MARKET REPORT 86 FEED & ADDITIVE MAGAZINE May 2024 Global Market Insights Inc. points to the value of the market in 2023 in its report. According to the company's report, the market size was USD 5.06 billion in 2023. The company predicts that the market will grow at a CAGR of more than 6.1% from 2024 to 2032. The current market size and CAGR expectations of these 5 research companies, which are the source of our report on the global feed preservatives market, paint a very similar picture. With an average calculation based on these reports, we can foresee that the global feed preservatives market had a size of USD 4.9 billion in 2023, will grow at a CAGR of 4.6% between 2023 and 2030 and will reach a size of approximately USD 7.6 billion in 2030 with this growth rate. FACTORS SUPPORTING MARKET DEVELOPMENT The global feed preservatives market has recorded significant growth in recent years due to various factors. One of these factors is the expansion of the livestock and feed industry. The increasing demand for animal food products such as meat, milk and eggs worldwide leads to an increase in the animal population and expansion of the livestock sector, which in turn increases the demand for animal feed. However, the key factor here is the demand for quality and safe animal food, and therefore the demand for quality and safe animal feed. This demand drives the need for reliable and effective preservation methods to ensure the integrity of feed throughout the supply chain. Developments in the field of feed preservatives also play a role as a driving force in the growth of the market. The industry is developing innovative and sustainable solutions that fulfil both the need for effective preservation and the growing demand for environmentally friendly applications. Legal regulations for feed safety and quality standards also support these solutions. Another important factor that cannot be ignored is climate change. The increase in unpredictable weather events due to climate change increases the risk of bacterial and fungal contamination, i.e. the risk of feed spoilage. This situation increases the need for preservatives, considering the possible harmful effects of feeds produced without feed preservatives. All these factors, along with the awareness of the economic losses related with feed spoilage and contamination, are leading farmers and feed producers to adopt feed preservatives more and more. According to analysts, the biggest opportunity in the market is expected to be in the natural preservatives segment. Antibiotics are no longer used to preserve feed due to antibiotic resistance resulting from their widespread use. This limitation is considered as a growth opportunity for natural and innovative feed preservatives. Concerns about sustainability are also increasing the shift towards natural products. However, governments are implementing rules and regulations for environmentally friendly production. Therefore, companies are expected to have tremendous growth opportunities by developing natural and organic feed preservatives in the current period. FACTORS LIMITING MARKET DEVELOPMENT Low profit margins are considered among the factors that will limit market development. According to analysts, high profit margins are difficult to achieve in the animal nutrition sector. In recent years, high margin products have been sold in lower volumes, which reduces the sales volume. The demand for feed preservatives has gradually decreased as a result of under-delivery principles, which has reduced the profit that was initially accessible. High production costs are also considered to act as a major limiting factor for the feed preservative market. The development and production of feed preservatives requires specialised equipment with advanced technology and skilled labour force. This increases the production costs. According to the researchers, this may cause a decline in the growth of the market. Legislation can play a role as a limiting factor in feed preservatives, as in many other areas. Researchers point to strict regulations that limit the use of
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