Global Feed Binders Market - 2021-2028
Feed binders are the binding agents used in the manufacture of safe animal feed products. These products aid animal digestion while also increasing the nutritional value of feeds. It also increases the quality of feed and provides nutrients to animals, reducing the risk of livestock diseases. Feed binders aid in the fulfillment of animal dietary requirements, the prevention of decomposition, and the preservation of the feed as a whole. The global feed binders' market is likely to reach USD xx million in 2028, from its recorded value of USD xx million in 2020, growing with a CAGR of XX% during the forecast period. The market is expected to grow due to increased demand for feed as a result of increased consumption of livestock-based products. During the forecast period, rising awareness among manufacturers about the benefits of feed binders is expected to drive market growth. In order to reduce the total operating cost, from manufacturing to its consumption stage, feed binders are observed to increase the health benefits of feed materials, and thus, are widely being opted by feed manufacturers.
Global feed binders market is driven because of the expansion of the animal meat market. The consumption of animal meat has been steadily increasing, according to the OECD-FAO. It grew from 320446.22 million tons in 2017 to 327230.41 million tons in 2019. Increased global meat consumption and increased livestock health issues have prompted the market to consume more feed binders. Furthermore, the feed industry is critical in resolving global food and agriculture problems. Feed manufacturers are increasingly aware of the need to boost the nutritional value of their products in order to enhance animal digestibility to optimal levels. Global compound feed demand is expected to be about 1 billion tonnes per year, according to the FAO. According to the International Feed Industry Federation (IFIF), global demand for animal protein is steadily increasing from the poultry, dairy, and fish sectors. According to the FAO, food demand is expected to increase by 60% by 2050, with animal proteins expected to rise at 1.7 percent per year. As a result, demand for feed will rise, as will demand for feed additives including feed binders.
On the other hand, the increasing cost of raw materials of feed binders is likely to hamper the global feed binders market. Binding agents, such as corn starch, guar gum, agar, gelatin and carrageenan are highly effective binders but are very expensive to include in the feed. To optimize the cost of feed ingredients, compound feed mixers, or livestock, farmers opt for binders with high-cohesive properties to reduce the amount of inclusion as well as to limit the cost. Cost-effective binders, such as lignosulphonates and clay, are moderately expensive, with very low inclusion levels from 0.2% to 0.8%. Feed products are mostly formulated and designed by limiting the overall cost to sustain their market presence.
Lignosulphonates are increasingly used due to their dispersing, binding and emulsifying properties in the manufacture of feed products, to provide structural integrity. It allows for more steam to be added to compressed pellet production than hemicellulose, increasing overall productivity. Furthermore, ruminants, such as cattle, sheep, and goats, can easily digest these items. Hemicellulose extracts, along with molasses, can increase the pellet durability and improve intra-particle cohesion, due to which it witnesses significant demand.
The poultry segment is projected to hold the largest share in the feed binders market during the forecast period. Feed binders, such as clay and Lignosulfonates, are some of the significant binders used in poultry feed for high-quality and quantity production. On a global scale, total poultry production is increasing, and with such rapid growth in poultry production and consumption, it is critical for meat producers to concentrate on meat quality. China consumed highest volume of poultry in 2019 with 20 million tonnes, followed by the US (19 million tonnes) and Brazil (12 million tonnes). This is projected to drive the growth of the market, as it provides a complete nutritional feed for poultry.
Asia Pacific is witnessing a high demand for feed binders for use mainly in the poultry feed industry. The population in developing countries of the Asia Pacific region-such as India, China, Indonesia, Vietnam, and Thailand-are projected to increase the consumption of meat products at an annual rate of 2.4% till 2030, according to the FAO report on "World Agriculture: Towards 2015/2030." These factors have increased the demand for high-quality feed, and thereby, for feed binders to enhance the structural integrity and reduce the loss of feed ingredients. Furthermore, the global meat consumption and rising livestock health issues have caused the top economies to consume more feed binders. According to the OECD-FAO, India's consumption of poultry meat has been steadily increasing. According to the OECD-FAO, India's consumption of poultry meat has been steadily increasing. From 3,428.04 thousand tons in 2016 to 3,819.24 thousand tons in 2019, it has risen. As a result, feed binders are in higher demand in Asia Pacific to boost animal health.
The market for feed binders is fragmented. Beneo, Borregaard, CP Kelco, Roquette Freres and Uniscope Inc are some of the major players in the market. The key players in the market are competing against each other mainly by investing in research to launch new products by adopting strategies such as mergers and acquisitions and partnerships. In 2019, Archer Daniels Midland Company finalized the acquisition of Neovia to expand the product portfolio of animal nutrition business to widen its offering for consumers in the market. In 2018, Archer Daniels Midland Company strengthened partnership with Sirius to supply binder for its POLY4 product in the market.
This outbreak has had a huge impact on both supply and demand for food. People's access to adequate and nutritious food has been hampered by border closures, quarantines, market supply chains, and trade disruptions, especially in countries hit hard by the virus. Businesses, on the other hand, had significant impacts on their foreign trades as governments across the world shut down borders and economies to prevent the spread of the coronavirus. Many markets are concentrating on domestic companies to meet their needs for feed additives and binders. However, this has resulted in an imbalance in demand and supply quantities. Some countries, on the other hand, are entirely reliant on imports and are in tough situations. Both of these factors hindered the market's future growth at the start of 2020.