GLOBALFEED SUPPLEMENTS MARKET

Growth Trends, Forecasts &Competition

2014 - 2020

mordorintelligence.com

|Global Feed Supplements Market Sample

1 INTRODUCTION

1.1 Research Methodology

The research methodology can be put into the following sequence:

1) Secondary Research: Information was collected from a number of public and paid data

sources. Public sources involved FAO, publications of the Feed Associations of different

countries, company annual reports, white papers and research publications by recognized

industry experts. Paid data sources include authentic industry databases.

2) Primary Research: After collecting data from secondary sources, primary interviews were

conducted with stakeholders at different points of the feed value chain like manufacturers,

distributors, ingredient suppliers, companies producing enzymes and key opinion leaders of the

industry. Primary research was used both to validate the data points obtained from secondary

research and to fill the data gaps after secondary research.

3) Market Engineering: The market engineering phase involves analysing the data collected,

market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down

approaches are used to arrive at a complete set of data points that give way to valuable

qualitative and quantitative insights. Each data point is verified by the process of data

triangulation to validate the numbers and arrive at close estimates.

4) Expert Validation: The market engineered data is verified and validated by a number of experts,

both in-house and external.

5) Report Writing: After the data is curated by the mentioned highly sophisticated process, the

analysts begin to write the report. Garnering insights from data and forecasts, insights are

drawn to visualize the entire ecosystem in a single report.

|Global Feed Supplements Market Sample

3. MARKET ANALYSIS

3.5 Factors affecting the market

3.5.1. Drivers

The global compound feed market is driven by factors such as increasing meat consumption across the

globe and growth in the processed meat industry. Other factors responsible for growth in the market are

population growth and increase in the income of middle class population in developing countries. The

flexibility to choose from numerous raw materials is also triggering the growth of the industry.

3.5.1.2 Increased awareness regarding quality meat and milk products

Food safety has become an important issue for many governments around the world, especially in

North America and Europe. Consumers around the world are now more aware and informed and giving

importance to the extrinsic quality attributes of the meat they consume. Certain pathogenic and

parasitic contaminations in meat products such as salmonella, listeria and E. coli, along with various

disease outbreaks in livestock animals such as swine flu and foot and mouth disease in the past decade

have raised concerns over meat quality and safety. For example, in January 2011 a meat quality issue

arose in Germany, where a cancer causing dioxin was found in meat products. Taking safety steps,

many countries including South Korea and Slovakia banned pork imports from Germany due to the

health risks involved. Use of compound feed with feed additives such as antibiotics, enzymes, and

vitamins provides balanced nutrition to the animals and protects them against such harmful

environmental influences.

|Global Feed Supplements Market Sample

3.5.2. Restraints

The main obstacle in the growth of aquafeed market is the rising cost of important raw materials such

as Soybean, maize, fish meal and fish oil. Another restraint is the regulatory structure of the animal feed

industry which restricts the use of certain materials such as antibiotics which will enhance the

productivity.

3.5.2.2 Government regulations

Regulatory issues are the biggest constraints in the compound feed industry. Animal feed production

comes under feedstuff regulations in most countries. Regulatory framework is increasingly getting

stringent, such as in the year 2006 in EU and in 2009 in the U.S., when the use of antibiotics as growth

promoters in animals was banned. Europe had also imposed a ban on the use of animal proteins in

aquafeed.

Many countries including China, Thailand, and Vietnam that export fish to Europe and U.S. do not have

such regulations against the use of antibiotics or animal proteins in feed. Such disparities in regulations

have adverse effects on the global fish and aquafeed trade, especially between developed and

developing economies. Producers of feed and feed additives are required to follow strict regulations

related to regional and national health and safety for their products to get approval in developed

nations. This ultimately affects the cost of the final products. Such regulatory initiatives are posing

challenges for existing feed products and are increasing the cost of new feed development.

|Global Feed Supplements Market Sample

3.6 Porter’s Analysis

3.6.5 Threat of Substitutes

Farm-made feed is a substitute to compound feed. The compound feed industry has evolved over the

last five decades with increasing demand for meat, milk and seafood. Farm-made feed, however, has

been in use for centuries. Despite increased efficiency and production of compound feed, a majority of

farmers in Asia-Pacific, South America and South Africa prefer using farm-made feed due to the low

cost. The raw materials required for production are readily available. Moreover any number of raw

materials from a variety of plant sources can be used. Instead of buying costly compound feed, farmers

prefer manufacturing feed in the farm.

