Northrook, IL -- (SBWIRE) -- 02/20/2020 -- Feed flavors & sweeteners market to grow from USD 1.2 billion in 2017 to USD 1.5 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 3.4% during the forecast period. The major factors that are expected to be driving the feed flavors & sweeteners market are increasing demand for palatability-boosting feed additives and increasing awareness of consumers towards quality meat products.

The feed flavors & sweeteners market has been segmented on the basis of type, livestock, form, source, and region. On the basis of type, the market has been segmented into feed flavors and feed sweeteners. On the basis of livestock, the market has been segmented into ruminant, swine, poultry, aquatic animal and others (Equine and pets). On the basis of source, the market has been segmented into natural and synthetic source. On the basis of form, the market has been segmented into dry and liquid form. On the basis of key regions, the market has been segmented into North America, Europe, Asia Pacific, South America, and Rest of the World (RoW).

On the basis of form, the liquid segment is projected to be the fastest growing during the forecast period, as flavors and sweeteners in liquid form are more convenient to use in pelletized feed and are economical in nature.

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The Asia-Pacific region is projected to be the fastest-growing, which includes India, China, Japan, Thailand, and Vietnam between the years 2017 and 2022. The driving factors for the market in this region are a continuous modernization of animal production techniques and the growing awareness among the consumers regarding the impact of quality feed provided to the livestock on the animal-based products such as meat and dairy products.

Market Dynamics

Driver: Increasing Awareness of Consumers Towards Quality Meat Products

Consumers all over the globe are increasingly demanding quality meat due to the growing awareness regarding the nutritional dynamics of these products. According to The Food and Agriculture Organization (FAO), animals provide over 33% of protein consumed in human diets and around 16% of food energy. Besides, income growth, urbanization, and changes in lifestyles are the major factors impacting the demand for high-quality food. Consumers are now becoming more aware of the quality of food they consume, and the benefits associated with food products. As a result, the production of healthy and quality livestock has become important, leading to the surge in demand for quality feed with better palatability. Therefore, flavors and sweeteners products are anticipated to experience a robust demand in coming years.

Owing to the consumers' rising demand for superior-quality meat products, high-end food service sector and supermarkets offering premium brands are now constantly demanding quality meat. This factor instigated livestock producers to provide quality and healthy livestock in order to satisfy the quality standards required by various food players and different markets across the globe. According to The Australian Competition and Consumer Commission (ACCC), "Exports to the European Union are largely high-quality products servicing the high-end food service sector and premium supermarket brands. The need to meet quality and import requirements results in processors sourcing cattle against stringent specifications. These import and quality requirements also mean that cattle producers specialize in preparing animals for the EU market to a certain extent." To be able to fulfill such quality standards, livestock producers all over the world are emphasizing on animal diet as well as on food additives that increase the feed intake of livestock.

Restraints: Lack of Awareness in Developing Countries

The livestock sector is still evolving in developing countries such as Argentina, India and Brazil. However, a majority of these countries still depend on forages, crop residue, and open grazing to feed the livestock and do not emphasize on the feed quality or palatability. According to the Planning Commission of India (now replaced by successor think tank National Institution for Transforming India), "only about half of the annual fodder requirement is met from the cultivated fodder and crop residues, whereas open grazing and fodder availability from common property resources like forests, pastures, village commons, etc. fulfills the remaining half of the annual fodder requirement." These conventional methods of feeding animals restrict the growth of the commercial animal feed industry and thereby the growth of the animal feed additives market.

Livestock producers and farmers in these countries are still unaware regarding feed additives such as flavors and sweeteners and benefits associated with them. Highly populous and rapidly developing countries, such as India, where livestock production is a major part of agriculture economy are yet to evolve in terms of modern feed additives solution. Nevertheless, better promotional and educational activities about the benefits of flavors and sweeteners products may create huge potential for palatable feed additives in these countries.
Opportunity: Implementation of Standardized and Commercial Husbandry Practices to Improve the Quality of Meat Products

The rising meat consumption along with growing demand for quality meat products has increased the importance of quality feed as well as better and palatable feed additives in the livestock industry. Increase in the per capita income, improved standard of living, and rise in awareness towards better health has subsequently resulted into the increased demand for quality protein food sources such as meat and other animal-based products. In response to the growing demand for these products, standardized and commercial animal husbandry techniques and practices came into existence and are widely being adopted all over the globe. Better hygiene, animal health programs, and provision of premium quality animal feed with better taste and texture are some of the important factors that are emphasized by these husbandries so that quality meat and dairy products will be produced pertaining to the standards set by regulatory bodies.

Government monitoring agencies such as the U.S. Food and Drug Administration (USFDA) and European Food Safety Authority have imposed rules regarding the quality of food that is to be delivered to consumers. According to the FDA, meat composition, fat content, color, flavor, and protein content are some of the attributes that define the quality of meat. Hence, to fulfill these quality standards and to produce healthy livestock, a huge demand for effective and palatability enhancing feed ingredients is observed from several husbandries and commercial farms. Thus, increasing number of standardized husbandries and commercial farms are anticipated to build new opportunities for feed flavors and sweeteners players.

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Challenge: Fluctuating Price of Raw Materials

The fluctuating price of raw materials is the major challenge being faced by feed flavors and sweeteners players. The prices of raw materials such as citrus fruits and butter are highly unstable, which result in the high cost of production and impacts the prices of the final products. Citrus flavored feeds are majorly consumed by livestock animals compared to other flavors, and therefore they are demanded by livestock producers. However, the fluctuation in the prices of citrus fruits such as orange and grapefruit has been a significant challenge for animal feed flavor producers and has been impacting the price of final citrus flavor feed products.

Companies such as Nutriad, Pancosma, Alltech, FeedStimulants, BIOMIN Holding, DuPont, Norel, Prinova Group, Agri-Flavors, Origination O2D, Kerry Group, and Pestell Minerals & Ingredients are some of the major feed flavors & sweeteners market participants. These major players offer a wide variety of flavors and sweeteners such as vanilla, milky, butter, spices, glycyrrhizin, and saccharine those can be served to almost all livestock classes. In addition, these players are currently offering products that incorporate the benefits and the taste of both, flavors and sweeteners. This innovation may create huge opportunities for the market participants mentioned above, especially in the developing countries where feed producers are more inclined towards additives with maximum benefits and minimum cost.

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