The global Animal Feed Prebiotics market is poised for remarkable expansion, with an estimated valuation of USD 2,184 million by 2024 and an anticipated growth to USD 3,080 million by 2034, reflecting a compound annual growth rate (CAGR) of 5% over the assessment period from 2024 to 2034.
Prebiotics, which are non-digestible feed additives, play a crucial role in enhancing animal health by promoting the growth of beneficial gut bacteria and improving nutrient absorption. As the demand for natural and organic feed alternatives grows, the market for prebiotics derived from natural sources continues to rise.
How is Growth in Consumption of Quality Animal-based Products Impacting the Demand for Animal Feed Probiotics
Several changes in dietary preferences and consumption patterns of people around the world have been documented, including a move toward the increasing intake of meat and dairy products resulting in increased sales of animal feed probiotics.
The rising demand for animal products such as dairy, meat products, and other non-food goods has resulted in escalating demand for animal feed probiotics, boosting the animal feed probiotics industry.
Food demand has increased across the world as a result of the fast population growth. Consumers are growing more health-conscious, emphasizing nutrient-dense diets, which are delivered through enhanced feed products provided to animals.
The livestock sector is under enormous strain to meet the expanding global demand for high-value animal products demand for animal feed probiotics.
Irritable bowel syndrome, viral diarrhea, inflammatory bowel disease, and antibiotic-related diarrhea can all be helped by probiotics in animal feed. This allows animals to get the most nutrition from their feed, improving the quality of animal products without causing a drop in sales of animal feed probiotics.
Will Continuous Product Innovation Reduce the Cost of Production of Animal Feed Probiotics in the Long Run?
Some of the leading market players such as DuPont, Alltech, and others have stepped up their efforts with different and unique products such as non-bacteria animal feed probiotics.
Through the launch of these products and robust marketing strategies, they intend to cater to the increasing demand for animal feed probiotics and sales of animal feed probiotics.
Improved sources to manufacture quality feed probiotics, innovative processes, and advanced transportation facilities to reach international customers are different factors aiding cost reduction.
Hence the price of animal feed probiotics is expected to reduce further in the global animal feed probiotics industry.
Key Market Insights
- Cattle and Poultry Lead the Way: With the increasing demand for meat and dairy products, cattle and poultry remain significant application segments in the animal feed market. The focus on improving productivity in these sectors drives the demand for prebiotic feed additives.
- Innovative Research Partnerships: Major companies are collaborating with research institutes to innovate within the prebiotics market. For instance, Cargill’s partnerships with academic institutions enhance their feed technology leadership, fostering productivity and profitability in animal feed.
- Market Dynamics: The first half of the decade (2024-2034) is projected to see a 5% CAGR, increasing to 6% in the second half. This trend reflects the ongoing innovations and growing demand for sustainable and efficient feed solutions.
Highlighting Key Trends
- Yeast-based Prebiotics: Manufacturers are increasingly focusing on yeast-based prebiotics, which have shown significant benefits in enhancing animal health and productivity. These products serve as alternatives to antibiotics, addressing regulatory concerns and promoting gut health.
- Sustainable Ingredients: There is a shift towards naturally sourced ingredients, which not only improve profitability but also contribute to sustainable nutrition. Products like BeneoCarb exemplify this trend, offering functional solutions that enhance animal performance.
- Global Sales Trends: The global sales of animal feed prebiotics increased at a CAGR of 7% from 2019 to 2023, driven by rising awareness of animal health and sustainable farming practices.
Regional Insights into the Animal Feed Prebiotics Market
| Countries | CAGR 2024 to 2034 |
| USA | 5.9% |
| Canada | 6.3% |
| India | 5.2% |
| Japan | 7.1% |
| China | 6.1% |
Key Takeaways from the Animal Feed Prebiotics Market
- The Animal Feed Prebiotics market is expected to grow from USD 2,184 million in 2024 to USD 3,080 million by 2034, with a 5% CAGR.
- Cattle and poultry are the primary segments driving prebiotic demand due to increasing meat and dairy consumption.
- Yeast-based prebiotics are emerging as effective substitutes for antibiotics, enhancing animal health and productivity.
- There is a rising preference for naturally sourced ingredients in animal feed to support sustainability and performance.
- Collaborations between industry leaders and research institutions are fostering innovation in prebiotic products.
“The global animal feed market is increasingly shaped by the cattle and poultry sectors, propelled by the growing demand for dairy, meat, and egg products. This phenomenon underscores the imperative to refine feed formulations to enhance both livestock productivity and health.” – says Nandini Roy Choudhury, Client Partner at Future Market Insights.
Prominent Drivers of the Animal Feed Prebiotics Market
- Rising Demand for Dairy and Meat Products: The increasing global demand for dairy, meat, and egg products is driving growth in the cattle and poultry sectors, necessitating enhanced feed solutions.
- Shift Towards Sustainable Nutrition: Growing consumer awareness around sustainable and health-oriented animal nutrition is prompting the adoption of prebiotics as natural alternatives to antibiotics.
