Novel Feed Additives Market

Novel Feed Additives Market Outlook from 2024 to 2034

The global novel feed additives market sales are estimated to reach approximately USD 5,584.2 million at the end of 2024. Forecasts suggest the industry will achieve a 6.6% compound annual growth rate (CAGR) and exceed USD 10,581.2 million in value by 2034.

Farmers and producers are looking for alternatives, not only to improve the health and productivity of the animal but to have minimum negative effects on the environment. For example, Evonik Industries and Alltech are developing solutions so that less methane will be released into the atmosphere as the companies focus on cattle nutrition through their innovative natural feed additives that enhance nutrient absorption.

A rise in the concern for the quality of animal products is also another positive driver. With increased health awareness, the demand for meat, milk, and eggs free from antibiotics and artificial substances has increased.

This change is compelling the producers to shift to new feed supplements such as probiotics and prebiotics to enhance the gut health and immune system of the animals. An example of this is Novus International which deals with many kinds of feed additives to increase the health and output of animals.

Attributes	Description
Estimated Global Novel Feed Additives Industry Size (2024E)	USD 5,584.2 million
Projected Global Novel Feed Additives Industry Value (2034F)	USD 10,581.2 million
Value-based CAGR (2024 to 2034)	6.6%

In addition, the progress of biotechnology made it possible to develop sophisticated and highly potent targeted feed additives. The search for new approaches to optimize feed utilization and increase growth rates in animals has led to the introduction of innovative ingredients such as microalgae and nanoparticles. The sector for such advanced products continues to expand thus promoting the increase of sales.

Semi-Annual Market Update

The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global novel feed additives market.

This analysis reveals crucial shifts in performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.

Particular	Value CAGR
H1	5.2% (2023 to 2033)
H2	5.7% (2023 to 2033)
H1	6.2% (2024 to 2034)
H2	6.6% (2024 to 2034)

In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 5.2%, followed by a higher growth rate of 5.7% in the second half (H2) of the same decade.

Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase to 6.2% in the first half and remain considerably high at 6.6% in the second half. In the first half (H1) the sector witnessed an increase of 45 BPS while in the second half (H2), the business witnessed a decrease of 20 BPS.

Key Industry Highlights

The Role of Novel Feed Additives in Improving Climate Resilience

It is worth addressing the concern of climate resilience as animals continue to be subjected to environmental stresses. Firms such as Phileo by Lesaffre have taken the lead in such causes by formulating yeast-based additives that reduce animals' susceptibility to heat stress.

These additives promote gut health and immunocompetence so that production animals can be productive even in extreme conditions. Such innovations are highly needed. In the same way, Alltech has come up with products such as Actigen, which protects not only the gut but also the animal’s health from temperature shifts.

This development not only caters to the increasing consumer demand for sturdier and greener systems of agriculture but also complements the economic efficiency and viability of livestock rearing. As climate issues continue and grow in intensity, the adoption of novel feed additives to improve the resilience of animals will continue to be critical.

Embracing Natural Alternatives in Feed Additives

There has been a gradual shift in the feed additive industry focus on natural and natural brands rather than synthetic ones because today's consumers are more concerned about food safety, therefore the demand for better animal produce. According to Kemin Industries, they are leading in the provision of pure natural antioxidants and essential oils, as synthetic additive alternatives.

These products also defend the health and increase the performance of the animal, but they meet the growing trend of clean-label products. According to Cargill, gut health and the improvement of immune systems in livestock have been supported by the provision of additives from plants.

Their natural solutions help meet the growing need for meat and dairy products free from antibiotics. Biomin also plays a role in introducing mycotoxin binders and probiotics with natural products in the feed. All these trends favor the changing face of the feed additives industry because manufacturers continue to invent for changing producer and consumer needs that are sustainability and animal welfare.

Tackling Anti-microbial Resistance with Innovative Solutions

Within the new animal nutrition additives sector, the end of antimicrobial resistance (AMR) is a high priority. Elanco, among other companies, undertakes the creation of non-antibiotic growth promoters and health enhancers. Such solutions are particularly important since consumers are influenced by health concerns and legal restrictions and demand antibiotic-free animal products.

Enzyme and probiotic products of Elanco improve beef and production animal health, without the use of antibiotics. Chr. Hansen is another important player in this industry developing preparations that is preventing the need for antibiotics through microbial improvement of gut health and immunity.

Their probiotic formulations are species-specific to target the best effect. Such innovations are driven by the increasing, consumer demand for safer, antibiotic-free meat and dairy foods. This is being penetrated by the farmers to meet the industry and regulatory requirements. This shift addresses not only the AMR issue but also encourages appropriate and sustainable animal farming and health and productivity over time.

2019 to 2023 Global Novel Feed Additives Sales Analysis Compared to Demand Forecasts for 2024 to 2034

Global sales increased at a CAGR of 5.7% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on such products will rise at 6.6% CAGR.

