Feed Phosphates: Sustainable Sourcing Present Growth Opportunities

In modern livestock management, feed phosphates play an important role in animal nutrition. An adequate supply of inorganic feed phosphates in animal feed is critical for the optimal performance and well-being of animals. Feed phosphates strengthen the immune and reproductive systems of livestock and help in improving the metabolism of livestock, and are, therefore, widely used in all types of feed for livestock such as poultry, ruminants, swine, aquatic animals, and equine, among others.

Feed phosphates are used as supplements for the diets of livestock, such as poultry, swine, cattle, and aquatic animals. They help animals attain faster growth, which includes weight gain. Feed phosphates optimize the nutritional value of feed and further enhance the quality of meat and dairy. For instance, optimized tenderness in meat, high selenium content in eggs, and high calcium content in milk are some examples of consumer-driven beneficial modifications in livestock products, which are brought about by the addition of feed phosphates.

According to MarketsandMarkets, the global feed phosphates market is projected to grow from USD 2.25 billion in 2018 to USD 2.80 billion by 2024. The growth of the market is expected to be directly affected by the growth of the feed additives industry. The feed additives industry is projected to grow at a steady rate of 4%–5% annually, while the feed phosphates market is projected to grow at a 3.7% CAGR from 2018 to 2024.

What is driving the growth of feed phosphates?

·        High Threat of Diseases in Livestock

The outbreak of diseases such as avian flu, BSE (bovine spongiform encephalopathy), and SARS (severe acute respiratory syndrome) not only affect livestock breeding and the economy, but also pose a serious threat to human health. The emergence of swine diarrhea in the US caused significant losses to swine farmers. Moreover, countries such as China, India, and Indonesia are constantly facing outbreaks of avian flu and swine flu, due to the hot and humid climatic conditions. Meat vendors, meat processors, wholesalers, retailers, and ultimately livestock growers suffer financial losses, due to the culling of disease-affected animals, which further lead to a drop in animal productivity. The foot and mouth disease (FMD) outbreak in the UK in 2007 led to losses of USD 3.7 billion to the livestock sector. The avian flu outbreak of 2013 resulted in economic losses worth USD 6.1 billion in China. Nearly, 130 people were infected in mainland China during this outbreak, according to the UN.

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The usage of feed phosphates in such cases proved to be an effective medium to reduce such outbreaks by improving animal health with the provision of necessary nutrients. Calcium and phosphorus are two important macro-minerals required for the proper performance, growth, health, and production of livestock. Most feed ingredients from plant sources are inadequate in meeting such requirements, and hence, the inclusion of feed phosphates is important for the maintenance of animal health in such cases. This is one of the main factors that drive the demand for feed phosphates in the market.

·        Toxicity of Feed Phosphates

Despite feed phosphates being used as a key component to maintain animal health and productivity, their usage above certain limits could be toxic to animals. For instance, excessive intake of phosphorus can interfere with both calcium and magnesium absorption. Excessive calcium intake by consuming dicalcium phosphate, monocalcium phosphate, mono-dicalcium phosphate, and tricalcium phosphate can lead to osteopetrosis, vertebral ankyloses, and degenerative osteoarthritis in cattle. It also leads to reduced feed intake, resulting in lower milk yields in cattle. Excessive dietary phosphorus results in weak bones, downer cow syndrome, and urinary calculi. Such toxicities due to excessive intake of minerals such as calcium and phosphorus are generally observed to decrease animal performance and even lead to anorexia, weight loss, and diarrhea.

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However, because mineral deficiencies in animals are more common occurrences in comparison to toxicities, there is a general tendency to easily exceed minimum animal requirements. In such cases, it becomes imperative to determine if dietary mineral concentrations exceed the maximum tolerance levels of the cattle. Mineral toxicities, which could be a result of excessive consumption of feed or water, may then have significant degrading effects on animal health and performance. Therefore, an excessive proportion of feed phosphates in animal feed could cause deteriorating effects on animals and severe toxicities.

