Global Potenza Feed Market Size (2024 – 2030)

The global Potenza Feed Market was valued at USD 17.56 billion in 2023 and is projected to reach USD 27.61 billion by 2030, experiencing a healthy Compound Annual Growth Rate (CAGR) of 6.68% from 2024 to 2030. The growth of this market is predominantly fueled by the increasing global demand for meat products.

Industry Overview:

Animal nutrition plays a crucial role in facilitating efficient meat and milk production, reproductive health, and skeletal development in animals by providing essential nutrients such as macronutrients, vitamins, dietary minerals, enzymes, eubiotics, and amino acids. Among these, amino acids hold the top position in terms of demand and are expected to grow at a steady CAGR of 5.5% - 6.5% until 2025. Amino acids are vital for various biological processes including protein synthesis, transportation, and storage of nutrients. Moreover, the enhancement of animal-based food products such as meat, milk, and eggs relies on the effective supplementation of amino acids. The surge in dairy consumption, projected to increase by 25% between 2015 and 2024 according to the International Dairy Federation, underscores the necessity for dairy producers to meet the rising demand, thereby driving the growth of the animal nutrition market.

Upon regional analysis, the Asia-Pacific (APAC) region emerges as the dominant market, accounting for approximately 29% - 31% of the global demand for animal vitamins. This dominance is attributed to several factors including the burgeoning meat consumption in densely populated economies such as India and China, which collectively harbor around 35% of the global population. Additionally, the growing awareness regarding health and fitness among individuals has spurred the demand for livestock-based proteins like milk, eggs, and meat. With the global population projected to reach 9 billion by 2050 according to the Food and Agriculture Organization of the United Nations, ensuring food security becomes imperative. The livestock sector, despite facing challenges such as dwindling arable land due to industrialization, plays a significant role in addressing food security concerns, contributing nearly 40% to the global agricultural production value.

COVID-19 Impact on Potenza Feed Market

The outbreak of COVID-19 in Wuhan, China, disrupted the supply chain of components and additives, as China serves as a primary manufacturer of raw materials in the region. Transportation restrictions further exacerbated the situation, hindering the delivery of essential ingredients like soybean meal to livestock farms. Although China has eased transportation restrictions on essential goods, manufacturers continue to face difficulties in exporting their products.

Market Drivers:

The escalating global demand for meat products continues to propel market growth.

Over the past century, the global population has quadrupled, accompanied by an increase in disposable income, which has led to dietary shifts favoring higher protein and meat consumption. However, the limited capacity of the livestock sector to meet the surging demand for meat-based protein underscores the importance of animal nutrition in ensuring efficient quality and quantity production. The widespread acceptance of non-vegetarian diets is exemplified by the global presence of KFC, operating in 135 countries with over 22,000 restaurants worldwide. Additionally, the growing awareness among consumers regarding the importance of quality pet nutrition is expected to drive expenditure on premium animal nutrition products. Data from the American Pet Products Association (APPA) and the North American Pet Health Insurance Association (NAPHIA) highlight the significant investment made by pet owners in ensuring the well-being of their pets, contributing to the growth of the animal nutrition market.

Market Restraints:

The expanding vegan population poses a challenge to market growth.

Despite the increasing popularity of veganism, particularly in developed countries, this demographic remains a minority. The impact of the vegan population on the dominance of meat-eating consumers appears negligible. However, the animal nutrition market stands poised to capitalize on the growing vegan population by catering to the demand for dairy-based products such as cheese, milk, and butter, which are integral to a vegetarian diet.

Potenza Feed Market - By Ingredients:

• Corn
• Soybean
• Meat
• Others

Corn emerged as the dominant ingredient category in 2019, representing more than 25.0% of the global revenue share. Key grain producers such as Cargill, Inc. and BASF SE are integrated into the value chain, offering feed components and serving as comprehensive suppliers to producers, thereby reducing sourcing and logistics expenses. Some companies, including Charoen Pokphand (CP) and Alltech, have backward integration to produce raw materials (feed grains) and end products, thereby mitigating raw material costs. Rising consumer awareness regarding livestock diseases such as foot and mouth diseases has underscored the importance of feed ingredient quality and safety, consequently driving the demand for high-quality feed ingredients.

