The feed additives market in Mexico is projected to register a CAGR of 4.6% during the forecast period. Food safety has become a paramount issue for many governments around the world, especially in North America. Animals often stand in their own waste and under constant stress, which tends to affect their immune system, making them prone to infections. High awareness, the growing demand for animal nutrition, and the ban of antibiotics in many countries are prompting the players in the livestock industry and meat manufacturers to use probiotics, which is anticipated to drive the feed additives market in the country.

Key Market Trends

Increased Production of Compound Feed

Demand for the high-quality compound feed from the livestock industry, due to increased industrial production of meat and dairy products has elicited the growth in consumption of compound feed and feed additives in the country. According to the AllTech feed survey, Mexico accounted for 34.6 million MT of compound feed production in 2018 and has seen a growth accounting for 36.2 million MT in 2019. The raw materials used for compound feed production, such as maize, barley, soybean, are used for human consumption and production of ethanol in the country. In this scenario, the feed industry competes with the food industry for raw materials. This situation has generated the demand for additives that are cost-effective as the demand for raw material increases in the region. The home mixers and large farm owners provide additives to the livestock, to ensure a steady supply of high-quality meat, dairy, and derived products. Hence the increased production of compound feed in the country increases the demand for quality and cost-effective feed additives.

Changing Demographics and Food Habits Among Consumers

Rapid Urbanization and increased disposable income have brought in changes among the dietary preferences of the consumers, which has led to increased per capita consumption of meat and seafood in the country. The increasing demand for animal protein sources, such as meat, milk, and eggs, is putting the onus on the livestock industry to increase the productions to match the consumer demand. Livestock yields need to improve to cater to the demand. With the complex regulatory system and border clearance issues plaguing the exports, the local producers are also on the lookout for innovative solutions and efficient techniques. Efforts are on to increase the quality of the products and decrease the management costs. Yields are expected to improve by way of adoption of better feed management practices and the augmented use of compound feed, which, in turn, promotes the feed industry to use optimum quantities of feed additives.

Competitive Landscape

The feed additives market in Mexico is largely consolidated, with various international companies occupying major chunks of the market for various feed additive types. Local companies account for minor shares in the market and only one or two companies have a higher share in the Mexican market for a particular additive type. International companies, like Cargill, Adisseo, and Prinova, occupy major shares in the market for amino acids, probiotics, vitamins, antioxidants, and mycotoxin detoxifiers. The only market, where these companies do not have a major share is for feed additive minerals, where local company Helm de Mexico occupies a major share.

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