The global feed additives market draws attention as a growing market day by day. Some industry reports predict that the market will grow 6.1 percent between 2020 and 2027, reaching a value of $56.22 billion by 2027. The trends in the market of feed additives, which are generally used to increase feed efficiency, improve the quantity and quality of the animal products obtained, reduce the cost, and protect the health of animals, are shaped around animal and human health, welfare and environmental factors. Especially in animal production, the tendency to return to natural products and the tendency towards healthy nutrition lead to debates on feed additives. In parallel with this, alternative feed additives come to the fore, for example, due to the problems that arise as a result of intensive use of antibiotics.
By Derya Yıldız
Feed additives are defined by the European Commission as products used in animal nutrition for purposes such as improving feed quality and the quality of foods of animal origin (such as meat, milk, eggs, fish) or improving the performance and health of animals (for example, increasing the digestibility of feed materials). Feed materials and premixes are not included in this group.
The most important point in the use of feed additives in animal nutrition is to use the right additive at the right time and in the right amounts and to comply with the legal procedures. Apart from feed ingredients and premixes, feed additives added to animal feeds in the right amounts and for the right purposes provide many advantages to animal breeders. Some of these advantages can be listed as follows;
• Improves the quality of feed or animal products,
• Increases the level of animal production and welfare of animals,
• Improves digestion and digestive system microflora,
• Increases the amount of nutrients in feed,
• Contributes to the preservation of nutrients and feed,
• Reduces the damage of animal production to environment.
CLASSIFICATION AND LEGISLATION IN FEED ADDITIVES
The use of feed additives, which are classified as technological additives, sensory additives, nutritional additives, zootechnical additives, coccidiostats, and histomonostats, is subject to certain legal regulations and approvals. These regulations and approvals vary from country to country; however, only additives authorized for use can be released to the market and these additives can only be used for the purposes specified in the authorization certificate. For example; all feed additives offered for sale in the European Union must be approved in accordance with the regulation Reg (EC) No 1831/2003. The purpose of this law is to ensure the safety of all feed additives approved for use in the EU, not only for animals, but also for those engaged in these businesses and, consequently, for people who consume the animal products in question. Today, the European Union regulations are based on the legal regulations created for feed additives in many countries of the world. The EU Regulation classifies additives as follows:
A. Technological Additives
Technological additives are substances that allow feeds to be stored for a long time without spoiling. They are used to improve or stabilize the physical structure of the feed during feed production. They usually do not have a direct biological effect on animal production. Technological additives are listed as follows in the EU Regulation:
• Preservatives: substances or, when applicable, micro-organisms which protect feed against deterioration caused by micro-organisms or their metabolites;
• Antioxidants: substances prolonging the storage life of feedingstuffs and feed materials by protecting them against deterioration caused by oxidation;
• Emulsifiers: substances that make it possible to form or maintain a homogeneous mixture of two or more immiscible phases in feedingstuffs;
• Stabilisers: substances which make it possible to maintain the physico-chemical state of feedingstuffs;
• Thickeners: substances which increase the viscosity of feedingstuffs;
• Gelling agents: substances which give a feedingstuff texture through the formation of a gel;
• Binders: substances which increase the tendency of particles of feedingstuffs to adhere;
• Substances for control of radionucleide contamination: substances that suppress absorption of radionucleides or promote their excretion;
• Anticaking agents: substances that reduce the tendency of individual particles of a feedingstuff to adhere;
• Acidity regulators: substances which adjust the pH of feedingstuffs;
• Silage additives: substances, including enzymes or micro-organisms, intended to be incorporated into feed to improve the production of silage;
• Denaturants: substances which, when used for the manufacture of processed feedingstuffs, allow the identification of the origin of specific food or feed materials.
B. Sensory Additives
The term of sensory feed additives defines additives that improve/modify the visual properties of food obtained from animals. The said additives should not adversely affect the product stability or organoleptic and nutritional properties of the food. Sensory additives include:
1. Substances that add or restore colour in feedingstuffs;
2. Substances which, when fed to animals, add colours to food of animal origin;
3. Substances which favourably affect the colour of ornamental fish or birds;
• Flavouring compounds: substances the inclusion of which in feedingstuffs increases feed smell or palatability.
