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Global animal feed phytogenics market to reach US$ 962.5 M by 2023

The Global animal feed phytogenics market is expected to propel 8.8% CAGR and reach US$ 962.5 million by 2023. This is primarily due to advancements in the feed industry, increased demand for livestock products, the rise in awareness about animal health & feed quality, ban on antibiotics as growth promoters, and the health benefits of phytogenics.

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Definition / Scope

Growing concerns worldwide over Antibiotic Growth Promoters (AGPs) in animal nutrition has resulted in efforts to use alternative ingredients that can effectively replace AGPs; phytogenics being one such alternative. Phytogenics are a new group of feed additives, comprising a wide range of substances that are classified according to the botanical origin, processing, and composition.

Animal feed phytogenics have occupied a special place in the global market. A group of natural growth promoters or non-antibiotic growth promoters used as feed additives, derived from herbs, spices or other plants is called phytogenics. And animal feed phytogenics are the plant-based feed additives used in animal nutrition. There are numerous benefits of phytogenics for animals.

Phytogenics feed additives have plant extracts and show greater modes of action in animal nutrition compared to synthetic, nature-identical substances. Studies suggest that this advantage is based on the synergistic effects of all agents within a plant, which have not been reduced to the effects of a single lead substance. As phytogenics are plant-based and proven to be healthy, there is a global demand for them. [1] [2] [3]

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Market Overview

  • The Global Animal Feed Phytogenics Market size was valued at USD 631.4 million in 2018 and the industry expects gains around 8.8% during the forecast period, 2019 to 2023. It is anticipated the market to reach $962.5 million by 2023 due to the growing adoption of natural products and new technologies[4].
  • The increasing feed production is driving the feed phytogenics industry globally, owing to the antibiotic-free nature and other health-induced benefits of phytogenics in animals. The major drivers of this industry are increasing animal husbandry, implementation of new technology such as encapsulation in feed phytogenics, and increasing focus on untapped markets such as Brazil, Thailand, Vietnam, China, and India. Globally, rising demand for animal products such as meat and eggs and environmental concerns over animal waste pollution are some of the major factors indicating a positive outlook for the feed phytogenics.
  • Despite these growth factors, major concerns related to the growth of the market are the high cost of these natural feed additives and the complex composition of phytogenics feed additives. Asia-Pacific is the fastest-growing market for feed phytogenics with Vietnam, Indonesia, and India majorly contributing to the demand in the region. The Asia Pacific region is estimated to account for the largest share of the global feed phytogenics market in 2018. Growth in population, the rise in disposable income of the population, progressive urbanization in the region, and an increase in demand for quality meat products is estimated to fuel the demand for natural feed additives.
  • The global feed phytogenics market is highly fragmented consisting of various small as well as medium-sized companies and few big players, which have fair competition in the market. Some of the players in the market are DuPont, Adisseo, Biomin GmbH, Delacon Biotechnik GmbH, Pancosma, Phytobiotics Futterzusatzstoffe GmbH, Phytosynthese, and others.
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Key Metrics

Metrics Value Explanation
Base Year 2018 Researched through internet


Market Risks

Phytogenics are of great value for health, strength, and fitness of animals. Globally, people are considering it as the best solution for animals’ health. The positive effects of phytogenics animal feeds have elevated their market demands. However, there are some risks associated with the market of animal feed phytogenics.

Some of the risks are mentioned below:

Less availability of herbs, spices, and useful plants:

  • There is a mass extinction of useful herbs, spices and other plants in nature. There are many plants that are of medicinal values but due to deforestation, haphazard industrialization and urbanization, such plants are very less available.
  • Further contributes to their extinction is the lack of plants’ conservation. The market of animal feed phytogenics directly depends on the availability of herbs, spices, and useful plants and if such plants are not available easily then the market is greatly affected.


Difficulty in usage:

  • Some plants of medicinal value are not easily available. They grow in distant places in adverse conditions. For getting some rare medicinal herbs, it requires skilled human resources, high budget, and other favorable conditions.
  • The cost of animal feed phytogenics rises up while including such herbs and plants. Though such animal feed phytogenics have high quality, the high cost associated with them is not quietly affordable by the customers.


