MARKET REPORT FEED & ADDITIVE MAGAZINE February 2025 71 FACTORS LIMITING MARKET GROWTH Although the global feed additives market is projected to experience significant growth, various factors can potentially limit its growth. Understanding these restraints is crucial for stakeholders to effectively navigate the market and develop strategies to mitigate their impact. 1. Strict Regulations and Restrictions: One of the key challenges facing the feed additives market is the increasing strictness of regulations regarding product safety, efficacy, and environmental impact. Banning or restricting the use of certain additives due to concerns about antibiotic resistance, residues in animal products or environmental impacts can significantly impact market growth. Complying with complex and often volatile regulatory legislations in different regions adds an additional element of complexity and cost for producers. 2. Volatile Raw Material Prices: The feed additives industry requires a variety of raw materials for which prices can fluctuate significantly due to factors such as supply and demand, weather conditions and geopolitical events, and it competes with other sectors such as pharmaceuticals and food for these raw materials. Such price fluctuations and competition can affect the profitability of producers and lead to an increase in the prices of finished products. This may reduce demand and prevent the growth of the market. 3. High R&D Costs and Time to Market: Developing new and innovative feed additives requires significant investment in research and development. This process can be long and complex and there is no guarantee of success. The high cost and timeto-market associated with the development of new products can be a barrier for small companies and slow the overall pace of innovation in the market. Balchem Animal Nutrition & Health Phone: Americas Region +1 845-326-5608 I EMEA Region +39 0321 979 1 Balchem is committed to making the world a healthier place by delivering trusted, innovative, and science-based solutions to the nutrition, health, and food markets. By providing industry-leading service, quality, and technology, we enable our customers to win with their customers. We have built a reputation for delivering results to all of our stakeholders. Built over the last 50 years, Balchem employs approximately 1.300 people worldwide and owns 21 manufacturing sites, seven technology centers and seven regional offices. Balchem Animal Nutrition and Health is a global leader in choline production, nutrient encapsulation and mineral chelation. With a growing portfolio of nutrition products and a dedication to innovation and industry sustainability, Balchem is leading the charge to meet the nutritional needs of ruminants, monogastrics, aquaculture and companion animals. LEADING SOLUTIONS IN ANIMAL NUTRITION www.balchem.com anh.marketing@balchem.com
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