Phytogenic feed additives (PFAs) offer a promising approach to improve animal health, performance and product quality. The PFAs market is currently driven by a combination of consumer preferences, regulatory pressures, technological advancements, and increasing demand for high-quality meat products. With a current market size of over a billion and a steady CAGR, the market is expected to continue growing in the future, reaching an average size of approximately USD 1.7 billion by 2030.
By Derya Yildiz
Phytogenic feed additives (PFAs) are natural compounds derived from plants such as fruits, vegetables, flowers, herbs and spices. These additives include essential oils, herbs and spices rich in bioactive compounds such as phenols and flavonoids. PFAs are incorporated into animal feed to improve animal health, productivity and general welfare due to their antioxidative, anti-inflammatory, antimicrobial and digestion-enhancing effects. They are emerging as a more sustainable, natural and environmentally friendly alternative to synthetic growth promoters and antibiotics.
PFAs serve several main purposes in livestock nutrition. The first of these is to increase nutrient digestibility, resulting in better feed utilization and lower feed costs. By promoting beneficial gut microbiota, PFAs can both positively affect gut health by reducing inflammation and promote faster growth rates and greater weight gain in animals by improving nutrient digestion and absorption. They can also help prevent a variety of health problems such as digestive disorders, respiratory problems and immune system challenges, reducing the occurrence of diseases.
PFAs are also heavily favored to reduce reliance on antibiotics. In the past, antibiotic growth promoters (AGPs), which were widely used in animal feeds to improve feed utilization and increase growth rates, led to bacterial resistance problems over time and their use was banned in many regions. Today, PFAs are emerging as a natural alternative to AGPs, contributing to a more sustainable and antibiotic-free animal production.
Some PFAs contain essential oils with antioxidant effects that contribute to overall health, enhance the palatability of feed and encourage its consumption, and may also positively affect meat quality attributes such as tenderness, juiciness and flavor.
Phytogenic additives also positively affect consumer acceptance of animal foods. Today, many consumers prefer products from animals raised using natural and sustainable practices.
Consequently, PFAs offer a promising approach to improve animal health, performance and product quality while promoting sustainability and reducing reliance on synthetic additives. As research continues to explore the potential benefits of these natural compounds, their use in livestock production is expected to increase.
PHYTOGENIC FEED ADDITIVES MARKET AND FORECASTS
The global phytogenic feed additives market has gained significant growth momentum due to antibiotic restrictions, increase in animal protein consumption, and growing awareness regarding animal health and welfare. Reports from market research companies also support this growth.
According to a recent report published by Research and Markets, the phytogenic feed additives market will reach a size of USD 1.12 billion by the end of 2024, up from USD 1.04 billion in 2023. The company forecasts a Compound Annual Growth Rate (CAGR) of 7.25% for the market by 2030, during which the total market value will reach USD 1.70 billion.
This optimistic growth outlook is supported by Data Bridge Market Research, which forecasts a market size of approximately USD 940 million for 2023, with the market size growing at a CAGR of 9.2% to reach USD 1.74 billion by 2030.
Precision Business Insights makes a similar forecast, pointing to a market size of USD 978 million in 2023, with growth continuing at a CAGR of 7.4% between 2024 and 2030. This represents a market size of over USD 1.6 billion.
Another supporting report comes from Evolve Business Intelligence. In its report, the company states that the market had a size of USD 960 million in 2023 and predicts that growth will continue at a CAGR of 8.6% between 2023 and 2033, reaching a size of USD 2.14 billion.
All the reports we have evaluated reveal that the global phytogenic feed additives market is showing positive signs of growth. With a current market size of over a billion and a steady CAGR, the market is expected to continue growing in the future, reaching an average size of approximately USD 1.7 billion by 2030. This represents a significant opportunity for investors and stakeholders in the phytogenic feed additives market.
FACTORS SUPPORTING MARKET DEVELOPMENT
The global phytogenic feed additives market is experiencing significant growth, driven by a confluence of factors. Here are some key factors contributing to their market expansion:
Consumer Demand for Natural and Sustainable Food Products
Consumers are increasingly conscious of the environmental impact of their food choices and the welfare of animals. PFAs, being derived from natural sources, align with this growing preference for sustainable and ethical food production.
