Animal Nutrition Organic Acids Market Size, Share & Trends Analysis Report By Product, By Species (Poultry, Swine, Ruminants, Aqua), By Application, By Delivery System, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global animal nutrition organic acids market size was estimated at USD 113.3 million in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.5% from 2021 to 2028. The market is anticipated to be driven by the growing animal feed industry. Increased utilization of organic acids in animal feed as a predominant substitute to traditional growth promoters is a key factor influencing market development across key geographies worldwide. The Asia Pacific is anticipated to register the fastest growth over the coming years due to expanding manufacturing sector in the region across countries such as China, Japan, South Korea, and India. Further, increased demand for cattle cultivation as well as regulating the growth of other species in the region is a key factor driving demand for various organic acids in the region.

Organic acids are among the most preferred sources of energy in the animal nutrition industry as they help in increasing the digestibility of nutrients in animals. They have excellent blending properties and are widely utilized as substitutes for antibiotic growth promoters. The growing animal nutrition industry, particularly in emerging countries such as China, India, and Thailand, is expected to boost market growth over the forecast period.

All these factors are expected to promote the growth of the organic acid industry in developing regions of the world. Moreover, the demand for animal nutrition organic acids is rising significantly across regions owing to the presence of large manufacturers and a well-established network of the supply chain.  All these factors are expected to promote the growth of the organic acid industry in developing regions of the world.

The market is observed to be rising significantly over the past couple of years due to increasing innovations in the application market ecosystem, demanding technologically advanced products to cater to broader market space. Companies such as Polynt Group, Cargill Inc., Jungbunzlauer Suisse AG, Archer-Daniels-Midland (ADM) Company, and BASF SE are among the key driving forces for innovation in the field of animal nutrition and organic acids suiting the ecosystem.

The majority of the players operating globally in the development and advancement of organic acids are highly competitive, with the majority of the companies focusing on the development of new products with eco-friendly characteristics and catering to a broader application market. These factors are poised to reflect substantial growth of organic acids such as butyric acid and malic acid in the global market space.

Product Insights

In terms of revenue, the lactic acid segment dominated the market for animal nutrition organic acids and accounted for the largest share of 49.0% in 2020. This high share is attributable to the high utilization of the product in dietary and drinking water acidification. Dietary acidification helps inhibit the growth of intestinal bacteria that compete with the host for available nutrients as well as reduce the metabolite of possible toxic bacteria, resulting in improved nutrient digestibility. This enhances the performance of animals and boosts their specific and non-specific immunity.

Mid-chain Fatty Acids (MCFAs) have been shown to have antimicrobial properties against viruses and gram-positive and gram-negative bacteria. These acids are used as an energy source in various diets, including animals as well as humans. As MCFAs are efficiently converted into energy, they are less likely to be stored as fat. Owing to immune-supporting activity and antimicrobial properties, MCFA’s is expected to become one of the leading feed additives over the coming years.

Fumaric acid has been demonstrated to be effective in feed utilization and promoting growth in broilers. This acid is well known to be valuable as a feed additive in poultry diets to overcome reduced performance related to the elimination or reduction of growth-promoting antibiotics in poultry diets. In the European Union, fumaric acid and its several other salts, such as calcium formate and others, are classified as ‘feed preservatives’.

Species Insights

In terms of revenue, the poultry segment dominated the market and accounted for the largest share of 36.3% in 2020. This high share is attributable to the high use of organic acids with a weak base as a feed acidifier. One such organic acid used in manufacturing feed acidifiers is sorbic acid. Its salts including potassium sorbate, sodium sorbate, and many others are utilized in poultry products to inhibit the growth of microorganisms and increase the shelf life of processed and fresh poultry products such as chicken, turkeys, ducks, and geese. They also help improve the sensory characteristics such as sweetness, juicy and tenderness, and help decrease the nitrosamine level in poultry products (nitrosamine is carcinogenic).

Increasing demand for broiler meat is expected to boost the demand for organic acids and their salts in animal nutrition manufacturing. According to the MARK Media, the consumption of broiler feed reached 334.57 million metric tons globally in 2020 and is expected to increase over the forecast period due to the rising consumption of broiler meat in the human diet as it is a good source of proteins, helps to build muscle, strengthens bones, and provides minerals and vitamins.

Delivery Systems Insights

The unprotected segment dominated the market and accounted for the largest revenue share of 64.0% in 2020. This high share is attributable to its ability to enhance the growth performance and digestibility in animals as it offers direct and high-level transfer of acid, positively impacting animal health while preventing cross-contamination.

