Growth expected in animal feed antioxidants global market
A report by Transparency Market Research has forecast that the animal feed antioxidants market will reach US$216.8 million by 2018, growing at a compound annual growth rate (CAGR) of 4.5% from 2012-2018.
The global animal feed antioxidants market is witnessing growth due to rise in global meat consumption. Moreover, increasing concerns regarding safety of the feed and animal health has resulted in a surge in demand for feed antioxidants.
Demand for animal feed antioxidants was highest in the poultry segment which occupied 34.0% share in the global market in 2011, followed by pork/swine and cattle sector. The consumption of antioxidants by the poultry segment is estimated to grow at a CAGR of 3.8% from 2012 to 2018. These three livestock sectors require plenty of antioxidants in their feed to enhance the feed conversion ratio and to prevent the feed from oxidation to maintain its nutritional value and are expected to maintain their dominance for the next five years.
Asia Pacific accounted for more than 50% of the total animal feed antioxidants market in 2011, followed by North America and Europe. Asia Pacific is also estimated to be the fastest growing market both in terms of revenue and volume. This dominance is driven by high feed wastage, on account of the oxidation process due to the humid climate. Thus Asian consumers are constantly looking for newer and better antioxidant feeds which would have a longer shelf life.
There is a changing consumer preference for natural additives over synthetic additives owing to the aspiration of improving overall health, and due to awareness about the harmful effects of synthetic additives. Natural antioxidants are also gaining momentum in the market, driven by the need to replace synthetic and artificial antioxidants to have cleaner and healthier products. In spite of their higher cost and limitation, the market for natural antioxidants is witnessing growth. Volume consumption of natural animal feed antioxidants is estimated to exhibit CAGR of 4.0% from 2012 to 2018. The market for synthetic feed antioxidants is expected to grow at a CAGR of 3.2% from 2012 to 2018. Companies such as BASF SE, ADM and Danisco are some of the major players in this market.
Source: Transparency Market Research