Global Feed Enzymes Market

Adding enzymes to feed is necessary to increase its quality and digestibility. At the same time, providing enzyme supplement to the livestock helps to produce more meat and milk products per animal at a very low cost and also improve the overall health of the livestock for the long term and reduce the mortality rate. These increases the profit margin of farmers. These benefits support the growth of the market. According to the averages of the data of market research companies, feed enzymes market size for 2022 is estimated about US$ 1.7 billion. Considering that the average growth expectations are at the level of 7.9% CAGR, it can be estimated that the market will reach a size of about US$ 3.6 billion by 2032.

By Derya Yildiz

Enzymes are naturally occurring proteins that are created by the digestive process. However, the digestive systems of livestock such as poultry, horses, swine, sheep and cattle are inefficient. For example, swine and poultry are unable to digest approximately 25% of the diet they are given because the feed ingredients have some non-degradable harmful elements that restrict the digestive process and the animals lack the necessary enzymes required to degrade those complexes in the feed. So, adding enzymes to feed is necessary to increase its quality and digestibility.

Enzymes help breakdown, digestion, and absorption of those naturally occurring elements like fiber and phytate in various feed ingredients. They not only aid in digestion, but also improve the nutrient content of the feed, which results in better energy and nutrient utilization.

Providing enzyme supplement to the livestock helps to produce more meat and milk products per animal at a very low cost and also improve the overall health of the livestock for the long term and reduce the mortality rate. These increases the profit margin of farmers. Also, enzymes help to minimize environmental pollution by reducing waste, as well as feed management costs, by improving the digestive health of the animals.

MARKET GROWTH EXPECTATIONS

We compared the reports of 6 different research companies to determine the current size and growth prospects of the global feed enzymes market. While growth expectations are similar on a percentage basis, forecasts for market size in 2022, and therefore the results of growth-related expectations differ widely.

For example; according to the Feed Enzymes Market Research report prepared by Market Research Future, global feed enzymes market is expected to reach US$ 3.80 billion at a CAGR 5.78% during the forecast period 2022-2030. Based on the data here, we can say that the market has a size of US$ 2.36 billion in 2022 and will reach US$ 4.25 billion by 2032.

In Future Market Insights’ report titled Feed Enzymes Market, the market size is estimated to account for US$ 1.8 billion in 2022 and is projected to reach US$ 2.3 billion by 2032, recording a CAGR of 8.1% during the forecast period. However, based on the current market size in 2022 and CAGR of 8.1 stated in the report, the market should reach US$ 3.92 billion in 2032.

According to another report titled Feed Enzymes Market by Emergen Research, feed enzymes market size reached US$ 1.42 billion in 2021 and is expected to register a revenue CAGR of 8.1% during the 2021 – 2030 forecast period. Based on the data and the 8.1% CAGR in this report, we can say that the market size will reach US$ 3.34 billion in 2032.

A similar market size is indicated in the report titled Global Feed Enzymes Market prepared by Verified Market Research. According to the report; global feed enzymes market size was valued at US$ 1.36 billion in 2022 and is projected to reach US$ 2.2 billion by 2030, growing at a CAGR of 8.2% from 2023 to 2030. The market size will reach US$ 2.99 billion in 2032 accordingly.

The market is expected to grow from US$ 1.31 billion in 2019 to US$ 2.64 billion by 2027, at a CAGR of 9.2% during the forecast period 2020-2027, according to Feed Enzymes Market report of Fior Markets. Based on the data and the 9.2% CAGR in this report, we can say that the market size will reach US$ 4.1 billion in 2032.

Finally, according to the Market Data Forecast’s Global Feed Enzyme Market report, the global feed enzyme market was worth US$ 1.4 billion in 2021, and it is estimated to reach a valuation of US$ 1.5 billion in 2022 and US$ 2.3 billion by the end of 2027, expanding at an annual growth rate of 8.2% between 2022 and 2027.

Based on the data in all these reports, average market size for 2022 is estimated about US$ 1.7 billion. Considering that the average growth prospects are at the level of 7.9% CAGR, it can be estimated that the market will reach a size of about US$ 3.6 billion by 2032.

MARKET DRIVERS & RESTRAINTS Increase in the production of the livestock such as poultry, swine, and fish has resulted in the upsurge in the demand of animal feed enzymes products, according to the Allied Market Research.

According to the company’s Animal Feed Enzymes Market report, rising need for feed ingredients, which help in enhancing the quality of livestock is giving momentum to the market. Various health benefits offered by animal feed enzymes such as improving energy level and enhancing metabolism rate are further propelling the growth of the market. In addition, prevalence of various food-borne diseases among animal are increasing the demand of the animal feed enzyme products. The easy availability and economic rate of animal feed enzyme increases the profitability, which is further giving traction to the market.

In the upcoming years, the market for feed enzymes is anticipated to be driven by the increasing demand for food products made from animals and the rising concern over animal health, said Future Market Insights in its Feed Enzymes Market report.