Change in policies of regional and national government policies:

  • Plants are the matter of protection for regional and national government policies. Plants are of great importance in terms of medicinal, cultural, traditional, decorative, environmental value. There are illegal trafficking of medicinal herbs and plants.
  • Lately, the regional and national governments are making policies to cope up with the present extinction situation of plants. This causes difficulty in availability, increment in price and lengthy process to get the required plants.


Plagiarism:

  • Many illegal activities challenge the market of reputed and well-established companies. There is an imitation of packets’ model, design and name and substances with degraded qualities are sold in such fake packets to disrupt the reputation of the original company.
  • Animal feed phytogenics’ companies usually suffer from such illegal misconduct by third parties.


Improper regulation of information:

  • Advertisement and information play a great role in the marketing of the product. The animal feed phytogenics need to be promoted well with proper information.
  • The buyers are mostly unaware of the phytogenics so the retailers must provide them with proper information. Any misunderstanding in the information on animal feed phytogenics causes a great loss to the company and hence to the market.

Top Market Opportunities

There is a secure place for animal feed phytogenics in the market. People are getting conscious and informed about the health of the animals. Animal feed phytogenics have a great scope in the market and some of the market opportunities for them are as follows:

People’s concern for animals:

  • Animals and human beings have always had a relationship. There are lots of personal and business purposes with the animals. People are more concerned about the animals these days. People are providing animals with proper places to live in and nutritious foods for their health. Animal feed phytogenics are the growth promoters and health beneficial additives for animals’ foods.
  • With the personal and business value animals possess, there is demand for animal feed phytogenics in the market. With the increasing number of animals’ adoption by people increases the need for animal feed phytogenics in the market.


Benefits of valuable ingredients:

  • Animal feed phytogenics product is a combination of several plants derived substances and their synergistic effects. There is a great trust in the ingredients of it as it is purely plant based and many scientific researches are performed to test the impact of these ingredients.
  • Additionally, the composition of phytogenics is claimed to be standardized mixture of herbs, spices, other plants and their extracts with proven efficiency. Many of the plants used have anti –inflammatory, anti- parasitic and anti-oxidative properties.


Extension and experience:

  • For any company, the extension of their product globally is a great merit. Animal feed phytogenics are extended in more than 80 countries globally.
  • Furthermore, the experience of service of company to the customers matters the most in the market. The animal feed phytogenics have 30 years of experience in the market.
  • The opportunities to expand in the market are the trust and love of customers for the product which are built by the extension and experience of animal feed phytogenics globally.


Quality of phytogenics:

  • Phytogenics companies have ensured about the quality of the phytogenics. They claim that their production process is seamless and traceable: From introducing new technologies, over their highly-skilled staff who regularly attend training sessions, to strict control mechanisms in every step.
  • Also, they have new innovative and technological equipment for quality check. Another key technology to keep up with phytogenics high-quality standard is the patented, heat resistant microencapsulation process, preventing evaporation of volatile active substances and releasing them in the gastrointestinal of the animal at the right time.


Epidemics and other diseases:

  • Many animals suffer from many epidemics in some time of the year. With the change in season, certain diseases spread in the environment and animals become affected by it. In such situation, the market is flooded by concerned customers who seek for proper phytogenics which fight the disease and do no harm to the animals.
  • According to news published by 'Common Dreams' on 6th June, 2019, the biggest animal disease- Swine Fever spread across Asia. The spreading of diseases or the prevention of diseases requires phytogenics to keep the animals healthy and fit. Spreading of epidemics and other diseases is a great demerit to animals’ health but at the same time, it does contribute for phytogenics market to improve and make a change in the health condition of animals.[5][6]

Market Drivers

There are lots of opportunities for phytogenics and at the same time, there are driving forces for animal feed phytogenics in the global market.

Some of the market drivers are discussed below:

Increasing Production of Animal Feed Driving the Market:

  • The increasing production of feed is driving the feed phytogenics market, owing to the accelerated efficiency and performance and health-induced benefits of phytogenics in animals. The demand for an improved feed conversion ratio and antibiotic-free additives from a growing number of livestock producers are further inducing the need for the botany-based feed additives. According to the Global Feed Survey report published by Alltech in 2018, worldwide feed production has increased from 871.0 million metric tons in 2011 to 1108.5 million metric tons in 2018.[7]
  • The need for superior quality meat and dairy products from health enthusiasts and increasing popularity for natural ingredients in pet food are further leading producers to capture the untapped profits in the phytogenics industry. The global requirement for high volumes of feed and feed additives has resulted in extensive scientific research in the area and is projected to drive the overall market for feed phytogenics in the coming years.


