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Strategic Analysis of the Chinese Feed Additives Markets
Frost & Sullivan, Dec 2006, Pages: 117
Market Overview
Competition Drives the Chinese Feed Additives Market
Competition in the Chinese feed additive industry is fierce, as there are about 1200 to 1500 feed additives manufacturers in the country, including foreign-funded enterprises, joint ventures, and local private enterprises. Even as several foreign companies have invested in China, local participants have increased their scale of operations. 'Price has become the main competition tool in the industry leading to intense competition among market participants, limiting margins and hence profitability,' says the analyst of this research service.
There have also been several mergers and acquisitions, which augur well for the long-term growth of Chinese feed additives market. However, overlapping investment occurs frequently in the market and local feed manufacturers have been slow to respond.
Demand, Awareness and Proven Benefits Boost Growth
Factors driving the market include an increasing demand for meat products, scientifically proven merits of these additives and the growing awareness among end users of their benefits. The consumption and production of meat products, especially poultry and pork is steadily rising and this is likely to drive the growth of the feed additives market in China.
Moreover, many scientific studies prove feed additives to provide benefits when added into the diets of animals. 'Greater awareness among farmers regarding animal husbandry and the need for good quality feeds is another positive factor fostering growth as well as improvements in feed and additive quality,' states the analyst.
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