Market research companies have varying reports including different date ranges about feed preservatives market. In these reports, although there are similar figures and estimates for the same years, there are also highly different estimates. It is possible to say that the average CAGR expectation is 5.8%, according to the evaluation we made on the reports of 7 different research companies published in 2019-20-21-22. According to the data of research companies, if the market is worth US$2.4 billion in 2019, the average market size to be reached by 2027 will be around US$3.6.
By Muhammed Akatay
Feed preservatives are additives that are used to slow down or prevent bacterial growth in animal feed or also enhance animal nutrition. These additives help prolong the shelf life of compound feed by reducing microbial contamination. Antioxidants and mold inhibitors are the most widely used feed preservatives.
Preservatives are mainly available in two forms, namely, natural and artificial preservatives. Artificial preservatives are called synthetic preservatives. Natural preservatives are naturally occurring in various forms like citric acid, rosemary and Vitamin E. They also offer anti-inflammatory health benefits.
The important thing in feed preservatives is to use them at the right time and in the right amount, which can provide many advantages to animal breeders, such as improving the quality of food and animal products, improving the digestive system and increasing the amount of nutrients.
MARKET GROWTH EXPECTATIONS
The total market size of preservatives used for both food and feed are estimated to be US$5.43 billion in 2020. According to the report entitled “Preservatives Market Size, Share & Trends Analysis Report” prepared by Grand View Research, Inc.; the market is expected to expand at a compound annual growth rate (CAGR) of 5.1% from 2020 to 2028.
Feed preservatives have a significant share in the total preservatives market. Market research companies have varying reports on feed preservatives market including different date ranges. In these reports, although there are similar figures and estimates for the same years, there are also highly different estimates. For example, according to MarketsandMarkets Research Private Ltd., in its report entitled “Feed Preservatives Market”, global feed preservatives market is estimated to be valued at US$4.8 billion in 2022 and is projected to reach US$6.7 billion by 2027, recording a CAGR of 6.7%, in terms of value.
Similar figures stand out in Maximize Market Research’s (MMR) report based on 2021 figures. According to MRR’s report, feed preservatives market was valued at US$4.5 billion in 2021. The global market size is expected to grow at a 6.6% CAGR over the forecast period 2022-2027 and reach US$6.6 billion in 2027.
However, there is a difference of almost half in the report published by Market Data Forecast. According to Market Data Forecast, global feed preservatives market was worth US$2.5 billion in 2021 and estimated to be growing at a CAGR of 9.2%, to reach US$3.88 billion by 2026.
According to Verified Market Research’s report, the market size was valued at US$3.1 billion in 2020 and is projected to reach US$5.2 billion by 2028, growing at a CAGR of 3.7% from 2021 to 2028.
It is possible to say that the average CAGR expectation is 5.8%, according to the evaluation we made on the reports of 7 different research companies published in 2019-20-21-22. According to the data of research companies, if the market is worth US$2.4 billion in 2019, the average market size to be reached by 2027 will be around US$3.6.
If we take the lowest market size forecast in 2020 (US$2.9 billion) and 6 reports for the years 2020-21-22, the average growth expectation will be 6.3%. In this case, the size of global feed preservatives market will be around US$3.4 billion in 2027.
The numerical data revealed through the reports are only estimations based on current conditions. Legal regulations, consumer expectations or global problems such as the pandemic we have been experiencing for the last few years are possible changes that may affect the market. Therefore, such changes may lead to very serious differences in growth expectations in the coming years.
MARKET DRIVERS & RESTRAINTS
Increasing consumer demands for food of animal origin, increasing industrialization in livestock, animal health and safe food are listed as factors that will guide the market in the coming period.
According to the report of MarketsandMarkets, the large-scale surging demand for livestock production on the global level has impacted the livestock industry. Drastic meat consumption, a rise in the need for meat and dairy products, and increased demand for eggs are some of the factors driving the market. The increasing demand in the food industry for livestock has significantly increased the demand for feed preservatives.
