Feed Binders Market Size, Share, Analysis, Regional Outlook and Forecast 2020-2025by Mit K. SEO
The global feed binders market is estimated to account for a value of USD 4.5billion in 2020 and is projected to grow at a CAGR 3.0% from 2020, to reach a value of USD 5.1billion 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 AsiaPacific 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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Leading players profiled in this report:
• Archer Daniels Midland Company (ADM)
• Roquette Freres
• Darling Ingredients, Inc.
• Ingredion, Inc.
• Gelita AG
• Kemin Industries, Inc.
• Borregaard ASA
• J. M. Huber Corporation
• Uniscope, Inc.
• Avebe U.A.
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.
Asia Pacific is projected to grow at the highest CAGR during the forecast period
Asia Pacific is the fastest-growing region in the feed binders market due to the presence of some of the primary compound feed, feed additives, and feed binder producers in the world, such as China and India. Most of the South East Asian countries also focus on the production of feed binders due to the growing livestock population. The increasing trend of meat consumption in the Asia Pacific region has also led to the rise in the production of feed binders.
This report segmentsthefeed binders marketonthe basis type, livestock,source and region. In terms of insights, this research report focuses on various levels of analyses—competitive landscape, end-use analysis, and company profiles—which together comprise and discuss the basic views on the emerging & high-growth segments of the feed bindersindustry,the high-growth regions, countries, government initiatives, market disruption, drivers, restraints, opportunities, and challenges.
Created on Aug 20th 2020 06:08. Viewed 179 times.