Asia-Pacific Feed Additives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia-Pacific feed additives market is projected to register a robust CAGR of 5.5%, over the forecast period, 2022-2027.

The market studied have been moderately affected by the COVID-19 pandemic owing to the closing of manufacturing plants, raising the prices of the end products. However, the impact of COVID-19 is expected to be short term with the re-opening of manufacuring plants, easing of movement restrcitions by various governments which will favour the growth of the market.

Over the medium term, the increasing consumption of meat and animal byproducts worldwide and the growth of the meat industry with the growing incomes with expanding population fuelling, especially in the emerging economies of Asia-Pacific, such as China and India, is expected to drive the growth of the market studied. The total meat and fish consumption in the region is projected to rise by 73%, by 2050, according to a report published by Asia Research & Engagement (ARE) and sponsored by ADM Capital. However, the Food and Agricultural Organization’s (FAO) report on “Mapping Supply and Demand for Animal Produce to 2030” pegs the growth in some regions, such as South Asia, at more than 300%. Furthermore, issues regarding livestock disease outbreak further necessitate the application of various additives to manage and maintain animal health and wellness.

Key Market Trends

Changing Demographics in the Asia-Pacific Region

The demand for meat-based food products is increasing in the Asia-Pacific region, especially in China and India, with rapid population growth and economic growth in these regions. This increased demand for meat protein has triggered increased uptake of feed additives and feed enzymes. Apart from improving nutritional value, feed enzymes are gaining importance for their role in meat quality improvement with concern over the environment.

Even while considering a Business-As-Usual (BAU) scenario, the total meat and fish consumption in the region is projected to rise by 73%, by 2050, according to a report published by Asia Research & Engagement (ARE) and sponsored by ADM Capital. However, the Food and Agricultural Organization’s (FAO) report on “Mapping Supply and Demand for Animal Produce to 2030” pegs the growth in some regions, such as South Asia, at more than 300%.​ The increase in demand can be attributed to the continuous economic growth of countries in these regions that has led to a change in demographics, food habits, and lifestyle. The impact of globalization and urbanization tends to change the mindset of people in the region, where consumers experiment with their food habits. The food habits and eating patterns in the region have currently shifted from cereal and vegetable-based to more meat protein-based, fuelling the growth of the feed additives market.

China Leads the Asia-Pacific Market

The Chinese feed additives market is expected to register a CAGR of 5.9%, during the forecast period (2022-2027). Chinese animal feed additive industry is heavily influenced by the governmental initiatives such as the country’s efforts to modernize and find efficiencies in its structure and practices. Increasing demand for meat and animal products to meet the protein needs of the growing population of 1.38 billion is considered as the major driver for the Chinese animal feed additive market. China is among the worlds greatest consumer of meat. While pork is the most widely eaten meat in China, the consumption of beef and chicken is rising steadily in the country outpacing that of the major meat consuming nations worldwide. In recent years, large scale hog producers in China have been very focused on restocking. According to the National Bureau of Statistics, pork output reached nearly 52.9 million metric ton in 2021, up from the previous year. Output of poultry and beef has also increased to15.3 million metric ton and 6.8 million metric ton, respectively, in 2021. The rising production of meat and animal products to meet the protein needs of the growing population will likely drive the market growth in the coming years.

Competitive Landscape

The Asia-Pacific feed additives market is highly concentrated, with the top ten companies accounting for more than 50.0% of the market share in 2021. The leading players in the market are focused on business expansion and are targeting emerging communities like Vietnam, Philippines, etc., by either investing in a new production unit or acquiring established small players in the region. Investment in the R&D activities to introduce new useful products is another strategy adopted by manufacturers to stay ahead of the competition in the matured markets of North America and Europe.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support