The Europe feed amino acid market is projected to register a CAGR of 3.9% during the forecast period 2020-2025. Feed amino acids are now a coherent part of the rising meat industry driven by growing demand for animal-derived products, better standard of living, the increasing awareness among people towards safety and quality of meat, and recent disease outbreaks in livestock. As per the European Union legislation, amino acids come under the nutritional additive section. The end consumers of feed amino acids are compound feed manufacturers, integrators, farmers, home-mixers, livestock, and aquaculture industry. Europe is comparatively a well-established and traditional market for feed amino acids. The industrialized livestock industry, increasing meat consumption, and rising concerns over livestock disease outbreaks are some of the major drivers for the market growth in the region. The main hindrance in the growth of feed amino acids market is the price volatility associated with feed raw materials and stringent regulations among nations. The development of other sources of protein is also putting pressure on the market growth

Key Market Trends

Growing Demand for Meat and Meat Products

The demand for meat-based food products is rising in the region mainly due to the rapid economic growth in the European Union countries. This increased demand for meat protein has triggered increased uptake of feed additives and feed enzymes. Apart from improving nutritional value, feed enzymes are gaining importance for their role in meat quality improvement, with concern over the environment. The increase in demand can be attributed to the continuous economic growth of countries in these regions that have led to change in demographics, food habits, and lifestyle; the impact of globalization and urbanization tend to change the mindset of people in the region, where consumers experiment more in terms of their food habits. Major meat consuming and export-oriented nations like Germany, France, Spain have shown promising growth and potentially driven by the rise in meat consumption, increasing demand for quality feed for protein meat. Improving trade activity on meat exports is driving the manufacturers to increase meat production thereby fuelling the growth of markets.

Increased Feed Production in the Region

The feed industry in the region is driven by factors such as increasing meat consumption and the growth in the processed meat industry, due to the increase in the income of the middle-class population in developing countries. The demand for high-quality compound feed from the livestock industry due to increased industrial production of meat and dairy products has triggered an increase in the consumption of the compound feed and feed additives such as amino acids. Large-scale producers and meat manufacturers use additives to ensure a steady supply of nutrients to the animals, with the aim of enhancing the livestock’s production and performance. According to the Alltech feed survey in the year 2019, Russia is the largest feed producer accounting for 40.5 million metric tons of production followed by Germany accounting for 25 million metric tons. Thus the increased feed production in the countries drives the growth of feed additive production like Amino acids in the region.

Competitive Landscape

The feed companies are continuously developing new products, proposing premium-priced feed, with special brands or attributes. Most of the companies are accentuating their expansion into branded consumer products sold in supermarkets and company-operated specialty shops. Some of the major players are Adisseo France SAS, Ajinomoto Co. Inc., Archer Daniels Midland Company, Evonik Ind, and Sumitomo Chemical Company Limited, among others. Other players are focusing on strengthening and maintaining product quality, services, and commitment to their businesses, investing in product lifecycle development, and developing new chemical and biological entities. Many of these companies are pursuing the vision of becoming world leaders in animal nutrition by offering profitable, natural, and differentiated solutions.

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