C. Nutritional Additives
Nutritional additives can be evaluated as supplements that increase the nutritional value of the feed and, accordingly, the performance of the animal. Nutritional feed additives consist of:
• Vitamins, pro-vitamins and chemically well-defined substances having similar effect;
• Compounds of trace elements;
• Amino acids, their salts and analogues;
• Urea and its derivatives.
D. Zootechnical Additives
Zootechnical additives, on the other hand, refer to additives that positively affect the performance of animals in terms of health or the environment. In this group, natural growth-enhancing feed additives, which are generally used instead of antibiotics, and additives that improve the physiological functions, performance and well-being of the animal are included. We can also list them as follows:
• Digestibility enhancers: substances which, when fed to animals, increase the digestibility of the diet, through action on target feed materials;
• Gut flora stabilisers: micro-organisms or other chemically defined substances, which, when fed to animals, have a positive effect on the gut flora;
• Substances which favourably affect the environment;
• Other zootechnical additives.
E. Coccidiostats and Histomonostats
It refers to substances used to kill protozoa (bacteria/micro-organisms) or prevent their reproduction. They are generally used to protect animals from coccidiosis (bloody diarrhea) caused by Eimeria type protozoa that settle in the intestines of poultry. Additives in this category were banned by the European Union in 2009 and were replaced by probiotic alternatives. However, they are still used in some countries.
SOME RESTRICTED OR PROHIBITED ADDITIVES
In order for an additive to be used in animal feed, its suitability for certain conditions must be proven by scientific data and approved by the relevant official institutions. In simple terms, these eligibility conditions can be listed as follows:
1. Must be completely safe in terms of human and animal health, must not have toxic and carcinogenic effects,
2. Must not adversely affect the composition and technological properties of animal products,
3. Their amount in feed and in the products obtained from animals consuming this feed must be determined analytically,
4. Must increase performance effectively and economically,
5. Must be environmentally safe, biodegradable, and must not pollute the environment,
6. Its effectiveness and stability must be determined,
7. Must not cause cross resistance with other additives,
8. Must not corrode the equipment and cause corrosion,
9. Must be easily obtainable.
Increasing awareness and social sensitivity regarding human and animal health and welfare as well as environmental impacts have led to the re-evaluation of additives used in animal feeds over time. As a result of these evaluations, with the contribution of advances in science, it was determined that many additives that were widely used in the past did not meet the eligibility conditions mentioned above, and the use of these additives was limited or completely removed. Additives such as antibiotic growth promoters, formaldehydes, ethosquine are some of them:
Antibiotic: It is the most accepted fact in today’s world that excessive use of antibiotics accelerates the development of antibiotic-resistant bacteria, which puts the health of both animals and humans at risk. The use of antibiotic growth promoters (AGP) has been banned or restricted in many countries to combat the antimicrobial resistance (AMR) created by these antibiotic uses.
Formaldehyde: Formaldehyde had been widely used for the treatment of microbial contamination in animal feed for many years. However, it was denied authorization and use in 2018 under EU Regulation.
Ethoxyquin: Ethoxyquin is another feed additive that had been used as an antioxidant in the world for many years; however, it is among the additives whose use has been discontinued in the EU Regulation today.
Cassia gum: Cassia gum has been on the market for many years as a gelling agent in animal feed. In 2019, the risk assessment identified a co-impurity (p-phenetidine) which may potentially be carcinogenic in the semi-purified feed-grade of cassia gum. As purified cassia gum is used in food with very low levels of this co-impurity; retained EU Regulation 2019/1947 now substitutes the purified cassia gum for use in animal feed, with the withdrawal of the semi-purified feed-grade phased out from the market by 16 December 2020.
