Global Fermented Feed Ingredient Market Anticipated to Reach $19.18 Bn by 2023

Monday 3 June 2019, Amsterdam

According to a new market intelligence report titled 'Global Fermented Feed Ingredient Market - Analysis and Forecast, 2018-2023’, the fermented feed ingredient market is expected to reach $19.18 billion by 2023, rising at a CAGR of 9.35% from 2018 to 2023. Market growth is expected to be driven by the gradually growing affinity for safe and healthy feeding solutions as well as the rising demand for sustainable livestock production.

The global food economy is being essentially impacted by the gradual change in the food consumption patterns toward animal proteins. The demand for animal proteins is surging rapidly, and according to the Food and Agriculture Organization (FAO) statistics, this trend is likely to continue till 2050. Livestock demand in developed countries is currently witnessing a stable growth. However, emerging nations, especially countries such as China, India, Brazil, Argentina, and Indonesia are observing a massive growth in their respective livestock product consumptions. This robust growth in the developing regions has been largely propelled by increasing urban population and growing disposable incomes which, in turn, have stimulated the growth in the consumption of animal source foods.

The escalating demand for animal protein across the globe has largely stimulated the need for sustainable feeding solutions. Players operating in the feed sector are striving to improve the nutritional profile for safe and high-quality animal products. Apart from enhancing the nutrient content of the feed, improvement in the feed conversion ratio is another important issue that is being targeted by the companies. Livestock producers across the globe have gradually implemented cost-effective solutions to achieve proper feed utilization and reduce the operational costs. Fermented ingredients for animal feed are gradually gaining high popularity among the farmers, enabling them to reduce production costs and enhance nutrient availability.

According to Sonali Mazumdar, Analyst, “In 2018, amino acids accounted for more than 39% of the total fermented feed ingredient market. Lysine, tryptophan, and threonine are some of the major amino acids used by the producers for feed conversion and growth promotion of the animals. During the forecast period, probiotics and prebiotics segment is expected to display the highest growth of 14.84% owing to the increasing concerns over antibiotics usage in livestock farming. Probiotics and prebiotics are an eco-friendly alternative to antibiotics as they enhance feed efficiency as well as animal performance. Demand for organic acids and enzymes is also expected to witness a healthy growth in the upcoming years.”

As of 2018, the poultry sector was the largest consumer of fermented feed ingredients followed by swine and ruminants. With the increasing demand for poultry meat, poultry producers around the world are largely adopting efficient management techniques and resources. Poultry producers are primarily opting for fermented feed ingredients so as to increase the feed conversion ratio as well as augment the overall yield. Regionally, North America is expected to remain the dominant market for fermented feed ingredients in the forecast period, with the U.S. being the manufacturing hub for majority of the ingredients. However, regions such as Asia-Pacific, Latin America and Middle East are expected to witness a robust growth in the next five years, owing to the increasing demand for healthy animal proteins.

Some of the most prominent players in the fermented feed ingredients market include Koninklijke DSM N.V., Archer Daniels Midland Company, BASF SE, Evonik Industries AG, Ajinomoto Inc., Bluestar Adisseo Company, Chr. Hansen, Cargill Inc., Novozymes A/S, Nutreco, Novus International, Lonza Group AG, and Kerry Group. The competitive landscape for the fermented feed ingredient market demonstrates an inclination toward companies adopting strategies such as mergers and acquisitions as well as business expansions. For instance, in August 2018, Balchem Inc. acquired Bioscreen Technologies to add Bioscreen’s fermented animal nutrition product line to their business line.

The major established players in the market are also focusing on product launches and developments to introduce new technologies or developing further on the existing product portfolio. Key players operating in this market have ramped up their product launch activities over the recent years, in order to generate public awareness about their existing and new products and technologies and compete with the competitors’ product portfolio. For instance, in July 2018 and August 2018, BASF SE launched two animal nutrition feed ingredients, carotenoid Lucantin NXT, and organic acid-based silage additive Lupro-cid NA to enhance feed quality for livestock.

This report is a meticulous compilation of research on more than 100 players in the fermented feed ingredient ecosystem and draws upon insights from in-depth interviews with the key opinion leaders of more than 40 leading companies, market participants, and vendors. The report also profiles 25 leading companies across the fermented feed ingredient supply chain. Key profiles include Koninklijke DSM N.V., Archer Daniels Midland Company, BASF SE, Evonik Industries AG, Ajinomoto Inc., Bluestar Adisseo Company, Chr. Hansen, Cargill Inc., Novozymes A/S, Nutreco, Novus International, Lonza Group AG, and Kerry Group, among others.

Key questions answered in the report:

• What is the global fermented feed ingredients market size in terms of revenue from 2017 to 2023, and what is the expected growth rate during the forecast period 2018-2023?
• What is the revenue generated for different fermented ingredients such as amino acids, vitamins and minerals, enzymes, probiotics and prebiotics, and organic acids?
• What is the revenue generated by the different animal types such as poultry, ruminants, swine, and aquatic animals in the fermented feed ingredients market?
• What is the market size and opportunities of fermented feed ingredients across different regions?
• What is the revenue generated for fermented feed ingredients for different animal and ingredient types in different regions?
• What are the major driving forces that are expected to increase the demand for the global fermented feed ingredients market during the forecast period?
• What are the key trends and opportunities in the market pertaining to global fermented feed ingredients?
• What are the major challenges inhibiting the growth of the global fermented feed ingredients market?
• Which are the major stakeholders across the animal feed supply chain?
• What kind of new strategies are currently being adopted by the existing market players to expand their market position in the industry?
• What is the competitive strength of the key players in the fermented feed ingredients market on the basis of analysis of their recent developments, product offerings, and regional presence?
• What is the regulatory landscape in different regions for fermented feed ingredients?