The monocalcium phosphate (MCP) market is projected to grow at the highest growth rate during the forecast period

The purified form of monocalcium phosphate is obtained by the reaction of calcium hydroxide with wet process phosphoric acid. Highly soluble and easy to handle, it can be used in mixed feed and minerals. It also enhances the reproduction cycle of animals. Monocalcium phosphate helps prevent the abnormal development of bones in animals. It is beneficial to herbivorous animals as it helps in protein metabolism and energy generation for animals.

Monocalcium phosphate (MCP) can be produced from burnt chalk (CaO) and phosphoric acid (H₃PO₄). In the production process, CaO and H₃PO₄ are mixed in a reaction tank to produce MCP, which is then granulated, dried, and sieved. MCP is generally fed in combination with concentrated feedstuffs, grain wastes, silage, bagasse, herbage, crushed pip feeds, wet mush, and is also used for compound feedstuff enrichment.

The high solubility and optimal phosphorus concentration of MCP offer increased flexibility in dietary formulations. Further, compared to other sources of phosphorus, MCP has some advantages such as neutralizing the harmful effects of a number of elements: sodium, potassium, and magnesium, among others; and improving efficiency of carbohydrate, protein, fat, mineral, & energy metabolism in the body, due to which it is projected to grow at the highest CAGR during the forecast period.

Based on region, the feed phosphates market is segmented into North America, Europe, Asia Pacific, South America, and the Rest of the World.

Ø  South America accounted is projected to grow at the highest CAGR of 4.2% during the forecast period. The rise in demand for meat and the increase in income levels in emerging economies such as Brazil and Argentina are the key factors that drive the feed phosphates market. Countries in this region have been increasing their production of feed phosphates to enhance the meat quality of livestock.

Ø  The major challenges faced by the feed phosphates market in South America include the high costs of animal feed (60%–70% of the total production costs), the limited availability of quality forage, inefficient use of available feed resources which affect productivity, increased risk of diseases, and lack of awareness among farmers.

Calcium Propionate: Cost-effective Future Solution for Food Preservation

Calcium propionate is the calcium salt of propionic acid. It is a food & feed additive, and also has pharmaceutical and agricultural applications. It is used as a preservative and mold inhibitor in food & feed applications. Calcium propionate is considered safe for human consumption and can be used in organic cultivations.

The global calcium propionate market is projected to grow at a CAGR of 5.6%, to reach USD 363.3 million by 2023. In terms of volume, the market is estimated at 167.1 KT in 2018 and is projected to grow at a CAGR of 5.4%. The growth of the calcium propionate market during the forecast period can be attributed to factors such as growth in demand for bakery products with extended shelf-life and cost advantages provided by calcium propionate over other preservatives.

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The calcium propionate market, by form, was dominated by the dry segment, in terms of volume, in 2017. Several key players in the calcium propionate market manufacture dry calcium propionate, as it has a longer shelf life, has better dispersion throughout the food matrix, enhances the flavor, and does not affect the leavening action of baking powder in bakery products. Due to this factor, the dry segment is estimated to have dominated the market.

Calcium Propionate as a Preservative

Preservatives are basic requirements to prevent the spoilage of food & feed, thereby ensuring the supply of safe products to consumers. The preservation of food & feed products and maintenance of their quality are major concerns in the respective industries, globally. Bakery products and feed have been dominant applications for calcium propionate over the last decade. The key function of calcium propionate is to counter the growth of microbes on various bakery products that are prone to spoilage by bacteria. This makes calcium propionate an ideal preservative for yeast-raised products to cope with the problems of spoilage. Additionally, research in various fields has opened new avenues for applications of calcium propionate in several food products, owing to the growth of the dairy, meat, and processed meat industries, along with other food applications. The application of calcium propionate in pharmaceuticals and agriculture is limited; however, these segments exhibit good growth potential for the next few years.