Various single substances such as fish meal and fish oil are looked upon as effective alternatives. The

differences in climate and animal species gives rise to demand for tailor-made products. These tailor-

made products become substitutes of the existing product list. With increasing focus on improving feed

efficiency, feed manufacturers are striving to achieve product differentiation by commercializing

innovative products.

Thus, threat from substitutes is high.

|Global Feed Supplements Market Sample

4 MARKET SEGMENTATION BY TYPE

4.1 Introduction

Compound feed contains nutrients and energy sources essential for the health and growth of the

animal. The common ingredients of feed are mineral sources, energy sources, protein sources, etc.

However, not all nutritional requirements of the animal can be met with the common raw materials such

as soybean meal, soy protein concentrate, fish meal, fish oil, rice bran, wheat, corn gluten, etc. Also,

these raw materials do not provide defence against diseases. Hence, feed additives are used in animal

nutrition to improve characteristics of the feed for animal health benefits by improving feed digestibility

and increasing nutritional content and feed palatability. To achieve desired high yield output, livestock

producers are putting external inputs in the form of feed additives for animals other than normal feed

such as cereal crops. A variety of feed additives are blended with the feed in varying quantities,

depending on the livestock as well as the surrounding environment and its impact on the animals.

The global animal feed additive market is primarily dependent on the type of feed, the type of

animal/livestock and the regulatory structure in the market. The industry is witnessing favourable

market trends such as rising demand for high protein diets, especially in the developing economies of

China and Brazil where per capita income is also rising rapidly. The demand for feed additives is also

rising because of increasing facilities for mass meat production.

Animal disease outbreaks such as H1N1 (Influenza A) have resulted in increased concern over meat

quality and safety, and are driving the growth of feed additives for better animal health and disease

protection. The regulatory ban on antibiotics as growth promoters in Europe and U.S. has had a negative

impact on market growth in these regions. Such a ban on antibiotic usage is affecting the global meat

trade between developed (U.S. and Europe) and developing (Brazil, India, and China) nations because of

regulatory disparities.

|Global Feed Supplements Market Sample

4.3 VITAMINS

Vitamins are naturally found in most of the feed stuffs, but to provide proper nutrition, additional vitamin

supplements are mixed in the livestock feed. Major feed vitamin additives added as supplements to the

feed to improve and maintain animal health including vitamin A, D, vitamin E, vitamin K, and riboflavin.

Global demand for vitamin feed additives is expected to show a healthy growth rate.

Vitamin E is an important micronutrient required to prevent muscular weakness in all animals; it

accounted for the largest market share of 30% in the global vitamin feed additives market in 2011. Other

major vitamins consumed as feed additives include vitamin B with a 28% share and vitamin C with a

20% share. Most of these vitamins are consumed as micronutrients and in different combinations to

overcome vitamin deficiencies in different livestock animals. Vitamins are mainly used in minuscule

quantities and sometimes also act as antioxidants and preservatives for animal feed.

Vitamins: Compound Feed market Volume, by Region, 2012-2020 ('000 Metric Tons)

Region 2012 2013 2014 2020 CAGR % 2014-2020

North America XX 1,151.6 XX XX XX

Europe 1,077.7 XX XX XX XX

Asia-Pacific XX XX XX 2,786.1 XX

South America XX XX 445.7 XX XX

ROW XX XX XX XX 3.4

Total XX XX XX XX XX

Source: All About Feed Magazine, The poultry site, The fish site, Primary Interviews, IFIF

|Global Feed Supplements Market Sample

Vitamins: Compound Feed market revenue, by Region, 2012-2020 ($ Million)

Region 2012 2013 2014 2020 CAGR % 2014-2020

North America XX 1603.5 XX XX XX

Europe XX XX XX 2322.1 XX

Asia-Pacific 2011.3 XX XX XX XX

South America XX XX 829.3 XX XX

ROW XX XX XX XX 4.0

Total XX XX XX XX XX

Source: All About Feed Magazine, The poultry site, The fish site, Primary Interviews, IFIF

The fastest CAGR of XX% is expected in the Asia-Pacific market due to increasing meat production

capacities in China, India, Thailand, and Malaysia. The meat industry in countries such as China, Brazil,

and India is increasingly shifting towards industrialization as the market moves from the unorganized

sector (local butcher shops) to the organized sector. This is expected to drive the demand in these

countries as they look to increase their meat exports by meeting international meat standards. Major

players in feed vitamins include BASF, DSM, Adisseo, Danisco, Lonze Group, and Nutreco International.

|Global Feed Supplements Market Sample

7. COMPANY PROFILES

7.4 ALLTECH, INC. 3031, Catnip Hill Pike

Nicholasville

KY 40356

U.S.