The shift towards being more concerned about how the animals are raised has contributed to the need for feed additives that improve the health and well-being of the animals. New agricultural practices are also a big reason as they are causing the creation of more efficient and oriented feed additives.

Another interesting trend that aids this growth is precision fermentation and synthetic biology, which helps in developing specific action-targeted additives for the manufacturers to improve feed and ani­mal weight gain.

A similar concern over inputs in agriculture is forcing change in the industry. The rational use of feeding substances with a reduced environmental impact is more and more practiced. Amino acid additives produced by Evonik Industries are the first step in this revolution by enhancing nitrogen efficiency and hence lowering greenhouse emissions and nutrient water pollutants.

Moreover, the growing trend of aquaculture has been sparking the expansion of the novel feed additives industry as well. The rising competition in the seafood sector has brought an adequate need for specialized aquaculture feed additives that improve the growth and health of aquatic species.

Also, the rise in the incidence of zoonotic diseases is leading to a growing use of feed supplements that help to enhance the immunity of animals and limit disease transmission.

Market Concentration

Tier 1 Companies are the world's leaders having huge geographical areas of operation and contribution in terms of market share. They have a high degree of strategic and planning functions and a wide variety of products. Such companies are Cargill, DSM, and Evonik Industries. These companies capture most of the industry owing to their capability to bring in new ideas and mass produce within a short time.

Tier 2 Companies include companies that are considerably larger in and have a well-established regional presence, along with certain specialized product lines. They usually deal with certain targeted niche areas or product lines of a certain class of feed additives.

This category of companies is skilled in tailoring and can respond to dynamic business ecosystem in real-time. They invest in a big way in research and development and manufacture products that fulfil specific customer-oriented demands.

Tier 3 Companies are smaller and often hold the position for local or regional companies serving specific areas or customers. They can develop and produce one kind of feed additive or cover a specific region. They typically have low target market revenue. They may be smaller-sized companies, but they are important in the market for offering focused solutions and keeping the customers.

Country-wise Insights

The following table shows the estimated growth rates of the top three territories. USA and China are set to exhibit high consumption, recording CAGRs of 4.3% and 7.5%, respectively, through 2034.

Countries	CAGR 2024 to 2034
The USA	4.3%
India	6.9%
China	7.5%
UK	3.2%
Japan	5.4%

Rising Emphasis on Antibiotic-Free Livestock Boosting the Sales in USA

One significant factor is the growing focus on the production of livestock without the use of antibiotics. Restrictions as well as consumer preference towards meat that does not use antibiotics have made companies like Elance and Zoetis come up with new products in the form of feed ingredients that do not require the use of antibiotics but instead promote the health and growth of the livestock.

Also, there has been the introduction of new techniques in farming. There is also the incorporation of precision farming and data analytics in the management of feeds to improve the efficiency and the targeting of feed additives.

Cargill is using such technologies to enhance the formulation of feeds and the performance of animals. Moreover, within the USA market, there is also a growing trend in the use of alternative protein in feed additives. Calysta is one of the companies that are focused on using single-cell proteins as an alternative to conventional feed ingredients.

Demand Outlook in China

The factor that is contributing strongly to the healthy growth of the industry is the government’s focus on eco-friendly and productive livestock production. Policies aiming to lessen the use of antibiotics as well as policies enhancing feed efficiency are making it possible for inventive feed additives to be used.

Nutrient-enhancing enzyme additives that minimize wastage are now gaining popularity in usage. Dairy and meat products that do not contain synthetic ingredients are becoming very popular, especially among the younger demographic and informed consumers in China.

Natural and organic feed supplements that enhance the well-being of livestock as well as the quality of the end products are highly demanded. Also, the adoption of technologies such as precision feeding systems in the feed manufacturing process is appreciated. These strategies enhance the formulation of feeds and the general productivity of animals and hence the stimulated market.

Enhanced Focus on Dairy and Poultry Sectors is Pushing the Industry Sales

In India, the rising concern about the productivity of livestock to satisfy the growing demand for animal protein is driving market sales. Farmers are using modern feed additives to improve the growth rates and feed efficiency of livestock. Another trend is the shift towards mitigating the use of antibiotics in livestock farming.

As resistance to antibiotic treatment medicines becomes common, there is a trend to seek options for antibiotics for animal health improvement which includes vegan and organic additives. These programs related to the Indian government supporting the dairy and poultry industries are translated into a need for new additive feeds.

The purpose of these programs is to improve the health of animals and their performance, thus the demand for such innovative products. Due to these trends, companies in India are developing and selling feed additives that are appropriate for specific regions to promote effective and organized livestock farming.

Category-Wise Insights

Appeal for Naturally Derived Feed Additives on the Rise

Segment	Natural (By Sources)
Value Share (2024)	37.5%

The appeal of the consumers for an organic and antibiotic-free animal product is making the farmers turn to natural feed additives. These feed products are mainly sourced from plants, animals, or even microorganisms. Manufacturers such as Kemin Industries are employing advanced technologies to develop natural performance enhancers, such as antioxidants and essential oils.

