Global Feed Enzymes Market - 2021-2028
Enzymes are the chemicals or catalysts that are released by cells to speed up specific chemical reactions. They help reduce reaction time without being part of the reaction. When digestibility-improving enzymes are applied in animal feed, they help break down parts of the diet that the animal's digestive system cannot effectively break down itself. Feed enzymes are an important tool used for increasing the nutritional value of feed ingredients which reduce feed costs, while maintaining or improving animal performance. Animal feed in livestock and poultry production accounts for 60-70% of total expenses, which is why enzymes are used in feed to reduce the costs and volume consumption. Feed enzymes have emerged as an important contribution towards a potential solution for sustainable animal production. The global feed enzymes market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of XX%
Growing poultry and livestock farming coupled with increasing demand for meat, eggs and dairy products is driving the market
With increasing population and changing dietary preferences for nutrition rich dairy, seafood, meat and eggs, the growth of the animal feed market is expected. Animal source foods contribute 18% of calorie and 25% of protein intake worldwide. According to FAO estimations, by 2050 the demand for meat production is projected to rise by nearly 70%, aquaculture by 90% and dairy by 55%. The European Union is one of the largest dairy markets in terms of volume consumption. Thus, dairy feed production grew by an average of 2% in the European region. The United States, China, and India are the largest producers of ruminant feed, owing to the presence of a large number of cattle and other ruminant population, and the high demand for milk and meat products. For instance, according to Alltech Feed Survey, the United States produced 19 million metric ton of compound feed for dairy cattle and 21 million metric ton for beef cattle in 2018. This makes the United States the major market for feed enzymes dedicated to dairy and beef cattle. The increasing dairy feed production, coupled with the propelling demand for high-quality dairy products, has created a substantial demand for high-fiber enzymes, such as phytases, which will help the poultry animals have an improved digestibility for several blends of feed ingredients, such as maize/soybean meal.
Although feed enzymes significantly impact the growth of the livestock industry, there are physiological limits imposed by the conditions to enzyme responses in the digestive tract of livestock. Excessive levels of feed enzymes could affect the levels of endogenous enzymes in the gastrointestinal tract, with adverse effects on health. Variations in the level of this effect depend on many factors, such as age, type of diet, and enzyme inclusion rates in feed products. Feed enzymes may trigger several side effects, including vomiting, gas, diarrhea, and swelling of the legs and feet. In addition, some animals may experience allergic reactions to digestive enzymes. For instance, Bromelain, the enzyme from pineapple, has anti-platelet properties. If this enzyme is fed to livestock in excessive quantities along with feed, it could increase the risk of bleeding as acts as a blood thinner.
Phytase reduces phosphorous pollution, thus driving the segment growth
Phytase is the dominating enzyme type. It works by releasing some of the nondigestible phosphorus and other nutrients found in commonly used feed ingredients and making the nutrients available for productive purposes. Phytase is a proven technology used to reduce feed cost by reducing inorganic phosphorus supplementation and has the added benefit of decreasing phosphorus excretion in manure. Legislation to decrease phosphorus pollution in some countries has contributed to the increased usage of phytase.
Carbohydrase is expected to grow with a CAGR of YY% during the forecast period. Carbohydrase, are preferred by most animal feed manufacturers and livestock producers to be used as an enzyme. Thus, the segment is estimated to be the fastest-growing in the feed enzymes market during the forecast period. The inclusion of carbohydrase in the feed offers many advantages to the livestock. Monogastric animals are typically able to digest around 90% of available starch, but carbohydrase helps them improve this percentage. Carbohydrase enzymes are also very effective in increasing the amount of energy made available from feed ingredients.
Asia Pacific feed enzymes market is expected to register highest CAGR
The large population, high demand for animal produce and presence of large animal growing industry made China and India as the largest markets for feed enzymes. The large market in these countries is the primary factor for Asia-Pacific remaining as the largest market in the world. In these two major economies, there are an estimated 7,200 feed mills producing nearly 227 million metric ton of compound feed. China contributes to almost 18% of the global compound feed production. According to statistics of 2018, the pig and poultry feed production in China accounted for 33.5 percent and 50.6 percent of total feed production, respectively. Also, China consumers 28% of the world's meat which makes it the largest producer of animal source protein and hence largest consumer of animal feed enzymes. The higher demand and production of compound feed in the countries are expected to provide impetus to the feed enzymes market in the Asia-Pacific region.
Many domestic and global players provide feed enzymes to improve animal health and performance. Major manufacturers have their presence in the European and Asian countries. Some of the key players in this market are Cargill, Incorporated, BASF SE, DuPont, Bluestar Adisseo Co., Ltd., Koninklijke DSM NV and Kemin Industries, Inc. Various strategies, such as expansions, mergers & acquisitions, and new product launches, were adopted by the key companies to remain competitive in the market. For instance, in September 2019, DuPont Animal Nutrition launched its Axtra PHY, the latest generation of Phytase Enzyme in Japan, in order to improve animal performance and reduce phosphorus waste. In January 2020, Nutrex BE invested in a completely new base of operations in Olen that will house their new headquarters, innovation center and state-of-the-art production facilities. The investment in Olen is needed to develop and produce new products and further expand production capacity.
COVID-19 Impact: Pandemic had a positive impact on global feed enzymes market
The COVID-19 pandemic is expected to impact the feed enzyme industry positively. The entire supply chain is disrupted due to a limited supply of enzymes. Even though the demand for feed has been relatively stable, the supply has been significantly impacted by the COVID-19 pandemic. The movement restrictions and illnesses are resulting in labor shortages and reduced supply of raw materials. The disruption in supply routes has further led to delays in feed supply.
However, the demand for feed enzymes in the livestock industry has likely increased in the first and second quarters of the year 2020 as many farmers resorted to panic buying of feed additives in anticipation of potential shortages. Several concerns, such as international trade barriers, closure of restaurants, hotels, live animal markets, supply chain hindrances, consumption patterns of livestock-based products, have encouraged breeders to stock their feed supplies and feed enzymes. This has led to an increase in demand for feed enzymes during the first week of April 2020.