Global Direct-Fed Microbials Market - 2023-20230

Overview

Global Direct-Fed Microbials Market reached US$ 1,213.2 million in 2022 and is expected to reach US$ 2,122.5 million by 2030, growing with a CAGR of 7.8% during the forecast period 2023-2030.

Global expansion of livestock production acts as a key trend for direct-fed microbials market growth. The growing demand for animal products like meat, eggs, and milk is increasing livestock production. According to FAO, beef, pork, chicken, and sheep meat will each have an increased protein content of 5.9%, 13.1%, 17.8%, and 15.7% by 2030. To meet this increasing demand, there is a greater focus on optimizing animal health and nutrition which drives the DFM market growth.

Antibiotic resistance concerns and their impact on animal agriculture have prompted a decrease in antibiotic usage. In response, direct-fed microbial (DFM) products are increasingly adopted as alternatives to antibiotics for safeguarding animal health and optimizing performance. These microbial solutions offer a more sustainable and effective approach, aligning with the need for cleaner and safer livestock production. As a result, DFM usage is on the rise, contributing to the reduction of antibiotics in animal farming and fostering healthier, more efficient livestock systems.

Poultry holds a significant share of the direct-fed microbial market due to the rising demand for poultry meat and poultry eggs. North America held a significant share of the direct-fed microbial market due to its growing livestock industry. According to the America Feed Industry Association, each year, more than 284 million tonnes of finished feed and pet food are produced in the United States by more than 5,800 animal food manufacturing plants.

Dynamics

Increasing Prevalence of Animal Diseases

The growing outbreak of various animal diseases is boosting the direct-fed microbial market growth. According to the Centers for Disease Control and Prevention, in the United States, enteric diseases connected to animals or their environment are anticipated to be responsible for 450,000 illnesses, 5,000 hospitalizations, and 76 fatalities annually. DFM can enhance the immune function of animals by promoting a balanced gut microbiome

DFM can help reduce stress in animals, which, in turn, makes them less vulnerable to diseases. Reduced stress levels can result in healthier animals and fewer disease-related issues. Animal diseases can result in significant economic losses for livestock producers. By using DFM to prevent diseases, producers can mitigate these losses, leading to improved profitability.

Increasing Demand for Animal Protein

According to FAO projections, the average global consumption of animal proteins will rise by 14% by 2030 compared to the base period average of 2018-2020. To meet this type of rising demand for animal protein, like meat, milk, and eggs, livestock producers are constantly seeking various products to enhance animal performance. The use of DFM contributes to the overall health of livestock. This, further, helps livestock producers meet the growing demand for animal protein more efficiently.

DFM can boost the productivity of livestock, leading to higher production yields per animal. In an environment where demand for animal protein is rising, maximizing productivity becomes crucial for profitability. DFM assists in achieving this goal by optimizing the utilization of nutrients in the feed and promoting healthier growth in animals.

Stringent Regulation

Various international bodies and regulatory authorities, including the US Food and Drug Administration (FDA), European Food Safety Authority (EFSA), European Commission (EC), World Health Organization (WHO), US Center of Veterinary Medicine (CVM), etc. play a vital role in regulating feed additives like direct-fed microbials. They enforce stringent regulations to ensure the safety, quality, and effectiveness of animal probiotics.

Meeting regulatory requirements, including product testing and documentation, can be expensive and time-consuming. Companies have to invest resources in research, quality control, and compliance efforts to ensure their DFM products adhere to specific standards and regulations. These costs can be a barrier to entry for smaller businesses and a burden on established ones.

Segment Analysis

The global direct-fed microbials market is segmented based on type, form, livestock and region.

Growing consumption of Poultry Meat

Poultry is one of the largest and fastest-growing segments of the global livestock. They are farmed for meat and eggs. According to FAO, for the period 2021-30, global consumption of poultry meat is expected to rise to 152 Mt, making up 52% of the increased meat consumed. This extensive poultry product consumption provides a substantial market for direct-fed microbial products to improve poultry's health and growth.

