Market Trends of South America Silage Additives Industry
This section covers the major market trends shaping the South America Silage Additives Market according to our research experts:
Rising Demand for Animal Meat
The livestock sector in South America has grown at an annual rate higher than the average global growth rate. There has been an increasing pressure on the livestock sector to meet the growing demand for high-value animal protein. The world's livestock sector is growing at an unprecedented rate and the driving force behind this enormous surge is a combination of population growth, rising incomes, and urbanization. Annual meat production is projected to increase from 218 million tonnes in 1997-1999 to 376 million tonnes by 2030, according to WHO. In South America itself, the production quantity of meat increased from 43.7 million metric tons in 2017 to 46.1 million metric tons in 2018. Silage additives are used to enhance the good quality silage into the best quality silage. The market is expected to grow due to this increasing trend of animal protein consumption in South America.
Brazil Dominates the South America Silage Additive Market
Brazil dominated the production of animal meat in the region, consequently leading to be the dominating country in terms of the Silage Additive market as well. Crops in tropical areas, particularly to Brazil have a high production potential during the rainy season; therefore, silage has a central role in feed preservation in the tropics. The use of silage all-year-round is expanding, since a significant number of dairy farmers are moving from grazing to housed systems, and the number of beef cattle finished in feedlots is increasing. Wholeplant maize silage has been by far the main conserved forage in both dairy and beef operations, whereas the use of grain silages (maize and sorghum) is increasing in the region as well. This makes the market for silage additive rising and the trend is likely to be positive during the forecast period as well.
