Feed Binders Market – Global Forecast To 2026

The global feed binders market is estimated to account for a value of USD 4.5 billion in 2020 and is projected to grow at a CAGR 3.0% from 2020, to reach a value of USD 5.1 billion by 2025.  The feed binders market is projected to witness significant growth due to the increasing need for improving the quality of feed provided to the livestock. Innovative techniques are being developed to manufacture different feed binder products to capture the untapped potential of the market. The need to increase food production for domestic consumption, as well as for exporting among developing countries, have led to an increase in demand for agricultural inputs and feed rations. The increasing trend of meat consumption in the Asia Pacific region has further led to a rise in the production of compound feed, which has further driven the demand for feed binders.

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Market Dynamics

Driver: Strong growth in the compound feed industry

The feed sector plays a crucial part in addressing global food and agriculture issues. Feed manufacturers are becoming more aware of the need to increase the nutritional value of feed products to improve the digestibility of animals to optimum levels. According to the FAO, global compound feed production has been estimated to be about 1 billion tonnes every year. Compound feed can be defined as the final feed product made up of various raw materials and additives. Additives are added to the feed to enhance their nutritional value, shelf-life, and quality. The compound feed industry is growing at a very fast pace, which fuels the need for the development of new additives in the feed market.

Restraint: Price volatility and availability of raw materials

Binding agents, such as guar gum, corn starch, agar, carrageenan, and gelatin, 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. The prices of raw materials can increase based on the source, extraction process, or the chances of availability in the region.

Opportunity: Increased popularity of natural solutions for pet food nutrition

Owners of pets remain very sensitive and concerned about the quality, safety, and source of the ingredients involved in the manufacturing of pet food. The trend of keeping pets is also gaining pace these days. According to Agriculture and Agri-Food Canada, 2013, the US has the largest population of pets and has one of the largest pet food markets worldwide. In 2018, Agriculture and Agri-Food Canada quoted the value of the pet food market in Europe, which was worth USD 24.1 billion. It is projected to reach USD 28.1 billion by 2022, with an estimated CAGR of 3.5% from 2018 to 2022. This implies that pet owners are looking for premium products for their pets.

Challenges: Low-quality products can be a challenge in developing economies

Low-quality products are used by some regional or local manufacturers to reap the benefits of the growing demand for compound feed. Duplicate and low-quality products can create health issues in the livestock and are a big concern for producers. There are many small players in the developing markets of Asia Pacific that offer compound feed without any brand name, and somehow increase their profits by selling unauthorized duplicate products. These local manufacturers attract feed consumers by offering lower prices for their low-quality compound feed.

By type, the feed binders market is segmented into clay, plant gums & starches, lignosulphonates, hemi-cellulose, CMC & other hydrocolloids, gelatin, molasses, wheat gluten & middlings, and others (PMC and urea formaldehyde). The lignosulfonates segment accounted for the largest share. Lignosulfonates has binding and lubricating properties and effectively absorbs water, which helps in reducing wet droppings and is considered an environment-friendly additive. Thus, it is witnessing considerable demand over the past few years among the end-user industries.

Based on livestock, the feed binders market is segmented into poultry, ruminants, swine, and others (aquatic animals, equine, and pets). Poultry birds are majorly consumed for meat and eggs. In the feed binders market, the poultry and cattle segment dominated the market share in 2020, due to its organized sector growth.

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Some of the major players in the feed binder market are Archer Daniels Midland Company (US), DuPont (US), FMC Corporation (US), Darling Ingredients Inc. (US), Roquette Freres (France), Borregaard ASA (Norway), Gelita AG (Germany), Emsland Starke GmbH (Germany), CP Kelco Inc. (US), and Avebe U.A. (Netherlands). Expansions & investments, mergers & acquisitions, and agreements were some of the core strengths of the leading players in the feed binders market. These strategies were adopted by the key players to enhance their market presence. It also helped them diversify their businesses geographically, strengthen their distribution networks, and expand their product portfolios.

The Asia Pacific region serves as a growing platform for the feed industry due to its rise in population, increase in per capita income, and urbanization. The ruminants and poultry feed production in Asia Pacific is growing at a higher rate since the past five years. With the increasing pork consumption in the Southeast Asian region, feed manufacturers are eventually witnessing high demand for feed binders in swine and poultry feed.