global feed supplements market 2014 - 2020
DESCRIPTION
The global animal feed additives industry, which stands at $31.4 billion in 2013, is growing at a CAGR of 4.1% to reach $ 43.2 billion by 2020..TRANSCRIPT
GLOBALFEED SUPPLEMENTS MARKET
Growth Trends, Forecasts &Competition
2014 - 2020
mordorintelligence.com
|Global Feed Supplements Market Sample
1 INTRODUCTION
1.1 Research Methodology
The research methodology can be put into the following sequence:
1) Secondary Research: Information was collected from a number of public and paid data
sources. Public sources involved FAO, publications of the Feed Associations of different
countries, company annual reports, white papers and research publications by recognized
industry experts. Paid data sources include authentic industry databases.
2) Primary Research: After collecting data from secondary sources, primary interviews were
conducted with stakeholders at different points of the feed value chain like manufacturers,
distributors, ingredient suppliers, companies producing enzymes and key opinion leaders of the
industry. Primary research was used both to validate the data points obtained from secondary
research and to fill the data gaps after secondary research.
3) Market Engineering: The market engineering phase involves analysing the data collected,
market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down
approaches are used to arrive at a complete set of data points that give way to valuable
qualitative and quantitative insights. Each data point is verified by the process of data
triangulation to validate the numbers and arrive at close estimates.
4) Expert Validation: The market engineered data is verified and validated by a number of experts,
both in-house and external.
5) Report Writing: After the data is curated by the mentioned highly sophisticated process, the
analysts begin to write the report. Garnering insights from data and forecasts, insights are
drawn to visualize the entire ecosystem in a single report.
|Global Feed Supplements Market Sample
3. MARKET ANALYSIS
3.5 Factors affecting the market
3.5.1. Drivers
The global compound feed market is driven by factors such as increasing meat consumption across the
globe and growth in the processed meat industry. Other factors responsible for growth in the market are
population growth and increase in the income of middle class population in developing countries. The
flexibility to choose from numerous raw materials is also triggering the growth of the industry.
3.5.1.2 Increased awareness regarding quality meat and milk products
Food safety has become an important issue for many governments around the world, especially in
North America and Europe. Consumers around the world are now more aware and informed and giving
importance to the extrinsic quality attributes of the meat they consume. Certain pathogenic and
parasitic contaminations in meat products such as salmonella, listeria and E. coli, along with various
disease outbreaks in livestock animals such as swine flu and foot and mouth disease in the past decade
have raised concerns over meat quality and safety. For example, in January 2011 a meat quality issue
arose in Germany, where a cancer causing dioxin was found in meat products. Taking safety steps,
many countries including South Korea and Slovakia banned pork imports from Germany due to the
health risks involved. Use of compound feed with feed additives such as antibiotics, enzymes, and
vitamins provides balanced nutrition to the animals and protects them against such harmful
environmental influences.
|Global Feed Supplements Market Sample
3.5.2. Restraints
The main obstacle in the growth of aquafeed market is the rising cost of important raw materials such
as Soybean, maize, fish meal and fish oil. Another restraint is the regulatory structure of the animal feed
industry which restricts the use of certain materials such as antibiotics which will enhance the
productivity.
3.5.2.2 Government regulations
Regulatory issues are the biggest constraints in the compound feed industry. Animal feed production
comes under feedstuff regulations in most countries. Regulatory framework is increasingly getting
stringent, such as in the year 2006 in EU and in 2009 in the U.S., when the use of antibiotics as growth
promoters in animals was banned. Europe had also imposed a ban on the use of animal proteins in
aquafeed.
Many countries including China, Thailand, and Vietnam that export fish to Europe and U.S. do not have
such regulations against the use of antibiotics or animal proteins in feed. Such disparities in regulations
have adverse effects on the global fish and aquafeed trade, especially between developed and
developing economies. Producers of feed and feed additives are required to follow strict regulations
related to regional and national health and safety for their products to get approval in developed
nations. This ultimately affects the cost of the final products. Such regulatory initiatives are posing
challenges for existing feed products and are increasing the cost of new feed development.
|Global Feed Supplements Market Sample
3.6 Porter’s Analysis
3.6.5 Threat of Substitutes
Farm-made feed is a substitute to compound feed. The compound feed industry has evolved over the
last five decades with increasing demand for meat, milk and seafood. Farm-made feed, however, has
been in use for centuries. Despite increased efficiency and production of compound feed, a majority of
farmers in Asia-Pacific, South America and South Africa prefer using farm-made feed due to the low
cost. The raw materials required for production are readily available. Moreover any number of raw
materials from a variety of plant sources can be used. Instead of buying costly compound feed, farmers
prefer manufacturing feed in the farm.
