Natural and organic trend is sweeping the animal feed additives landscape, with the global market experiencing a gradual shift from excessive use of antibiotics to incorporating feed additives made from natural and organic ingredients. Global demand for animal feed additives was worth US$ 14 Bn in 2015, and it is expected to reach US$ 14.33 Bn by 2016-end. Rising consumption of meat and eggs, combined with increasing emphasis on preventing foodborne and zoonotic diseases are expected to contribute to making 2016 another strong year for the global animal feed additives market.

Popularity of frozen food products and fish-meal supplements will continue to create sustained demand for feed additives in 2016 and beyond. Adoption of compound feed over normal feed will gain momentum, implying a changing paradigm shift on account of end-users.

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While declining antibiotic usage will have long-term benefits, it may have a negative short-term impact as manufacturers adjust their modus operandi. Lack of adequate product testing capabilities in developing countries and falling spot prices can also pose challenges to growth in 2016.

Amino acids will continue to be the leading product type segment, ramping up US$ 3.2 Bn worth of revenues in 2016. Demand for amino acids will be driven by their increasing adoption in compound feed, such as methionine and threonine. Among all the product types, binders will witness the fastest growth in 2016 over 2015.

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The poultry segment will remain the largest animal/livestock segment, accounting for nearly 45% revenue share, translating into US$ 6.42 Bn in market value — up from US$ 6.22 Bn in 2015. Demand for feed additives from the poultry segment will continue to grow at higher rate than animal/livestock segments.

Western Europe’s dominance of the animal feed additives market will continue, with revenues totaling US$ 3.86 Bn in 2016, up from US$ 3.78 Bn in 2015. North America will maintain its No. 2 position, followed by Asia Pacific excluding Japan (APEJ).

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Key players operating in the animal feed additives market include BASF SE, Evonik Industries Ag, Cargill, Inc., Koninklijke DSM N.V, Nutreco N.V., Zoetis Inc., Novozymes A/S and Phibro. Focus on product positioning, investment in research and development, and open up manufacturing plants in strategic locations is expected to remain the key business strategy of these leading players.