(Food-Beverage-News.Com, April 01, 2022 ) The Animal Nutrition Chemicals Market size is estimated to reach $16.3 billion by 2027. Furthermore, it is poised to grow at a CAGR of 6.4% over the forecast period of 2022-2027. The said market has been gaining exponential traction over the last decade or more, particularly owing to the growth of livestock-related feeds and the subsequent by-products. A direct correlation has been identified between the two said factors-> Food Intake Quality and the Meat Output/ Other Output from the Animal. Nutrition has been bifurcated into various aspects such as vitamins and minerals, essential amino acids, dietary fibers, and various others. Activities pertaining to the intake of such factors aid in the processes such as gluconeogenesis, which in turn helps the by-products used by humans and other animals alike. Processes pertaining to energy storage from complex polysaccharides are facilitated by chemicals and nutrition. The shortage of such essential chemicals and nutrition can cause issues such as Feline Urological Syndrome, particularly in cats which can contribute to making bladder stones. Factors such as an increase in the dependence of meat for animal nutrition in both domesticated and livestock populations and the heightening knowledge persistent for healthy dietary intake have been the key drivers for the Animal Nutrition Chemicals Industry for the projected period of 2022-2027.
Animal Nutrition Chemicals Market Segmentation Analysis- By Product Type
The animal nutrition chemicals market based on product type can be further segmented into Amino Acids, Vitamins and Minerals, Enzyme, Fish Oil & Lipid, Carotenoid, Eubiotics, and Others. Amino Acids held a dominant market share in the year 2021. Amino acids are the building blocks for protein synthesis, which in turn helps in muscle and tissue development. Additionally, amino acids also help in various biochemical and metabolic processes. Hence, growth-production-reproduction is majorly facilitated by amino acids. Amino Acids are classified into two categories- essential and non-essential amino acids. The former needs to be provided externally, while the latter can be synthesized within the body of the said animal.
Moreover, Amino Acids is estimated to be the fastest-growing with a CAGR of 7.1% over the forecast period of 2022-2027. A deficiency of amino acids can be seen in the lower production of milk from cattle or bovine animals. As per the USDA, the US average milk per cow has gone down by 1 pound. However, there has been an increase in the US Cow numbers. The statistics demonstrate the need for amino acids in the feed.
Animal Nutrition Chemicals Market Segmentation Analysis- By Application
The animal nutrition chemicals market based on the application can be further segmented into Animal Food Manufacturers, Farms, Households, veterinarians, and Others. Animal Food/Feed Manufacturers held a dominant market share in the year 2021. It is owing to the exponential rise in the adoption of pets in major economies, which have directly resulted in the heightened need for animal nutrition chemicals. For example, owing to the pandemic, a group of researchers went ahead to find the correlation between pet adoption and COVID-19 by using the “RSV” route, RSV= Relative Search Volume. Interestingly, the dog adoption search peaked in April 2020, while the cat adoption trend peaked in May-June 2020. Additionally, one in every five households adopted a pet in 2020, which has directly aided the application segment of animal food manufacturers.
Moreover, Animal Food/Feed Manufacturers are estimated to be the fastest-growing, with a CAGR of 7.2% over the forecast period of 2022-2027. It is owing to the rising needs of sustainable food products demanded by the households and farms supplemented by the growing livestock demand. Factors such as these would aid the market growth.
Animal Nutrition Chemicals Market Segmentation Analysis- By Geography
The animal nutrition market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held a dominant market share of 35% as compared to the other regions in the year 2021. It is owing to the vast proportion of leading R&D companies within the said domain that has been in the likes such as the US and Canada. For example, Cargill has been a leading animal feed and nutrition product manufacturer, which has been headquartered in the US. According to the company statement, their work directly translates into healthy living and food availability for more than 1 billion people and animals. Additionally, they produce close to 18 million metric tons of feed every year.
However, Asia-Pacific is expected to offer lucrative growth opportunities to marketers in the projected period of 2022-2027. It is owing to the growing chemical companies within India and China. Additionally, outsourced feed manufacturing directly lowers the overall cost for companies, which has been a key differentiator for maximizing earning potential amidst supply chain metrics.