Increasing Demand for Natural Feed Additives

  • The intake of natural feed by livestock has been a common practice for a long time. However, over time there have been significant changes in the approach to providing a natural feed, due to developments in modern livestock farming practices and increased commercialization.
  • This supports the increasing consumption of natural feed additives such as phytogenics. Some of the key benefits associated with the use of phytogenics in feed include increased feed intake, improved gut function, prevention of diarrhea, and antimicrobial and antioxidative effects in livestock.
  • Furthermore, owing to their holistic and broad-spectrum efficacy, phytogenics are increasingly gaining traction among nutritionists, scientists, feed manufacturers, livestock producers, and other industry stakeholders, including a worldwide consumer base trending toward clean label products like organic meat.


New generation call for science:

  • The modern generation purely and primarily depends on science. For their own medicine and their animal medicines, customers trust products that are scientifically tested.
  • The phytogenics companies claim to support their vision with scientific data. Their multinational research and development team includes experts from different academic disciplines. Also, they claim to have a combination of these single fields of expertise that arises in a top-performing knowledge center.
  • The scientific approach to make the qualitative product has attracted millions of customers across the global market.


Rudimentary yet realistic:

  • Phytogenics companies have used the rudimentary belief of “Nature is the healer” and used this belief in realistic way. It has used all sorts of scientific approaches to extract the benefits of plants. This way it has gained the belief of both ancient belief holders and modern scientific belief holders.
  • This simple principle has gained the trust of different types of customers throughout the world.


Sustainable to the environment:

  • Additionally, the growth of the phytogenics industry, which currently stands at $351.9 million globally, is aided by a growing demographic of consumers who favor the use of natural, organic and sustainable feed additives.
  • According to leading company Delacon, its phytogenics feed additives contribute to a sound and sustainable management of natural resources. They improve the utilization of feed inputs and the reduction of ammonia emissions (by about 25%) as well as greenhouse gas emissions (CO2 reduction about 5%; CH4 reduction about 8%).
  • This feature of environment sustainability has gained the trust worldwide. Also, it is one of the greatest positive factors for animal feed phytogenics market.[8]
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Market Restraints

There are some factors restraining the growth of animal feed phytogenics market.

The lower adoption rate in Developing Countries:

  • Awareness of the advantages & disadvantages of feed phytogenics for use in animal nutrition remains low among many livestock producers, especially in developing economies. Despite R&D conducted by key players like Delacon, Nutriad, BIOMIN, and Cargill, education regarding the application of phytogenics with respect to their benefits and dosage levels for different livestock is not widespread, resulting in low adoption rates. This can be a major challenge for the feed phytogenics market.
  • In underdeveloped and developing nations such as India, Myanmar, Indonesia, and African countries, regulations restricting usage of low-cost, conventional ingredients like antibiotic growth promoters in animal feed are less stringent, which has led to lower adoption rates for more expensive phytogenics.


Unawareness of tribal farmers:

  • Farmers in the tribal areas are unaware of the importance of animal feed phytogenics. They rely on traditional methods for their animals’ health.
  • Also, in tribal areas, there is less or no advertisement and information about the animal feed phytogenics. This unawareness of farmers in the tribal region is not allowing them to buy and use the phytogenics.


Restriction for the usage of certain plants:

  • In many of the regions, there is a restriction on the usage of plants. There are different kinds of plants used for different purposes in the phytogenics companies but not all the animals needed could be used. In many places, there are restrictions to using certain important plants which directly affects the manufacture of certain phytogenics.
  • For instance, ‘Cannabis’ plant is very hard to use for medicinal purposes as there are lots of governmental restrictions. Thus, the restriction in usage of important herbs, spices, and plants by the local community or government is another market restraint.