Tel: 1-859-8859-613

Fax: 1-859-8856-736

Website: www.alltech.com

OVERVIEW

Founded in 1980, and headquartered at Kentucky, U.S.; Alltech Inc. is engaged in the production and

sale of nutritional products and solutions for the feed industry. The company’s core capabilities lay in

yeast fermentation, peptide technology, and solid state fermentation. It has used these technologies to

offer a range of natural solutions to the animal feed industry for improving animal performance and

profitability. The company carries out research and innovation in various areas such as bioscience

centers, nutrigenomics centers, aquaculture centers, community biorefinery, and quality assurance.

The company has a presence in 128 countries and has 31 manufacturing plants across the globe. Its

operations spread over Europe, Asia-Pacific, Canada, Middle East, and Latin America. Its prime

subsidiaries are Alltech Australia Pty Ltd (Australia), Alltech Biotechnology Romania SRL (Romania),

Alltech (Pty) Ltd (South Africa), Alltechnology C.Z. s.r.o. (Czech Republic), Alltech Deutschland GmbH

(Germany), Alltech Spain S.L. (Spain), and Alltech Venezuela S.C.S. (Venezuela). It employed around

3,000 people in 2013. The company's major competitors are Adisseo France S.A.S (France), Elanco

Animal Health Inc. (U.S.), Novus International Inc. (U.S.), Pfizer Animal Health (U.S.), and Royal DSM N.V.

(The Netherlands).

|Global Feed Supplements Market Sample

FINANCIALS

The company is privately held and do not have any financial details in the public domain.

PRODUCTS & SERVICES

Alltech: Products & Their Description

Product Description

Actigen

The product promotes performance and is available for pigs, poultry, dairy, beef,

aquaculture, equine, rabbits, and pets.

AllzymeSSF

Allzyme SSF is a natural complex that improves profitability by optimal performance of

animals and their diets. It is available for pigs, poultry and aqua.

BIO-MOS

The products are derived from a specific strain of yeast and helps promote animal

performance for pigs, poultry, dairy, beef, aquaculture, equine, rabbits, pets.

BIOPLEX

The products are range of chelated organic trace minerals provides mineral nutrition that

consists of organic Zinc, Copper, Manganese, Iron and Cobalt for all animals species.

DEMP

The products are microbial protein technology which is designed to provide a unique, high

quality protein source to dairy and beef animals.

INCUBATE The products are supplement specifically designed for poultry pre-starter diets fro poultry.

INTEGRAL

The products are patented natural solution to help animals achieve their true potential for

dairy, pig, poultry, equine, companion animals, and aquaculture.

LIFEFORCE The products are all-natural daily nutritional supplement for horses.

MTB-100

The products are natural solution to help animals achieve their true potential for dairy, pig,

poultry, equine, companion animals, and aquaculture.

MYCOSORB

The products reduces mycotoxin absorption in the animal and contributes to the control of

mycotoxins in feed for dairy, pig, poultry, equine, companion animals, and aquaculture.

MYCOSORB-A+

The products reduces mycotoxin adsorption within the animal, thereby negating the

damaging effects of mycotoxins on health of dairy, pig, poultry, equine, companion

animals, and aquaculture.

|Global Feed Supplements Market Sample

Product Description

NUPRO

The products are high quality protein from yeast that contains highly concentrated levels

of essential and functional nutrients which are important in the diets of young pigs, poultry,

ruminants, aquaculture, and pets.

Optigen The products are non-protein nitrogen (NPN) source for ruminants.

SEL-PLEX

The products are organic form of selenium for use in Dairy, beef, poultry, pigs, aquaculture,

equine, companion animals, goats, sheep, toxicity and safety studies, selenium-enriched

food products.

synergen

The products are solid state fermentation of Aspergillus niger for use in pigs, poultry and

aqua.

Yea-sacc

The products are yeast culture based on a proprietary strain of Saccharomyces cerevisiae,

a yeast strain specifically selected for its influence on animal performance.

Source: Company Website and Company Publications

STRATEGY

The company aims to attain $1 billion sales by the year 2015. It strives to increase its geographic

presence by opening offices in Morocco and Pakistan. It also opened a new facility in China and intends

to further increase investments with an aim to triple sales in China within two years.

The company is also focused on developing new products adapted to market needs. Recently, it opened

a new algae fermentation plant in U.S., which offers a new technological frontier with high potential for

the feed industry. The company also started a new center for Animal Nutrigenomics and Applied Animal

Nutrition. The partnership with Norwegian Institute of Food, Fisheries and Aquaculture Research

(Nofima) helps to increase its microalgae role in feed additive and hence to develop new products.

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