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

The South America Silage Additives Market is projected to register a CAGR of 3.8% over the forecast period (2020-2025). Silage is an important means of preservation of fresh fodder for animals for the availability of roughage and nutrients during extreme weather conditions. South America is an emerging market for silage additives. The development of innovative products and increased focus on R&D by companies is expected to be one of the key factors driving the adoption of silage additives. With an increase in awareness regarding the usability of silage as a substitute for fresh fodder or hay, the practice of production of silage, as a whole is expected to continue to increase. Brazil is a major market for silage additives in South America region. With its emerging economy and increased demand for quality meat products, a need for healthy livestock was witnessed in the region. Silage Additives has gained importance in the region due to their lower costs and new innovative products suitable for specific situations. Increased industrialization of livestock production, driven by increased demand for animal protein by end consumers is driving farmers to adopt optimum nutrition for cattle, leading to an increased usage of silage additives.

Key Market Trends

Rising Demand for Animal Meat

The livestock sector in South America has grown at an annual rate higher than the average global growth rate. There has been an increasing pressure on the livestock sector to meet the growing demand for high-value animal protein. The world’s livestock sector is growing at an unprecedented rate and the driving force behind this enormous surge is a combination of population growth, rising incomes, and urbanization. Annual meat production is projected to increase from 218 million tonnes in 1997-1999 to 376 million tonnes by 2030, according to WHO. In South America itself, the production quantity of meat increased from 43.7 million metric tons in 2017 to 46.1 million metric tons in 2018. Silage additives are used to enhance the good quality silage into the best quality silage. The market is expected to grow due to this increasing trend of animal protein consumption in South America.

Brazil Dominates the South America Silage Additive Market

Brazil dominated the production of animal meat in the region, consequently leading to be the dominating country in terms of the Silage Additive market as well. Crops in tropical areas, particularly to Brazil have a high production potential during the rainy season; therefore, silage has a central role in feed preservation in the tropics. The use of silage all-year-round is expanding, since a significant number of dairy farmers are moving from grazing to housed systems, and the number of beef cattle finished in feedlots is increasing. Whole‐plant maize silage has been by far the main conserved forage in both dairy and beef operations, whereas the use of grain silages (maize and sorghum) is increasing in the region as well. This makes the market for silage additive rising and the trend is likely to be positive during the forecast period as well.

Competitive Landscape

The South America Silage Additive Market is consolidated with a few major global players garnering high market shares, especially as the markets in the region are quite developed. These companies have been increasing R&D spending exponentially to integrate innovation with excellence in their products’ performance. Demand for highly efficient additives is expected to make the market more competitive and effectively dynamic during the forecast period. Some of the major players in the global silage additive market include Lallemand Animal Nutrition, Archer Daniels Midland Company and BASF SE among others.

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