- Regulatory Pressures Against Antibiotics: Stricter regulations regarding antibiotic use in animal feed are leading producers to seek effective substitutes, making prebiotics an essential component of feed formulations.
- Focus on Animal Health and Productivity: The emphasis on improving livestock health and productivity is driving the integration of prebiotics, which enhance gut health and nutrient absorption.
- Advancements in Feed Technology: Ongoing innovations in feed formulations and production processes are facilitating the incorporation of prebiotics, improving their effectiveness and availability in the market.
- Growing Research and Development: Increased investment in research initiatives to explore the benefits of prebiotics is leading to the development of new products tailored to specific livestock needs.
Challenges Faced by the Animal Feed Prebiotics Market
- Market Fragmentation: The animal feed prebiotics market is characterized by a wide range of products and formulations, making it difficult for manufacturers to establish a dominant presence.
- High Research and Development Costs: Developing effective prebiotic products requires significant investment in research and development, which can be a barrier for smaller companies.
- Regulatory Hurdles: Navigating complex regulations regarding the approval and use of prebiotic ingredients in animal feed can pose challenges for manufacturers.
- Consumer Awareness: Limited awareness among some segments of the livestock industry about the benefits of prebiotics can hinder their adoption.
- Competition from Alternative Solutions: The market faces competition from other feed additives and nutritional solutions, which may offer similar benefits without the need for prebiotic formulation.
- Variability in Animal Responses: The effectiveness of prebiotics can vary among different species and individual animals, complicating the formulation of universally effective products.
Competitive Landscape of the Animal Feed Prebiotics Market
The competitive landscape of the Animal Feed Prebiotics market is highly dynamic. Growth in this sector has been spurred by rising animal populations and increased awareness of animal health. Prebiotics play a crucial role in enhancing feed efficiency and providing resistance against harmful bacteria by promoting the growth of beneficial gut bacteria, thereby improving digestion and overall nutrition.
Key players such as Cargill, Beneo, and Alltech are at the forefront, focusing on research and development to create innovative and sustainable solutions for animal feed. These companies are dedicated to developing high-quality prebiotic products that enhance gut health, nutrition, immunity, and overall performance in animals.
Manufacturers are employing various strategies, including strategic and vertical acquisitions, to bolster their market presence. For instance, Beneo has expanded its market share by acquiring smaller feed companies and integrating them into its distribution network, ensuring the quality and availability of raw materials. Similarly, Godrej Agrovet has strategically targeted local aquaculture producers and regional consumers to strengthen its distribution channels and capture greater market share.
How can Manufacturers/Service Providers Scale their Businesses in the Animal Feed Probiotics Market?
Strategies for Scaling in the Animal Feed Probiotics Industry
- Expand product portfolio to include a variety of probiotics for different animal species and health benefits.
- Develop innovative formulations and delivery methods to increase the efficacy of probiotics and enhance animal performance.
- Establish partnerships with research institutions to stay up-to-date on the latest developments in probiotics and animal nutrition.
- Invest in marketing and education initiatives to raise awareness of the benefits of probiotics in animal feed and promote brand recognition.
- Build strong relationships with suppliers to ensure a steady supply of high-quality probiotic ingredients.
- Develop a robust distribution network to reach a wide range of customers, including small and large farms, feed mills, and retailers.
- Offer technical support and consulting services to help customers optimize their use of probiotics and improve animal health and productivity.
- Implement sustainable and ethical business practices to meet growing consumer demand for environmentally friendly and socially responsible products.
Recent Developments in Animal Feed Prebiotics Market
- January 24, 2023, At the IPPE fair in Atlanta, BASF and Cargill reporting their expanded cooperation, for feed enzymes development and distribution commitment. By collaborating the two companies are committed to transferring innovative enzyme-based solutions to the market and creating significant value for animal feed customers. By collaborating the BASF and Cargill, prebiotic enzyme R & D strengthen by BASF with Cargill’s expertise in application and broad market reach, the partners will form a joint innovation pipeline for animal protein producers.
- 7 June 2022, ‘DSM’ a purpose-led science-based global company specializing in solutions for human and animal health and nutrition, acquired Prodap, a Brazilian animal nutrition and technology company that combines technology offerings, consulting services, and customized nutritional solutions to enhance efficiency and sustainability in animal farming.
Key Companies in the Animal Feed Prebiotics Market
- ADM
- Evonik
- DSM
- Kerry
- Novonesis
- Cargill
- Orffa International Holding B.V.
- Alltech
- Lallemand
- Kemin
- Provita
- BASF SE
- Novus International Inc.
- Land Lakes Inc.
- beghin meiji s.a.
- Biochem
- Adisseo
- Beneo
Key Segments of the Report
By Form:
As per by Form, the industry has been categorized into Powder and Liquid.
By Source:
As per Source, the industry has been categorized into Oligosaccharides, Galactooligosaccharides, Inulin, Beta-Glucans, Lactulose and Xylo Oligosaccharides
By Function:
This segment is further categorized into Gut Health, Growth, Immunity.
By Sales Channel:
As per sales channel, Direct Sale, Online retail, Speciality Stores, Retail Pharmacies and Veterinary Hospitals.
By Region:
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
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