The global animal feed additives market in terms of revenue was estimated to be worth around $15.6 billion in 2011, and is expected to reach $19.5 billion by 2017, according to the latest Markets and Markets report.
Growing at the compound annual growth rate of 3.8 percent from 2012 to 2017, leading manufacturers are focused on expansion of the business across regions and setting up new plants for increasing production capacity as well as product lines. Major industry participants are involved in mergers and acquisitions to penetrate the untapped markets of Asia and Latin America, said the report.
The demand driving factors of the global animal feed additives market are industrialization in meat production, increasing global demand for protein-rich meat products, increase in rate of global meat consumption, increased awareness towards meat quality and safety, and outbreaks of livestock diseases. Major restraints of the industry are raising raw material cost and regulatory structure. However, said the report, the increasing cost of natural feed products is creating opportunities for the animal feed additives. Environmental concerns and regulatory ban over some harmful additives are other opportunities for animal feed additives. The manufacturers are developing innovative production techniques to manufacture the product at lower cost and increase production capacity.