Stricter Regulations on Antibiotic Use in Animal Feed
Many countries are implementing stricter regulations on the use of antibiotics in animal feed to address concerns about antibiotic resistance. PFAs can provide a viable alternative to antibiotics, helping to improve animal health while reducing the risk of antibiotic-resistant bacteria.
Growing Awareness of the Benefits of PFAs
Research and development efforts have shed light on the numerous benefits of PFAs, including improved animal health, enhanced feed efficiency, and enhanced meat quality. This growing awareness among livestock producers and consumers is driving market growth.
Continued Research and Development Efforts
Ongoing research is focused on identifying new phytogenic compounds with enhanced properties and exploring their potential applications in animal feed. These advancements contribute to the market’s dynamism and growth.
Increasing Animal Protein Consumption and Demand for Quality Meat Products
As the global population grows and dietary preferences shift towards protein-rich diets, the demand for animal-based products (meat, eggs and dairy) is increasing. PFAs play a crucial role in enhancing animal performance, which directly affects meat and milk production. However, the global demand for high quality meat products, especially in developing economies, is fueling the growth of the livestock industry. PFAs can help improve meat quality attributes such as tenderness, juiciness and flavor, making them attractive to producers and consumers.
Favorable Government Policies
Government policies and incentives that support the use of natural and sustainable feed additives can further stimulate market growth. These policies may include subsidies, research funding, or regulations that favor the use of PFAs.
Growing Management of Feed Operating Costs
Efficient feed utilization is critical to profitability in animal production. PFAs provide cost savings by improving nutrient digestibility, reducing inflammation and promoting gut health.
In conclusion, the global phytogenic feed additives market is driven by a combination of consumer preferences, regulatory pressures, technological advancements, and increasing demand for high-quality meat products. As these factors continue to evolve, the market is expected to experience sustained growth in the coming years.
Some PFAs Suppliers In The World:
Addcon Group GmbH
AdiFeed
Adisseo (Nor-Feed)
ADM (Pancosma)
Agrifirm (Agrimprove)
Alltech
Anpario
Avril Group (miXscience)
Ayurvet Limited
BASF SE
Bentoli
Bioven Ingredients
BioZyme Inc.
Cargill – Delacon
Centafarm SRL
Danisco Animal Nutrition & Health (IFF)
Dostofarm
Dr. Eckel Animal Nutrition
dsm-firmenich (Biomin)
Evonik Industries
EW Nutrition
Himalaya Wellness
Impextraco
Kemin Industries
Lallemand Inc.
Life Circle Nutrition
Miavit GmbH
Natura Feed Ingredients
Natural Remedies
Novonesis (Novozymes & Chr. Hansen)
Novus International (BRI International)
Nuqo Feed Additives
Nutreco (Selko Feed Additives)
Nutrex
Nutricare Life Sciences
Orffa International
Perstorp Holding
Phibro Animal Health
Phytobiotics Futterzusatzstoffe
Phytosynthese
Silvateam
Synthite Industries
Vetsfarma
Vinayak Ingredients
Volac International
FACTORS LIMITING MARKET GROWTH
While the global phytogenic feed additives market is experiencing significant growth, certain factors may pose challenges to its continued expansion. These include:
Variability in Phytogenic Compound Efficacy
The efficacy of phytogenic compounds can vary depending on factors such as the plant species, growing conditions, extraction methods, and animal species. This variability can make it difficult to standardize the use of PFAs and ensure consistent results.
Regulatory Hurdles
The regulatory landscape for PFAs can be complex, with varying regulations across different countries. Obtaining regulatory approval for new phytogenic products can be time-consuming and costly, potentially hindering market entry.
High Cost of Production
The production of PFAs can be more expensive than traditional synthetic additives, particularly when high-quality raw materials and extraction methods are used. This higher cost may limit their adoption, especially in regions with lower profit margins.
Lack of Long-Term Studies
While there is growing evidence supporting the benefits of PFAs, long-term studies evaluating their effects on animal health and performance are still limited. This lack of data can make it challenging to fully establish their efficacy and safety.
