[Vietnam Livestock Magazine] – Currently, the addition of enzymes to animal feed significantly enhances the digestion of roughage, improves quality, and minimizes the risk of pathogens in livestock.
Enzymes aid animals in absorbing, improving digestion, and utilizing feed effectively.
Enzymes break down complex molecules into simpler substances, making it easier for animals to absorb, improving digestion, and enhancing feed efficiency. They also play a crucial role in ensuring the overall health of animals, improving growth and productivity. Despite these significant benefits, the proportion of enzymes used in animal feed (feed enzymes) in the global feed additive market was estimated to be only 3.8% in 2022. The market size for feed enzymes is projected to reach approximately USD 1.5 billion by 2023 and could potentially grow to USD 2.3 billion by 2030.
In animals, enzymes are crucial for catalyzing and regulating various biochemical reactions. By accelerating biochemical reactions, enzymes help animals perform essential functions such as energy production, nutrient digestion, and cell repair more quickly and efficiently. Enzymes also help limit harmful energy-synthesizing organisms by controlling energy and reducing the energy required to activate reactions, thereby consuming less energy. These functions enable animals to live and develop healthily. Without catalytic enzymes, many biochemical reactions in an animal’s body would either not occur or occur very slowly.
Enzymes are an essential component for animals, breaking down complex molecules into simpler substances that can be easily absorbed. This increases nutrient absorption rates in the intestines and helps maintain the overall health of the livestock. They support growth and development in young animals by aiding the transition from mother’s milk to solid food. By increasing feed intake and improving feed efficiency while reducing undigested feed, enzymes also mitigate the environmental impact of animal husbandry. Additionally, by enhancing feed quality, enzymes help lower feed costs, inhibit the growth of harmful microorganisms, and protect gut health, resulting in higher profitability for businesses.
SOME ENZYMES USED IN ANIMAL NUTRITION
Animals use different enzymes for various functions, with numerous types of feed enzymes serving specific needs, the most common being digestive enzymes. This group includes lipase, protease, and amylase, which assist in digesting fats, proteins, and carbohydrates.
Carbohydrase improves efficiency by releasing more energy from the same amount of feed. Protease helps reduce feed costs by enhancing the digestion of protein in other feed components. Phytase, which is not present in ruminants or monogastric animals, hydrolyzes phytate (a nutrient antagonist), increasing the release of phosphorus from phytate added to feed for pigs and poultry, thereby improving phosphorus levels, performance, reducing feed costs, and minimizing environmental impact.
Other enzymes used in animal feed include xylanase, β-glucanase, pectinase, galactosidase, cellulase, and β-mannanase. These enzymes improve the absorption of feed components such as proteins, amino acids, starches, fats, and energy production.
FEED ENZYME MARKET AND FORECASTS
According to Mordor Intelligence, the global feed enzyme market size was approximately USD 1.38 billion in 2023. The market has experienced a compound annual growth rate (CAGR) of 5.3% from 2017-2023, with a projected decrease to 4.98% CAGR from 2024-2029, and the market is expected to reach USD 1.76 billion by 2029.
Verified Market Research (VMR) reported in September 2023 that the global feed enzyme market was valued at USD 1.36 billion in 2022 and is expected to grow with a CAGR of 6.2% to reach USD 2.2 billion by 2030.
Future Market Insights (FMI) also provides a similar forecast. According to FMI, the feed enzyme market size was around USD 1.2 billion in 2023, with a forecasted CAGR of 4.4%, reaching USD 1.8 billion by 2033.
Stratview, another research company, reports similar data. According to their report, the feed enzyme market size was USD 1.56 billion in 2022, with an anticipated CAGR of 7.95% from 2023-2028, reaching USD 2.47 billion by 2028.
Global Market Insights reports that the current market size is USD 1.77 billion in 2022. The market is expected to grow with a CAGR of 6.5%, with an average size reaching USD 3.37 billion by 2032.
Five different companies provide estimates of the current market size, with some variations but generally close. However, growth forecasts differ significantly. Based on the average data from these reports, the global feed enzyme market is estimated to reach USD 1.5 billion in 2023, growing with a CAGR of 5.9% from 2023-2030, and reaching USD 2.28 billion by 2030.
