ARTICLE 100 FEED & ADDITIVE MAGAZINE February 2026 The use of medication in feed formulations in general, and antibiotic growth promoters (AGP) in particular, will be subject to ever increasing regulation. As there is no single product that can replace antibiotics, a multi-faceted nutritional approach will be needed to drive animal health and performance. Regulatory frameworks will provide growth opportunities for feed additives and specialty ingredients producers. SUSTAINABILITY: A STRATEGIC PILLAR Sustainability is no longer a nice-to-have, but a must-have throughout the supply chain. That does not mean all sustainability efforts can be monetized. Customers will select suppliers based on sustainable practices, without necessarily paying a premium. Animal protein producers will increasingly focus on optimizing feed for better efficiency, reducing their environmental impact, using alternative ingredients, and improving animal health and welfare. At the same time, risk management is becoming a more important element in sustainability practices, as future investments will increasingly take climate change into consideration. Finally, regulatory demands will force producers to integrate sustainability policies in their strategic planning. MERGERS & ACQUISITIONS: INCREASED DEALMAKING Expect an increased M&A activity in 2026, after several years of limited deal making in animal nutrition and animal protein markets. Multinational companies and private equity (PE) seeking scale and efficiency will focus on sustainability, technological integration, and strategic consolidation. Large, integrated companies are looking to streamline their portfolios, divesting non-core animal nutrition assets to focus on areas where they have a stronger, more competitive position. Private equity firms are actively deploying capital and consolidating mid-sized suppliers of specialty additives, attracted by the sector’s resilience and consistent growth. And inorganic growth by current midsize players to expand geographically, add technology, or drive portfolio diversification will further boost M&A activity. Large transactions, like the planned sale of DSM-Firmenich’s animal nutrition division, may accelerate further consolidation in the industry. ARTIFICIAL INTELLIGENCE (AI): EVOLUTION NOT REVOLUTION Artificial intelligence (AI) in animal protein and animal nutrition production will be a matter of evolution not revolution, as implementing it in a conservative business environment like ours is likely to be challenged by farm managers and nutritionists alike. We do expect an increased focus on using data from multiple sources to create tailored and optimized diets for different animal species and monitoring of individual animal feeding behaviors for early detection of health- or nutrition challenges. At the same time AI will be applied to support sustainability initiatives, like optimization of water and energy usage, reduction of waste, carbon footprint tracking and improved manure management for example. HOW TO WIN IN 2026: AGILITY The question is not if, but how much change will come our way in the coming year. On a global scale the demand for animal protein will continue to grow. People will continue to eat meat, milk, eggs and fish, and the industry will have to feed an increasing number of global citizens. What protein source they will prefer, and where that is being produced, will directly impact the sourcing of animal nutrition and feed additives. Geo-politics, consumer preferences, animal diseases, and regulation are just a few elements that will play a role in shaping the markets in the coming year. Future success will depend on adaptability and agility, so the winners of 2026 will be the companies that respond quickly and decisively to changing circumstances.
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