The Feed Premix Market is expected to reach a value of $12.2 billion by 2028, at a CAGR of 3.7% during the forecast period 2021-2028. Feed premixes’ use as a single ingredient over multiple ingredients, increasing demand for compound animal feed, and increased awareness regarding the safety of meat products are the key factors driving the growth of the Feed Premixe Market. The emergence of developing countries as strong consumers for feed premixes provide significant growth opportunities for market players in the coming years.
The Impact of COVID-19 on the Feed Premix Market
The COVID-19 pandemic has severely impacted many economies around the globe. As a measure to control the spread of this disease and to avoid its associated consequences, governments across the globe announced partial or complete lockdowns, majorly impacting many manufacturing and service industries, including feed premixes.
The outbreak of COVID-19 is a moving target, but all signs point to an ongoing negative global economic outlook. The increased demand for animal feed across the globe is highly hampered by the COVID-19 pandemic, which has resulted in supply chain disruption restricting the product trade. The most immediate threat to “business as usual” in the feed premixes industry lies with supply chain disruptions. While the virus has only begun to impact some regions, down-chain suppliers in key sectors are struggling to meet demand. This quickly became evident with micro-ingredients, such as vitamins and minerals, e.g., the current shortage of feed-grade L-threonine. The closure of factories and ports further strained supplies. For instance, countries such as Romania banned the export to non-EU countries, thereby creating severe demand-supply problems in the feed premixes industry.
On the other hand, China, a major supplier of feed premixes, caused disruptions for global feed producers. Moreover, the supply of containers and vessels was also affected along with the transport of certain micro-ingredients due to China’s logistics issues. The Indian Government ordered the partial closure of its international ports, further disrupting feed premixes supply chain. Also, countries across regions are coping with the impacts of COVID-19, which is expected to hinder the feed premix market to some extent in the next few years. This scenario has lowered the demand for feed premixes.
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Increasing need for compound animal feed drive the demand for feed premixes
Animals continue to make important contributions to the global food supply. As a result, animal feeds have become an increasingly critical component of the integrated food chain. Meeting consumer demand for more meat, milk, eggs, and other livestock products is dependent to a major extent on the availability of regular supplies of appropriate, cost-effective, and safe animal feeds. Thus, the significant increase in global demand for livestock products requires increasing amounts of feed supplies, sources, and alternatives.
World population growth is another important reason to consider alternative, cost-effective, and convenient sources for manufacturing animal feed. In livestock diets, appropriate dietary concentration is one of the most expensive components of feed formulation. Feedstuffs and ingredients, such as vitamins, minerals, amino acids, antibiotics, and colorants, are blended in different proportions to yield the appropriate compound feed for the various animal species. As a result, feed premixes have gained renewed interest in the animal feed industry due to their concentrated energy source and feed efficiency.
The growing requirement for safe and nutrition-rich animal feed has influenced manufacturers to improve their quality and safety while retaining their cost-effectiveness. The use of feed premixes in animal feed shows beneficial animal performance, growth, productivity, and various benefits. According to the International Feed Industry Federation (IFIF), world compound feed production has reached 1 billion tons annually. The growth in production rate, particularly in the developing countries, was higher than in the developed countries.
Moreover, the United Nations Food and Agriculture Organization (FAO) estimates that, by 2050, the demand for food will grow by 60% and that between 2010 and 2050, production of meat is projected to rise by nearly 70%, aquaculture by 90%, and dairy by 55%, creating a huge demand for animal feed. Further, quality-ensured compound feed is a major concern in ensuring food safety along the entire livestock and aquaculture production and supply chain. To cater to the demand for quality meat with increasing meat consumption globally, animal breeders are focusing on boosting animal health and their nutritious diet. Premixes perform the essential role of improving feed nutritional value and performance of animals while preventing them from disorders.
The fortification of feed premixes has been linked to an improvement in animal health and welfare. Consequently, it is emerging as a cost-effective means of improving animal productivity for sustainable and viable food security. This increases the demand for feed premixes from animal feed manufacturers, thereby driving the growth of the global feed premixes market.