The company report focuses on the impact of increased meat and dairy products consumption and antibiotic restrictions on the growth potential of the market. According to the report, the global meat business is rising due to increased meat consumption, which is driving the feed enzymes market. Pigs and poultry were the most common animal categories in which feed enzymes were used. Feed enzymes help to enhance the growth rate and strengthen the immune system in pigs and poultry, which has demand around the world. Thus, rising demand for meat products coupled with growing focus towards improving animal health is expected to create sales prospects for animal feed enzymes during the assessment period (2022 – 2032), which will eventually expand the global feed enzymes market.

In the dairy sector, feed is one of the most significant cost drivers. As a result of this, dairy farmers will benefit from increased efficiency in converting feed into milk. Market players are developing feed enzymes to boost ruminant efficiency and milk production, which benefits dairy producers by lowering feed costs. Such feed enzymes are expected to acquire favour among dairy sector stakeholders. Similarly, increasing adoption of enzymes in poultry feed will further generate growth prospects within the feed enzymes market in the forthcoming years.

Antibiotics as growth boosters for animals continue to be a source of contention. Antibiotics have been used at therapeutic levels to help animals fight microbial illnesses and increase performance and productivity. However, there are still concerns about their harmful influence on the entire food chain. The use of antibiotics as growth promoters in animal feed has already been prohibited by the EU. This has pushed farmers and breeders to seek out alternative ways improving animal performance while minimizing environmental effects and preserving financial margins. Feed enzymes have a positive impact on animal nutritional intake, feed digestibility, and production capacity. Since the recent past, the industry has shown a high level of acceptability for feed enzymes. Rising trend of using enzymes as feed additives in place of antibiotics will continue to act as a catalyst for the growth of feed enzymes market.

MARKET STATUS BASED BY TYPE AND SOURCE Based on the product type, the feed enzymes market is divided into four segments as phytase, carbohydrase, protease and others. According to the report of Future Market Insights, phytase is expected to hold the majority of the segment’s market during the projection period (2022-2032), as it is chosen by the majority of animal feed manufacturers and livestock producers. Phytase enzymes has gained huge popularity in animal feeds on account of their several advantages such as including the highest activity at low pH, improving bone health, increasing body weight gain, and improving digestive efficiency by breaking down indigestible phytic acid, which aids in the release of digestible phosphorus, calcium, and other nutrients that aid animal growth.

On the other hand, Emergen Research draws attention to the carbohydrase segment in its report. According to the company’s report, carbohydrase segment is expected to register a rapid revenue growth rate over the forecast period of 2022-2030. This is attributed to increasing adoption of carbohydrase by most animal feed manufacturers and livestock producers to be used as an enzyme. Livestock producers tend to prefer the use of carbohydrase owing to its benefits. For instance, Multi-Carbohydrase (MC) supplements, such as xylanase, glucanase, and arabinofuranosidase, have been shown to boost energy and protein utilization, nutritional digestibility, and growth rates in chicken.

Also, the Emergen report explains that the phytase segment is expected to register a steady revenue growth during the 2022-2030 forecast period. According to the report, this is owing to microbial phytase being the most commonly used exogenous enzyme in the feed for monogastric animals. Phytase can diminish the antinutritional effects of phytate, enhance the digestibility of Phosphorus (P), calcium, amino acids, and energy, and lessen the negative environmental impact of inorganic P excretion. In monogastric animal feeding, phytase is an important enzyme with nutritional advancement qualities.

Based on the source, the market is bifurcated into microorganisms, plants, and animals. According to Future Market Insights, during the 2022 – 2032 forecast period, the microorganism segment is expected to be the most popular. Microorganisms are abundant and are ideal hosts for the production of stable and industrially relevant enzymes. In the production of animal feed, enzymes derived from microorganisms play an important role.

Similarly, Emergen Research highlights the microorganism segment in its report. According to Emergen, this segment is expected to lead in terms of revenue share in the global market over the 2022-2030 forecast period owing to the higher use of these sources to extract feed enzymes.

Certain enzymes are of particular importance and are used as organic catalysts in a variety of industrial processes. Microbial enzymes are known to be superior enzymes derived from various microorganisms, especially for industrial use on a large scale. Microbial sources of enzyme production are the most preferred source for industrial enzyme production as microbes are readily available, since they grow at a rapid rate and can be genetically manipulated to produce enzymes that perform optimally under various industrial production conditions.

On the other hand, the plant segment is expected to register a rapid growth rate during the forecast period as they are increasingly being used in feed enzymes. Plant-based digestive enzymes are effective across a wide pH range. This range is thought to be between 3.0 to 9.0, which is very compatible with the gastrointestinal system. As a result, plant-based enzymes are ideal for maintaining overall digestive health. Many fruits and vegetables include cellulase, which break down dietary fibers and increase their nutrients. The presence of cellulase in plant-based sources is critical as it is not found naturally in livestock.

MARKET STATUS BASED BY LIVESTOCK TYPE

Based on livestock, the poultry segment is expected to account for the largest revenue share in the global feed enzymes market during the 2022-2030 forecast period. According to Emergen Research’s report, the poultry segment is expected to lead in terms of revenue share in the global market over the forecast period owing to increasing use of enzyme additives in poultry feed due to its various benefits and cost-effectiveness. When enzymes are combined in the meal, it improves the amount of energy available to birds by 3 to 5%. Adding amylase, protease, and xylanase enzymes to chicken diets allows producers to save money on feed as energy, which is the most expensive resource in the diet.