Dynamic nature of customers:

  • Customers' demand is very dynamic. Market has seen lots of customers preferring non-antibiotic growth promoting phytogenics while some minority of customers still prefers antibiotic products.
  • Customers preferring antibiotic growth promoters affect the market of non-antibiotic growth promoting animal feed phytogenics.


Toxic plant theory:

  • There is a belief in people that not all the plants are useful. This arises misunderstanding amongst the customers about the usage of plants in the phytogenics. There are some plants which are poisonous to animals; especially pets like Oleander, Castor Bean, and Cyclamen etc.
  • Phytogenics companies have used every possible scientific techniques to ensure the effects of plant extract but there are still lots of misconception and misunderstandings amongst the customers. Such belief of customers is the decelerating factor for animal feed phytogenics globally[9].

Industry Challenges

Globally, there are lots of challenges for animal feed phytogenics companies. These challenges trigger companies to work on both minor and major aspects of the companies and bring about a positive change. Challenges faced by the phytogenics industry as a whole are listed below:

Extensive research, expensive cost:

  • Phytogenics industries are focusing a lot on the quality of their products. They are using new and advanced technologies to give their customers the best phytogenics. However, this extensive research is causing more expenses to the company and eventually causing a hike in the price of the final product.
  • Thus, it is a matter of challenge for the industries to gibe qualitative products at affordable prices.


Testing on animals:

  • Scientific researches have been often complained due to their animal testing. Some groups of people are protesting about such testing. The people are often worried about the harm to the animals.
  • It is challenging for animal feed phytogenics to ensure animals’ health safety and also to conduct scientific researches.


Extinction of plants:

  • For getting the best phytogenics, many plants are uprooted and used. This is the age of mass destruction and pollution. Over usage of plants can cause a disturbance in the eco system which can eventually hamper the whole planet. Phytogenics companies are using plants in large amount and this can cause the extinction of plants.
  • Thus, the usage of plants without creating its extinction is the greatest challenge for animal feed phytogenics globally.

Technology Trends

  • While feed phytogenics additives have positive effects on livestock health, they can often be difficult to process. Many sources of phytogenics, especially essential oils, are sensitive substances that can lose their efficacy and efficiency after exposure to environmental factors like high temperatures, dust, significant odors, and oxidation.
  • The emergence of new technologies such as encapsulation can extend the shelf life of phytogenics. Encapsulation is a preservation method that packs liquid, gaseous, or solid substances like essential oils within a tiny millimetric capsule, thus protecting them from environmental changes.
  • Some of the key feed phytogenics players – including BIOMIN (Austria) and Delacon (US), use encapsulation technologies to provide better-quality phytogenics to their customers. Encapsulation helps producers and animal growers enhance the efficacy and efficiency of livestock and is expected to further fuel the market growth for feed phytogenics.

Regulatory Trends

  • Growth of the phytogenics industry is facilitated by the rising number of countries outside of the European Union restricting or banning the use of AGPs in animal feed (e.g., China, Brazil, the US) in response to rising consumer concerns over their safety.
  • The use of antibiotics by producers to artificially fatten livestock is also facing a recommendation for a ban in India from the National Antimicrobial Resistance Action Plan committee, thereby fuelling the growth for natural additives like Phytogenics in the Indian market.
  • Stringent regulatory norms towards the ban on the application of antibiotics as animal growth promoters (AGP) in Europe are anticipated to support phytogenics market growth. In March 2015, the European Commission lifted the quota on dairy products which is expected to promote the production of milk products in the region. Increasing the production of dairy products is expected to fuel phytogenics market demand over the next seven years.
  • Restrictive antibiotics use in livestock diet by the European Union and the U.S. is likely to favor feed phytogenics demand. EU-banned antibiotics use as a growth promoter in livestock food in 2006 and the FDA has passed regulation to completely stop its usage, starting January 1, 2017. [10]
  • Stringent regulatory norms towards the ban on the application of antibiotics as animal growth promoters (AGP) in Europe are anticipated to support phytogenics market growth. In March 2015, the European Commission lifted the quota on dairy products which is expected to promote the production of milk products in the region [11].

