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Health and Food Safety Concerns Compel Advancements in the Animal Feed Additives Market in Brazil, Finds Frost & Sullivan


News provided by

Frost & Sullivan

13 Jun, 2013, 18:37 GMT

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-- The untapped amino acids segment offers immense scope for growth

SAO PAULO, June 13, 2013 /PRNewswire/ -- A burgeoning population with higher disposable incomes and a growing taste for pork, beef, poultry and other such products has given a boost to the Brazilian animal feed additives market. Market growth will continue as the development of new additive ingredients adds value for customers.

New analysis from Frost & Sullivan (http://www.food.frost.com), finds that the Brazilian animal feed additives market earned revenues of $1.30 billion in 2012 and estimates this to reach $1.59 billion in 2018. The research covers enzymes, amino acids, vitamins, mycotoxin adsorbents, prebiotics and probiotics.

"Rising consumer awareness on the technical and clinical benefits of feed additives and its impact on meat quality has sustained the adoption of animal feed additives in Brazil," said Frost & Sullivan Chemicals, Materials and Food Research Analyst Mariana Guercia. "End-user emphasis on health and food safety too spurs demand for quality meat products, encouraging innovation in animal feed additives."

However, increasing awareness has also prompted several consumer groups to voice concerns over the use of certain additives, thereby curbing the prospects of many feed additive manufacturers in the country. Further, established vendors face intense competition from Asian suppliers, leading to reduced margins. Investments have taken a hit as several manufacturers remain hesitant to venture into a market flooded with low-cost products. The escalating costs of raw materials and fertilizers compound this challenge.

"The substitution of traditional ingredients such as wheat and corn with new raw materials will be a crucial step towards boosting revenues," suggested Guercia. "Vertical integration, forward and backward, can help optimize the supply chain and earn higher profits. Likewise, horizontal integration will enhance the product line."

Customer service and technical support are other significant factors influencing brand recognition, particularly as customer bargaining power in Brazil increases.

"Focusing on the large, untapped amino acids segment through effective pricing, quality, and customer assistance strategies will enable vendors to carve a niche for themselves in the market," noted Guercia. "Meanwhile, the mycotoxin adsorbent, prebiotic and probiotic segments will witness brisk expansion, although at present their use is minimal."

If you are interested in more information on this research, please send an e-mail to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

Analysis of the Brazilian Animal Feed Additives Market is part of the Food and Beverage Ingredients Growth Partnership Service program. Frost & Sullivan's related research services include: Shelf-life Food Additives Market in Brazil. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Brazilian Animal Feed Additives Market
NC63-88

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54-11-4777-5300
F: +54-11-4777-5300
E: francesca.valente@frost.com

http://www.frost.com

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