Feed Additives - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Feed Additives Market size is estimated at USD 36.16 billion in 2024, and is expected to reach USD 45.84 billion by 2029, growing at a CAGR of 4.86% during the forecast period (2024-2029).

• The global feed additives market is a dynamic industry that is driven by different key factors, including increased feed production, growing demand for livestock products, and a rising population of livestock animals. Amino acids, binders, minerals, prebiotics, probiotics, and acidifiers are the major feed additive types used in livestock feed, with amino acids accounting for the largest share of the market in 2022.
• Amino acids play a critical role in the growth and development of animals, and their market value is expected to register a CAGR of 5.0% during the forecast period. Binders, which are used to maintain pellet integrity and prevent fragmentation, were the second major additive type consumed globally in 2022, with a market value that increased by 28.1% between 2017 and 2022.
• Minerals are also an important feed additive type, accounting for 10.8% of the global feed additives market in 2022, with a market value of USD 3,633.6 million. Macrominerals held a major market share of 88.7% in 2022 due to their benefits in stressful circumstances that change an animal's physiological requirements.
• The acidifiers segment is the fastest-growing segment, with a CAGR of 5.6% during the forecast period. Acidifiers are known to improve feed performance in animal nutrition and decrease the uptake of pathogenic organisms and toxic metabolites.
• Therefore, the global feed additives market is expected to grow and register a CAGR of 4.8% during the forecast period, driven by increased feed production, a rising population of livestock animals, and growing demand for livestock products. The major feed additive types, including amino acids, binders, minerals, prebiotics, probiotics, and acidifiers, are expected to continue playing a significant role in the market.

• The feed additives market witnessed significant growth in recent years, primarily due to the increased commercial animal production and compound feed production worldwide. The global feed additives market was valued at USD 33.0 billion in 2022. It is estimated to increase by 32.7% from 2023 to 2029, owing to product innovations and rising demand for sustainable feed additives.
• The Asia-Pacific region dominated the global feed additives market in 2022, accounting for a market value of USD 10.3 billion. This can be attributed to the higher commercial cultivation and subsequent higher feed production, which reached almost 0.5 billion metric tons in 2022. However, the United States was the largest country in the world, representing almost 18.1% of the global feed additives market in 2022. The higher share of the country was due to the higher feed production and usage of additives for commercial animal rearing.
• Amino acids were the largest feed additives in the world, occupying 22.1% of the market share in 2022. This was followed by binders and minerals, which accounted for 13% and 11% of the market share, respectively. The importance of these additives lies in their ability to increase the growth and productivity of animals.
• The poultry segment was the largest and fastest-growing market, accounting for 43.4% of the global feed additives market in 2022. This was followed by the swine (25.4%) and ruminants (25.1%) segments, primarily due to higher feed production and penetration rates concerning these animals.
• The usage of feed additives is expected to drive the market at a CAGR of 4.8% during the forecast period, owing to their ability to enhance feed efficiency and animal functions.

Global Feed Additives Market Trends

High demand for animal protein and poultry products such as eggs with increasing investment in poultry sector is increasing poultry population

• The poultry population has witnessed a significant increase over recent years, primarily due to the growing demand for chicken meat and eggs in daily diets globally. The shift toward poultry products has been driven by the increasing prices of other meat, such as pig meat, in the United States. The consumption of eggs in Europe increased by 4.6% between 2017 and 2021, amounting to 6,135 metric tons in 2021.
• Asia-Pacific is the largest producer of poultry birds, with production registering a 6.6% increase in 2022 compared to 2017. The rise in poultry production is due to the growing demand for animal protein following the outbreak of African Swine Fever, which reduced the pork meat supply. China, which accounts for 40% of global production, has more than 900 million stock-laying hens, and the largest layer poultry farming center can hatch 60 million chicks per year.
• The Middle East is also expected to witness growth in poultry production during the forecast period (2023-2029). Companies such as Almarai in Saudi Arabia have invested heavily in the industry, with USD 1.12 billion spent on establishing new farms to expand production.
• The increasing demand for poultry products and rising investments in the poultry industry are expected to strengthen feed production. This, in turn, is expected to drive the demand for feed additives in the global market during the forecast period. The global poultry industry is poised for significant growth over the coming years, driven by the increasing shift toward poultry products and increasing investments in the industry.

The growing demand for seafood consumption in Asia-Pacific and South America, and government initiatives is increasing the feed production for aquaculture species

• The demand for feed is rapidly increasing due to the expansion of aquaculture, which is driving the growth of compound feed production. In 2022, compound feed production increased by 13.1% over the previous year, and fish feed production increased by 46.3% between 2017 and 2022. The rise in consumption of fish feed is driven by the need to maintain and improve the performance of aquatic animals and increase productivity to meet the growing demand for seafood.
• Fish feed accounted for 73.2% of the global feed market in 2022, as fish is highly consumed and produced in the Asia-Pacific region. Fish was followed by shrimp and other aquatic species in the global market, with shrimp being highly imported by European countries and the United States from other regions. Countries are focusing on expanding aquaculture production to meet the growing demand for seafood. For instance, India increased its budget allocation to the Department of Fisheries from USD 114.1 million in 2020 to USD 168.8 million in 2021 to increase production, which is expected to boost the demand for feed during the forecast period.
• South America is also recording increased feed production, which rose by 46.4% in 2022 from 2017 to reach 5.1 million metric tons, in line with the expansion of aquaculture farming. The region is one of the major seafood-consuming regions, and the increasing demand for seafood is driving the growth of aquaculture production.
• As aquaculture continues to expand to meet the growing demand, the development of the industry and a focus on its expansion are expected to fuel feed production. This increase in feed production for aquatic species is expected to aid in the growth of the aquaculture segment during the forecast period.

Feed Additives Industry Overview

The Feed Additives Market is fragmented, with the top five companies occupying 31.10%. The major players in this market are Adisseo, Archer Daniel Midland Co., DSM Nutritional Products AG, Evonik Industries AG and SHV (Nutreco NV) (sorted alphabetically).

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