Animal Feed Probiotics Market (2022-2029)

The growth of this market is attributed to the growing demand for animal protein, the increasing use of probiotics as an alternative to antibiotics, the rising incidence of intestinal disorders in livestock, and the increasing production of compound feed.

Furthermore, the shift toward natural growth promoters is expected to create lucrative opportunities for players operating in this market. However, the complex regulations regarding the use of probiotics in animal feed products are expected to hinder the growth of this market to a notable extent.

The outbreak of the COVID-19 pandemic significantly impacted public health and the supply chain across various industries. Since the COVID-19 outbreak in December 2019, the disease has spread to almost 100 countries worldwide, with the World Health Organization declaring it a public health emergency. The COVID-19 pandemic significantly affected the animal feed probiotics market in 2020.

The global export of chicken, beef, and pork witnessed a significant decline due to the challenges posed by the outbreak of the COVID-19 pandemic. Furthermore, the U.S. government imposed curfews, resulting in many farmers resorting to panic-buying of animal feed to avoid potential shortages. Additionally, the transportation & logistics sector was significantly affected due to employees contracting COVID-19, which reduced deliveries and compelled farmers to stock their animal feed supplies

In addition, truncated air freight capacity, port congestion, roadblocks, and logistic disruptions in Southeast Asia escalated as governments implemented strict measures to curb the spread of COVID-19. The consumption of fish, poultry, pork, and beef declined in Southeast Asian economies during the second quarter of 2020. Thus, the decline in fish consumption, poultry, pork, and beef reduced the market demand for animal feed probiotics

Therefore, the adverse effects on the transportation & logistics industry and reduced production due to lockdowns worldwide negatively affected the animal feed probiotics market in terms of volume sales in 2020 and 2021.

Probiotics are live bacteria and yeasts which induce various health benefits. They restore and balance good bacteria in the digestive system. Probiotics are considered a safe and efficient alternative to antibiotics. According to the Natural Resources Defense Council, in the U.S., antibiotic resistance causes more than 2.8 million infections and leads to between 35,000 and 162,000 deaths of animals each year. Thus, alternative control and management measures are required to effectively manage antibiotic resistance. The increasing need for alternative control and management measures has boosted the demand for environmentally friendly treatments to control antibiotic-resistant diseases in animals, driving the demand for probiotics.

Furthermore, the ban on the use of antibiotics in Europe and the U.S. has created a high demand for natural growth promoters. The Farm Animal Investment Risk and Return Initiative (FAIRR) focuses on protecting public health and creating long-term value. This initiative has convinced 20 global food companies to limit the use of antibiotics in global supply chains. This can be achieved by establishing an antibiotics policy to phase out routine, prophylactic use across all supply chains, specifying clear targets and timelines for implementation, and increasing transparency by reporting on implementation and data verification.

In addition, probiotics are increasingly used in compound animal feed for cattle and poultry to improve animal performance and health. Furthermore, probiotics also help reduce feed intake, feed conversion ratio, and increase feed efficiency. The weekly use of 0.5% of Bifidobacterium and 0.25% of Lactobacillus in poultry feed results in the lowest feed intake is 112.11–112.19 g/day, and the highest egg weight is 60.28 g in the first week (Source: Veterinary World Organization). Additionally, it also increases feed efficiency by 44-45%. Hence, probiotics in the poultry industry help increase production, which is expected to accelerate its demand in the animal feed industry.