Eubiotics Market

The global Eubiotics Market was valued at USD 4.87 Billion in 2022 and is projected to reach a value of USD 9.63 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 8.9% between 2023 and 2030.

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Eubiotics promote digestive health and are innovative feed additives that are crucial in enhancing animal performance and welfare. In modern agricultural systems, animals must have a healthy digestive tract to be productive and environmentally friendly. Positive regulatory scenarios prohibiting antibiotics and rising global meat consumption are anticipated to drive demand for the product. The market is characterized by intense competition, with significant market share held by well-established, long-standing players. Companies invest significantly in R&D to develop sustainable technologies to produce cost-effective and inexpensive products. In several countries, particularly in the Middle East, the insufficiency of market participants provides ample opportunities for new entrants to establish a solid foothold.

Manufacturers and distributors of Eubiotics include feed mills, pre-mixers, and specialized distributors. Companies involved in Eubiotics production sell their products directly to consumers or integrated feed producers. The eubiotic products reach the livestock producers in either case. The production of Eubiotics, such as organic acids, includes fermentation and chemical synthesis. Chemical synthesis is typically favored for animal feed applications such as silage and feed additives. The availability of basic materials, agroclimatic conditions, and regional regulations primarily influences the prices of Eubiotics ions. Due to the prevalence of price-conscious customers, the manufacturers compete based on pricing. The manufacturers are concentrating on process innovation and sourcing inexpensive raw materials to gain a competitive advantage in the market.

In addition, the rapid expansion of end-use applications such as feed and pharmaceuticals and the rising production of Eubiotics, likely to close the supply-and-demand gap, is anticipated to moderately increase prices over the forecast period. Eubiotic products such as prebiotics and probiotics are integral to the nutraceuticals industry's value chain. Developing economies, such as India and China, are well-positioned in the market due to technological advancement, inexpensive labor, and copious availability of raw materials due to production expansion. Thus, key players in developing economies are establishing an optimized process and a strong supply chain for cost-effective product manufacturing, allowing them to offer products at relatively lower prices.

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Economic Insights

Businesses worldwide are taking precautions if the war between Russia and Ukraine has far-reaching consequences. A Russian invasion would devastate the economy, putting progress and prosperity at risk, especially given the global goal of a $100 trillion GDP by 2022. The economic trend is expected to reverse despite the parties' best efforts to reach an agreement, making it extremely difficult to reach the GDP objective.

Top Market Trends

1. Rising Alternative to Antibiotics: The Eubiotics market is developing as an alternative to antibiotics or a byproduct of antimicrobials used in animal feed; these products are designed to improve cattle nutrition and immunity. Eubiotic manufacturers are working to ensure optimal nutrition absorption by balancing the substances used in their preparation. Increases in the price of natural feed grades and the use of feed enzymes to lower the price of feed grades are also factors driving the industry forward.
2. Probiotics are becoming increasingly popular because of the immune boost they provide by producing specialized antimicrobial compounds. Probiotics like Enterococcus Faecium are used for various purposes, such as improving and maintaining immunity and gut health. Demand is expected to increase over the projected period thanks to growing consumer awareness of the benefits of probiotics and the strategic initiatives major manufacturers take to popularize their use.
3. Industrialization of the Poultry Industry: Over the past decade, there have been major shifts in the livestock industry. Commercial cattle farming and their associated value chains met the rising demand. Animal husbandry has evolved into a highly diverse industry in several regions, including China, Japan, and India, emphasizing scientific management of farm animals, increased output, and decreased expenses. As reported by the World Bank, industrialized meat production is being adopted at a rate six times quicker than traditional meat production. The idea for landless meat production facilities is gaining traction as industrial meat production expands. Extreme soil and water pollution may result from intensive livestock farming. Animal feces contains anywhere from 60-90% of the nitrogen and phosphorus the animals eat. One of the primary roles of Eubiotics is to improve the feed's digestibility so that animals can more efficiently absorb nutrients into their tissues and produce less waste. As livestock farming becomes more industrialized, it is expected that Eubiotics will be used more frequently to help improve meat animals' body mass and slightly lessen the environmental impact of livestock farming.

Market Segmentation

The global Eubiotics market can be categorized into Type, Livestock, Function, Form, and Region. Based on Type, the market can be categorized into Probiotics, Prebiotics, Organic Acids, and Essential Oils. Additionally, based on Livestock, the market can be split further into Poultry, Swine, Ruminants, Aquatic Animals, and Others (Horses, Sheep, & Birds). Moreover, based on Function, the market can be split further into Nutrition and Gut Health, Yield, Immunity, and Production. Additionally, based on Form, the market can be split into Dry and Liquid. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Type

Probiotics Products to Accommodate Dominant Market Due to Rising Awareness Among Animal Feed

In 2022, probiotics products dominated the market in terms of revenue share. This is attributable to the increasing awareness of probiotics in animal feed, the ongoing R&D activities to develop efficient products, and the extensive product offerings by main industry players. Additionally, the multiple applications in animal applications, such as immunity development and gastrointestinal health maintenance, are anticipated to impact market demand positively. In addition, organic acids were the second most popular product type on global markets. In animal nutrition, these acids are used as forage and grain preservatives. They inhibit the proliferation of bacterial and fungal pathogens, thereby improving the utilization of feed resources. They apply to applications involving swine, aquaculture, and poultry. Organic acids are an efficient means of addressing feed quality and hygiene concerns. These characteristics are anticipated to drive segment growth over the forecast period.

