Feed premixes consist of one or a dozen different feed additives mixed with diluents that facilitate the rate of mixing. Commonly used carriers are calcium carbonate, wheat bran, salt, limestone, di calcium phosphate, magnesium oxide, etc. Vitamins, minerals and trace minerals are the major types of additives added to premixes. The major function of a feed premix is to ensure uniformity and homogeneity in feed for better nutrient availability.
The global feed premix market is poised to grow at a CAGR of 3.1% during the forecast period of 2016 to 2021. North America and Asia are the major producers as well as consumers, accounting for around 60% of the global market. While the U.S. and China lead production, India, China and Brazil are the fastest growing in terms of consumption. Favorable government policies in these countries are expected to drive the market during the forecast period.
Increased demand for cost-effective and high quality feed from farmers to boost farm animal productivity is a major driving factor for growth of feed premix market.The end-consumer demand for high quality meat from the meat processing industry is also trickling down to demand for feed premixes from farmers.
Stable economic conditions in South East Asia and the resulting rise in meat consumption have contributed to the growth in demand for premixes in the Asia Pacific region. M&A has been a key business strategy for major players looking to consolidate in South East Asia and other developing regions.
Key players in the market have also been expanding their business by setting up new plants to increase production capacity. However, with rising raw material costs, companies are investing in production processes to reduce the cost of production and cater to the increasing demand.
Major players in the market are Cargill Inc. (U.S.), DSM NV (The Netherlands), Nutreco NV (The Netherlands) and Archer Daniels Midland (U.S.), among others.