Direct-fed microbials have a substantial impact on the productivity of poultry. By enhancing digestion, nutrient absorption, and overall health, DFM can lead to faster weight gain, increased egg production, and improved feed efficiency in poultry. DFM helps in producing healthier poultry without the use of antibiotics, aligning with consumer expectations.

Geographical Penetration

North America's Growing Animal Protein Consumption

North America has a highly developed and technologically advanced livestock industry. According to the World Animal Foundation, in the U.S., the per capita consumption of broiler, beef, and pork in 2022 was 98.8 pounds, 58.8 pounds and 51.6 pounds respectively. This extensive meat consumption creates a significant market for direct-fed microbial products, as they are widely used to improve animal health, productivity, and sustainability.

Due to concerns about antibiotic resistance and the need for antibiotic alternatives, North America has been actively exploring DFM as a solution. This trend has driven the demand for DFM products in the region. North American consumers have been increasingly seeking natural and sustainable food products, including meat and dairy. The use of DFM in livestock production aligns with consumer preferences for antibiotic-free, environmentally friendly, and healthier animal products.

Competitive Landscape

The major global players include ADM Animal Nutrition, Chr. Hansen Holding A/S, Phibro Animal Health Corporation, Kemin Industries, Inc, Novozymes, Bio-Vet, Evonik Industries AG, Adisseo, The Fertrell Company, CALPIS AMERICA

COVID-19 Impact Analysis

COVID Impact

The pandemic initially disrupted global supply chains, affecting the production and distribution of various agricultural and livestock products, including DFM. This led to shortages and increased costs for DFM manufacturers and farmers. At the outset of the pandemic, there was a decrease in demand for meat products due to supply chain disruptions and changing consumer behavior. This might have affected the DFM market, as these products are often used in animal feed to enhance livestock growth and health.

The DFM market is significant in animal agriculture, particularly in livestock farming. COVID-19 outbreaks in meat processing facilities and disruptions in the food supply chain impacted the livestock industry. However, some farmers might have turned to DFM products to improve animal health and productivity.

Russia- Ukraine War Impact

The conflict disrupted transportation routes and supply chains in the region, it affected the availability of DFM products in affected areas. Manufacturers and distributors faced challenges in moving their products. Geopolitical tensions and conflicts can lead to economic and political instability in affected regions. This instability influenced market dynamics, including demand for DFM products.

Currency devaluations and fluctuations in exchange rates impacted the cost of imported and exported goods, which might affect international trade in DFM products. In times of geopolitical conflict, regulatory changes or restrictions imposed on imports and exports, potentially affect the international trade of DFM products.

By Type

• Lactic Acid Bacteria
  • Lactobacilli
  • Bifidobacteria
  • Streptococcus thermophilus
• Bacillus Bacteria
• Yeast
• Others

By Form

• Dry
• Liquid

By Livestock

• Swine
• Poultry
• Ruminants
• Aquatic Animals
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In January 2023, Danisco Animal Nutrition & Health, a business unit of IFF, announced that it had received approval from the Canadian Food Inspection Agency (CFIA) for Enviva PRO and Syncra SWI. A multi-strain viable microbial product (VMP) called Enviva PRO is being utilized in more than 50 countries and is backed by a wealth of academic research.
• In August 2023, scientists from the University of Minnesota College of Veterinary Medicine and the College of Food, Agricultural, and Natural Resource Sciences discovered that chickens given host-specific probiotic strains were healthier and more productive than chickens given non-host-specific strains.
• On June 09, 2020, With the proprietors of UAS Laboratories LLC ("UAS Labs"), Chr. Hansen Holding A/S has today signed an agreement to acquire 100% of the Wisconsin-based B2B firm that specializes in clinically proven probiotics.

Why Purchase the Report?

• To visualize the global direct-fed microbials market segmentation based on type, form, livestock and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of direct-fed microbials market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global direct-fed microbials market report would provide approximately 61 tables, 59 figures and 189 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies