Eubiotics are the natural stimulants that help in improving the immune system. They are primarily used as alternative to antibiotics in animal feed. These feed additives are proven to support digestive health in animals. The use of eubiotics is gaining prominence across poultry, livestock, swine and aquaculture among other animal growing activities. The stringent regulatory limitations on use of antibiotics in animal growing led to the growth of global eubiotics market. As over utilization of antibiotics increase resistant bacteria, several nations are commissioning restrictions and even imposing bans on use of antibiotics. Eubiotics evolved as the most effective growth promoters with potential benefits in areas such as digestive health, immune system health, weight gain and general health. Eubiotics help obtain higher yield, stronger immunity and better feed conversion ratio in aquaculture. These factors are promoting the growth of global eubiotics market. The global market of eubiotics valued US$ XX billion in 2020 and is estimated to reach US$ XX billion by 2028, growing at a CAGR of XX% during the forecast period (2021-2028).
Source: DataM Intelligence Analysis (2021)
Regulatory restrictions on use of antibiotics is the key driver of the eubiotics market
The stringent regulations on the usage of antibiotics, is driving the growth of eubiotics market. One of the major reasons for regulations on use of antibiotics is development of antimicrobial resistance in animals. The antimicrobial resistance can result in much more severe infections caused through mutation and can spread those infections to human as well. According to WHO, about 2 million people in the U.S. suffer from antibiotic resistant infections each year while death toll reaches nearly 23,000. In 2017, the World Health Organization launched guidelines for reducing some of the antibiotics in food-producing animals, including complete restriction of these antibiotics for growth promotion and disease prevention without diagnosis. Thus, with the increasing demand to reduce the use of AGPs, the use of eubiotics is becoming popular especially in the poultry production.
Moreover, the growing poultry and aqua industry are likely to propel the growth of the market. As the growing global meat consumption is putting pressure on the livestock industry, farmers are using various feed additives such as eubiotics to increase yield.
Probiotics are highly popular due to their efficiency in improvement of feed conversion
Probiotics is the biggest segment of eubiotics market. Probiotics are microorganisms that improve the balance of pathogenic to beneficial bacteria in the gut, which has a positive impact on the host. It is highly used in poultry, aqua, livestock and swine feed as they aid in the delivery of desired effects such as growth performance, weight gain, and feed conversion by improving feed efficiency. Lactobacillus is one of the most commonly used probiotics in layers to improve egg quality. It effectively absorbs calcium from the gut, resulting in a thicker egg shell and full egg nutrition. Lactobacillus acidophilus, Lactobacillus bulgaricus, Lactobacillus casei, Lactobacillus rhamnosus, Lactobacillus rhamnosus are some of the common types of probiotics known, while Enterococcus faecium and spore-forming Bacillus are the most common probiotic microorganisms used for swine feed. At present, in Europe, more than 40 preparations make use of probiotics for animal nutrition. Moreover, probiotics may benefit animals with various health conditions. For instance, certain strains of probiotics showed the positive results in reducing inflammation and gastrointestinal diseases in livestock.
However, lack of essential oils availability in animal feed applications owing to factors such as high demand from other applications, such as medical and food and beverages, is restraining market growth. Essential oils tend to show antimicrobial activity, thus are able to convene health benefits on the host and modify the gut microflora. Companies have developed customized blends such as those of thymol and cinnamaldehyde for specific purposes including improved digestion and weight gain. Such trends are expected to benefit segment growth over the forecast period.
Europe is the major shareholder of the global eubiotics market owing to the huge demand of meat in this region
Europe accounts for the largest shareholder because of the rising demand in processed meat which is supporting the expansion of the regional eubiotics market. Moreover, increasing consumer awareness of the end quality of animal-derived products in Europe, as well as increasing demand for high-quality meat products, are expected to drive up the demand for eubiotics. According to Alltech feed survey, the estimated feed production was 1.07 billion tons, in 2017. According to FAO, the increase in livestock population is estimated to reach 30,033 million by 2030 supporting the growth in global feed demand. Moreover, efforts taken by livestock producers to comply with the prevalent regulations and ban on usage of antibiotics are resulting in high product demand. The growth of the market for eubiotics in the region is characterized by the presence of strict laws and regulations discouraging the usage of antibiotics, which is expected to benefit the market for eubiotics. Strong awareness regarding the usage of eubiotics and their benefits, presence of market players, and strong demand from countries such as Germany, U.K., France, and Spain are factors driving the overall regional demand. Germany is among the top producers of poultry in Europe. Also, the country has a significant presence of industry participants of other livestock such as swine and cattle. In addition, the presence of regional as well as international market participants in U.K. is also benefitting market growth. The concerns raised by the political as well as the social fraternity regarding traces of antibiotics and awareness regarding the quality of meat in the country are also expected to aid regional growth over the forecast period.
Key players are focusing more on Asia Pacific and are trying to increase their regional footprint by opening offices, manufacturing facilities, and R&D centers. Furthermore, the rising population in the region and the increasing disposable income of the people are factors responsible for a rise in meat consumption in the region. Such trends are expected to benefit the market for eubiotics in the region over the forecast period. Furthermore, strong demand from countries such as India, China, and Japan are expected to contribute to the overall regional market growth.
Source: DataM Intelligence Analysis (2021)
Key players in the market are inclined towards high investments in R&D activities for the development of superior products having high efficacy and more enhanced products. The industry is also characterized by mergers and acquisitions and the opening of new facilities to better serve the regional market. For instance, a key player such as DSM has established dedicated animal nutrition centres in China to better serve the local needs and to increase the regional feed market. Favourable regulatory scenario and the shift in trend towards the usage of alternatives of antibiotics are bound to attract new market entrants. Strategies such as the opening regional offices, manufacturing facilities, and R&D centres are adopted by companies to increase their regional footprint. For R&D, companies work in collaboration with research and educational institutes across the globe to gain a competitive advantage. Products specific to the applications such as yield and gut health have been developed by key players. Companies are focusing on developing regions, such as the Asia Pacific, for increasing their market share. Cargill invested USD 146 million in a feed plant in India. It produces 120,000 metric tons of feed per month and feeds 75,000 cows per day. DSM announced in June 2019 that Balancius, a product developed in collaboration with Novozymes, is now available in the European Union region. Balancius improves gastrointestinal function, increasing feed efficiency and improving the long-term viability of broiler production.
COVID-19 Impact: Pandemic had a negative impact on global eubiotics market
The outbreak of covid-19 had a negative impact on the eubiotics market. As the pandemic had a negative effect on the production of poultry meat, global chicken meat production which decreased by 2% and global chicken meat trade, which decreased by 1%. While Dutch government imposing strict regulations made it harder for Netherlands’s feed producers to supply or deliver the produce, resulted in decline in sales by volume. Moreover, the reduced consumption of fish and meat during this period resulted in animal feed especially in South-Asian countries like Indonesia, Thailand and Philippines, with drop in fish demand by 1-4%. However, in some countries there was panic buying of feed during the first half of the pandemic. For instance, French feed producers reported intensified purchases of ingredients for feed and similar trend was observed in Germany which led to 10% hike in the sales of feed during March.
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