Market Size and Forecast

The Global Animal Feed Phytogenics Market size was valued at USD 631.4 million in 2018 and the industry expects gains around 8.8% during the forecast period, 2019 to 2023. It is anticipated the market to reach $962.5 million by 2023 due to the growing adoption of natural products and new technologies. [12]


GLOBAL ANIMAL FEED PHYTOGENICS MARKET KEY SEGMENTS

Global animal feed phytogenics market is segmented by Type (Herbs & Spices, Essential Oil, Oleoresins and Others) and Geography (North America, Europe, Asia Pacific, South America and the rest of the world)[13].

Essential oil is a major segment of the global feed phytogenics market. In addition, the Asia Pacific region is an emerging market with investments from several multinational manufacturers, especially in countries such as China, India, New Zealand, and Japan. The Asia-Pacific accounted for the largest market share for feed phytogenics in 2018.


GLOBAL ANIMAL FEED PHYTOGENICS MARKET BY PRODUCT TYPE

On the basis of type, the essential oils segment accounted for the largest market share; this can be attributed to the ban on the use of antibiotics as growth promoters in animal feed. Essential oils can also be used in various blends and have strong aromatic and flavoring properties which drive the demand for these oils as feed additives [14].


Herbs & Spices:

  • It's one of the fastest-growing segments for the global feed phytogenics market. Herbs & Spices is anticipated to account for market share close to 23% of the market. They are suitable alternatives for antibiotic growth promoters owing to the potential risks involved affecting both humans and the environment.
  • The market was worth US$ 140.3 million in 2018 and will reach $220 million in 2023. Herbs and spices are likely to attain growth rates at 9.1 percent up to 2023.


Essential Oil:

  • It's the largest segment for the global feed phytogenics market. Essential oil-based products dominated feed phytogenics market share and accounted for more than 50 percent of the market revenue in 2018. The market was valued at US$ 322.7 million in 2018 and will reach $481.25 million in 2023, growing at a CAGR of 8.2% [15].
  • They are majorly used in swine production for effective weight gain applications. Essential oils are the major additives preferred by the consumers as they are benefiting the farmers in improving animal performance and profitable returns.


Oleoresins:

  • This segment was valued at US$ 112.2 million in 2018 and will reach $178.75 billion in 2023. Oleoresins feed phytogenics market demand may witness gains at over 9.9% by the end of 2023.
  • Dietary supplementation with carvacrol, cinnamaldehyde, and capsicum oleoresin shows improvement in production performance and the concentration of anti-oxidants in the liver of broilers.
  • Moreover, these products impart several beneficial biological properties such as antibacterial, antifungal, antioxidant and anti-inflammatory effects, which may stimulate market growth.


Others:

  • The Others segment is anticipated to grow at a CAGR of 8.3% in the forecast period. They have certain positive effects on livestock health due to their anti-microbial and anti-oxidative effects.
  • The market is estimated to grow from over $ 56.2 million in 2018 to over US$ 82.5 million in 2024.


GLOBAL ANIMAL FEED PHYTOGENICS MARKET BY GEOGRAPHY

Geographically the market is segmented into North America, Europe, Latin America, the rest of the world (RoW) and Asia pacific and which is the highest contributor for meat consumption followed by India and China [16].


North America:

  • North America holds the third position in phytogenics feed additive market, as consumption of antibiotics is still encouraged in these countries. Growing demand for organic meat and increased demand for processed meat and meat products has driven the market and recorded it revenues at $110.78 million in 2018 [17].
  • Demand for phytogenics feed in the region is expected to rise with a CAGR of 7.3% from 2019 to 2023 and expected to cross $157.16 Million. The market is mainly driven by high growth potential in the Mexican and Canadian markets, while the U.S. market is matured comparatively due to high pressure from export countries to deliver and feed safe and natural products for animals.


Europe:

  • The Europe Feed Phytogenics Market was worth USD 177.23 Million in 2018 and estimated to be growing at a CAGR of 8.18%, to reach USD 261.85 Million by 2023 [18].
  • Ban on antibiotics and search for other alternatives are the major drivers of this market. Increasing meat consumption, food safety concerns and improving meat prices in the European continent are important drivers for the growth of the compound feed market.


