As our society progresses, we pay more attention to what we eat, how our food is made, and how our activities affect the environment. Growing worldwide population and limited cultivable land hugely pressurize existing resources.
Consumption of meat, the main protein source, is on the rise. Genetically-modified organisms are also gaining acceptance. This is precisely where opportunities lie for feed additive businesses.
Feed additives are catalysts that improve the quality of meat consumed by humans. They are used to protect livestock (sea food, pork, cattle, & poultry) from diseases, boost their weight, and ensure the digestion of essential nutrients. Moreover, feed additives lower vitamin deficiencies.
Additives are classified on the basis of antibiotics, vitamins, amino acids, acidifiers, feed enzymes, and antioxidants. Amino acids, being building blocks for proteins, are abundantly used. Acidifiers promote a healthy gut by regulating intestinal flora, optimizing feed utilization.
Cheers or Jeers?
Despite the obvious benefits of feed additives, all’s not well for manufacturers. The market spends hugely on next-gen products. The fact that various pharmaceutical companies have withdrawn their research does not bode well for the market. Some wonder if the era of blockbuster innovations is gone!
However, experts beg to differ. Scott Hine; Chief Innovations Officer, Novus, opines that biotechnology will remain crucial for innovation ecosystem. He notes that patents have gone up by about 5% over the last two decades. Higher efficiencies should fuel market prospects. This can be possible through increased technology adoption at all farming levels.
What The Future Holds?
Given the current market drivers and restraints, following trends are expected to prevail in the feed additives business.
- High reliance on big data analytics for monitoring farm animals
- Huge role of technology in the manufacture of low-cost feed products
- Large investments in research & developments for nurturing innovations
- Collaborations among market players for deriving synergistic benefits.
Analysts at Grand View Research, Inc. foresee lucrative growth for this business. Process standardization through regulations, due to disease outbreaks (like Swine Flu, SARS, etc.) in animals, would be a key propeller.
A large part of the animal feed industry is methionine, an amino acid, essential for protein synthesis. It has been a constituent of chicken feed for years. The worldwide demand for methionine is estimated to increase by 60, 000 tons/year. Poultry may generate over 38% of the global revenues by 2020.
A product innovation such as Novus’ Cibenza EP 150 enzyme feed additive, will be crucial to this growth. Its unique composition helps it manage ‘bird performance’ variability and optimize feed formulation. Modern production has promoted the health & well-being of animals, while minimizing eco- impact. Thus, animal feed additives play a powerful role in creating a sustainable future.
Content Source: Global Animal Feed Additives Market Analysis By Product, By Livestock Expected to Reach USD 19.54 Billion by 2020