Animal Nutrition Chemicals Market Drivers
A rising focus on sustainable production methods has readily supplemented the appropriate nutritional chemicals market
Companies that are manufacturing the end-products are now under tremendous pressure from both government and other demand-related factors to follow sustainable production methods and techniques. Sustainable production methods include the right usage of chemicals and other nutrition, which makes the by-product appropriate for the end-users such as pet owners or poultry owners. Researchers have correlated the intake of nutritional chemicals or pre-form factors directly into healthy products. Additionally, reforms are now being primarily noticed in the livestock production methodologies. For example, in California, a law has been subjugated, which places requirements on the manufacturers and the original producer of the livestock to follow diligent livestock production practices. One of the primary ingredients for making pet food is beef, which holds a value equivalent to $1.2 billion. Protein is required for maintenance, growth, lactation, and reproduction for bovine animals (cattle or later beef). It is a component of muscles, the nervous system, and connective tissue, and hence, feed manufacturers have readily adopted the chemical featurettes.
Increasing consumption of animal-based products has translated into extensive livestock requirements, which in turn has aided the animal nutrition chemicals market
Plant-based meat has been dominant in the last year and a half and has mitigated the overall product innovation in the space of animal-based products; however, the latter has been gaining market space post-vaccination and opening of economies again. For example, Beyond Meat- A predominant manufacturer of plant-based meat, observed a decrement of 15.6% in its revenue, which has propelled them to substantially reduce its profit targets and revenue estimates by up to 25%. The trend has been reflected by other plant-based producers, who are now making animal-based products soar again. Additionally, USDA has projected that demand for beef-pork-poultry would increase by more than 17% by 2030. Owing to such trends, the market has been positioned equivocally.
Soaring feed costs have slimmed the margins for food producers, which has impeded market growth
Pandemic has directly impacted the cost of feed, which has made the profit margins slim and the overall output sub-standard. Companies have been extremely rigorous in terms of inspection of raw materials, and hence, a haywire quality can directly impact in termination of the license of the raw-material contributor. As per a report from Co Bank, there has been a 12% increase in feed costs, and it has been the highest jump since 2011. The following has slimmed down the profit margins, which have forced producers to follow sub-standard practices, but by following such practices, their by-product was readily negated by manufacturers. Owing to such factors, the market’s growth has and will be impeded.
Animal Nutrition Chemicals Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in this market. Animal Nutrition Chemicals top 10 companies include:
Tata Chemicals Ltd
S.p.A.
Evonik Industries AG
Cargill Inc.
Church & Dwight Co. Inc.
BASF SE
Koninklijke DSM NV
Novozymes
Kemin Industries
BalChem
Recent Developments
In October 2021, BASF and Cargill are expanding their partnership in the animal nutrition business, adding research and development capabilities and new markets to the partners’ existing feed enzymes distribution agreements. The companies have come together to propose market solutions that will help them in achieving zero nutrient waste and address customers regardless. Enzymes help animals increase nutrient utilization from feed ingredients. This improves the growth of the animals and reduces nutrient excretion into the environment.
In October 2021, Cargill launched the feed for poultry which contains essential oils which help in laying healthy flocks and also helped in maximizing egg production. The products are- Improved Nutrena, Nature Wise which boost the overall wellness, happiness, and productivity of backyard chickens. The product has been kept under the light of the demands of poultry owners or soon to become poultry owners. The product would enhance the egg weight size and production by also working on enhancing palatability.
In September 2021, Cargill announced a partnership with Dutch Animal Feed Maker on a new animal nutrition production facility within the region of the Netherlands. The move comes as Cargill’s land lease for its production facility in Rotterdam, the Netherlands, will expire. The intended strategic partnership brings together Fuite Group’s world-class animal nutrition manufacturing capabilities with Cargill’s deep global expertise in animal nutrition
Key Takeaways
Geographically, North America held a dominant market share in the year 2021. It is owing to the predominant position of the region for producing cheap raw materials as compared to the other regions. Moreover, Asia-Pacific is expected to offer lucrative growth opportunities to the marketers owing to the growing economies of India and China which are now leveraging technologies to dominate in the chemical sector, which directly benefits the animal nutrition chemical market.
Owing to the growth in livestock production amongst the major economies and the supplemented need to feed appropriate nutritional food has readily benefited the market. However, substandard products and qualities have translated into lower-than-expected yield in benefits have impeded the market growth.
A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Animal Nutrition Chemicals Market Report
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