Market Trends of South America Feed Palatability Enhancers Industry
This section covers the major market trends shaping the South America Feed Palatability Enhancers Market according to our research experts:
Rising Demand for Animal Sourced Proteins
Economic growth and lower inflation will lead to an increase in income and thus, fuel growth in the consumption of meat and other products. According to the Organisation for Economic Co-operation and Development(OECD), in 2019 per capita poultry meat consumption in Brazil was 40.3 Kg as compared to 40Kg in 2016. Also in Argentina, beef and veal meat is the most consumed which amounted to 39.7 Kg in 2019 as against 39 Kg in 2016. In addition to meeting the domestic meat consumption, brazil is also one of the leading exporters of beef meat for instance, according to ITC Trade, in 2016 export of bovine meat accounted for USD 757,207 thousand that has increased to USD 880,818 thousand in 2019. Also, Argentina exported bovine meat worth USD 600,566 thousand in 2016 that has constantly risen to reach USD 771,875 thousand in 2019. Thus the rising domestic meat consumption coupled with the attractive meat export market is driving the meat production in the region which impacts the feed intake by the livestock positively to increase the yield. Thus, in order to improve the feed intake palatability enhancers are included in the feed.
Increasing Feed Production Drives the Market
The palatability enhancers contribute to the flavor, taste, and aroma of the feed which helps to enhance the growth of animals by maximizing feed intake. According to FAO in 2018, the poultry population in South America was 2521.7 million as compared to 2684.7 million in 2016. Also, Cattle and Buffaloe's population in 2016 was 358.92 million as compared to 358.61 million in 2018. Rising livestock production coupled with the health concern results in the inclusion of additives in the feed which in turn drives the market for palatability enhancers.
According to the Alltech feed survey, in 2019 the feed production in Brazil and Argentina has reached 70 million metric tons and 21 million metric tons respectively. In Brazil, broiler feed accounted for 32.1 million metric tons followed by pig feed which accounts for 17 million metric tons. The palatability enhancers contribute to the flavor, taste, and aroma of the feed which helps to enhance the growth of animals by maximizing feed intake.