These products are in very high demand because they meet the consumers’ preferences and satisfy the recommended policies to produce organic foods. The increasing concern regarding the environmental impacts of livestock production is also contributing to the use of natural alternative additives.

Companies are integrating sustainable raw material sourcing as well as sustainable production tactics into their business models. This is matched by biotechnology development, with the potential to create potent natural additives that will enhance feed utilization and animal well-being.

Rising Demand for Enhanced Egg Production and Quality Leading to Higher Need for Novel Poultry Feed Additives

Segment	Poultry (By Species)
Value Share (2024)	39%

To meet the increasing demand for poultry products, producers must improve feed conversion efficiency and the health of the animals. Probiotics, prebiotics, and other similar additives are now being used in the industry to help improve poultry gut health, and consequently growth and decrease mortality rates.

Along with probiotics, the focus of the manufacturers is also on the formulation of the additives that help in increasing the quantity and quality of eggs. For example, calcium regulators are important for the chickens' reproductive processes. Companies are adopting new ideas to support the growth of poultry makers by improving nutrient absorption through enzyme-based food supplements.

Furthermore, the increasing trends of natural poultry farming are encouraging the use of such alternatives. Such feed additives do not contain antibiotics but sustain gut health and disease prevention.

Competition Outlook

The competition in the market for innovative feed additives is quite intense and the companies are using different plans to expand the market coverage. Having diverse solution-oriented products is one of the ideas to drive product differentiation.

The firms are also seeking to protect their positions by offering patented compounding and formulations. Manufacturers collaborate with research institutions and universities, to be relevant and remain competitive. Alltech collaborates with some of the academic institutions to come up with new generations of feed.

Geographic expansion is another strategy. Companies are moving into new territories to find more customers. Nutreco has been growing its business in Asia and Africa and adapting the products for the local population. Manufacturers are targeting environment-loving consumers by producing sustainable goods and extending their practices.

ADM practices the principles of sustainable sourcing and production. The policies are attractive to the manufacturers aiming at improving their market share and sales within the competitive industry.

For instance

• In 2023, MiAlgae introduced its omega-3 product NaturAlgae, which includes a high DHA and other oils containing dry powder suited for the aquafeed recipes promoting the well-known omega-3 health benefits. The company has developed its own technologically advanced production to lessen the load on naturally captured fish, the long-known source of omega-3.
• In 2024, DSM-firmenich’s product named Bovaer, a methane-reducing feed additive for beef cattle was granted approval for marketing in South Korea. This approval represents a major advancement in the goals of sustainable agriculture in South Korea.

Leading Brands

• Volac International Limited
• Chemlife Innovations Pvt Ltd
• All microalgae
• DSM
• Corbion
• Bioproton
• Land O'Lakes, Inc. (PMI Nutrition)
• Orffa
• Arshine Feed Additives Co., Ltd.
• Imerys
• Others

Key Segments of the Report

By Ingredients:

As per Ingredients, the industry has been categorized into Microalgae based ingredients (De-oiled Microalgae meal, and Microalgae oil), Probiotics/ Direct Fed Microbial (DFM), Prebiotics (Yeast Cell Wall, and Clay minerals), Alkalizers and buffers, Antibiotic Growth Promoters, Phyto biotics, Acidifiers/ Organic Acids, Nanoparticles as Feed additive, Antifungal Additives and Mycotoxin Binders, Bio-minerals or Chelated trace minerals, and Others.

By Sources:

As per sources, the industry has been categorized into Natural, (Plants, Animals, Micro-organisms), and Synthetic.

By Form:

This segment is further categorized into Powder and Liquid.

By Species:

As per species, the industry has been categorized into Ruminant (Calves, Dairy, Cattle, Beef Cattle, and Others), Poultry (Boilers, Layers, Ducks, Turkey, and Others (Geese, pheasants)), Swine, Aquaculture, and Pet animal.

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and Middle East & Africa.

Frequently Asked Questions

What is the current value of the novel feed additives industry?

The global industry is estimated at a value of USD 5,584.2 million in 2024.

At what rate did the sales for novel feed additives grow between 2019 and 2023?

Sales increased at 5.7 % CAGR between 2019 and 2023.

Who are the leading manufacturers of novel feed additives?

Some of the leaders in this industry include Volac International Limited, Chemlife Innovations Pvt Ltd, Allmicroalgae, DSM, Corbion, Bioproton, Orffa, Arshine Feed Additives Co., Ltd., Imerys, and Land O'Lakes, Inc. (PMI Nutrition).

Which region will garner a significant value share by 2024?

The North American territory is projected to hold a revenue share of 28.4 % over the forecast period.

At what CAGR is the global forecast to grow from 2024 to 2034?

The industry is projected to grow at a forecast CAGR of 6.6 % from 2024 to 2034.