PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1625210
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1625210
According to Stratistics MRC, the Global Feed Intermediate Chemicals Market is accounted for $14.7 billion in 2024 and is expected to reach $20.6 billion by 2030 growing at a CAGR of 5.7% during the forecast period. Feed intermediate chemicals are substances used as raw materials in the production of more complex chemicals or products. They serve as key components in manufacturing processes, often undergoing further transformations to create final goods such as plastics, pharmaceuticals, and agrochemicals. These chemicals are typically produced in bulk and are integral to the supply chain in various industries. By acting as precursors, feed intermediate chemicals enable the creation of specialized products, contributing to the efficiency and sustainability of industrial operations.
According to the World Health Organization, Global population is projected to reach 9.8 billion in 2050, and 11.2 billion in 2100. According to Crisil Ratings, revenue of the poultry sector in India increased over 30% to US$ 31.4 Bn in FY 2022-23.
Rising global population and protein demand
The rising global population and increasing protein demand are driving growth in the market. As more people require protein-rich diets, particularly from animal sources, there is heightened demand for animal feed additives that optimize growth and health. Feed Intermediate Chemicals, such as amino acids, vitamins, and enzymes, play a critical role in enhancing feed efficiency, ensuring livestock production meets the nutritional needs of a growing global population.
Environmental concerns and sustainability
Environmental concerns and sustainability challenges in the market can lead to negative effects such as increased production costs, regulatory compliance burdens, and limited availability of eco-friendly raw materials. Efforts to reduce environmental impact may require costly innovations or processes, potentially raising prices for feed additives. Additionally, concerns over carbon emissions and waste may slow market growth, as companies face pressure to adopt sustainable practices while balancing profitability and environmental responsibility.
Focus on animal health and nutrition
The market is pivotal in promoting animal health and nutrition by supplying essential additives like amino acids, vitamins, minerals, and enzymes. These chemicals enhance feed quality, improve digestion, and support overall growth and immunity in livestock. By optimizing nutrient absorption, they prevent deficiencies, reduce disease risks, and boost productivity. This market is key to ensuring sustainable animal farming, improving livestock health, and enhancing the quality of animal-based products.
Fluctuating raw material prices
Fluctuating raw material prices in the market can lead to instability in production costs, making it difficult for manufacturers to maintain consistent pricing. These price fluctuations may result in higher production expenses, which could be passed on to consumers, affecting profitability. Additionally, uncertainty in raw material costs can hinder long-term planning, disrupt supply chains, and limit the ability of companies to invest in research and development for new, improved feed additives.
The COVID-19 pandemic negatively impacted the market by disrupting supply chains, causing delays in raw material procurement, and increasing production costs. Lockdowns and labor shortages affected manufacturing capacity, while reduced demand in certain sectors, like foodservice, led to lower consumption of animal-based products. The market faced increased uncertainty, but it gradually rebounded as demand for animal feed and health additives rose, driven by the need for sustainable food production.
The polymers and plastics segment is expected to be the largest during the forecast period
The polymers and plastics segment is expected to account for the largest market share during the projection period as they are used in the production of feed additives, encapsulation materials, and packaging. Polymers help in the controlled release of nutrients, improving feed efficiency and animal health. Plastics are essential for packaging feed products, ensuring freshness and preventing contamination. However, concerns over environmental impact and sustainability are prompting the market to explore eco-friendly alternatives for these materials.
The pharmaceuticals segment is expected to have the highest CAGR during the forecast period
The pharmaceuticals segment is expected to have the highest CAGR during the extrapolated period. Antibiotics, probiotics, and other therapeutic additives are incorporated into animal feed to improve growth, immunity, and disease resistance. These pharmaceuticals help optimize livestock productivity and overall well-being. However, growing concerns about antibiotic resistance and regulatory pressures are driving the market towards more sustainable alternatives, such as natural supplements and plant-based additives.
North America region is projected to account for the largest market share during the forecast period. Key players focus on developing additives like amino acids, vitamins, and minerals to enhance feed efficiency and animal health. The market is also influenced by stringent regulatory standards for animal nutrition and sustainability. Increasing awareness of sustainable practices and rising demand for animal-based products further fuel market growth in the region.
Asia Pacific is expected to register the highest growth rate over the forecast period. Rising awareness about animal health, coupled with consumer demand for safe, quality animal products, is fueling the demand for advanced feed ingredients that improve animal growth, immunity, and overall health. Additionally, Countries like China, India, and Southeast Asia have rapidly expanding aquaculture industries. Feed additives that improve the quality and health of aquatic animals are in high demand.
Key players in the market
Some of the key players in Feed Intermediate Chemicals market include BASF SE, Dow Inc., ExxMobil Chemical Company, SABIC, LyondellBasell Industries, China National Petroleum Corporation (CNPC), Royal Dutch Shell, Mitsubishi Chemical Corporation, Huntsman Corporation, Chevron Phillips Chemical Company, LG Chem, Eastman Chemical Company, AkzoNobel, Arkema, Solvay, Syngenta International AG, Wacker Chemie AG, Clariant, Reliance Industries Limited and Toray Industries, Inc.
In May 2024, Dow and Freepoint Eco-Systems has announced supply agreement to transform plastic waste into new circular products. The supply agreement for 65,000 metric tons of circular feedstock advances the Companies' shared goal to support a circular economy for plastics in North America.
In May 2024, BASF has expanded its biomass balance offering to include BMBCertTM 1,4-butanediol (BDO), tetra-hydrofuran (THF), polytetra-hydrofuran (PolyTHF(R)) and 3-(di-methyl-amino)pro-pyl-amine (DMAPA). In addition to the production site in Ludwigshafen, Germany, the site in Geismar, Louisiana, has also achieved certifications for all these products.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.