The South America Feed Palatability Enhancers Market is projected to register a CAGR of 5.2% during the forecast period(2020-2025). The rise in meat consumption in the region, increased awareness among farmers about scientific methods of feeding, the growing trend of commercial production, and an attractive export market is driving the meat production. The end consumers are compound feed manufacturers, integrators, farmers, home-mixers, livestock, and aquaculture industry. Additionally, compound feed production in the country is increasing which will further develop the market for palatability enhancers as it masks the unpleasant taste. These help to improve the rate of weight gain, prevent diseases in animals, prevent vitamin deficiencies, and improve feed digestion and conversion. Some of the notable players are DuPont de Nemours, Inc., Pancosma, Kerry Inc., Symrise, Adisseo, Elanco, Kent Nutrition Group, Grupo Diana, and others.
Key Market Trends
Rising Demand for Animal Sourced Proteins
Economic growth and lower inflation will lead to an increase in income and thus, fuel growth in the consumption of meat and other products. According to the Organisation for Economic Co-operation and Development(OECD), in 2019 per capita poultry meat consumption in Brazil was 40.3 Kg as compared to 40Kg in 2016. Also in Argentina, beef and veal meat is the most consumed which amounted to 39.7 Kg in 2019 as against 39 Kg in 2016. In addition to meeting the domestic meat consumption, brazil is also one of the leading exporters of beef meat for instance, according to ITC Trade, in 2016 export of bovine meat accounted for USD 757,207 thousand that has increased to USD 880,818 thousand in 2019. Also, Argentina exported bovine meat worth USD 600,566 thousand in 2016 that has constantly risen to reach USD 771,875 thousand in 2019. Thus the rising domestic meat consumption coupled with the attractive meat export market is driving the meat production in the region which impacts the feed intake by the livestock positively to increase the yield. Thus, in order to improve the feed intake palatability enhancers are included in the feed.
Increasing Feed Production Drives the Market
The palatability enhancers contribute to the flavor, taste, and aroma of the feed which helps to enhance the growth of animals by maximizing feed intake. According to FAO in 2018, the poultry population in South America was 2521.7 million as compared to 2684.7 million in 2016. Also, Cattle and Buffaloe's population in 2016 was 358.92 million as compared to 358.61 million in 2018. Rising livestock production coupled with the health concern results in the inclusion of additives in the feed which in turn drives the market for palatability enhancers.
According to the Alltech feed survey, in 2019 the feed production in Brazil and Argentina has reached 70 million metric tons and 21 million metric tons respectively. In Brazil, broiler feed accounted for 32.1 million metric tons followed by pig feed which accounts for 17 million metric tons. The palatability enhancers contribute to the flavor, taste, and aroma of the feed which helps to enhance the growth of animals by maximizing feed intake.
Competitive Landscape
The market for feed palatability enhancers is highly fragmented with the presence of key international players and many small players competing in the market. Some of the notable players are DuPont de Nemours, Inc., Pancosma, Kerry Inc., Symrise, Adisseo, Elanco, Kent Nutrition Group, Grupo Diana, and others. The most adopted strategies for these companies are mergers and acquisitions, and time to time collaborations for investments in new product developments and research enhancement. In 2019, Kemin Nutrisurance, the pet food and rendering technologies business unit of Kemin Industries, opened a new 5,000-square-meter production facility in Vargeão, Brazil. The facility will support Kemin's palatant product lines, which include meat and plant-based flavorants for pet products. The expansion will increase the facility's storage capacity allowing Kemin, to serve more customers in South America with quality products and services,
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Key Market Trends
Rising Demand for Animal Sourced Proteins
Economic growth and lower inflation will lead to an increase in income and thus, fuel growth in the consumption of meat and other products. According to the Organisation for Economic Co-operation and Development(OECD), in 2019 per capita poultry meat consumption in Brazil was 40.3 Kg as compared to 40Kg in 2016. Also in Argentina, beef and veal meat is the most consumed which amounted to 39.7 Kg in 2019 as against 39 Kg in 2016. In addition to meeting the domestic meat consumption, brazil is also one of the leading exporters of beef meat for instance, according to ITC Trade, in 2016 export of bovine meat accounted for USD 757,207 thousand that has increased to USD 880,818 thousand in 2019. Also, Argentina exported bovine meat worth USD 600,566 thousand in 2016 that has constantly risen to reach USD 771,875 thousand in 2019. Thus the rising domestic meat consumption coupled with the attractive meat export market is driving the meat production in the region which impacts the feed intake by the livestock positively to increase the yield. Thus, in order to improve the feed intake palatability enhancers are included in the feed.
Increasing Feed Production Drives the Market
The palatability enhancers contribute to the flavor, taste, and aroma of the feed which helps to enhance the growth of animals by maximizing feed intake. According to FAO in 2018, the poultry population in South America was 2521.7 million as compared to 2684.7 million in 2016. Also, Cattle and Buffaloe's population in 2016 was 358.92 million as compared to 358.61 million in 2018. Rising livestock production coupled with the health concern results in the inclusion of additives in the feed which in turn drives the market for palatability enhancers.
According to the Alltech feed survey, in 2019 the feed production in Brazil and Argentina has reached 70 million metric tons and 21 million metric tons respectively. In Brazil, broiler feed accounted for 32.1 million metric tons followed by pig feed which accounts for 17 million metric tons. The palatability enhancers contribute to the flavor, taste, and aroma of the feed which helps to enhance the growth of animals by maximizing feed intake.
Competitive Landscape
The market for feed palatability enhancers is highly fragmented with the presence of key international players and many small players competing in the market. Some of the notable players are DuPont de Nemours, Inc., Pancosma, Kerry Inc., Symrise, Adisseo, Elanco, Kent Nutrition Group, Grupo Diana, and others. The most adopted strategies for these companies are mergers and acquisitions, and time to time collaborations for investments in new product developments and research enhancement. In 2019, Kemin Nutrisurance, the pet food and rendering technologies business unit of Kemin Industries, opened a new 5,000-square-meter production facility in Vargeão, Brazil. The facility will support Kemin's palatant product lines, which include meat and plant-based flavorants for pet products. The expansion will increase the facility's storage capacity allowing Kemin, to serve more customers in South America with quality products and services,
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Diana Group
- Kerry Inc
- Adisseo
- Pancosma
- Kent Nutrition Group
- Kemin Industries, Inc.
- Tanke International Group
- DuPont
Methodology
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