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

The Japan feed additives market is projected to grow at a CAGR of 5.4% during the forecast period. Growth is largely fuelled by increasing meat consumption and rising concern over its quality and safety. Some major drivers of the country’s feed additives market are increasing awareness towards meat quality and safety, increasing mass production of meat, and recent livestock disease outbreaks. Rising concern over the animal health will drive the market growth positively. The aquaculture segment dominates the market, owing to the development in production technologies and increasing meat consumption. Some of the leading players in the market are JAPAN NUTRITION Co. Ltd., Feedone Co., Ltd., Lallemand Inc., Chr. Hansen Holding A/S, and Alltech, Inc. With recent bans on antibiotic growth promoters (AGPs) and growing demand for natural feed additives, Nutriad signed a distribution agreement with a Japanese company Watanabe Chemicals in June 2018, promoting the use of natural feed additives, and thereby, helping in resolving disease issues in Japanese aquaculture

Key Market Trends

Shift in Consumer Preference Towards Meat and Animal Sourced Products

Japan has experienced the most dramatic shifts in the dietary preferences of its citizens during the past few years. This is due to a bag of factors with urbanization, rising incomes, changes in food supply chains. According to the Organisation for Economic Co-operation and Development (OECD) poultry and pork meat are the highest consumed in Japan. In 2019 Per capita consumption of poultry meat was 17 kg and 16.2 Kg of pork meat. In order to meet the demand, meat and milk producers tend to provide quality feed to the animals so as to meet the necessary diet requirements and enhance the animal yield. Owing to increasing meat consumption, meat production is increasing. According to the Food and Agriculture Organization (FAO), in 2016 poultry bird population was 310130 thousand heads and has increased in 2018 with a population count of 323128 thousand heads. The growing production creates an opportunity for the feed additives market as animal health has become a serious concern.

Aquaculture Segment Dominates the Market

The well-developed aquaculture industry is favoring the aquafeed market. According to the Ministry of Agriculture, Forestry, and Fisheries (MAFF), the total aquafeed produced by the country was reported as 0.5 million metric tons in 2019. The output of fisheries and aquaculture was USD 14.8 billion in 2016, of which inland water fisheries and aquaculture increased by USD 0.1 billion to USD 1.06 billion. In recent years the average price for fisheries and aquaculture is in recording an upward trend.

Japan's seafood processors started to shift their business focus from catching fish from the sea to inland fish farming in 2019 as new technologies make this kind of aquaculture more popular. As the inland farming requires the fish feed in huge quantities, this aid the growth of the aquafeed market.

Competitive Landscape

The Japan feed additives market is highly concentrated, with the few leading companies accounting for the majority of the market share. The leading players in the market studied are focused on business expansion, by either investing in new production units or acquiring established small players in the region. Some of the leading players in the market are JAPAN NUTRITION Co. Ltd., Feedone Co., Ltd., Lallemand Inc., Chr. Hansen Holding A/S, and Alltech, Inc.

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