The feed additives market size is valued at USD 45.38 billion in 2024 and is expected to grow at a CAGR of 5.7%, reaching USD 59.82 billion by 2029. This growth is driven by the global demand for high-quality animal protein. Rising livestock production and a focus on animal health and performance have further fueled market expansion. As populations grow and dietary patterns shift in emerging economies, the need for efficient livestock farming practices to ensure food security has increased. Challenges such as disease outbreaks and feed efficiency in livestock farming have led to the adoption of additives like amino acids, enzymes, probiotics, and vitamins to enhance the nutritional quality of animal feed. Additionally, regulations promoting sustainable livestock farming and reducing antibiotic use are encouraging the use of natural and organic feed additives.
How is the increasing global demand for livestock-based products driving the adoption of feed additives?
The growing demand for livestock-based products, including meat, dairy, and eggs, is driving the adoption of feed additives to enhance animal growth and productivity. Among these, poultry meat plays a pivotal role in global meat production due to its high demand, cost-effectiveness, and affordability across both developed and developing regions. Feed additives are increasingly used to improve the quality and nutritional value of animal feed in response to this rising demand.
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According to the OECD-FAO Agricultural Outlook 2023-2032, global livestock and fish production is projected to grow by 10% over the next decade, with middle- and low-income countries leading this expansion. Poultry meat production, expected to grow by 14%, will account for nearly half of the overall increase in meat production. Much of this growth will occur in regions such as Asia Pacific and Sub-Saharan Africa. Additional productivity gains are anticipated through improved breeding efficiency, herd expansion, and advancements in feeding practices. These developments highlight the critical role of feed additives in enhancing animal productivity, meeting rising consumer demands, and shaping feed additives market growth.
The Role of Europe in Shaping the Global Feed Additives Industry
According to Alltech’s 2024 Agri-Food Outlook, feed production in Europe is generally declining, particularly for beef feed, with only a slight increase in poultry feed. Pig feed production dropped by 3.37% from 2022 to 2023, reflecting a decrease of 2.61 million metric tons (MMT) over the year. The aquaculture sector also saw a reduction, with a decline of 0.12 MMT or 2.58% in Norway. However, pet feed production rose by 3.2%, reaching approximately 354,600 metric tons. These shifts in feed production present a significant opportunity for feed additives, as manufacturers seek innovative solutions to enhance feed efficiency and meet sustainability regulations. Sustainable, high-quality feed additives will continue to address the evolving needs of the livestock and pet industries, promoting better animal health and productivity.
Europe holds a substantial share of the feed additives market, with key industry players such as Evonik Industries AG (Germany), BASF SE (Germany), dsm-firmenich (Switzerland), Novonesis Group (Denmark), Adisseo (France), Solvay (Belgium), and Nutreco (Netherlands). In January 2023, Evonik Industries AG invested USD 26.5 million in MMP production in Wesseling, Germany. In April 2024, Nutreco inaugurated a USD 26.8 million feed plant in Ibadan, Nigeria, aimed at enhancing regional feed supply to support agriculture and aquaculture in the region.
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Liquid Feed Additives Dominate the Form Segment of the Market
Liquid form captures a major feed additives market share. Liquid feed additives are becoming increasingly popular in the feed additives market due to the development of new product formulations that are expected to improve production efficiency and feed quality. For instance, in October 2022, Kemin Animal Nutrition and Health (US) launched its latest MillSAVOR Liquid and Liquid Concentrate, featuring strong surfactants to decrease surface tension in feed particles. This leads to increased milling efficiency with higher throughput and less energy consumption, which consequently increases pellet durability and starch gelatinization.
Synthetic Feed Additives Lead the Market in Meeting Livestock Demand
Synthetic sources dominate the feed additives industry due to their ability to effectively meet the growing demands of the livestock industry. Manufactured on a large scale, chemically synthesized feed additives provide a wide variety of options that help optimize animal farming by ensuring a balanced diet for livestock. These additives are cost-effective, as the synthetic production process can be streamlined and scaled, making them less expensive than those derived from natural sources, which require harvesting and processing. Additionally, synthetic additives have superior bioavailability, meaning that nutrients are more easily absorbed and utilized by animals, promoting better health and growth.
- Cargill, Incorporated (US)
- ADM (US)
- International Flavors & Fragrances Inc. (US)
- Evonik Industries AG (Germany)
- BASF SE (Germany)
- Ajinomoto Co., Inc. (Japan)
- Novonesis Group (Denmark)
- Adisseo (France)
- Solvay (Belgium)
- Nutreco (Netherlands)