Asia Pacific:

  • The Asia-Pacific Feed Phytogenics Market was worth USD 221.5 Million in 2018 and estimated to be growing at a CAGR of 11.73%, to reach USD 385.2 Million by 2023. Progress in the animal feed industry has resulted in the feed phytogenics market growing at a substantial rate[19].
  • The growth rate for Asia pacific is likely to improve mainly due to an increase in demand for animal products such as meat and dairy.
  • China is expected to contribute largely towards the animal feed phytogenics market. Countries such as India, Thailand, Vietnam, and Indonesia are estimated to be the fastest-growing markets during the forecast period.


South America:

  • The Latin America Feed Phytogenics Market was worth USD 88.6 Million in 2018 and estimated to be growing at a CAGR of 5.8%, to reach USD 117.1 Million by 2023. The feed phytogenics market is growing at a substantial rate due to the progress in the animal feed industry[20].
  • Rising agricultural production in countries of Latin America, such as Brazil, Mexico, Costa Rica, and Ecuador, on account of implementation of agroecology technologies is expected to ensure raw material access, and is anticipated to open new opportunities for phytogenics market players over the forecast period.


Rest of the World:

  • Other than the growing demand for organic foods, phytogenics are primarily preferred for their production value wherein they considerably reduce the cost of production. The market in the rest of the world is recorded as $33.2 Million in 2018 and estimated to grow at a CAGR of 5.4% during the period of 2019-2023.
  • Globally, rising demand for animal products such as meat and eggs and environmental concerns over animal waste pollution are some of the major factors indicating a positive outlook for the feed phytogenics

[21]

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Market Outlook

  • Global animal feed phytogenics spending is projected to surge to US$962.5 million by 2023 from US$ 631.4 million in 2018, driven by advancements in the feed industry, increased demand for livestock products, the rise in awareness about animal health & feed quality, ban on antibiotics as growth promoters, and health benefits of phytogenics. The market size was 121.5 Kilo tons in 2014 with growth anticipated at 3.0% up to 2022 and register 153.3 Kilotons[22].
  • In 2018, the Asia Pacific region led the global market for feed phytogenics and is anticipated to dominate the market in the forecast period of 2019-2023. Asia-Pacific holds the highest potential for growth in the feed phytogenics industry, globally.
  • The replacement strategy for antibiotic growth promoters and the absence of harmful residues in plant-based additives are majorly driving the demand for feed phytogenics in the Asia-Pacific belt. Vietnam, and Indonesia, among the top feed producing countries in the region, passed respective decrees prohibiting the use of antibiotics for animal growth promotion in 2018. The essential oils segment accounted for the largest share of the global animal feed phytogenics market in 2018[23].
  • Essential oil-based products dominated animal feed phytogenics market share and accounted for over 40% of the total volume in 2018, with consumption exceeding 50 kilotons in 2014. They are majorly used in swine production for effective weight gain applications. The ban on antibiotics growth promoters in regions such as Europe and South Korea has also boosted the demand for feed Phytogenics in poultry, as it includes antimicrobial, antiviral, and/or antioxidant properties.

Technology Roadmap

  • Agroecology technology has the explicit goal of strengthening the sustainability of all parts of the food system, from the seed and the soil to the table, including ecological knowledge, economic viability, and social justice.
  • An agroecological approach includes a number of agricultural methods, such as diversification of crops, conservation tillage, green manures, natural fertilizers, and nitrogen fixation, biological pest control, rainwater harvesting, and production of crops and livestock in ways that store carbon and protect forests.
  • Agroecology approach can help change the global animal feed phytogenics production for the better, and produce enough food to feed a global population estimated to reach almost 10 billion people in the coming decades [24].

Distribution Chain Analysis

  • Biomin, Delacon, and DuPont Danisco, the top three players accounted for 42 percent of the total market revenue in 2018. Biomin has a global presence, which helps consumers identify a wide range of ingredients and the quality of feed additives.
  • Delacon has a global presence as well and offers a range of products for various animal species. Furthermore, it produces microencapsulated essential oils of multiple herbs. All players are keen to increase their market share in conditions where the differentiating offerings are difficult.
  • The marketing effort as such is based on a company's reputation and an individual farmer being convinced about the efficacy of its product [25].

