Animal feed micronutrients, as opposed to macronutrients, are the nutrients that are required by the body in trace amounts for optimum development of an organism. Although required in a trace amount, animal feed micronutrients are of utmost necessity for the body to function properly, as many of the essential bodily functions are dependent upon the availability of these micronutrients. Vitamins and minerals are two major segments of the animal feed micronutrients market.
In terms of volume, the ruminants segment exhibits dominancy over other segments consistently, but with a slim margin in the animal feed micronutrients market. Since meat production and consumption is on the steady rise since many years, it has been hard for livestock rearers to keep up with the demand. This has led to a surge in the demand for compound feed and micronutrient products. Aquaculture accounts for a smaller portion of the total animal feed micronutrients consumption, but is replacing wild fishing rapidly because of its sustainable nature and higher demand for fish, globally.
The growing demand for animal feed micronutrients in the agricultural sector is fueled by the growing awareness amongst the agricultural community towards advanced animal husbandry practices and lesser timeframes for livestock production. The growth in the demand for animal feed micronutrients in is also highly attributed to the growing population worldwide, with growing need for dairy and poultry products. Public awareness towards the ethical production of animal products has surged the demand for high quality animal feed micronutrients. Animal feed micronutrients also provide faster results when compared with traditional feeding methods. Hence, more farmers and livestock businesses are making animal feed micronutrients an integral part of the animal feeding regime.
In terms of value, the global animal feed micronutrients market is expected to represent an incremental opportunity of US$ 477 Mn by 2026 end. By livestock, the swine segment is expected to register a CAGR of 4.5 % in the animal feed micronutrients market. The Middle Eastern & African region is expected to register relatively low growth in the animal feed micronutrients market, due to low livestock production and agricultural practices. While Europe region holds the largest share in the animal feed micronutrients market because of high production of compound feed.
Drivers & Restraints
The animal feed micronutrients market is driven by the increasing volume of compound feed that is produced globally. Since most of the feed is produced in developed regions such as North America and Europe, it accounts for a better quality feed with an adequate inclusion of animal feed micronutrients. This is anticipated to increase the demand for animal feed micronutrients further. The concern about the ethical treatment of animals and increasing demand for ethical meat products has led to multiple agri-businesses to opt for animal feed micronutrients.
An increase in GDP, globally, especially in developed countries, has paved the way for animal feed micronutrients to be viewed as an affordable product rather than an expensive one, courtesy to the result that it provides. Asia is the largest producer of fish, worldwide, and as aquaculture and inland fishing practices in Asia increase, so does the demand for animal feed micronutrients.
The higher prices for vitamins and vitamin products in the animal feed micronutrients market has been a hurdle for the market, especially in developed countries, where the agricultural community is not as developed to invest a large amount on animal feed micronutrients. One more hurdle that is recent is the scarce availability of vitamins as animal feed micronutrients, since two of the largest vitamin producers, globally, have stopped production for maintenance reasons from Q4 2017 to late 2018. This has surged the prices of vitamins in the animal feed micronutrients market even further, creating more barriers in the animal feed micronutrients market.
Analysis by Region
On the basis of region, the market in Europe is anticipated to dominate the global animal feed micronutrients market through 2026. Asia Pacific is expected to gain significant market share in revenue terms by 2026 end. Moreover, Asia Pacific is anticipated to exhibit a significant CAGR during the forecast period in the animal feed micronutrients market.
Animal feed micronutrients have been a part of animal feed organically, but with advanced livestock rearing and farming, the acceptance of animal feed micronutrients in the agricultural business as an integral part of the feed industry has been rapid. Vitamins and minerals are two of the major micronutrient classes that are required by animals for their optimum growth and healthy being. Owing to the rapid results that the products provide, animal feed micronutrients have become a necessity for the livestock industry as a whole.
The animal feed micronutrients market has been segmented on the basis of form, type, livestock, and geography. On the basis of form, the animal feed micronutrients market can be segmented into solid and liquid. Among these segments, the solid segment is the most used type of animal feed micronutrients, and is used predominantly in the compound feed industry as well. The solid segment is further sub-segmented into powder and blocks. Depending upon type, the animal feed micronutrients market can be segmented vitamins and minerals. The minerals segment is further sub-segmented into zinc, copper, iron, manganese, blends, and others. Among the minerals, zinc and copper are the most opted-for minerals in the animal feed micronutrients market. The others segment consisting of other necessary animal feed micronutrients is on the rise as well, owing to the availability of novel products and strong advertising efforts by manufacturers. On the basis of livestock, the animal feed micronutrients market can be segmented into ruminants, poultry, swine, aquaculture, and companion animals. The companion animals segment includes pets and other companion animals such as horses.
Market Regional Outlook
On the basis of regional segmentation, the market for animal feed micronutrients is segmented into five different regions: Latin America, North America, Europe, Middle East and Africa, and Asia Pacific. Out of these, Europe region dominated the animal feed micronutrients market, and is predicted to dominate the animal feed micronutrients market for a long period. Countries like China, India, Thailand, and Australia have the major number of consumers for animal feed micronutrients in this region, and the number is growing. Increasing in GDP in developing countries is enabling the consumers to opt for animal feed micronutrients, and since a large share of the economy of developing countries is dependent upon agriculture and animal derived products, the demand for animal feed micronutrients is witnessing an upward trend.
The rising demand for meat and meat products, combined with the rising demand for ethically-derived animal products has driven the demand for animal feed micronutrients upwards. Increased awareness for advanced agricultural practices regarding livestock production has also had a positive impact on the global animal feed micronutrients market, since most of the livestock production comes from developing regions. A majority of the global share adopting animal feed micronutrients as an integral part of the animal diet proves to be a key driver for the animal feed micronutrients market.
The decreased cost of poultry feed, globally, because of the sustainable production of poultry feed, has optimized the budgets of poultry farmers to include more animal feed micronutrient products and maximize their profits. This is anticipated to prove to be a major driver for the animal feed micronutrients market. Market penetration and operation expansion by market players in the animal feed micronutrients is also anticipated to be a driving factor for animal feed micronutrients market, since availability of the animal feed micronutrients in the rural market is also a major issue that the animal feed micronutrient market is facing.
The global demand for dairy products has also risen in the last decade, this has resulted in increase in demand for animal feed micronutrient products, owing to more consumers opting for animal feed micronutrients to maximize their production.
Market Key Players
Some of the key players in the animal feed micronutrients market are BASF SE, Archer Daniels Midland Company, Novus International, Nutreco N.V., Koninkliijke DSM N.V., Prathista Industries Limited Balchem Corporation, Alltech Inc, Cargill, Incorporated, Bluestar Adisseo Company, Kemin Industries, Lallemand Inc., DALLAS KEITH LTD, Nutreco N.V., Novus International, Inc., Purina Animal Nutrition LLC., AG Solutions, Beachport Corporation Pty Ltd, Zinpro Corporation, Bluestar Adisseo Company, DALLAS KEITH LTD, Qualitech Inc., Aries Agro, Prathista Industries Limited, and others.