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U.S. Market for Nutritional Ingredients in Animal Feed
Frost & Sullivan, May 2011, Pages: 107
Benefits of Optimized Productivity and Low Cost Ensure Strong Growth in the U.S. Market for Nutritional Ingredients in Animal Feed
Trends Point to Gravitation toward “Natural” Tag Ingredients
The total U.S. market for nutritional ingredients in animal feed, including vitamins, minerals, and amino acids, was worth $4,614.4 million in 2010. In terms of revenues, amino acids were the top revenue earners, followed by trace minerals, vitamins, and fatty acids. Increased productivity of animal husbandry systems is vital to ensure food security and sustainability for a large section of the population. Nutritional ingredients added to compound feed and supplemented in diets of animals help expedite productivity. As nutritional ingredients are suitably positioned to prevent malnutrition, decrease feed wastage and optimize cost of animal husbandry, the growth for this class of ingredients, therefore, is bright. “Decreasing margins for farmers has led to a demand to increase productivity from farming systems,” notes the analyst of this research service. “Ingredients are concentrated sources, which can reduce the cost of nutrient supplementation by reduced shipping and inclusion costs.”
Although the prospects for the market look upbeat, there are some aspects clouding market momentum. Inclusion rate variability and price pressure are some impediments that participants face in the market for nutritional Ingredients. The greatest challenge, though, comes from a marked lack of innovation compared to other ingredient markets. The constantly changing nature of compound feed, which requires innovation from shelf life stabilizer manufacturers, is another growth bottleneck. Market participants must find ways to provide novel formulations that can address the new feedstock that are being used as animal feed including distillers, dried grains with solubles (DDGS) and oilcake. The market for nutritional ingredients in animal feed is mature but growing, and it is ready for the introduction of new “natural” tag ingredients. Compound feed production has come under pressure in the United States due to many factors. Diversion of feedstock for biofuels and the increasing preference of farmers to grind their own feed is a challenge that nutritional ingredient manufacturers face, as their access to the market becomes more convoluted.
To ensure business progression, participants must organize trade shows and customer awareness campaigns in established markets. Strategic partnerships and alliances between distributors and premix manufacturers to support the field level workers can work in favor of all the participants in the value chain. Products should be customized in case of large herds or flocks even for individual farmers. “Most end users prefer one-stop-shop solutions especially in the case of ingredients that have to be individually dosed.” says the analyst. “Farmers would definitely prefer to pick up all ingredients from one manufacturer or distributor.” Companies that emphasize quality and regulatory compliance will achieve the cutting edge in this competitive space.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Amino acids
- Vitamins
- Minerals
- Fatty acids
This Frost & Sullivan research service titled U.S. Market for Nutritional Ingredients in Animal Feed provides an in-depth analysis of the market drivers and restraints, industry trends, and competitive environment, in addition to the challenges and issues faced by market participants. Species-wise distribution of revenues is provided. Key target species include swine, poultry, ruminants, and others, including equine and aquaculture. In this research, Frost & Sullivan's expert analysts thoroughly examine the following segments: amino acids, vitamins, minerals, and fatty acids.
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