The overlapping demand for key grains such as barley, maize, and wheat from other industrial sectors like biofuel and food industries is anticipated to impede market growth in the forecast period. Nonetheless, recent trends indicate a significant surge in partnerships and mergers & acquisitions among market players, bolstering corporate portfolios, expanding access to regional markets, and offering competitive advantages, thus stimulating product demand. Notably, lysine, methionine, and cysteine are among the most widely used amino acids in the animal feed additive industry. Lysine serves as a crucial building block for protein synthesis in animal bodies, necessitating dietary intake or supplementation as animals cannot produce this amino acid in adequate quantities themselves. Methionine, another vital amino acid, acts as a potent antioxidant essential for animal liver function and detoxification, also contributing to the prevention of nail and skin disorders in animals. Methionine is also recognized for its role as a grass saver in dog food, lowering urine acidity levels. Consequently, the demand for this amino acid as a feed supplement in the cattle feed industry is expected to remain robust over the forecast period.

Feed additives are manufactured and distributed by various entities in the form of premixes through mills and distributors. These industry participants directly sell additives under their brands to consumers or supply them to integrated feed producers. With ongoing regulatory updates and increased research and development expenditure, the market continues to evolve. However, restrictions on antibiotic use in developed economies such as the U.S. and Europe are anticipated to open avenues for alternative products like amino acids, acidifiers, and enzymes.

Potenza Feed Market - By Application:

• Dairy
• Calf
• Others

In terms of application, the dairy segment commanded over 54% of the global revenue share in 2019. The United Nations Food & Agriculture Organization (FAO) projects a 55% increase in dairy product consumption and a 70% increase in red meat product consumption by 2050. This growth can be attributed to the escalating demand for dairy and milk products in emerging economies, driven by increased industrialization in cattle rearing. The value of cattle and calf production in the U.S. has been steadily rising since 2010 due to heightened demand and intensified market competition. Manufacturers are focusing on product innovation, offering customized solutions for dairy and red meat applications. For instance, in September 2018, Kemin Industries, in collaboration with Micronutrients, introduced Intellibond Vital 5 Cr, containing six essential trace minerals aimed at enhancing dairy and beef cattle health and performance.

Potenza Feed Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

Geographically, North America led the market, capturing over 34% of the global revenue share in 2019. The region's market growth is driven by increasing meat consumption, particularly in the U.S., coupled with stringent regulations pertaining to meat quality. Additionally, the easy availability of raw materials such as maize and dextrose in the region is expected to further propel market expansion. Asia Pacific is forecasted to register the fastest CAGR from 2020 to 2030, fueled by rapid cattle stock growth in emerging economies like China and India, attributed to their large populations and significant increases in meat consumption. Spain and Germany have emerged as significant markets in Europe, with Germany benefiting from the presence of 330 feed mills, supporting market growth. Moreover, Spain exhibits a high consumption of pork and cattle feed, accounting for over 65% of total animal feed consumption, thus driving the Spanish cattle feed industry. Free trade agreements among European Union nations are poised to positively impact market growth in the region over the forecast period.

Potenza Feed Market Share by Company:

1. BASF
2. DSM
3. Cargill
4. ADM Animal Nutrition
5. Kemin Industries
6. Biomin Holding GmbH
7. Nutreco
8. Land’O Lakes
9. Farmers

Recently, Walgreens announced the expansion of its mobile app, now offering MDLivetelemedicine services in 25 states. Adam Pellegrini, Vice President of Digital Health at Walgreens, emphasized the company's commitment to providing customers with convenient and connected services, enhancing the digital experience to offer patients more choices in accessing care. The increasing competition among healthcare retailers has posed challenges for many practices. With the addition of telemedicine components, this option becomes more appealing to patients and could erode patient loyalty if practices fail to align with evolving healthcare consumer preferences.

Key players in the telemedicine market include Philips Healthcare, Beam Healthcare, GE Healthcare, and Bosch Healthcare. These entities continually innovate to offer a wide range of services and software for patient monitoring, self-care, and post-operative monitoring. Beam Healthcare, for instance, stands out as a leading health medicine company, offering text-based intelligent telehealth services tailored for primary care providers. Their end-to-end solution streamlines the reimbursement process for telemedicine visits, simplifying billing for both doctors and patients.

The introduction of customized products, coupled with software development and expansion of distribution channels, is expected to be a significant factor driving industry growth. Additionally, ongoing mergers and acquisitions aim to diversify product portfolios, increase market share, and enhance regional presence, particularly in unorganized markets such as China, Brazil, and India.

NOTABLE DEVELOPMENTS IN THE GLOBAL TELEMEDICINE MARKET: Acquisition - In June 2020, Nutreco finalized the acquisition of Hi-Pro Feeds. Following this amalgamation, Nutreco's collective animal nutrition entities in North America, including Shur-Gain, Landmark, and Hi-Pro Feeds, now operate under the name Trouw Nutrition.