Competitive Landscape

  • The Global animal feed phytogenics industry share is competitive and fragmented among various market participants such as DuPont Danisco, Synthite Industries, Doterra, The Himalaya Drug Company, Biomin Holding GmbH, Dodson and Horrell.
  • Prominent manufacturers are focusing on strategic acquisitions to expand their product portfolio & achieve technological advancement and strategic agreements to expand their distribution network and achieve market growth.
  • The feed Phytogenics market is highly fragmented with the presence of many small and medium-sized companies and a few international players competing in the global market. Some of the players in the market are Cargill, Incorporated, DuPont, Adisseo, Biomin GmbH, Delacon Biotechnik GmbH, Pancosma, Phytobiotics Futterzusatzstoffe GmbH, NOR-FEED, Phytosynthese, and others.

Competitive Factors

  • The key factors companies are focusing on are organic growth strategies such as product launches, product approvals and others such as patents and events. Mergers, Acquisitions, and Partnerships are some of the common inorganic growth strategies activities employed by the companies to increase the range of their products and thus expand their market share.
  • The key players in the Phytogenics market include Biomin, Delacon, Kemin, Phytobiotics, Pancosma, Dostofarm and DuPont. In April 2010, Biomin introduced its new product, Biomin P.E.P., incorporated with the encapsulation technology of essential oils.
  • In October 2010, Meridian launched the Oregon-Stim range of phytogenics animal feed in Brazil aimed at improving bovine growth performance.
  • In February 2012, the European Commission approved the use of Fresta F, an animal feed additive manufactured by Delacon Biotechnik, aimed at improving bovine health and growth performance.
  • In March 2013, Delacon Biotechnik launched two Phytogenics feed additives, Actifor Boost and Actifor Power aimed at improving the performance of ruminants.
  • All these companies are investing huge amounts in R&D focusing on new and innovative products and also for the publicity of such products using the latest available technology.
  • The most adopted strategies of these companies have been strategic partnerships, extensive research and development investments, and mergers and acquisitions. For instance, the strategic partnership between Delacon and Cargill to expand their Phytogenics product portfolio in 2017 has resulted in the availability of four products at the beginning for Chinese producers in early 2019, owing to the growing market for plant-based additives in China.
  • Biomin launched Digestarom DC in 2018, thus expanding the Phytogenics portfolio with new combinations of plant-derived bioactive properties suitable for farm animals. These activities have paved the way for the expansion of business and customer base of market players.

Key Market Players

Company Profiles

Cargill, Incorporated:

  • It provides agricultural products. The Company produces grains and oilseeds and provides farmer services and risk management solutions, as well as offers animal nutrition, biofuels, meat and poultry, food, and industrial products.
  • Cargill serves customers worldwide [26].


Dow-DuPont Inc.:

  • It operates as a chemical company.
  • The Company offers elastomeric photopolymer printing plates, structural and elastic adhesives, fluids, reinforcing composites, foams, coatings, rubber and elastomers, topical ingredients, food ingredients, animal nutrition, biomaterials, water purification technologies, and fibers[27].


Biomin GmbH:

  • Biomin GmbH was founded in 1995.
  • The Company's line of business includes the manufacturing of prepared feeds and feed ingredients for animals and fowls [28].


Delacon Biotechnik GmbH:

  • It was founded in 1987.
  • The company's line of business includes the manufacturing of prepared feeds and feed ingredients for animals and fowls [29].


Pancosma:

  • It produces animal feed.
  • The Company offers nutritional supplements for fish, hens, sheep, cows, buffalos, swine, horses, and rabbits. Pancosma France serves clients worldwide. [30].


Phytosynthese:

  • Phytosynthese develops and manufactures livestock nutrition products.
  • The Company offers animal feed, antibiotics, and chemical medications for ruminants, poultry, and pigs. It conducts business worldwide [31].


Kemin Industries Inc.:

  • It is a bioscience company.
  • It was founded in 1963. The Company manufactures patented and proven additives for human food, vitamins, and personal care products, along with pet food diets, livestock feed, and grain treatment [32].

