The India feed additives market is projected to witness a compounded annual growth rate of 3.55% to grow to US$1.871 billion by 2026, from US$1.466 billion in 2019. In animal agriculture, feed additives have been used to control pathogen colonization in animals' guts. Growing meat consumption in India, combined with recent disease outbreaks, has resulted in a demand for additives in poultry, aquaculture, and other animal-based goods, which is projected to drive the product demand during the forecast period. Furthermore, an increase in the country’s disposable income is also expected to fuel its animal feed additive market growth, considering the increasing demand for quality animal-based products for maintaining good health and wellness.
Growing meat consumption
One of the major factors expected to drive India’s feed additives market growth is the growing consumption of meat in the country. Therefore, with an increase in disposable income, the demand for meat products is also expected to increase, which will further propel the demand for animal feed additives in the country as well. According to a Fitch Solutions report, published in June 2021, the average Indian household will spend 35.3% of the total household budget on food in 2025, up 2.1 percentage points from 33.2% in 2005. Its further states that by 2025, poultry will be the most consumed meat, with per capita consumption of 2.9kg, increasing from 1.1kg in 2005 and representing 71% of total meat consumed in India, thus, indicating a growing market for meat products and subsequently for animal feed additives as well.
Cattle is projected to hold a notable share.
Indian cattle industry livestock farming is an important part of Indian agriculture and it contributes to the well-being of their consumers. The increased demand for cattle feed additives is due to their efficiency in reducing the deficiency of nutrients as well as in preventing several health diseases in cattle. The agriculture and livestock sectors are the two most important factors that are responsible for the survival of the rural population in India. Adequate provision of nutritional feed is essential to livestock production by cattle. India is the largest producer of milk, meat, and other dairy products give the Indian cattle feed additive market an enormous potential for growth.
The cattle feed additive market is continuously growing due to the rising demand for feed to add nutritional value to the cattle feed to increase the cattle’s efficiency and lactational capabilities of the cattle. Consumers are raising more awareness about the quality and the safety of cattle feed additives in order to avoid any disease outbreak.
The COVID-19 led to a decline in meat consumption in India, which was a major factor for the decrease in the growth of the feed additives market in the year 2020. The year 2020 witnessed the closedown of hotels and other hospitality businesses, which, coupled with the Indian government’s imposition of stringent measures on social distancing were some of the reasons behind low meat consumption in the country. Furthermore, the trade restrictions implemented by countries all over the world negatively impacted the Indian feed additives market as well. Furthermore, a halt in the tourism sector further contributed to the reduced consumption of meat and hence harmed the market growth. Moreover, the restrictions on the gathering of people, along with the shortage of laborers due to travel restrictions, prompted the manufacturing units to operate at a low capacity.
|Market size value in 2019||US$1.466 billion|
|Market size value in 2026||US$1.871 billion|
|Growth Rate||CAGR of 3.55% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Product, Livestock, And Feed Form|
|Companies covered||Cargill Incorporated, Basf Se, Novozymes, Nutreco, Chr. Hansen, Evonik Industries, Archer Daniels Midland Company, Alltech Inc, Elanco Animal Health, Adisseo|
|Customization scope||Free report customization with purchase|
Key Market Segments
Archer Daniels Midland Company
Elanco Animal Health
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