Market Trends of Essential Oils In Animal Nutrition Industry
Increasing Adoption of Essential Oils in Poultry Enhances Market Growth
Essential oils are proving to be effective feed supplements, boosting both the health and growth performance of poultry. They enhance digestion by stimulating digestive enzymes and mucus production, and they also play a role in modulating gut microbiota. Moreover, various studies have underscored their antimicrobial properties, highlighting their potential to mitigate pathogen emergence in poultry. A 2024 study conducted by researchers from the University of Queensland, Wenzhou Medical University, and Mahidol University spotlighted the amplified antimicrobial and antiviral potency of essential oils against poultry pathogens. Specifically, liposomal formulations of clove and cinnamon oils demonstrated heightened efficacy against methicillin-resistant S. aureus, while liposomal nutmeg and lemongrass oils showed superior performance against Listeria monocytogenes.
Poultry continues to dominate global meat consumption, with a marked increase during the study period. According to data from the Organisation for Economic Co-operation and Development (OECD), global poultry meat consumption climbed from 137.4 million metric tons in 2022 to 139.7 million metric tons in 2023. Additionally, the number of chickens worldwide grew from 25.9 million heads to 26.5 million heads from 2021 and 2022, as per FAOSTAT. This rising trend accentuates the advantages of enhanced feed, such as essential oils, in bolstering poultry growth. Consequently, the surging demand for poultry meat, especially when juxtaposed with other meats, coupled with the growth-promoting attributes of essential oils, is driving the segment's expansion during the forecast period.
Europe Dominates the Global Essential Oils In Animal Nutrition Market
Europe dominates the global market for essential oils in animal nutrition, with the Asia-Pacific and North America closely trailing. Spain emerges as a pivotal player in Europe's animal feed manufacturing scene, a status poised to enhance the uptake of essential oils in feed. Germany, France, and the United Kingdom lead the charge, fueled by strong consumer demand. Concurrently, Italy and Spain are making notable strides, driven by technological innovations and increasing investments. Highlighting this momentum, in 2023, ADM unveiled a new production facility in Valencia, Spain, targeting the escalating global demand for probiotics, postbiotics, and other additive products, essential oils included.
Across Europe, animal feed manufacturers emphasize the need for a steady supply, consistent pricing, premium raw materials, and thorough product documentation. For instance, in the U.S., the retail price of lemons dipped slightly from USD 2.09 per pound in 2022 to USD 2.07 per pound in 2023. Such raw material price fluctuations allow for more competitive pricing of essential oil products, fueling market growth. Government initiatives advocating for the production of natural, animal-based foods are driving market growth. In 2023, the German government invested 38 million euros (around USD 41 million) to promote precision fermentation, plant-based, and cultivated meat and dairy products. This highlights the focus on ensuring a healthy growth process for animals through natural feed solutions, subsequently boosting the demand for essential oils in the nation.
