Summary

The South American feed vitamin market is projected to register a CAGR of 1.4% over the forecast period. Some of the factors driving the market such as industrialization of the livestock industry, expansion of animal meat market, and livestock disease outbreak fuelling additives market. Brazil dominates the market due to the rising livestock population and meat consumption. The feed vitamin market is projected to grow along with the increased feed production, growing animal health concern, and ban on antibiotics use. Companies like Alltech Inc., BASF SE, DSM Nutritional Products AG, and Archer Daniels Midland Co. Guabi Nutrição e Saúde Animal SA, are the major players in the studied market. In March 2020, De Heus has acquired Cerrado Nutrição Animal, a Brazilian cattle nutrition company, having a manufacturing capacity of 50,000 tons a year with a strong presence in the country. This would increase De Heus' production capacity and strengthen the presence.

Key Market Trends

Increasing Feed Production Drives the Market

Animals require vitamins, as they are critical for normal body functions, growth, and reproduction. ​For instance, vitamin A deficiency in adult hens results in reduced egg production. The vitamin deficiency that can be overcome by including vitamin additives in the feed. According to FAO in 2018, the poultry population in South America was 2521.7 million as compared to 2684.7 million in 2016. According to the Alltech feed survey, in 2019 the feed production in Brazil and Argentina has reached 70 million metric tons and 21 million metric tons respectively. In Brazil, broiler feed accounted for 32.1 million metric tons followed by pig feed which accounts for 17 million metric tons. Thus, the growing animal population and increasing compound feed production drive the vitamins market as vitamins are used as feed additives.

Brazil Dominates the Market

According to the Organisation for Economic Co-operation and Development (OECD), poultry meat is the highest consumed in the country, in 2019 the per capita poultry meat consumption 40.3 Kg as compared to 40 Kg in 2016. Rising meat consumption led to shift towards commercial livestock production in the country. According to the Food and Agriculture Organization, in 2018 the poultry bird population in the country was 1383.4 million as compared to 1505.6 million in 2016. Thus, the change in meat consumption trend coupled with the mass production of livestock is driving the inclusion of vitamins in the animal feed to produce quality meat. Additionally, in February 2020, Brazil’s Ministry of Agriculture, Livestock, and Supply (MAPA) have prohibited the use of antibiotics such as tylosin, tiamulin, and lincomycin in swine production. This results in the use of other feed additives, one such is vitamins.

Competitive Landscape

In the South Africa feed vitamin market, companies are not only competing on the basis of product quality and promotion but are also focused on their strategic moves to hold larger market shares. Companies are investing heavily to develop new products and collaborating and acquiring other companies. This factor is expected to increase its market shares and strengthen R&D activities. Companies like Cargill Incorporated., Alltech Inc., BASF SE, DSM Nutritional Products AG, and Archer Daniels Midland Co. Guabi Nutrição e Saúde Animal SA, are the major players in the South America feed vitamin market.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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