SOME LEADING FEED ADDITIVES PLAYERS
– Addcon Group (Germany)
– Adisseo (France)
– Archer Daniels Midland Company (US)
– Ajinomoto Co. (Japan)
– Aliphos Belgium SA (Belgium)
– Alltech (US)
– BASF (Germany)
– Bentoli (US)
– Biomin (Austria)
– Biotech JSC (Vietnam)
– Cargill (US)
– Centafarm SRL (Italy)
– Chr. Hansen (Denmark)
– Danisco Animal Nutrition (US)
– DuPont (US)
– Evonik (Germany)
– Evonik Industries AG (Germany)
– Global Nutrition International (France)
– InVivo NSA (France)
– Kemin Industries Inc. (US)
– Koninklijke DSM NV (Netherlands)
– Novozymes (Denmark)
– Novus International, Inc. (US)
– NUQO Feed Additives (France)
– Nutreco (Netherlands)
– Palital Feed Additives B.V (Netherlands)
– Phibro Animal Health Corporation (US)
– Solvay (Belgium)
– TEGASA (Spain)
VALUE OF FEED ADDITIVES MARKET, GROWTH EXPECTATIONS AND TRENDS
According to Animal Feed Additives Market report published by Allied Market Research; the global animal feed additives market was valued at $19,642 million in 2017, and is estimated to reach $31,387 million by 2025, registering a CAGR of 6.0% from 2018 to 2025.
The Feed Additives Market report published more recently (May 2021) by MarketsandMarkets also shares similar data. According to MarketsandMarkets, the global feed additives market is estimated to be valued at USD 38.1 billion in 2021 and is projected to reach USD 49.6 billion by 2026, recording a CAGR of 5.5%, in terms of value. The growth in consumption of animal-based products, growth in feed production, standardization of meat products owing to disease outbreaks, and implementation of innovative animal husbandry practices to improve meat quality have led to the increased consumption of feed additives. The Asia Pacific region will dominate the global feed additives market due the presence of a large livestock population and their growth rate. Furthermore, the region has witnessed an increase in the number of feed mills and feed production, particularly in countries such as India and Japan.
IMPACT OF COVID-19 ON FEED ADDITIVES MARKET
According to the MarketsandMarkets report; the outbreak of COVID-19 has brought serious medical, social, and economic challenges. Where the medical community is focused on developing successful diagnostic and medical treatment, the feed industry is also focused on manufacturing healthy products using for animals using feed additives to combat diseases by providing immune support.
Owing to the increasing COVID-19 pandemic outbreak in various regions/countries, the feed additives market in 2020 was observed to witness a decline due to the lockdowns in various countries, closure of the international borders, and delay in cross border transit that has led to supply chain hindrances. The social distancing and the other measures taken by the regional governments limit the number of people who can work together in small areas. Thus, the decline in 2020 in the feed additives market growth was mainly due to the major impact of the COVID-19 pandemic. Gradually, as the restrictions of the government measures are likely to relax, the market for feed additives would witness a slight increment in the upcoming years till 2026.
Drivers: Increase in demand and consumption of livestock-based products
An increase in demand and consumption of livestock-based products such as dairy & dairy-based products, meat, and eggs is expected to drive the usage of feed additives in feed for the growth and development of farm animals. Poultry meat is the primary driver for the growth of the overall meat production, owing to its high demand, low production cost, and lower product prices, both in developed and developing countries. Furthermore, owing to the increasing awareness about the role and dynamics of food nutrients, especially protein, on overall physical and mental growth and development, there is a growing trend toward animal-sourced protein in the form of either meat, eggs, or milk. This drives the usage of feed additives in feed as it increases its nutritional quality.
Restraints: Ban on antibiotics in different nations
An increase in raw material prices is a major challenge faced by feed manufacturers worldwide. Feed acids, antioxidants, and vitamins are extracted from natural sources such as seeds, tree barks, and plant leaves. The rising cost of extraction from these sources, coupled with stringent regulations for waste biomaterials and wastewater treatment, restrains the feed additives market growth. Availability of feed has become a critical issue for the industry. With the growing global population and the consequent rise in demand for food, the industry faces severe pressure in procuring raw feed such as corn, wheat, and barley.