Strategic Conclusion

  • The growth in the field of animal feed phytogenics is primarily driven by advancements in the animal feed industry, including the implementation of new technologies (like encapsulation), and funding from governments and foreign direct investments (FDIs).
  • However, the high cost of these natural feed additives and complex composition of Phytogenics feed additives are some of the factors restraining the growth of the feed Phytogenics market. In underdeveloped and developing nations such as India, Myanmar, Indonesia, and African countries, regulations restricting usage of lower-cost, conventional ingredients like antibiotic growth promoters in animal feed are less stringent, which has led to lower adoption rates for more expensive Phytogenics.
  • Moreover, these market challenges can be overcome via regulatory interventions by governing bodies, which can increasingly mandate restrictions on the excessive use of antibiotic growth promoters in feed owing to their ill-effects on human health and overall meat safety.
  • The need to increase the 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.
  • Due to the lack of research regarding their efficacy and no standardization of Phytogenics ingredients, customers are strongly influenced by a manufacturer’s reputation, customer service, and pricing. To mitigate these challenges, participants should expand their capabilities to offer a wide range of concentrates, focus on technical know-how, customize their products for product differentiation, and provide robust published research to back their claims.

References

  1. https://www.mordorintelligence.com/industry-reports/global-feed-phytogenicss-market-industry
  2. https://www.delacon.com/phytogenicss
  3. https://en.wikipedia.org/wiki/Phytogenicss#targetText=Phytogenics%20are%20a%20group%20of,herbs%2C%20spices%20or%20other%20plants
  4. https://blog.marketresearch.com/phytogenics-a-surprising-new-trend-in-animal-feed
  5. https://www.delacon.com/phytogenics
  6. https://www.commondreams.org/news/2019/06/06/biggest-animal-disease-outbreak-weve-ever-had-planet-swine-fever-spreads-wildfire
  7. https://www.mordorintelligence.com/industry-reports/global-feed-phytogenics-market-industry
  8. https://www.delacon.com/
  9. https://www.aspcapro.org/resource/shelter-health-poison-control/17-plants-poisonous-pets
  10. https://www.feedstrategy.com/animal-feed-additives/feed-phytogenics-market-to-grow-2-5-percent-by-2022/
  11. https://www.grandviewresearch.com/industry-analysis/phytogenics-market
  12. https://blog.marketresearch.com/phytogenics-a-surprising-new-trend-in-animal-feed
  13. https://www.marketsandmarkets.com/Market-Reports/feed-phytogenics-market-162036047.html
  14. https://www.marketsandmarkets.com/Market-Reports/feed-phytogenics-market-162036047.html
  15. https://www.gminsights.com/industry-analysis/feed-phytogenics-market
  16. https://www.marketsandmarkets.com/Market-Reports/feed-phytogenics-market-162036047.html
  17. https://www.mordorintelligence.com/industry-reports/north-america-feed-phytogenics-market
  18. https://www.marketdataforecast.com/market-reports/europe-feed-phytogenics-market
  19. https://www.marketdataforecast.com/market-reports/asia-pacific-feed-phytogenics-market
  20. https://www.marketdataforecast.com/market-reports/latin-america-feed-phytogenics-market
  21. https://www.mordorintelligence.com/industry-reports/africa-feed-phytogenics-market
  22. https://www.globenewswire.com/news-release/2016/03/29/823524/0/en/Feed-Phytogenics-Market-Phytogenics-Feed-Additives-Market-Size-to-exceed-USD-740-Million-by-2022-Global-Market-Insights-Inc.html
  23. https://www.marketsandmarkets.com/PressReleases/feed-phytogenics.asp
  24. https://www.organicwithoutboundaries.bio/2018/08/08/agroecological-farmers-rethink/
  25. https://www.researchandmarkets.com/reports/4583896/global-animal-feed-Phytogenics-market-forecast
  26. https://www.bloomberg.com/profile/company/3091Z:US
  27. https://www.bloomberg.com/profile/company/DWDP:US
  28. https://www.bloomberg.com/profile/company/0156901D:AV
  29. https://www.bloomberg.com/profile/company/0636929D:AV
  30. https://www.bloomberg.com/profile/company/4710209Z:FP
  31. https://www.bloomberg.com/profile/company/0260027D:FP
  32. https://www.bloomberg.com/profile/company/2742342Z:US

Appendix

List of abbreviations:

  • AGPs: Antibiotic Growth Promoters
  • CAGR: Compound Annual Growth Rate
  • FDIs: Foreign Direct Investments
  • RoW: Rest of the World
  • US$: United States Dollar


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