With urban areas witnessing high demand and consumption of animal proteins, the demand for livestock products is increasing across the globe. As per the United Nations Department of Economic and Social Affair (UNDESA), the global urban population accounted for 50% of the total world population in 2018. However, by 2050, the statistics for the population living in urban areas are expected to reach 68% of the total world population. The growing awareness about the nutritional and health benefits associated with the use of livestock products among the rising urban population coupled with the high disposable income are the key factors contributing to this increasing demand for healthy animal proteins.
This growing demand for animal proteins has propelled the agriculture industry to focus on improving animal health and developing sustainable feed production systems. In improving animal health and thus enhancing the nutritional quality of animal proteins, the feed that animals consume play a crucial role. The feed industry has witnessed several developments over the years, however the latest trend dominating the industry is the use of fermented ingredients for animal feed.
Considering the increasing popularity of fermented feed ingredients among farmers owing to the benefits associated with their use and the expected high demand of fermented feed ingredients in the coming future, BIS Research has published a market intelligence report titled “Global Fermented Feed Ingredient Market – Analysis and Forecast (2018-2023),” providing a holistic view of the emerging fermented feed ingredients market.
Based on BIS Research analysis of the market, the global fermented feed ingredient market is projected to grow at a CAGR of 9.35% during the forecast period, 2018-2023. The market was valued at $12.27 billion in 2018 and is projected to reach $19.18 billion by 2023. The published report is based on extensive primary interviews and provides an in-depth analysis of the market under different segments. The various segments, on the basis of which the global fermented feed ingredients market is segmented, are ingredient type, form type, animal type, and region.
Under the ingredients segment, prebiotics and probiotics are expected to emerge as the future of animal feed. The prebiotics and probiotics segment is projected to grow at the highest compound annual growth rate during the forecast period and dominate the market, closely followed by the organic acids and enzymes segment. Other ingredients in which the market is segmented are amino acids, vitamins and minerals, and carotenoids.
Another key segmentation basis of the fermented feed market is animal type. The animal type segmentation includes poultry, swine, ruminant, aquatic, and others. Poultry emerged as the largest consumer of the market in 2018 and is anticipated to maintain its dominance during the forecast period as well.
Currently, the livestock sector in developing nations is projected to undergo massive growth. In terms of market share, North America dominated the market in 2018, and as per BIS Research analysts, it is projected to continue its dominance and lead the market during the forecast period as well. However, the Asia-Pacific (APAC) region is anticipated to offer several opportunities in the fermented feed market in future and thus is expected to grow at the fastest CAGR during the period, 2018-2023. The high growth rate of the APAC region can be attributed to favorable policies and initiatives undertaken by governments to strengthen the livestock sector, a significant rise in urban population and income, and consequently a rise in the consumption of livestock products.
The market has witnessed several product launches, mergers and acquisitions, and business expansions by key companies for strengthening their position in the market. For instance, Balchem Inc., a leading company functioning in the fermented feed ingredients market, acquired Bioscreen Technologies in August 2018 and expanded its product portfolio by incorporating Bioscreen’s fermented animal nutrition product line into theirs. The fermented feed ingredients market has attracted investments from some of the prominent industry players such as Archer Daniels Midland Company, BASF SE, Evonik Industries AG, and Bluestar Adisseo Company. Other players venturing in the market include Chr. Hansen A/S, Cargill Inc., Novozymes A/S, Nutreco, Novus International, Lonza Group AG, and Kerry Group.