Market Trends of North America Feed Anti-Caking Agents Industry
Increasing Demand from Livestock Industry
Industrial livestock production focuses on high-quality feed to enhance efficiency, improve feed conversion ratios, and increase animal muscle mass and protein content. As more farmers adopt these practices, the demand for feed anti-caking agents is projected to grow to support high-quality compound feed production. This trend is likely to drive growth in the North American feed anti-caking agent market during the forecast period. According to the Food and Agriculture Organization (FAO), the United States had the largest cattle population in North America, with beef and dairy cattle numbers at 29.4 million and 9.4 million heads, respectively, in 2023. Additionally, total Canadian chicken production, including stewing hens, increased by 3.3% year-over-year to 1.4 billion kilograms in 2023. This rise in livestock production, driven by growing demand for animal products, is increasing the need for high-quality feed, consequently boosting the use of feed anti-caking agents.
Poultry and swine diets primarily consist of corn and soybean meal as base ingredients, which are susceptible to mold growth. Anti-caking agents absorb moisture from feed, reducing caking and improving flow in feed and feed ingredients. Research has shown that mold inhibitors used with anti-caking aids, such as zeolite clay, can mitigate the negative effects of mold and mycotoxin contamination on animal performance. Manufacturers are incorporating various additives into animal diets to optimize gut health, which is anticipated to increase the consumption of anti-caking agents in the region.
Furthermore, the transition to larger, more concentrated animal feeding operations (CAFOs) has significantly increased the demand for feed anti-caking agents in North America. These high-density environments present challenges like increased risk of disease transmission, nutrient management issues, and elevated animal stress. Feed producers in the region are increasingly adopting scientific feeding practices that include anti-caking agents to enhance bird performance and health. This trend is projected to continue in the United States, with broiler, aquaculture, and layer feed production projected to increase by 3%, 2.63%, and 1.01%, respectively, in 2024, according to the Alltech Agri-Food Outlook 2024. The rapid expansion of the animal feed industry, driven by the high growth rate of the livestock sector, is increasing the demand for feed anti-caking agents. This rising demand is anticipated to contribute to a positive growth rate in the feed anti-caking agent market during the forecast period.
Poultry Lead the Market
Poultry in North America are major consumers of feed anti-caking agents, driven by a growing population and rising demand for poultry meat. To satisfy this demand, poultry producers are optimizing feed conversion ratios and enhancing animal growth rates, which in turn boosts the demand for anti-caking agents. The North American market for feed anti-caking agents, particularly in the broilers segment, has attracted significant growth and investment from major global players. Acknowledging this trend, leading companies are actively broadening their presence in the region.
The surge in poultry meat demand is largely due to heightened consumption of processed poultry in the United States, Canada, Mexico, and other North American nations. As household incomes rise, so does the appetite for processed meat and protein-rich diets, further fueling the demand for animal feed. Statistics Canada reports that in 2023, buoyed by heightened demand and elevated product prices, poultry production and sales rebounded from the 2022 avian influenza setback. Total poultry sales climbed 7.7% year-on-year, hitting USD 4.5 billion, with farmers producing 1.6 billion kg of chicken, turkey, and stewing hens. Similarly, the United States Department of Agriculture noted a rise in per capita broiler meat consumption, from 44.8 kg in 2022 to 48.7 kg in 2023. Such dynamics are poised to elevate the use of feed anti-caking agents across poultry farms.
Moreover, there have been multiple disease outbreaks linked to consumed infected animals. Beyond veterinary interventions, the judicious use of animal feed anti-caking agents can bolster poultry health. These agents ensure poultry feed remains consistent and free-flowing, enhancing feed intake and nutrient absorption. They also introduce beneficial minerals, like calcium and magnesium, and can bind mycotoxins, mitigating their toxicity. Furthermore, they reduce ammonia emissions from poultry litter, thereby improving air quality and alleviating respiratory concerns. In poultry feed, anti-caking agents prevent clumping and enhance the flow of feed ingredients. This has spurred a growing demand for such agents in North America. With the rising need for high-quality livestock feed, the market for feed anti-caking agents has witnessed a surge and is projected to continue its upward trajectory during the forecast period.