Opportunities: Shifting towards natural growth promoters
Antimicrobial compounds are commonly included in poultry diets for promoting growth and controlling diseases. The European Union banned feed-grade antibiotic growth promoters, owing to cross-resistance and also due to the risk posed to the EU’s food safety and public health. Due to this, feed manufacturers are adopting new forms of natural feed additives apart from antibiotics with the help of modern science. This new generation of growth enhancers includes botanical additives such as appropriate blends of herbs or plant extracts. Herbs and plant extracts used as feed additives include different bio-active ingredients such as alkaloids, bitters, flavonoids, glycosides, mucilage, saponins, and tannins. Therefore, there are various effects expected from herbs and plant extracts—they act on the appetite and intestinal microflora, thereby stimulating pancreatic secretions to increase endogenous enzyme activity and immune system. Many plant products and their constituents have broad antimicrobial activity and antioxidant & sedative properties.
Challenges: Sustainability of feed and livestock chain
The global feed industry is focusing on improving feed efficiency by improving the feed conversion rates for all major livestock and farmed fish species. The feed and livestock industries can achieve sustainability by developing a harmonized environmental footprint methodology, based on life cycle analysis, involving the entire chain. The development of common metrics can also help to calculate a broader range of resource efficiency indicators. Efficient usage of feed ingredients can support the reduction of the environmental impact of livestock farming through resource-efficient feed production. The use of co-products from other processing industries can reduce the pressure on land-grown crops.
By type, the preservatives segment is projected to grow with the highest CAGR in the feed additives market during the 2021-2026 forecast period
The feed preservatives are expected to grow at the highest CAGR over the forecast period. The demand for feed preservatives has increased due to the rising focus of the feed manufacturer on extending the shelf life of the feed. In the last 60 years, significant dietary changes have occurred in livestock bre eding, which has resulted in the increased need and usage of feed preservatives such as mold inhibitors and anticaking agents.
By livestock, the poultry segment is projected to grow with the highest CAGR in the feed additives market during the 2021-2026 forecast period
Based on livestock, the poultry segment is projected to be the largest and fastest-growing segment in the feed additives market. Growing concerns about animal health and consumer preferences for a specific color of yolk and meat has led to increasing demand for poultry feed additives.
By form, dry segment is projected to account for a larger share in the feed additives market during the 2021-2026 forecast period
By form, the feed additives market is segmented into dry and liquid. The dry form has a higher demand among livestock producers, as they are easy to mix with feed and are easy to store and handle. Its availability in pellet and mash forms further allows consumers to have options in terms of mixing techniques, which should support the growth of this segment.
By source, synthetic segment is projected to grow fastest in the feed additives market during the 2021-2026 forecast period
By source, the synthetic segment is anticipated to grow fastest over the forecast period. Easier availability of raw materials and lower production costs are the major factors driving the demand for the synthetic feed additives. Stronger market penetration than the natural segment will also ensure a higher growth rate for synthetic feed additives.
1. European Commission, Animal Feed – Feed Additives, https://ec.europa.eu/food/food/animal-feed/feed-additives_en
2. Food Standards Agency, Business guidance, Animal feed additives, https://www.food.gov.uk/business-guidance/animal-feed-additives
3. Oregon State University, A guide to the principles of animal nutrition, XIX. Feed Additives, https://open.oregonstate.education/animalnutrition/chapter/chapter-19/
4. Regulation (EC) No 1831/2003 of The European Parliament and of The Council, https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32003R1831&from=EN
5. Allied Market Research, Global Animal Feed Additives Market Opportunities and Forecasts, January 2019, https://www.alliedmarketresearch.com/animal-feed-additives-market
6. MarketsandMarkets Research, Feed Additives Market, May 2021, https://www.marketsandmarkets.com/Market-Reports/feed-additives-market-870.html