Philippines Feed Additives - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2017 - 2029

• In 2022, amino acids, binders, minerals, and probiotics were the main types of feed additives used in the animal feed industry in the country. These types of additives together represented 55.1% of the country's total feed additives market in terms of value. Among these types of feed additives, methionine and lysine were the most significant feed amino acids, accounting for 34.1% and 30.2% of the market share, respectively. The popularity of these amino acids was due to their ability to improve gut health, aid in easy digestion, and enhance meat production in animals.
• Synthetic binders held the largest share of the total feed binders market in the country in 2022, accounting for 66.7%. Synthetic binders were preferred because they not only served in pellet feed but also aided in preventing diseases by improving digestion and nutrition intake in animals. Swine was the major animal type in the feed additives market in 2022, accounting for 52% of the market share value. This high share was due to the high feed intake and feed production, which was more than 7.8 million metric tons in 2022.
• Pigments and amino acids are expected to be the fastest-growing segments in the feed additives market in the country, registering CAGRs of 5.5% and 5.4%, respectively, during the forecast period. Pigments were used to enhance the appearance and nutritional value of animal feed, and as animals were unable to synthesize carotenoids, they needed to be supplied in the diet.
• Based on the importance of feed additives in animal nutrition, the demand for feed additives is anticipated to register a CAGR of 4.9% during the forecast period in the country. This growth is expected to be driven by improved gut health and easy digestion in animals, as well as the growing demand for high-quality animal protein.

Philippines Feed Additives Market Trends

The poultry production is increasing in the country because of the rise in consumption of poultry meat and an increase in demand for poultry eggs

• The poultry industry has experienced significant growth in recent years, with production increasing by 6.3% from 2017 to 2019. This growth can be attributed to the rise in consumption of poultry meat and an increase in demand for poultry eggs as an affordable protein source during the pandemic. The ease of cooking egg products has also contributed to the growth in demand for poultry eggs.
• In addition, commercial pig farms are shifting to egg production, which is expected to drive the growth of the layers segment in the coming years. However, the production of poultry decreased by 4.2% in 2020 compared to 2019, primarily due to the closure of hotels and restaurants to combat the spread of COVID-19. The shortage of input supply also led to a decline in production.
• Despite the challenges faced in 2020, the poultry sector has experienced an increase in production since 2021 due to the rising demand for animal protein and the benefit from the reopening of the economy in 2022 after the ease of restriction. For instance, poultry production increased by 1.3 million heads in 2022 from the previous year. The rising farmgate prices of poultry are also driving the growth of the market, with the annual average farmgate price of broiler chicken in commercial farms increasing by 10.7% from the previous year to USD 1.82 per kg in 2021.
• The demand for chicken is increasing in the country as consumers shift from pork to chicken as a source of animal protein due to the spread of African swine fever. This shift is creating pressure on producers to increase production, with chicken meat production accounting for 1.34 million metric tons in 2021, an increase of 3% over 2020.

To improve the productivity and performance of aquaculture animals and rising consumption of seafood is expected to increase the aquaculture feed demand

• The aquaculture compound feed production in the Philippines has been rapidly expanding in recent years, driven by increasing awareness about the importance of nutritionally balanced feed for improving the productivity and performance of aquaculture animals and the rising consumption of seafood. In 2022, the production of aquaculture compound feed accounted for 28.5% of total compound feed production in the country, and it increased by 621.3 thousand metric tons from 2017.
• Fish is the most promising source of protein for the Philippines' consumers. The rising demand for animal protein due to increasing income levels and changing consumption patterns are boosting the demand for fish food. As a result, the production of compound fish feed is expected to increase from 1,455.8 thousand metric tons in 2023 to 1,777.2 thousand metric tons in 2029 as producers seek to improve the performance of the animals and produce protein-rich food.
• Similarly, shrimp feed production in the Philippines has also been increasing rapidly due to an increase in the number of farms, rising profit margins from shrimp production, and a growing focus on health and nutrition management to increase yields and productivity. The production of shrimp feed increased by 100.7% from 2017, reaching 31.8 thousand tons in 2022.
• However, overfishing and government regulations against the overexpansion of fish farms in mangrove and inland areas have caused fish prices in the Philippines to increase considerably compared to those of other meat commodities. This has led to a widespread interest in increasing yields with the use of feeds.

Philippines Feed Additives Industry Overview

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