In feed preservatives market, the natural preservatives segment is thought to offer significant opportunities. According to the report, feed preservatives are used to improve the efficacy of the feed and enhance its shelf-life. However, the extensive use of antibiotics has led to antibiotic-resistant pathogens and their residue in animal products, because of which they can no longer be used to preserve the feeds. The European Union (EU) has imposed a ban on using antibiotics as a growth promoter. The ban of antibiotics has emerged as a growth opportunity for natural feed preservatives. The players operating in market have huge growth prospects and are investing in developing newer and natural feed preservatives.
Maximize Market Research, on the other hand, focuses on the health and safety element in its report. According to the company’s report, the incidences of animal feed damage caused due to fungal and bacterial contamination are driving the market during 2022-2027 forecast period. Further, the feed shows harmful effects which are made without addition of feed preservatives led to increase in demand for preservatives. Moreover, rising demands for eggs and food industry for livestock has significantly increased the demand for food preservatives.
But there are also various restraints that can negatively affect the market. Low-profit margin and lesser availability of end products is one of them. According to the report of MarketsandMarkets, in the animal nutrition industry, it is difficult to achieve high margin. In the last few decades, high-margin products are sold at a lesser volume, which has shrunk the sales volume. Principles of oversupply, over-promising, and under delivering has diminished the available margins and shrunk the sales volume. Under-delivering principles have diminished the available profit and eventually lowered the demand for feed preservatives.
There is a similar assessment in the report of Maximize Market Research. According to the report, in the feed preservatives industry, it is difficult to keep a high margin. Over the last decade, it has been found that high margin seems to decrease the sales volume of the product. Other restraints, according to Maximize Market Research’s report, is cost and regulations: the changing cost of raw materials such as maize, biomass, dextrose, which are used for making feed preservatives and rules and regulations about the usage of feed preservatives are expected to inhibit the growth of feed preservatives.
MARKET STATUS BASED BY TYPE
Based on type; feed preservatives market is classified into feed acidifiers, mold inhibitors, feed antioxidants, and anticaking agents.
According to the report of Maximize Market Research, feed acidifiers segment is dominating the market with largest market share, and predicted to expand during 2022-2027 forecast period. Europe is the largest market for feed acidifiers.
On the other hand, MarketsandMarkets draws attention to the anticaking agents that absorb excess moisture or repel water and oil, thus keeping the feed dry for a long time. According to the company’s report; based on type, anticaking agents segment is projected to grow at the highest CAGR in the market during 2022-2027 forecast period.
Major Players:
Ajinomoto Co.
Akzo Nobel
Albemarle
Alltech
Archer Daniels Midland
Avon Animal Health
BASF SE
Biomin
Adisseo
Brenntag Solutions
Cargill
Celanese Corporation
Corbion
Danisco
Dupont Nutrition & Health
E.I. of the Nemours Bridge and Company
Eastman Chemical Company
Galactic
Hawkins Watts Limited
Impextraco
Jungbunzlauer Suisse
Kemin Industries
Kerry Inc.
Kilo Ltd.
Koninklijke DSM N.V.
Merck Animal Health
Niacet Corporation
Nor-Feed
Novus International
Nutreco
Nutriad International
Perstorp Holding
Pestell Minerals & Ingredients
Saideep Exports
Tate & Lyle Plc
Univar Inc.
Vee Excel Drugs and Pharmaceuticals
Vinayak Ingredients
MARKET STATUS BASED BY LIVESTOCK TYPE
Based on livestock, feed preservatives market is segmented into cattle, poultry, swine and aquaculture. According to many reports, the cattle segment has the largest market share on a global scale. However, in some reports, the poultry segment also stands out. For example, MarketsandMarkets explains in its recently updated report that the largest market share in the feed preservatives market belongs to the poultry segment. According to the report, based on livestock, the poultry segment is estimated to hold the highest market share during 2022-27 forecast period. The increasing demand for eggs for appropriate vitamins and protein is expected to increase the demand for poultry. Additionally, the rise in awareness regarding optimum nutrition and care would boost the demand for feed preservatives in the poultry sector.
