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Phytogenic Feed Additives Market Drivers, Restraints, Opportunities & Challenges

Phytogenic Feed Additives Market by Type (Essential Oils, Flavonoids, Saponins, and Oleoresins), Livestock (Poultry, Swine, Ruminants, and Aquatic Animals), Source (Herbs & Spices, Flowers, and Fruits & Vegetables), Region - Global Forecast to 2025

 

Northbrook, IL -- (SBWIRE) -- 11/04/2021 -- The global phytogenic feed additives market size is estimated to account for USD 753 million in 2020 and is projected to reach USD 1,098 million by 2025, recording a CAGR of 7.8% during the forecast period. One of the major factors driving the phytogenic feed additives industry is the growing restriction on the use of antibiotics as a growth promoter. Also, rising concern regarding animal health and feed quality has been driving the growth of this market.

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Driver: Encapsulated technology enhances the proficiency of phytogenic feed additives

Phytogenic feed additives have positive effects on livestock health but are often difficult to process in the feed. Many sources of phytogenics, especially essential oils, are sensitive substances that lose their efficacy and efficiency, owing to their vulnerability to high temperatures, dusty inclination, significant odor, and oxidative and volatile properties. The emergence of new technologies, such as encapsulation, helps to extend the shelf life of phytogenics. Encapsulation is a modern technology that allows essential oils to have a longer shelf life by protecting them from environmental changes by keeping the liquid, gaseous, or solid substance packed within a tiny millimetric capsule. Along with protection from extreme environmental factors, encapsulation also maintains the key properties, such as enhancement of palatability, stability in the ration, improved digestion, and better performance of the livestock.

Restraint: Cost of active ingredients used in phytogenic feed additives

Essential extracts from various spices and herbs are the most important raw materials used in the production of feed phytogenics. However, the prices of essential oils are high, which has hindered the growth of feed phytogenics. As per the International Trade Center (ITC), in Madagascar, the export price of clove leaf oil was USD 17/kg in 2016. Although the prices were down from the previous year, they were still well above the long-term trend price of under USD 10/kg. Moreover, current adverse weather conditions and a rise in demand for the spice may drive the prices higher.

Opportunity: Increased popularity of natural solutions for pet food nutrition

Owners of pets remain very sensitive and concerned about the quality, safety, and source of the ingredients involved in the manufacturing of their pet's food. The trend of keeping pets is also gaining pace these days. Additives play a very important role in enhancing the quality of the feed for pets. Keeping in mind the concerns of pet owners, many companies are coming up with innovative feed products made up of naturally sourced ingredients, such as plants and microbes. Many companies, such as Silvateam S.p.A. (Italy), offer phytogenic feed additives for pet food. Thus, the increase in the pet population, along with concerns of pet owners for pet health and nutrition, would persuade many feed additive players to launch phytogenic feed additives in the pet food segment.

Challenge: Counterfeit products in developing economies

Lack of transparency in patent protection laws and regulatory compliance in various countries has led to the duplication of products. Low-quality products are also introduced in the market by regional or local manufacturers to reap the benefits of the growing demand for phytogenic feed additives. Duplicate and low-quality products can create health issues in the livestock and are a big concern for the producers. There are many small players in the developing markets of Asia Pacific that offer phytogenic feed additives without any brand name, and somehow increase their profits by selling unauthorized duplicate products. These local manufacturers attract feed producers as well by offering lower prices for their low-quality phytogenic feed additives.

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