Based on Livestock

Poultry to be Consumed Rapidly due to Increasing Demand for Turkey, Duck, and Boilers

In 2022, the poultry segment dominated the market. Its high market share is attributable to rising global demand and poultry, turkey, duck, and boilers consumption. Due to its low price relative to other meats, its low-fat content, and the lack of religious and cultural barriers associated with its consumption, chicken meat is widely consumed. The rising demand for pork has compelled producers to provide consumers with disease-free, high-quality meat products. As a result, the demand for feed additives has increased. Eubiotic ingredients are typically used as feed additives or in dietary supplement formulations to benefit animals' digestive, growth, and reproductive health. Additionally, these ingredients enhance animal health and reduce animal mortality. It is envisaged that the demand for Eubiotics in cattle feed will increase as the demand for meat and dairy products grows. Increasing demand for dairy products such as cheese, milk, and butter, among others, has necessitated increased efficacy in large-scale dairy farms and nutrient-rich feed. Adding eubiotic ingredients to bovine feed increases productivity and milk production capacity.

Based on Function

Gut Health Applications to Sell at a Larger Margin Due to Growing Preference on Preventive Health Care

In 2022, gut health applications dominated the market with a substantial revenue share. Its high market share can be attributed to the prevalence of digestive health issues among animals and a growing preference for preventive health care. Eubiotic products contribute to the accumulation of microbiota in the animal's gastrointestinal tract, thereby enhancing digestion and immunity. Effective products for maintaining digestive health include probiotics, prebiotics, organic acids, and essential oils, among others. These products can be used individually or in combination for enhanced results. Domesticated animals are administered Eubiotics to improve their health and enhance their performance. The product's efficacy is primarily determined by its antimicrobial properties and capacity to modify the gut flora. Fructo-oligosaccharide, beta-glucan, probiotics, mannan-oligosaccharide, and prebiotics are gut health boosters. Using Eubiotics enhances the immune system of animals. The immune system accounts for a relatively small portion of the animal's total nutritional needs; however, its activation is a considerable challenge and substantially affects nutritional status.

Based on Form

Solid Form to Account for the Largest Market Share Owing to Enhanced Resistance

In 2022, solid form dominated the Eubiotics market regarding revenue share. This high market share can be attributed to its enhanced resistance to exposure to light and moisture. Solid forms include crystals, beadlet, and beadlet that have been cross-linked. In feed production, beadlet technology reliably shields active constituents from mechanical and thermal stress, making them more stable and bioavailable. The liquid form is gaining popularity among feed formulators because it contributes to the animal's good health and enhanced performance faster than solid forms and is less expensive. In addition, the liquid form of these feed additives is favored due to their ability to reduce enteric pathogens and gastric pH and their affordability.

Based on Region

Europe to Dominate Global Sales Due to Rising Product Demand

Europe became the greatest regional segment in 2020, accounting for more than 40% of global revenue. Animal farmers' efforts to comply with current regulations and the prohibition on the use of antibiotics have resulted in increased product demand. It is anticipated that the presence of stringent laws and regulations discouraging the use of antibiotics will contribute to the growth of the Eubiotics market in the region. Strong awareness regarding the application of Eubiotics and their benefits, the presence of market participants, and strong demand from countries such as Germany, the United Kingdom, France, and Spain propel regional demand overall.

North America is experiencing a considerable increase in product demand due to the increasing demand for animal products and the thriving animal feed industry. The increasing consumption of livestock and meat products in countries such as Mexico, Canada, and the United States has led to a greater awareness of animal health, increasing the demand for animal feed products.

Competitive Landscape

The fragmented nature of the market has been attributed to the presence of numerous market participants. Market leaders and other key actors in various countries hold most of the market share, such as small manufacturers, traders, and operators in local or domestic markets. Manufacturers are concentrating heavily on enhancing their product portfolios to gain a competitive advantage over other market participants in areas such as supply chain or distribution channel, technology or equipment, price, and research and development.

The key players in the global Eubiotics market include - DSM (Netherlands), Novus International Inc. (U.S.), UAS Laboratories (U.S.) Lallemand Inc. (Canada), Calpis Co. Ltd. (Japan), Advanced BioNutrition Corp. (U.S.), BENEO (Germany), BEHN MEYER (Germany), Lesaffre Group (France), Kemin Industries Inc. (U.S.), DuPont de Nemours Inc. (U.S.), Novozymes (Denmark), Associated British Foods PLC (UK), Chr. Hansen Holding A/S Denmark), Evonik Industries AG (Germany), BASF SE (Germany), Cargill Inc. (U.S.), ADM (U.S.), Bluestar Adisseo Co. (China), Biomin (Austria) among others.

Recent Market Developments

• July 2022: Midori USA Inc. was acquired by Koninklijke DSM NV (Royal DSM), a company predominantly engaged in the development of targeted Eubiotics that improve the environmental impact and animal health. The company developed a new technology that recognizes glycans derived from natural dietary sugar and modifies the microbiome's function in animals' guts. The glycans contribute to a consistent and effective effect on the gut health of animals, resulting in improved animal health and increased nutrient utilization from the diet.
• November 2021: Novus International collaborated with the American biotechnology company Agrivida on R&D. Through this partnership, the company will investigate the potential for new product development, which could boost its Eubiotics business.
• July 2020: Chr. Hansen Holding AS has introduced a new probiotic called 'Bovacillus' for dairy and beef cattle. It is a unique probiotic because its Bacillus spores can withstand severe conditions during feed production, preparation, and digestion.

Segmentation of the Global Eubiotics Market