Maximize Market Research highlights the cattle segment in its report. According to the report, cattle segment has the largest market share globally and expected to show significant market growth during 2022-27 forecast period. And the poultry market is expected to grow at 6.3% CAGR during the forecast period. Increase in worldwide population is the main element which is likely to drive the market growth.
MARKET STATUS ON REGIONAL BASIS
According to market reports, feed preservatives market was dominated by Europe holding the largest market share globally. It is followed by North America and Asia-Pacific.
According to the report by MarketsandMarkets, feed preservatives market in Europe has been in the growth stage due to the increased focus on feed cost reduction by the regulatory authority. Some of the factors why the region is experiencing growth are a ban on antibiotics by the regulatory authority, investment in R&D by leading companies for technology innovation, increased meat consumption and feed quality.
Maximize Market Research report also supports this finding: Europe has significant dominance in market, it is in growth stage due to feed cost reduction by regulatory authority. However, North America region is also dominating the global market with highest market share and expected to grow further during forecast period.
Resources:
1. MarketsandMarkets Research Private Ltd.; Feed Preservatives Market by Type (Feed Acidifiers, Mold Inhibitors, Feed Antioxidants, Anticaking Agents), Livestock (Poultry, Cattle, Swine, Aquaculture), Feed Type (Compound Feed, Feed Premix, Feed Meal, Silage), and Region – Global Forecast to 2027; Published On May, 2022; Forecast period considered 2022–2027; https://www.marketsandmarkets.com/Market-Reports/feed-preservative-market-260003490.html
2. Maximize Market Research (MMR); Feed Preservatives Market – Global Industry Analysis and Forecast (2021-2027) Trends, Statistics, Dynamics, Segmentation by Type, Livestock, Feed Type and Region; Published Date May 2022; Forecast Period 2022-2027; https://www.maximizemarketresearch.com/market-report/feed-preservatives-market/148474/
3. Verified Market Research (VMR); Global Feed Preservatives Market Size By Type (Feed Acidifiers, Mold Inhibitors, Feed Antioxidants), By Livestock (Cattle, Poultry, Swine), By Geographic Scope And Forecast; Published Date Mar 2022; Forecast Period 2021-2028; https://www.verifiedmarketresearch.com/product/feed-preservatives-market/
4. Market Data Forecast; Feed Preservatives Market – Segmented By Type (Feed Acidifiers, Mold Inhibitors, Antioxidants, Anticaking Agents), By Livestock (Cattle, Poultry, Swine, Aquaculture), By Feed Type (Compound Feed, Feed Premix, Feed Meal, Silage), and By Region – Global Industry Analysis, Size, Share, Growth, Trends, and Forecasts (2021–2027); Published January, 2022; Forecast Period 2022 – 2027; https://www.marketdataforecast.com/market-reports/Feed-preservatives-market
5. Research and Markets; Feed Preservatives – Global Market Trajectory & Analytics; Published April 2021; Forecast Period 2020-2027; https://www.researchandmarkets.com/reports/5302647/feed-preservatives-global-market-trajectory-and
6. Grand View Research, Inc.; Preservatives Market Size, Share & Trends Analysis Report By Type (Natural, Synthetic), By Function (Antimicrobial, Antioxidant), By Application (Food, Feed), By Region (APAC, North America), And Segment Forecasts, 2020 – 2028; Forecast period 2020 – 2028; https://www.grandviewresearch.com/industry-analysis/preservatives-market-report
7. Zion Market Research; Feed Preservatives Market Types (Anticaking Agents, Mold Inhibitors, Feed Acidifiers, And Feed Antioxidants), And Livestock (Aquaculture, Cattle, Swine, Poultry, And Others): Global Industry Perspective, Comprehensive Analysis and Forecast, 2020 – 2026; Published Date 09-Dec-2020; https://www.zionmarketresearch.com/report/feed-preservatives-market
8. MarketResearch.biz; Feed Preservatives Market Covid-19 Impact Analysis, Drivers, Restraints, Opportunities, Threats, Trends, Applications, And Growth Forecast To 2031; Published Date Aug-21; Forecast Period 2022-2031; https://marketresearch.biz/report/feed-preservatives-market/#details
