Opportunity for feed ingredients in developing countries
Increasing demand for protein diets on a global level are fuelling growth in the animal feed ingredients (feed additives) market. However, growth will be less in Europe and North America, due to slow population growth and a decline in meat consumption.
This is the conclusion from an analysis done by Frost & Sullivan that looked at the markets for amino acids, enzymes, minerals, vitamins, organic acids, mycotoxin binders and other animal feed ingredients.
Growth in developing regions
The market earned revenues of USD$17.28 billion in 2014 and estimates this to reach USD$24.48 billion in 2020. Despite the slower growth that is expected in the developed regions such as Europe and North America, the researchers say that developing regions, on the other hand, will be hotspots for animal feed ingredient manufacturers due to anticipated population growth and the continuous shift to Westernised lifestyles.
Feed costs are biggest production costs
“The price volatility of macro feed ingredients due to supply and demand shocks has led to increased feed costs which accounts for about 60 to 70% of livestock production costs,” said Frost & Sullivan Chemicals, Materials & Food Senior Industry Analyst Ms Tosin Jack. “This has led to the quest for alternative feed sources and an increase in the demand for micro feed ingredients.”
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