FACTORS SUPPORTING MARKET GROWTH
The global population increase and rapid urbanization, coupled with growing demand for animal-based food products such as meat and dairy, alongside a focus on animal health and welfare, are considered key factors driving market growth.
However, enzymes are critical in feed due to their impact on livestock productivity and feed costs. The need to meet food demands for a growing population, limited feed ingredient resources, increased productivity, and reduced environmental impact of animal husbandry are driving the feed enzyme market. Additionally, measures to improve meat and egg quality, as well as widespread antibiotic bans, are expected to further support market growth.
FACTORS LIMITING MARKET GROWTH
There are still several limitations and challenges that could hinder market growth. If effective measures to overcome physiological factors inhibiting feed enzyme effectiveness are researched successfully, the industry could benefit significantly. Moreover, excessive use of feed enzymes may lead to adverse outcomes. The dosage of enzymes administered to animals is calculated based on factors such as age, weight, and species, and should be determined by experienced professionals like veterinarians.
There are claims that feeding animals inappropriate enzymes can be detrimental to their health. Regulatory constraints may also act as limiting factors for this market. All these factors contribute to limitations and challenges for the feed enzyme market.
MARKET DEVELOPMENT BY ENZYME TYPE
The feed enzyme market is segmented based on product type, such as phytase, carbohydrase, protease, and other categories. According to Mordor Intelligence, carbohydrase accounted for 46%, equivalent to USD 576.5 million, representing the largest segment of the feed enzyme market in 2022.
The company predicts that carbohydrase will experience the fastest growth among segments from 2023-2029, with a CAGR of 5.1%, due to its contribution to significant feed cost reductions. However, other research companies report that phytase is the largest segment by market share. Phytase is widely used in feed mills and among farmers, and is expected to grow with a CAGR of 4.9% in the same period from 2023-2029. Protease and lipase are expected to achieve a CAGR of 5%.
MARKET SITUATION BY ANIMAL TYPE
For animal types, the swine sector is expected to see significant growth in the coming period. Pigs commonly face digestion issues with various components in their diet. Thus, the addition of enzymes like carbohydrase, protease, and phytase in pig feed is crucial.
The poultry segment is also anticipated to achieve growth in the feed enzyme market. With the rising demand for eggs and chicken meat, and the increase in poultry numbers due to African swine fever outbreaks and higher pork prices, significant investments in poultry farms in densely populated Muslim-majority regions are also contributing to this segment’s growth. Increased demand for poultry products and investment is expected to benefit both the feed additive market and the feed enzyme market.
The aquaculture sector is receiving substantial funding, seen as an important food source for the growing population. Along with the increasing number of aquaculture farms, there is a rising demand for mixed feed. The feed enzyme market is also predicted to benefit from the demands for conservation and improved health of aquatic species.
REGIONAL MARKET DEVELOPMENT
The Asia-Pacific (APAC) region dominates the feed enzyme market, as well as many other feed additives. According to Mordor Intelligence, the APAC region held 31.6% of the global feed enzyme market share in 2022, equivalent to USD 395.9 million. APAC is considered a key market for feed enzymes in the future due to the growing livestock population, feed mill production, feed additive usage, animal protein consumption, and increasing per capita income.
North America is expected to experience the fastest growth. According to Mordor Intelligence, North America had the highest growth rate in the market, accounting for 25.8% in 2022, with a projected CAGR of 5.89% from 2023-2029. Europe is another significant market, holding 23.1% of the market share in 2022.
By country, the United States has the largest market share, nearly 18% or USD 225.8 million in 2022, and is also predicted to have the fastest growth rate at 6.3% from 2023-2029. Following the U.S. is China, with a market share of 13.8%.
SOME GLOBAL FEED ENZYME SUPPLIERS:
- AB Enzymes (Associated British Foods)
- AB Vista
- Adisseo
- ADM
- Advanced Enzyme
- Alltech
- Anpario Plc
- Aum Enzymes
- Azelis SA
- BASF SE
- BEC Feed Solutions
- Behn Meyer
- Beijing Challenge Group
- Beijing Smist