-- 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 email@example.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.
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Analysis of the Brazilian Animal Feed Additives Market
Corporate Communications – Latin America
SOURCE Frost & Sullivan