Feed Flavors and Sweeteners Market: Growth Opportunities and Recent Developments
The feed flavors and sweeteners market is estimated to value at USD 1236.1 Million in 2017. It is further projected to grow at a CAGR of 3.4% from 2017 to 2022, to reach a projected value of USD 1,463.0 Million by 2022. Feed flavors & sweeteners products have become prominent in the recent years, due to the growing awareness of among the consumers regarding the impact of quality feed provided to the livestock on the animal-based products such as meat and dairy products.
How are the fluctuating prices of raw materials posing challenges for the production of feed flavors and sweeteners among manufacturers in the market?
The fluctuating prices of raw materials is a major challenge being faced by feed flavors and sweeteners players. The prices of raw materials such as citrus fruits and butter are highly unstable, which result in the high cost of production and impacts the prices of the final products. Citrus flavored feeds are majorly consumed by livestock animals compared to other flavors, and therefore they are demanded by livestock producers. However, the fluctuation in the prices of citrus fruits such as orange and grapefruit has been a significant challenge for feed flavor producers and has been impacting the price of final citrus flavor feed products.
In addition, according to the recent data published by FAO stated that “The FAO Dairy Price Index averaged 216.6 points in July, up 7.6 points (3.6 percent) from June and 74.3 points (52.2 percent) above its value in July 2016, underpinned by stronger prices of butter.” Such increase in prices of raw material is expected to pose a serious challenge especially for the natural animal feed flavors and sweetener players.
Asia Pacific is projected to be the fastest-growing feed flavors & sweeteners market for the period considered for this study, due to the continuous modernization of animal production techniques and the growing awareness among the consumers regarding the impact of quality feed provided to the livestock on the animal-based products such as meat and dairy products. However, conventional methods of feeding animals such as forages, crop residue, and open grazing may restrict the growth of the commercial animal feed industry and thereby the growth of the market in this region.
The key players identified in the global feed flavors & sweeteners market include DuPont (US), Solvay (Belgium), Kerry Group (Ireland), Alltech (US), Kemin Industries (US), Grupo Ferrer Internacional (Spain), Prinova Group (US), BIOMIN Holding (Austria), Norel (Spain), and PMT Group (Canada) are the major manufacturers in the feed flavors & sweeteners market. Apart from these companies, Industrial Tecnica Pecuaria (Spain), Pestell Minerals & Ingredients (Canada), Pancosma (Switzerland), Agri-Flavors (US), Palital (Germany), Bentoli (US), Phytobiotics Futterzusatzstoffe (Germany), Nutriad (Belgium), Frutoria (Netherlands), Canadian Bio-Systems (Canada), Orbitec Internacional (Spain), QualiTech (US), Origination O2D (US), KH Roberts (Singapore), are other feed flavors & sweeteners manufacturers.
The key market players adopted strategies such as expansions, acquisitions & mergers, agreements & partnerships, and new product launches to increase their market presence and revenue generation. The global players have established large distribution networks across the world and follow extensive cross-selling marketing strategies. These key players have majorly focused on strengthening their market presence by establishing new production and distribution facilities in the untapped and potential market. The trend of using feed flavors and sweeteners in animal feed to increase the intake by livestock and thus, resulting in increased production of animal-based products has increased the competitive rivalry among the players.
Kemin Industries (US) offers feed flavors & sweeteners products, catering to the requirements of the end users in the market. The company has a broad geographic presence and has a high focus on the product quality & reliability criteria. It holds seven different certifications for the quality of products offered. The company has manufacturing facilities across the globe with a strong distribution network. In 2012, the company received a patent in the subject market, which provides it a competitive advantage over the other market players.
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Prinova Group (US) offers a broad range of feed flavors & sweeteners product and also ensures that the product offered to the customers adhere to the best quality standards. It also stands as an innovator in feed flavors and sweeteners industry. The company has flavor products are made available for consumption by almost all the livestock species. In the recent past, the company has attempted to grow within the market through organic means. It expanded its European operations with a new office, Prinova Benelux & France N.V. /S.A., in Belgium, in 2012, that aided this company to provide better services to the Western European region.