The global animal feed phytogenics market is expected to reach $?776.9 million by 2021, with a CAGR of 17.2% between 2016 and 2021.
This is according to Frost & Sullivan’s recent analysis of the global Animal Feed Phytogenics Market, Forecast to 2021.
The analysis says the double digit growth in the phytogenic market is the result of a number of key drivers:
– Traditional knowledge of the efficacy of herbs in animal husbandry
– New technologies driving growth in the production of compound feed
– Ban on antibiotic growth promoters (AGPs) in Europe
– The natural products trend
“The need to increase digestion, improve feed conversion, boost immunity, and improve overall health by means of natural solutions is becoming increasingly important in countries such as China, Brazil, and the USA, where AGPs are being restricted or banned in the near future,” said Jincy Varghese, Consultant, Agriculture & Nutrition at Frost & Sullivan. “Heightened consumer awareness, safety concerns, and push toward natural, organic, and sustainable feed additives are further factors driving market growth.”
From a regional perspective, Europe is expected to dominate the market with high and sustainable market growth of 18% over the forecast period. The North American market is anticipated to grow at 16.5% with the Asia Pacific market experiencing consistent growth of 17.6% until 2020. Growth in the Rest of World market is expected to remain relatively nascent at 10.7%.
The experts from Frost & Sullivan have identified 6 key trends opening up growth opportunities in the market:
1. Increased popularity of natural solutions in the pet food segment;
2. Consumer push for more natural ingredients and products;
3. Increased affordability of phytogenics due to rising availability and commoditization of various herbs used in phytogenic products;
4. Rising global demand for organic meat variety requiring increased livestock production and higher volumes of feed and feed additives;
5. New technologies such as the encapsulation of active ingredients to enhance the efficacy of phytogenic feed additives; and
6. Emergence of strategic partnerships to strengthen technologies and build expertise in untapped application areas.
“Due to the lack of research regarding their efficacy and no standardisation of phytogenic ingredients, customers are strongly influenced by a manufacturer’s reputation, customer service, and pricing,” noted Varghese. “To mitigate these challenges, participants should expand their capabilities to offer a wide range of concentrates, focus on technical know-how, customise their products for product differentiation, and provide robust published research to back their claims.”