In addition, the swine segment is expected to register a rapid growth rate during the forecast period owing to its various advantages. As the pig cannot fully utilize all of the nutrients in its diet, enzymes can be added to the feed to aid in the breakdown of complex carbohydrates, phytate, and protein.

MARKET STATUS ON REGIONAL BASIS Based on regional analysis, North America is expected to account for a dominant revenue share over other regional markets in the global feed enzymes market during the 2022-2030 forecast period.

The market in North America is expected to account for largest revenue share during the forecast period, which is attributed to the increasing demand for nutritive protein-based feed products among the countries in the region. Another factor driving revenue growth of the market is the increasing livestock population in countries in the region. As of 2020, the U.S. alone has roughly 93.8 million cattle and calves, according to the Emergen Research. Hence, as there is an increase in livestock in countries of the region, there is also an increase in demand for feed enzymes, which is driving revenue growth in the region.

The U.S. is a major user of fodder additives such as emulsifiers, vitamins, and enzymes, according to the Future Market Insights. One of the main drivers of market demand is the presence of a well-established animal production industry along with tight food safety rules regarding the use of additives. The ongoing clean label trend in the country when it comes to ingredients and additives used in the production of animal feed is predicted to stimulate the development of natural and microbial feed enzymes in the future.

Market revenue in Asia Pacific is expected to register fastest CAGR over the 2022-2030 forecast period, which is attributed to the presence of a large livestock population and their growth rate and the increase in the number of feed mills. According to Emergen’s report, China’s cattle farms alone have roughly 61 million head of cattle as of 2020.

According to the Future Market Insights’s report, with the African Swine Fever (ASF) outbreaks in China, pig herds shrank dramatically in 2019-20, which negatively affected the feed enzymes industry. However, with growing efforts towards herd replenishment, particularly in swine fever-affected areas, demand for products like feed enzymes is expected to rise at a significant pace during the 2022 – 2032 forecast period. Moreover, rapid expansion of poultry sector across the country along with growing usage of enzymes in poultry feed will further accelerate the growth of feed enzymes market in the forthcoming years.

In Asia Pacific market, India has the highest livestock population in the world and it is leading producer of cattle and buffaloes, according to the Emergen. India had 305,500 thousand cattle and buffaloes as of 2020, accounting for 33.38% of the world’s cattle and buffaloes.

According to the Future Market Insights’s report, the Indian feed enzymes market is expected to grow rapidly throughout the 2022-2032 forecast period, owing to the increasing use of enzymes in the fermentation of milk to make dairy products such as curd, yoghurt, and cheese as well in making fortified animal feeds. In the next years, India’s booming dairy industry is expected to have a beneficial impact on enzyme demand.

According to Emergen’s report, the market revenue in Europe is expected to register a steady growth rate over the 2022-2030 forecast period, which is attributed to the large livestock population in countries in the region. The number of cattle and calves in the U.K. alone was estimated to be 9.36 million in 2020. Hence, owing to the large livestock population in countries in the region there is a high demand for feed enzymes, which is driving revenue growth of the market in the region during the forecast period.

The increased demand for animal products in the United Kingdom is driving considerable supply-side improvements targeted at increasing livestock yields, according to the Future Market Insights. New capital-intensive technologies have made it possible to produce chicken and pig meat in industrial-style production facilities across the country, even in areas where land is scarce. To improve efficiencies in the production process, improve feed conversion ratios, and increase animal muscle mass and protein content, industrial-scale livestock production makes optimal use of high-quality feeds fortified with enzymes.

GLOBAL MAJOR PLAYERS The global feed enzymes market is fairly consolidated, with few large and medium-sized companies accounting for the majority of market revenue. Major players are deploying various strategies, entering into mergers and acquisitions, strategic agreements and contracts, developing, testing, and introducing more effective feed enzyme products.

Resources: 1. Market Research Future, Feed Enzymes Market Research Report; November 2022; https://www.marketresearchfuture.com/reports/feed-enzymes-market-5130 2. Allied Market Research; Animal Feed Enzymes Market; November 2022; https://www.alliedmarketresearch.com/animal-feed-enzymes-market-A11054 3. Future Market Insights; Feed Enzymes Market; July 2022; https://www.futuremarketinsights.com/reports/feed-enzymes-market# 4. Emergen Research; Feed Enzymes Market; Jun 2022; https://www.emergenresearch.com/industry-report/feed-enzymes-market 5. Market Data Forecast; Global Feed Enzymes Market; January 2022; https://www.marketdataforecast.com/market-reports/feed-enzymes-market 6. Fior Markets; Feed Enzymes Market ; May 2020; https://www.fiormarkets.com/report-detail/418048/request-sample 7. Verified Market Research; Global Feed Enzymes Market; Jul 2022; https://www.verifiedmarketresearch.com/product/feed-enzymes-market/ 8. Expert Market Research, Global Feed Enzymes Market; https://www.expertmarketresearch.com/pressrelease/global-feed-enzymes-market