Competition from Synthetic Feed Additives
Synthetic feed additives, such as antibiotics and growth hormones, have been widely used in the livestock industry for many years. While PFAs offer a more sustainable alternative, they may face competition from established synthetic products, particularly in terms of cost and perceived efficacy.
Consumer Perception and Acceptance
Consumer perception and acceptance of PFAs can influence their adoption. Some consumers may have concerns about the safety or effectiveness of these natural products, which could limit their market penetration.
Complexity in Formulation
Incorporating PFAs into feed formulations requires careful consideration. Their interactions with other feed components, stability, and compatibility can pose challenges for manufacturers.
Market Volatility and Uncertainty
The global market landscape is influenced by various factors—commodity prices, geopolitical events, and economic fluctuations. These uncertainties can impact investment decisions and market growth.
Addressing all these challenges will be crucial for the steady growth of the phytogenic feed additives market. Efforts to standardize production processes, simplify regulatory approvals, reduce production costs, and conduct long-term studies can help overcome these barriers and promote the adoption of PFAs.
MARKET SITUATION BY ANIMAL TYPE
The efficacy and application of PFAs may vary depending on the specific animal species. Poultry is one of the most significant markets for PFAs. Increasing demand for poultry meat and concerns about antibiotic resistance have led to the adoption of natural alternatives. Phytogenic compounds can help increase feed efficiency, improve gut health and reduce the incidence of diseases such as necrotic enteritis in poultry.
Ruminants, including cattle, sheep and goats, represent another large market for PFAs. These additives can help improve rumen function, increase nutrient digestibility and support growth performance. Additionally, phytogenic compounds can contribute to environmental sustainability by reducing methane emissions from ruminants.
The swine industry is also increasingly adopting PFAs to improve pig health and productivity. These additives can help increase feed efficiency, reduce diarrhea and improve meat quality. Moreover, phytogenic compounds can help reduce the negative effects of mycotoxins that can contaminate swine feed.
While the use of PFAs in aquaculture is relatively new, it is gaining momentum. These additives can help improve fish health, growth performance and feed efficiency. Additionally, phytogenic compounds can reduce the risk of disease and improve water quality in aquaculture systems.
MARKET GROWTH ON REGIONAL BASIS
North and South America represent a substantial market for PFAs. Increasing consumer demand for poultry and beef products coupled with growing consumer awareness on natural and sustainable food production has led to rapid adoption of PFAs in the region. In the United States, the most important market in North America, the market has witnessed steady growth due to increasing awareness about natural feed additives.
The Asia-Pacific region is experiencing rapid growth in the phytogenic feed additives market, driven by factors such as increasing livestock production, rising consumer incomes, and growing awareness about animal health and welfare. China, India, and Southeast Asian countries are the major players in this market.
Europe has been a pioneer in the use of PFAs with a strong focus on reducing the use of antibiotics and promoting sustainable livestock production. Countries such as Germany, France and the United Kingdom are major markets in this region.
The Middle East and Africa are emerging markets for PFAs, driven by factors such as growing animal populations and increasing demand for high-quality meat products. However, market penetration of these additives is still relatively low in many countries due to factors such as limited awareness and regulatory challenges.
References
1. Phytogenic Feed Additives in Animal Nutrition | SpringerLink
2. Use of phytogenic products as feed additives for swine and poultry1 | Journal of Animal Science | Oxford Academic (oup.com)
3. Phytogenic Feed Additives as An Alternative to Antibiotic Growth Promoters in Poultry Nutrition | IntechOpen
4. Global Phytogenic Feed Additives Market by Type (Essential Oils, Flavonoids, Oleoresins), Livestock (Aquatic Animals, Poultry, Ruminants), Source, Form, Function – Forecast 2024-2030 (researchandmarkets.com)
5. Phytogenic Feed Additives Market Size & Leading Companies By 2030 (databridgemarketresearch.com)
6. Phytogenic Animal Feed Additives Market Size, Industry (precisionbusinessinsights.com)
7. Phytogenic Feed Additives Market Analysis & Forecast | $2.14B by 2033 (evolvebi.com)
