Unprecedented Rise In Demand For Essential Oil Based Phytogenic Feed Additives To Stimulate Market Outlook

Date of publication : 8/14/2020
Source : https://www.gminsights.com/industry-analysis/feed-phytogenics-market

The global feed phytogenics market, an intrinsic sub-vertical of the food, nutrition, and animal feed industry, has been observing massive growth over the recent years, subject to mounting prevalence of livestock diseases and deteriorating animal health. In fact, reports suggest that livestock producers lose up to USD 21 billion to animal diseases every year. This count also disrupts the living of nearly 1 billion people who rely massively on livestock products like eggs, dairy, and meat. These ultimately call for a magic pill that would help improve the health of livestock- Phytogenics.

Feed phytogenic products form a group of natural growth enhancers derived from essential oils, spices and herbs, and plant extracts. They boast of a wide range of biologically active properties like anti-microbial, anti-inflammatory, digestion enhancement, antioxidative, and others. Some of the potential benefits offered by these include digestion stimulation, enhanced immunity, robust bone and muscle development, and increased feed intake. Apparently, this has prompted the industry majors to take a step ahead in escalated production of such products to a large extent. In this case, the market players partaking in feed additives industry share have been engaging in mergers, collaborations, and acquisitions to realize their developments on a larger scale.

 

One such company, Austria based Delacon, had in 2018 announced investing nearly USD 23 million in new headquarters and a production plant in Upper Austria. The leading phytogenic feed additives producer stated that the new facilities will be built around 13,529 square meters in Engerwitzdorf province of Austria and would comprise of the company’s entire production facility and workspace for about 100 people from distinct departments like quality management, supply chain, IT, R&D, regulatory affairs, finance, and others. Undeniably, this move is expected to bolster the Delacon’s position in the overall business sphere while also provoking other market vendors to stand apart in the market.

This apart, intervention of state and central regulatory bodies is also likely to stimulate the market outlook in the years to come. Say for example, the European Food and Safety Authority regulates issues and concerns associated with feed additives. These regulations are offering help to producers to build high quality and innovative products while guiding farmers on proper dosage, thereby boosting the product sales and demand.

The worldwide feed phytogenics market is characterized by a humongous product spectrum encompassing essential oils, oleoresins, and herbs and spices. However, it is prudent to mention that the demand for essential oils is dramatically rising over the years, thus augmenting the market landscape.

Essential oils are abundantly used as phytogenic feed additives owing to their strong aromatic features and bioactivity. On grounds of the reactive and volatile nature, the product’s effectiveness in animals can be influenced by vivid conditions during production processes, conditions in GI tract of animals, and storage of essential oils. Moreover, an important point to put forth here is that, reports suggest that PFAs containing more volume of essential oils can reduce the environmental impact of livestock industry on the atmosphere by cutting down the emissions of ammonia from pig production, and methane from fermentation in the rumen.

In line with these, the products can also subsequently increase the absorption of amylase and other endogenous enzymes, thereby increasing the marketing potential of essential oils based feed phytogenics market.

Moving ahead, the use of EO based phytogenics feed additives also offers several benefits to the producers, including the likes of improved livestock performance, reduced emissions, and enhanced feed efficiency.

Considering the regional aspects, it has been observed that Asia Pacific is expected to hold a significant position in the overall feed phytogenics industry in the upcoming years, perhaps due to the rising meat consumption in different states and countries of the region, including China, India, Japan, Indonesia, and South Korea. In this context, according to reliable reports, it has been claimed that the meat and seafood consumption in Asian continent is expected to grab a massive share of 78 per cent by the end of 2030, owing to expanding urbanization and shifting preferences towards adopting a protein-rich and healthy diet. Such factors are projected to accelerate the demand for feed phytogenics in the region over the foreseeable time frame.

All in all, driven by a robust product landscape and huge interest towards meat and dairy product consumption, the global feed phytogenics market is anticipated to chart out a lucrative growth path for itself over the forthcoming years, enabling it to account for a valuation of USD 845 million by the end of 2026.

 
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