaders based on the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- Understanding the competitive landscape and identifying the major growth strategies adopted by players across the key regions.
- Analyzing the value chain and products across the key regions and their impact on the prominent market players.
- Analyzing the market dynamics, competitive situations, and trends across the regions, and their impact on prominent market players.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product Matrix, which gives a detailed comparison of the product portfolio of each company.
Geographic Analysis
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
- Further breakdown of the rest of the Asia Pacific feed additives market into the Philippines, Vietnam, South Korea, Malaysia, and Australia & New Zealand.
- Further breakdown of the rest of Europe's feed additives market into Netherlands, Poland, other EU, and non-EU countries.
- Further breakdown of the rest of South America's feed additives market into Peru, Chile, and Venezuela.
Company Information
- Detailed analyses and profiling of additional market players (up to five)
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