Increasing awareness among farmers, government initiatives fueling growth
The growth of the Asia-Pacific animal feed additives market during 2007-13 can be credited to increasing awareness among farmers and government initiatives.
The positive impact observed by the usage of feed supplements has increased the growth momentum for the feed additives industry across globe. Emerging regions such as Asia-Pacific, Latin America, Middle East and Africa have witnessed rising demand of better quality meat products particularly from the rising affluent class. Concerns over the meat quality and in order to ensure safety of meat products after the outbreak of different diseases has compelled producers across the chain to focus on the quality of feed for animals. A large number of products have emerged in global feed additives market such as amino acids, enzymes, acidifiers, toxin binders and others.
Amino acids are the most widely used type of feed additives globally. Poultry and swine have been the two major segments accounting for a significant proportion of the animal feed additives market owing to the rising meat demand from these segments.
With an improved economy, the demand for consumption of animal products has shown a rapid increase throughout Asia, thus creating a greater demand for feed additives in the region. This rapid increase in the demand for animal products together with changes in the international trade has led to a great expansion of meat industry in Asia particularly in countries such as China, India, Vietnam and others. Additionally, output of other animal products such as eggs and milk has also grown significantly in the region.
Emergence of new diseases has led to reduced livestock performance in the past which affected the animal products industry significantly by reducing the performance, health and output. In order to reduce such adverse effects, more number of farmers in the region started adding feed supplements along with the feed, giving a rise to the revenues from the feed supplements in the region. Usage of feed additives also results in decreased pollution of land and ground water originating from the livestock.
“The output of milk, meat and eggs in Asia reached 266.9 million tons, 123.2 million tons and 42.5 million tons respectively in 2010,” according to “Asia-Pacific Animal Feed Additives Market Outlook to 2018 – Increasing Demand for Meat Products to Steer Growth” by Ken Research.
The animal feed additives industry of Asia-Pacific would represent a favorable growth rate largely due to the surge in demand for animal products comprising of meat, eggs and milk. As a result of growing world population, the demand for animal protein products would continue to showcase an upward trend. This would continue to boost the revenues derived from the Chinese animal feed additives market. However, a significant decline would be observed in the contribution of China with increasing share of other countries such as Australia, India and New Zealand which are still in the growth stages. Rising affluent middle class in the emerging economies would result in increasing demand of good quality meat consumption and thereby boost the demand for feed supplements.