Europe Middle East and Africa (EMEA) feed additives market is projected to witness a CAGR of 4.84% during the forecast period to reach a total market size of US$10.690 billion by 2022, increasing from US$8.051 billion in 2016. Growing meat consumption is the major driver of EMEA feed additives market growth. The increase in spending power, rising demand for protein rich diet, and urbanized European society is driving the demand for meat which, in turn, is augmenting the demand for feed additives over the forecast period. Moreover, expanding poultry and dairy industry coupled with the easy trade policies adopted by EU nations is further propelling the market growth.
Other factors including trending aquaculture and the shift in focus of Middle Eastern countries towards animal husbandry owing to ecological instability will also boost the feed additives market growth in years ahead within the region. However, ban on antibiotics by many EU nations hampers the market growth. Moreover, high regulatory risk in the region further restraints the market growth. Italy and Germany are expected to witness high growth over the projected period owing to existence of developed market and high speed product innovation.
PORTER’S FIVE FORCES ANALYSIS –BARGAINING POWER OF SUPPLIERS
Although there are many small and big vendors of feed additives but the market is dominated by some key players while enhancing the bargaining power of suppliers. The expanding industrial livestock production and increasing animals farming expands the customer base of vendors, while boosting their bargaining power. However, the low switching cost from one supplier to another weakens the position of suppliers in the market. Integration within feed additives industry is booming which, in turn, enhances the bargaining power of suppliers. For instance, in July 2016, Royal De Heus acquired Coops Mengvoeders, a compound feed producer for pigs and cattle, to strengthen its position in the market. Bargaining power of suppliers is medium.
Europe Middle East And Africa (EMEA) Feed Additives Market By Livestock
By livestock, the market is segmented as aquatic animals, poultry, swine, cattle and others. Aquatic animal feed additives market is expected to grow at the highest rate over the projected period. The emerging economies, especially in Africa are also contributing to the growing demand of feed additives. Moreover, the growing health and fitness concern leads to rising inclination of people towards seafood owing to its high protein and low fat feature. The governments are favorably focused towards increasing aquaculture production which is further accelerating the future market growth opportunities. However, cattle segment accounts for the highest market share in 2016 and is expected to maintain its dominance over the projected period. The developed European economy with their high per capita income coupled with demand for quality dairy products contributes to high market share.we have included all segments of this market in market research and analysis report.
Europe Middle East And Africa (EMEA) Feed Additives Market By Geography
By geography, the market is segmented as United Kingdom, Germany, France, Italy and Others. Although Europe has a large market share in the feed additives market, the Middle East & Africa is expected to grow at an appreciable rate over the foretasted period. German and Italian feed additives market is expected to grow at a high rate with CARG of 4.88% each. This growth in largely driven by rising demand for quality meat coupled with rising consumption of dairy products. Per OCED data, in 2015 pork meat consumption was 33.0 kg/capita and poultry meat consumption was 22.7 Kg/capita in EU countries. In Europe, EFSA (European Food Safety Authority) is responsible for setting standards, regulation and guidelines for plant, animals, food and feed. The regulations for feed additives contain provisions regarding the safety and authorization of feed additives. It also contains provision regarding the labeling and packing of feed additives and procedure for modification, supervision, revocation, suspension and renewal of authorization. Hence, the strict regulations hamper the market growth in European region.
With technological advancement coupled with high speed innovation, the farming practices in the UK have become highly intensive and mechanized. Moreover, a large part of agricultural produce devotes to livestock. As per Department for Environment Food & Rural Affairs data, total poultry has grown by 3% from 2015 to 2016. Factors like rising demand for quality products coupled with the increase in meat consumption drive the feed additives market in this region. Moreover, easy trading policies adopted by EU nations further enhances the growth of feed additives market in this region. Aquaculture is among the fastest growing sector in UK which, in turn, is driving the demand for feed additives for various applications. The UK’s Multi annual National Plan released by DEFRA outlined the UK intends to foster growth in the aquaculture industry.
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