The Future is Bright for Digestive Ingredients in Animal Feed, Says Frost & Sullivan

LONDON, Aug. 26 /PRNewswire/ -- Digestive ingredients have long been used as productivity enhancers in animal husbandry systems. Growing acceptance of new products such as prebiotics and phytogenics within the market for more mature ingredients like enzymes and probiotics is providing momentum to the European market for digestive ingredients in animal feed.

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New analysis from Frost & Sullivan (http://www.food.frost.com), European Market for Digestive Ingredients in Animal Feed, finds that the market earned revenues of $455.5 million in 2009 and estimates it to reach $802.0 million in 2016. The following product segments are covered in this research: feed enzymes, feed probiotics, feed phytogenics and feed prebiotics.

"The future of the European digestive ingredients in animal feed market is bright thanks to the indispensable nature of these products in boosting animal productivity," notes Frost & Sullivan Senior Research Analyst, Dr. Kaushik Ramakrishnan Shankar. "The importance of reducing costs in animal husbandry systems cannot be underestimated and the clear advantage of using these ingredients should be communicated to end users."

This potential of digestive ingredients in animal feed functioning as cost-effective productivity enhancers is set to support market expansion.  However, price pressures remain on most products in the segments across different target species. Yeast products and silage inoculants, for example, have become commoditised with greater negotiating power vested with consumers.

Becoming commoditised, or having a large number of manufacturers in a single segment, causes price pressures. The yeast segment is illustrative of this trend.

"With the maximum activity in terms of suppliers, value added product manufacturers and traders in this segment, it has become highly competitive," explains Dr. Shankar. "Innovation and sizeable outlays on research and development help distinguish market leaders from their competitors in this segment."

Manufacturers can confront price sensitivity by using various strategies to reduce production costs. In addition, strong distribution partnerships with other companies will enable manufacturers to retain their market share. Innovation in handling industrial compound feed production will propel the market.

"Strategic relationships between manufacturers should be aimed at synergising their strengths and overcoming the weaknesses of the individual companies," remarks Dr. Shankar. "Such alliances have been successful for the largest companies operating in this segment, and could be replicated by other participants."

If you are interested in more information on this study, please send an e-mail to Monika Kwiecinska, Corporate Communications, at [email protected], with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

European Market for Digestive Ingredients in Animal Feed is part of the Food and Beverage Ingredients Growth Partnership Services programme, which also includes research in the following markets: European Eye Health Ingredients Market, U.S. Omega-3 and Omega-6 Markets, European Heart-Health Ingredients Market, European Prebiotics Market, U.S. Digestive Health Ingredients Market and European Digestive Health Ingredients Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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SOURCE Frost & Sullivan