Innovative products, such as protected acid, can be used to improve performance in animals. For instance, sodium butyrate feed additives, in both partially unprotected and protected forms; prevent Salmonella migration in Gastrointestinal Tract (GIT) organs, whereas only the protected source of the sodium butyrate reduces its migration to internal organs (liver). Enhancing gut health is a key to improve animal performance. Particularly animals need support to maintain and develop healthy microflora in their intestinal tract.

Application Insights

In terms of revenue, antimicrobial capacity application dominated the market and accounted for a share of 34.6% in 2020. This high share is attributable to the high antimicrobial and antioxidant effects of organic acids. Organic acids, particularly fatty acids such as butyric acid, increase the growth of the gastrointestinal mucosa in animals, thereby enhancing their health.

The usage of butyric acid as a medium for antimicrobial capacity is growing for the swine market as it improves the performance of young pigs with the help of nutrient digestion, maintains the jejunal morphology in young pigs, and improves jejunal antioxidant capacity.

Gut health application is expected to witness the fastest growth of 6.9% from 2021 to 2028. Gut health plays a vital role in influencing the growth rate of animals. The addition of organic acids to drinking water aids in decreasing the pathogen levels in the water, thereby regulating gut microflora, and this is estimated to trigger the product demand in the gut health application.

Since the ban on in-feed antibiotics in animal feed by the European Union in 2006, lactic acid and its derivatives have gained significant importance in the animal nutrition industry. Lactic acid and salts increase milk production in cattle, reduce diarrhea in pigs, control the colonization of the intestinal tract by Salmonella in poultry animals, and improve the digestion system of all farm animals.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of 36.4% in 2020. This dominance can be attributed to various factors such as increasing consumption of meat and meat products in populated economies of India and China, contributing to 35% of the global population.

Asia Pacific, which is led by economies including India, China, Japan, Vietnam, and Thailand, emerged as a prominent market globally. Pork and poultry emerged as the prominent livestock segment in the developing countries owing to the growing preference for meat in local food. The demand for animal nutrition products in these countries is projected to witness growth over the forecast period owing to the presence of an abundant livestock population. Vietnam and Thailand are among the most prominent markets for animal nutrition products in the Asia Pacific region due to the large-scale farming in these countries.

China is one of the top feed-producing countries with a production capacity of over 187 million metric tons annually. The country produces a significant amount of wheat, rice, barley, and soybean, which are required for manufacturing animal nutrition products. The growing preference toward consuming poultry meat over pork due to the outbreak of African swine fever is expected to boost the demand for sorbic acid in the poultry industry. Moreover, market players in the country are focusing on improving their presence by setting up feed mills across the globe, triggering the demand for sorbic acid.

Key Companies & Market Share Insights

Most of the players in the market are focusing on differentiating themselves from other players as the market is highly competitive and fragmented in nature. Manufacturers of organic acids such as Butyric Acid, sorbic acid, malic acid, fumaric acid, lactylates, and myristic acid are continuously engaged in partnerships along with collaborations. Through these operational integrations, manufacturers are trying to reach out to potential consumers of organic acid who are involved in manufacturing a variety of animal nutrition products.

Companies operational in the global market are focusing on increasing their exposure in the regional markets. For instance, in 2019, Thirumalai Chemicals Ltd. announced to set up its subsidiary in the U.S. in order to manufacturer malic acid and fumaric acid. This step helps the company to place products across the region within the required time efficiently. Some of the prominent players in the animal nutrition organic acids market include:

• Carboic

• Thyssenkrupp AG

• ADM

• Croda International Plc

• Cargill, Incorporated

• Eastman Chemical Company

• BASF SE

• Dow

Animal Nutrition Organic Acids Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global animal nutrition organic acids market report on the basis of product, delivery system, species, application, and region:

• Product Outlook (Volume; Tons; Revenue, USD Thousand, 2017 - 2028)

  • Benzoic Acid

  • Butyric Acid

  • Sorbic Acid

  • Fumaric Acid

  • Malic Acid

  • Lactic Acid

  • Myristic Acid

  • Mid-chain Fatty Acids

• Species Outlook (Volume; Tons; Revenue, USD Thousand, 2017 - 2028)

  • Poultry

  • Swine

  • Ruminants

  • Aqua

  • Others

• Delivery System Outlook (Volume; Tons; Revenue, USD Thousand, 2017 - 2028)

  • Protected

  • Unprotected

• Application Outlook (Volume; Tons; Revenue, USD Thousand, 2017 - 2028)

  • Gut Health

  • Antimicrobial Capacity

  • Yield / growth promoter

  • Others

• Regional Outlook (Volume; Tons; Revenue, USD Thousand, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa