Fermented feed ingredients are agricultural products that have undergone a controlled microbial fermentation process, which transforms their composition. This process typically involves beneficial microorganisms like bacteria, yeast, or fungi breaking down organic matter in feed materials, making nutrients more accessible and potentially enhancing their nutritional value for livestock. Fermented feed ingredients are used in animal nutrition to improve digestibility, reduce anti-nutritional factors, and promote animal health. Common examples include fermented grains, silage, and forage. The fermentation process can also mitigate mold and mycotoxin contamination, contributing to safer and more nutritious animal diets.

The global fermented feed ingredient industry analysis conducted by BIS Research highlights that the growth of the market is projected at a significant CAGR during the forecast period 2018-2023. The global fermented feed ingredient industry report illustrates that the market is projected to reach $19.18 billion by 2023.

Probiotics and Prebiotics: The Future of Animal Feed

The major types of fermented feed ingredients include amino acids, vitamins and minerals, enzymes, organic acids, probiotics and prebiotics, and carotenoids, among others. Amino acids accounted for the largest share in the market as a result of the increasing demand for protein worldwide. Lysine, tryptophan, and threonine are some of the major amino acids used by the producers for feed conversion and growth promotion of the animals.

Dry Fermented Feed Ingredients: Expected to Maintain Market Dominance

Fermented feed ingredients are available in both dry and liquid forms. Owing to the high stability. The dry form of ingredient is the most stable with capping agents and can be easily stored, handled and transported by the companies. Fermented feed provided in liquid form contributes to better absorption of nutrients during the process of digestion in animals. Even with great effects of liquid fermented feed, the availability of the same is not at the same scale as dry fermented feed. This is attributed to the cumbersome and challenging task of storage, packaging and handling of the fermented feed in liquid form. During the forecast period, dry fermented feed ingredient is expected to maintain a dominant market share.

Poultry and Swine: Largest Consumers of Fermented Feed Ingredient

Fermented feed ingredients are applied in different animal sectors such as poultry, swine, aquatic, ruminant and others (including pets and equine). As of 2018, the poultry sector was the largest consumer of fermented feed ingredients followed by swine and ruminants.

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With the increasing demand for poultry meat, poultry producers around the world are  largely adopting efficient management techniques and resources. Poultry producers are primarily opting for fermented feed ingredients so as to increase the feed conversion ratio as well as augment the overall yield.

North America: Frontrunner in Fermented Feed Ingredient Market

The trends of the fermented feed ingredient market vary across different regions. The fermented feed ingredient market holds a prominent share in various countries of the Americas, Europe, Asia-Pacific (APAC), and Rest-of-the-World (RoW). In 2018, North America was at the forefront of the market, with huge market concentration in the U.S.

North America is expected to remain the dominant market for fermented feed ingredients in the forecast period, with the U.S. being the manufacturing hub for most of the ingredients. During the forecast period, Asia-Pacific region is expected to flourish as one of the most lucrative markets for fermented feed ingredient manufacturers. Rising urban population, high disposable income, and increased demand for healthy animal proteins nutritious food and beverage products with natural ingredients drive the growth of the fermented ingredients market. Regions such as South America and Africa are also expected to exhibit significant growth opportunities for fermentation-derived ingredients for animal feed due to the increased optimism in the economic conditions in these countries.

Strategies Incorporated to Sustain in the Competition

Some of the most prominent players in the fermented feed ingredients market include Koninklijke DSM N.V., Archer Daniels Midland Company, BASF SE, Evonik Industries AG, Ajinomoto Inc., Bluestar Adisseo Company, Chr. Hansen A/S, Cargill Inc., Novozymes A/S, Nutreco, Novus International, Lonza Group AG, and Kerry Group. The competitive landscape for the fermented feed ingredient market demonstrates an inclination toward companies adopting strategies such as mergers and acquisitions as well as business expansions. Industry leaders in this market are opting for this strategy to maintain their market position and prevent new entrants from expanding their operations in the market.

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For instance, in August 2018, Balchem Inc. acquired Bioscreen Technologies to add Bioscreen’s fermented animal nutrition product line to their business line. Key companies in the market have also adopted certain business expansion strategies by entering new markets. Archer Daniels Midland Company is currently aiming towards widening their market presence by expanding into other regional and business segments. While other companies such as Evonik Industries AG and Novus International signed significant number of business expansion and contracts in the market.