US feed additive market predicted to soar despite regulatory concerns
Animal feed additives generated more that $4 million this year but suppliers must tackle regulatory issues before launching new products, says new market analysis
A restrictive regulatory environment poses a great challenge to the rapidly growing antibiotics segment of the U.S. animal feed additives markets. Manufacturers must overcome this restraint before introducing new products and customizing antibiotics in this market.
New analysis from Frost & Sullivan, the U.S. Animal Feed Additives Markets, reveals that this market generated revenues of $439.3 million in 2005. Total market revenue expects to reach $729.2 million in 2011.
Recent animal disease outbreaks have made meat consumers cautious about their selection of meat products, thus the government and meat industry have taken concrete measures to boost consumer confidence. Coupled with the growing economy, this bodes well for the feed additives market as the production and consumption of meat increases.
"With feed additives manufacturers emphasizing products that have demonstrated efficiency in laboratories and on-field trails, there has been considerable improvement in the product quality over the last five years," observes Frost & Sullivan Research Analyst Hari Desai. "Consistency in product performance improves end-user confidence in the product efficacy and stimulates the product growth."
In contrast, consolidation in the meat industry, particularly in the swine meat segment, is forcing animal feed additive manufacturers to offer volume-based discounts, resulting in a substantial dip in revenues.
Nevertheless, manufacturers keen on new product development opt for acquisitions, as it offers a vast scope for product line diversification. Acquisitions allow enterprises to implement antibiotic rotation and increase the customer preference for a particular company.
"Principally, companies producing enzymes and direct-fed microbials (DFM) are likely to opt for a product-line broadening strategy to strengthen their customer base and improve their product acceptance," notes Desai.
Overall, the feed antibiotics market with the poultry and swine industries as its main clientele, has developed in terms of research, product development and marketing, quality and intellectual property protection. The rising demand for animal proteins, price stability, continuous research on animal care, and a concern for food safety will continue to fuel market growth.
The U.S. Animal Feed Additives Markets, a part of the Food and Beverage Ingredients subscription, evaluates the current state of the animal feed additives market in the United States and forecasts future revenues. It looks into the three major market sectors, based on their current levels of significance in production-enzymes (including phytase and non-phytase enzymes), DFM including bacterial and yeast products, but excluding yeast culture and antibiotics (apart from ionophores). The study identifies the key challenges facing the industry and strategies to succeed in light of such obstacles. Executive summaries and analyst interviews are available to the press.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest analysis of the U.S. Animal Feed Additives Markets, send an e-mail to Tolu Babalola, Corporate Communications at email@example.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. The brochure will be e-mailed to you upon receipt of this information.