Various single substances such as fish meal and fish oil are looked upon as effective alternatives. The
differences in climate and animal species gives rise to demand for tailor-made products. These tailor-
made products become substitutes of the existing product list. With increasing focus on improving feed
efficiency, feed manufacturers are striving to achieve product differentiation by commercializing
innovative products.
Thus, threat from substitutes is high.
|Global Feed Supplements Market Sample
4 MARKET SEGMENTATION BY TYPE
4.1 Introduction
Compound feed contains nutrients and energy sources essential for the health and growth of the
animal. The common ingredients of feed are mineral sources, energy sources, protein sources, etc.
However, not all nutritional requirements of the animal can be met with the common raw materials such
as soybean meal, soy protein concentrate, fish meal, fish oil, rice bran, wheat, corn gluten, etc. Also,
these raw materials do not provide defence against diseases. Hence, feed additives are used in animal
nutrition to improve characteristics of the feed for animal health benefits by improving feed digestibility
and increasing nutritional content and feed palatability. To achieve desired high yield output, livestock
producers are putting external inputs in the form of feed additives for animals other than normal feed
such as cereal crops. A variety of feed additives are blended with the feed in varying quantities,
depending on the livestock as well as the surrounding environment and its impact on the animals.
The global animal feed additive market is primarily dependent on the type of feed, the type of
animal/livestock and the regulatory structure in the market. The industry is witnessing favourable
market trends such as rising demand for high protein diets, especially in the developing economies of
China and Brazil where per capita income is also rising rapidly. The demand for feed additives is also
rising because of increasing facilities for mass meat production.
Animal disease outbreaks such as H1N1 (Influenza A) have resulted in increased concern over meat
quality and safety, and are driving the growth of feed additives for better animal health and disease
protection. The regulatory ban on antibiotics as growth promoters in Europe and U.S. has had a negative
impact on market growth in these regions. Such a ban on antibiotic usage is affecting the global meat
trade between developed (U.S. and Europe) and developing (Brazil, India, and China) nations because of
regulatory disparities.
|Global Feed Supplements Market Sample
4.3 VITAMINS
Vitamins are naturally found in most of the feed stuffs, but to provide proper nutrition, additional vitamin
supplements are mixed in the livestock feed. Major feed vitamin additives added as supplements to the
feed to improve and maintain animal health including vitamin A, D, vitamin E, vitamin K, and riboflavin.
Global demand for vitamin feed additives is expected to show a healthy growth rate.
Vitamin E is an important micronutrient required to prevent muscular weakness in all animals; it
accounted for the largest market share of 30% in the global vitamin feed additives market in 2011. Other
major vitamins consumed as feed additives include vitamin B with a 28% share and vitamin C with a
20% share. Most of these vitamins are consumed as micronutrients and in different combinations to
overcome vitamin deficiencies in different livestock animals. Vitamins are mainly used in minuscule
quantities and sometimes also act as antioxidants and preservatives for animal feed.
Vitamins: Compound Feed market Volume, by Region, 2012-2020 ('000 Metric Tons)
Region 2012 2013 2014 2020 CAGR % 2014-2020
North America XX 1,151.6 XX XX XX
Europe 1,077.7 XX XX XX XX
Asia-Pacific XX XX XX 2,786.1 XX
South America XX XX 445.7 XX XX
ROW XX XX XX XX 3.4
Total XX XX XX XX XX
Source: All About Feed Magazine, The poultry site, The fish site, Primary Interviews, IFIF
|Global Feed Supplements Market Sample
Vitamins: Compound Feed market revenue, by Region, 2012-2020 ($ Million)
Region 2012 2013 2014 2020 CAGR % 2014-2020
North America XX 1603.5 XX XX XX
Europe XX XX XX 2322.1 XX
Asia-Pacific 2011.3 XX XX XX XX
South America XX XX 829.3 XX XX
ROW XX XX XX XX 4.0
Total XX XX XX XX XX
Source: All About Feed Magazine, The poultry site, The fish site, Primary Interviews, IFIF
The fastest CAGR of XX% is expected in the Asia-Pacific market due to increasing meat production
capacities in China, India, Thailand, and Malaysia. The meat industry in countries such as China, Brazil,
and India is increasingly shifting towards industrialization as the market moves from the unorganized
sector (local butcher shops) to the organized sector. This is expected to drive the demand in these
countries as they look to increase their meat exports by meeting international meat standards. Major
players in feed vitamins include BASF, DSM, Adisseo, Danisco, Lonze Group, and Nutreco International.
|Global Feed Supplements Market Sample
7. COMPANY PROFILES
7.4 ALLTECH, INC. 3031, Catnip Hill Pike
Nicholasville
KY 40356
U.S.
Tel: 1-859-8859-613
Fax: 1-859-8856-736
Website: www.alltech.com
OVERVIEW
Founded in 1980, and headquartered at Kentucky, U.S.; Alltech Inc. is engaged in the production and
sale of nutritional products and solutions for the feed industry. The company’s core capabilities lay in
yeast fermentation, peptide technology, and solid state fermentation. It has used these technologies to
offer a range of natural solutions to the animal feed industry for improving animal performance and
profitability. The company carries out research and innovation in various areas such as bioscience
centers, nutrigenomics centers, aquaculture centers, community biorefinery, and quality assurance.
The company has a presence in 128 countries and has 31 manufacturing plants across the globe. Its
operations spread over Europe, Asia-Pacific, Canada, Middle East, and Latin America. Its prime
subsidiaries are Alltech Australia Pty Ltd (Australia), Alltech Biotechnology Romania SRL (Romania),
Alltech (Pty) Ltd (South Africa), Alltechnology C.Z. s.r.o. (Czech Republic), Alltech Deutschland GmbH
(Germany), Alltech Spain S.L. (Spain), and Alltech Venezuela S.C.S. (Venezuela). It employed around
3,000 people in 2013. The company's major competitors are Adisseo France S.A.S (France), Elanco
Animal Health Inc. (U.S.), Novus International Inc. (U.S.), Pfizer Animal Health (U.S.), and Royal DSM N.V.
(The Netherlands).
|Global Feed Supplements Market Sample
FINANCIALS
The company is privately held and do not have any financial details in the public domain.
PRODUCTS & SERVICES
Alltech: Products & Their Description
Product Description
Actigen
The product promotes performance and is available for pigs, poultry, dairy, beef,
aquaculture, equine, rabbits, and pets.
AllzymeSSF
Allzyme SSF is a natural complex that improves profitability by optimal performance of
animals and their diets. It is available for pigs, poultry and aqua.
BIO-MOS
The products are derived from a specific strain of yeast and helps promote animal
performance for pigs, poultry, dairy, beef, aquaculture, equine, rabbits, pets.
BIOPLEX
The products are range of chelated organic trace minerals provides mineral nutrition that
consists of organic Zinc, Copper, Manganese, Iron and Cobalt for all animals species.
DEMP
The products are microbial protein technology which is designed to provide a unique, high
quality protein source to dairy and beef animals.
INCUBATE The products are supplement specifically designed for poultry pre-starter diets fro poultry.
INTEGRAL
The products are patented natural solution to help animals achieve their true potential for
dairy, pig, poultry, equine, companion animals, and aquaculture.
LIFEFORCE The products are all-natural daily nutritional supplement for horses.
MTB-100
The products are natural solution to help animals achieve their true potential for dairy, pig,
poultry, equine, companion animals, and aquaculture.
MYCOSORB
The products reduces mycotoxin absorption in the animal and contributes to the control of
mycotoxins in feed for dairy, pig, poultry, equine, companion animals, and aquaculture.
MYCOSORB-A+
The products reduces mycotoxin adsorption within the animal, thereby negating the
damaging effects of mycotoxins on health of dairy, pig, poultry, equine, companion
animals, and aquaculture.
|Global Feed Supplements Market Sample
Product Description
NUPRO
The products are high quality protein from yeast that contains highly concentrated levels
of essential and functional nutrients which are important in the diets of young pigs, poultry,
ruminants, aquaculture, and pets.
Optigen The products are non-protein nitrogen (NPN) source for ruminants.
SEL-PLEX
The products are organic form of selenium for use in Dairy, beef, poultry, pigs, aquaculture,
equine, companion animals, goats, sheep, toxicity and safety studies, selenium-enriched
food products.
synergen
The products are solid state fermentation of Aspergillus niger for use in pigs, poultry and
aqua.
Yea-sacc
The products are yeast culture based on a proprietary strain of Saccharomyces cerevisiae,
a yeast strain specifically selected for its influence on animal performance.
Source: Company Website and Company Publications
STRATEGY
The company aims to attain $1 billion sales by the year 2015. It strives to increase its geographic
presence by opening offices in Morocco and Pakistan. It also opened a new facility in China and intends
to further increase investments with an aim to triple sales in China within two years.
The company is also focused on developing new products adapted to market needs. Recently, it opened
a new algae fermentation plant in U.S., which offers a new technological frontier with high potential for
the feed industry. The company also started a new center for Animal Nutrigenomics and Applied Animal
Nutrition. The partnership with Norwegian Institute of Food, Fisheries and Aquaculture Research
(Nofima) helps to increase its microalgae role in feed additive and hence to develop new products.
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