Key Findings in the Feed Premix Market Study:
The combination premixes segment to dominate the feed premixes market in 2021
The combination premixes segment is estimated to account for the largest share of the feed premixes market in 2021. The large share of this segment is mainly attributed to the rise in consumption of compound feed, growing demand for vitamin and mineral-enriched foods, and increase in consumer awareness regarding required pet nutrition. However, it is also expected to grow at the highest CAGR during the forecast period.
The powder form segment to dominate the feed premixes market in 2021
The powder form segment is estimated to account for the largest share of the feed premixes market in 2021. The powder segment is estimated to account for the largest share of the feed premixes market in 2021. The large share of this segment is mainly attributed to its advantages over liquid forms, such as better homogeneity, ease of handling, simple transport economics, and better stability of a premix. The powder segment is also expected to grow at the highest CAGR during the forecast period.
The aquafeed segment is projected to grow at the highest CAGR during the forecast period
Based on application, the feed premixes market is segmented into poultry feed, ruminant feed, swine feed, aquafeed, and other feed applications. The poultry feed segment is estimated to account for the largest share of the feed premixes market in 2021. The large share of this segment is mainly attributed to the large demand for poultry feed due to rising poultry meat consumption and poultry farming, especially in developing regions, such as Asia-Pacific and South America. However, the aquafeed segment is expected to grow at the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to the growing focus on balanced commercial diets that promote optimal fish growth and health, increasing global demand for fish and fish products, and rising growth of the aquaculture industry.
Asia-Pacific to be the Fastest-growing Regional Market
The Asia-Pacific region is estimated to account for the largest share of the feed premixes market in 2021, followed by North America, Europe, Latin America, and the Middle East & Africa. The large share of this region is primarily attributed to the growing compound animal feed industry, growing economy, increasing demand for pet food supplementation in emerging and developing countries including India, China, Indonesia, and Thailand, and rising investments from major players in the region. China is expected to dominate the Asia-Pacific market through 2028, mainly due to the changing consumption pattern, increasing awareness level amongst feed customers, industrialization of the livestock sector, incidences of counterfeit meat and other products, and the ban on antibiotics as growth promoters.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key strategies adopted by the leading market participants in the feed premixes market over the last four years. The key players profiled in the feed premixes market are Koninklijke DSM N.V. (Netherlands), BASF SE (Germany), Archer Daniels Midland Company (U.S.), Cargill, Incorporated (U.S.), Nutreco N.V. (Netherlands), InVivo Group (France), Jubilant Pharmova Limited (India), Koninklijke Coöperatie Agrifirm U.A. (Netherlands), Dansk Landbrugs Grovvareselskab a.m.b.a. (Denmark), Phibro Animal Health Corporation (U.S.), Purina Animal Nutrition LLC (U.S.), Burkmann Industries Inc. (U.S.), Danish Agro a.m.b.a. (Denmark), and De Heus Voeders B.V. (Netherlands).
Scope of the Report
Feed Premix Market, by Type
- Combination Premixes
- Vitamin Premixes
- Mineral Premixes
- Amino Acid Premixes
- Nucleotide Premixes
- Fiber Premixes
- Nutraceutical Premixes
- Other Premixes
Feed Premix Market, by Form
Feed Premix Market, by Application
- Poultry Feed
- Ruminant Feed
- Swine Feed
- Aqua Feed
- Other Animal Feed
Feed Premix Market, by Geography
- Asia-Pacific
- China
- India
- Japan
- Australia
- Vietnam
- Philippines
- Indonesia
- Thailand
- Malaysia
- South Korea
- Myanmar
- Taiwan
- Rest of Asia-Pacific (RoAPAC)
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe (RoE)
- Latin America
- Brazil
- Mexico
- Rest of Latin America (RoLATAM)
- Middle East & Africa
Key Questions Answered in the Report: