South America Feed Additives Market - Growth, Trends and Forecasts (2020 - 2025)

The South American feed additives market is projected to register a CAGR of 5.5%, during the forecast period(2020-2025). The market is driven by the increase in meat consumption and exports in the country and the rising awareness regarding the quality of meat and dairy products. The industrialization of meat production is also fueling the demand for feed additives in the country. The rising demand for meat and other animal-based products, expansion of the processed meat industry, and the growth in meat exports are the major demand driving factors in the market. Brazil dominates the market owing to the higher meat production and growing export opportunity with the rising demand for meat products. Understanding the opportunity existing in the feed additives market, the companies in the studied region are adopting various strategies to gain the market share. Some of the key leading players in the studied market are Cargill Incorporated, Alltech, BASF SE, Pancosma, and Novus Argentina SA.

Key Market Trends

Commercial Livestock Production

The industrialization of livestock and meat production is fuelling the demand for feed additives in the region. The rising demand for meat products, expansion of the processed meat industry, and the growth in meat exports are the major demand driving factors in the market. According to the Food and Agriculture Organisation (FAO), in 2016, about 42.52 million tons of meat was produced as compared to 46.11million tons in 2018. Owing to the rising demand for meat and other animal-sourced protein livestock production has shown a shift towards commercial production trends. As per FAO, the Cattle and Buffaloes population has increased from 358.17 million to 358.61 million between 2017 and 2018, and the poultry population had risen from 2637.36 million to 2684.75 million during the same period. The recent outbreak of food-borne diseases highlights the need for reducing bacterial pathogens in meat and dairy products. Thus driving the growth of the feed additives market in the region.

Brazil Dominates the Market

The feed industry is one of the fastest-growing industries in Brazil, owing to the increasing meat consumption in the country and meat export opportunities. According to the Organization for Economic Co-operation and Development in 2019, the poultry meat is the highest consumed in the country which was 40.3 Kg as compared to 39.8 Kg in 2018. Due to the increased consumer preference for meat and increasing industrialization in the livestock industry, the demand for compound feed is also expected to rise. As per the Alltech feed survey, in 2019 Brazil accounted for the highest feed production in the region that amounted to 70 million metric tons of which Poultry feed production was 39.1 million metric tons followed by pig feed of 17 million metric ton was produced. The aquafeed market is estimated to grow, with the rise in the adoption of aquaculture in recent years. The risk of developing multiple antibiotic resistances in pathogenic bacteria in livestock is expected to enhance the opportunities in the feed additives sector of the country as the government aims to increase meat exports.

Competitive Landscape

The feed additives market is highly concentrated, with the top ten companies accounting for more than 50% of the market share. The leading players in the market studied are focused on business expansion. They are targeting countries in South America for business expansion, by either investing in new production units or acquiring established small players in the region. Cargill Incorporated, Alltech, BASF SE, Pancosma, and Novus Argentina SA are some of the major players in the country.

Reasons to Purchase this report:

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