Animal Feed Micronutrient Market

Animal Feed Micronutrient Market Size (2023-2028):

The Global Animal Feed Micronutrient Market size is expected to grow at a CAGR of 6.3% during the forecast period 2023-2028 to reach USD 3.78 billion by 2028 from USD 1.64 billion in 2022.

Market Overview:

Animal feed micronutrients are vital minerals and vitamins that animals need in small quantities to maintain their best health and productivity. Along with minerals like zinc, iron, copper, manganese, boron, and selenium, micronutrients contain vitamins like A, D, E, and B-complex. Micronutrients are essential for many physiological processes, such as growth, boosting the immune system, bone growth, and reproduction. They are commonly added to animal feed to make sure that animals obtain the nutrients they require to maintain good health. The quality of animal-derived products expected for human consumption is increased by ensuring the proper addition of micronutrients in animal diets, which also helps to promote livestock development, reproduction, and overall performance.

Recent Developments in the Global Animal Feed Micronutrient Industry:

• In October 2021, The company's present distribution agreements for feed enzymes were expanded upon by the announcement of their collaboration in the animal nutrition industry, which also included more markets and R&D capabilities. Through this partnership, customer-focused enzyme products and solutions for animals such as swine were developed, manufactured, marketed, and sold.

REPORT COVERAGE:

Drivers:

One of the major drivers of market growth is the surging global demand for animal-based products. The demand is driven by the growing population and changing dietary preferences. To meet this demand, livestock production has to rise, and it becomes increasingly important to provide the best possible animal health, growth, and product quality. Micronutrients are essential for boosting immune systems, increasing feed efficiency, and supporting several physiological activities in animals. Livestock producers are shifting to micronutrient-enriched feed, following regulatory regulations, and resolving micronutrient deficiencies in various regions in response to consumer demands for high-quality and sustainable products. This is contributing to boosting the global animal feed micronutrient market demand globally.

Also, the rising focus on animal health is significantly driving animal feed micronutrient market growth. Animals' strong immune systems, optimum growth, and reproductive health require micronutrients, which include vital vitamins, minerals, and trace elements. The addition of micronutrient-rich feed minimizes consumer concerns about the use of antibiotics as consumer awareness of food quality and safety increases and helps to produce healthier animals. This is supported by regulatory frameworks that ask for higher standards for animal care. As a result of industry players prioritizing an optimal balance between animal health, product quality, and sustainable production practices, the market is experiencing an increase in demand for micronutrient-enriched animal feed.

The global animal feed micronutrient market demand is significantly influenced by government subsidies given to dairy and poultry farmers. These subsidies enable farmers to invest in higher-quality feed by easing financial restrictions. They serve to promote the dairy and poultry sectors for food security and economic stability. Farmers now have access to feed supplements that are micronutrient-rich and improve the health, development, and productivity of livestock. Hence, government subsidies help to develop an environment where micronutrient-rich feed is adopted through affordability and competition, which in turn promotes market expansion.

Restraints:

The global animal feed micronutrient market expansion is severely restricted by the high cost of raw materials. Essential vitamins, minerals, and trace elements are required for the making of animal feed additives, but their costs can fluctuate for several reasons. Prices become unstable and uncertain for both manufacturers and end users as a result of these variable expenses, imposing stress on manufacturers' profit margins. The challenges of passing on increasing costs to customers, a lack of cost flexibility, and potential supply chain interruptions may further limit the market's capacity to expand and stay competitive.

Also, the stringent regulations are significantly limiting the market growth. In addition to increasing complexity and difficulties in product development, manufacturing, and market access, strict regulations are prominent restraints. It takes a lot of resources as well as expertise to meet an array of growing regulatory standards, which could delay product launches and raise operational costs. Due to the prolonged licensing procedures, these laws can also restrict the types of compositions that can be used, restrict international trade, and reduce innovation. This is majorly declining the shares of the market.

Opportunities:

A favorable opportunity for the global animal feed micronutrient market expansion is offered by the expanding food and beverage industry. The demand for animal-based products with increased nutritional value is expanding as consumers place a higher priority on adopting more nutritious and healthier foods. This is supported by micronutrient-enriched feed additives that improve the nutritional value of meat, dairy, and other animal-derived products. A collaboration between these industries can result in innovative product development, supply chain integration, and efficient customer awareness as the food and beverage industry focuses on functional foods, premium products, and ethical considerations. By taking advantage of this opportunity, the market may help to produce high-quality, nutrient-rich animal products that meet the changing preferences of people who are concerned about their health. This can contribute to an increase in market share in the coming years.

COVID-19 Impact on Global Animal Feed Micronutrient Market:

The global animal feed micronutrient market growth was severely affected due to the COVID-19 pandemic. The production of animal feed with micronutrients was decreased because of the disrupted supply chains and restricted transportation, leading to fluctuation in raw material prices and availability. Also, the decreased demand for high-quality animal-based products among end-users due to the closure of various food service sectors resulted in a decline in market sales. Further, the financial restrictions raised as a result of the pandemic hampered the global adoption of animal feed micronutrients by farmers and livestock owners, which overall declined the market growth.

Animal Feed Micronutrient Market Segmentation Analysis:

By Product:

• Manganese
• Iron
• Boron
• Zinc
• Copper
• Others

By product, the zinc segment is anticipated to dominate the market during the projected period. Animals require zinc as it is an essential micronutrient that promotes a variety of physiological processes like immune system support, enzyme activation, and growth regulation. Lack of zinc can cause issues with the skin, stunted growth, and immune system dysfunction. To avoid these issues and maintain health, zinc supplements are commonly added to animal feed, which is boosting the demand for this segment. At the same time, the iron segment is expected to grow at the fastest growth during the forecasted period. Animals require iron as a micronutrient because of its significance to the transport of oxygen, the metabolism of energy, and general growth and development. Anaemia and impaired performance in animals are both effects of iron deficiency. Iron supplements are commonly used in animal feed to promote good health and production in animals. This attribute is influencing the shares of the animal feed micronutrient market in the coming years.

By Application:

• Ruminants
• Swine
• Poultry
• Equine
• Aqua

By application, the poultry segment is anticipated to rule the global animal feed micronutrient market share during the projected period. As species of birds that are raised for their meat and eggs, including chickens, turkeys, and ducks, are included in this segment to maintain their metabolic processes, egg production, and immunological responses, micronutrient supplementation is essential. To meet their nutritional requirements, iron and zinc are often added to the diet, along with other micronutrients, including selenium, vitamin E, and biotin. These factors are inducing the demand for animal feed micronutrients in this segment. However, the swine segment is expected to grow at the fastest rate during the forecasted period. Because swine is mainly raised for meat production and to support their growth and overall functions, micronutrients are crucial. This is boosting the animal feed micronutrient market demand.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

By region, Asia Pacific is ruling the global animal feed micronutrient market share during the forecasted period with a high demand for meat, dairy, and poultry products. However, the Europe region is expected to grow at the fastest rate during the projected period. Owing to variables like various livestock production methods, customer demand for high-quality animal products, and dietary requirements in this region.

Key Players in the Market:

Major Key Players in the Global Animal Feed Micronutrient Market are

• Nutreco
• ADM
• Balchem Inc.
• Kemin Industries Inc.
• Qualitech Inc.
• Zinpro Corp.
• Lallemand Inc.
• Cargill Inc.
• Alltech Inc.