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Key Developments in the Market

Associated British Foods (ABF) (UK), Niacet (US), and Impextraco (Belgium) are among the key players in the market. The market players focused on various development strategies such as expansions, acquisitions, certifications, and partnerships in order to enhance their product portfolio and business strength in the competitive market. Some of the major developments in the market are listed below:

• In January 2018, Kemin Industries (US) acquired its distributor, Agri-Marketing Corp. (Canada) for Kemin products in Canada. With this acquisition, Kemin expanded and established a new location in Quebec, Canada. The development helped the company to further enhance its product portfolio and increase its production capacities.
• In September 2017, ADDCON (Germany) entered into a partnership with Blendtek Ingredients Inc. (Canada), a food ingredients and solutions company, for the distribution of ADDCON’s ammonium bicarbonate and calcium propionate. The primary focus of Blendtek was increasing the supply of ammonium bicarbonate to the North American market and calcium propionate in the Canadian market.
• In August 2017, Niacet (US) expanded its calcium and sodium propionate production capacity of 75 million pounds. The expansion was enabled by the access to low-cost raw materials, following its acquisition by SK Capital Partners.

Increase in health consciousness is driving the demand for low-calorie food products. The changes in lifestyle have increased consumer dependence on packaged convenient food products. The food segment is further segmented into bakery products, dairy & frozen desserts, meat, fish, and seafood products, and others (sauces, fruits, vegetables, dressings, soups, salads, diet foods, condiments, and other ready-to-eat food products).

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Market Drivers

• Functional potential of calcium propionate in new product lines

Major food makers and processors use calcium propionate in their products to keep them fresh from the time of production to the point of consumption. Calcium propionate is added to products such as cheese, jams & jellies, and chocolates, owing to its functional potential to drive sales. Awareness programs to educate consumers about the importance of adding synthetic antimicrobials, meticulous evaluation of the safety of antimicrobials, and elucidating the risk of food poisoning in the absence of preservatives are expected to help strengthen consumer confidence in calcium propionate.

• Cost-effective preservation solution

The usage of calcium propionate for feed and food preservation is to a large extent more cost-effective when compared to other preservatives such as sodium propionate, sorbic acid, and sorbates. Calcium propionate helps eliminate harmful microbes that occur naturally in grains, leading to improved quality of feed for animals. A rapid rise in the prices of other preservatives and their limited applicability stimulate the demand for calcium propionate.

• Increase in health concerns of consumers in the food industry

Consumers today are becoming increasingly aware of the essential nutrients required by the body, and about the prevention of nutrition-related diseases and improved physical & mental well-being. The market for calcium propionate is driven by this rising demand for nutritional food and the increasing health consciousness among consumers. The preference for natural food additives over synthetic ones to eliminate health concerns also increases the demand for calcium propionate.

The Market was Dominated by North America in 2017

North America is a dominant market for food processing, globally. Consumers with busy lifestyles in the North American market are on the lookout for minimally processed foods with a long shelf life. This drives the growth of this market as calcium propionate plays a critical role in extending the shelf life of products. The increase in demand for convenience foods is expected to create an impact on the calcium propionate market in North America. The market for calcium propionate in North America is fairly matured; hence, the growth is moderate when compared to other developing economies. The US dominated the North American calcium propionate market in 2017 due to higher consumption of calcium propionate in various applications such as bakery products and feed.

Increase in the Number of Fertilizer Production Plants Fuels the Demand for Catalyst Fertilizers

The report "Catalyst Fertilizers Market by Fertilizer Production Process (Haber-Bosch Process, Contact Process), Metal Group (Base Metals, Precious Metals), Fertilizer Application (Nitrogenous, Phosphatic), and Region – Global Forecast to 2023" The catalyst fertilizers market is projected to reach USD 2.5 billion by 2023, from USD 2.3 billion in 2018, at a CAGR of 2.36% during the forecast period. The market is driven by factors such as rising fertilizer production and growing concern about emissions of greenhouse gases.

Browse 74 market data Tables and 45 Figures spread through 133 Pages and in-depth TOC on "Catalyst Fertilizers Market – Global Forecast to 2023"

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The use of base metals for fertilizer production is projected to witness high growth during the forecast period.

Iron, copper, and nickel are the major base metals that exhibit efficient catalytic activity and are the majorly consumed catalysts across all industries. These metals are abundantly available in the market and are easily extracted by a majority of companies. These are less expensive as compared to precious metals, and the number of players offering these metals for catalytic action is also very high. Thus, it is projected to grow at the highest CAGR from 2018 to 2023. 

Haber-Bosch process is estimated to dominate the catalyst fertilizers market in 2018.

Nitrogenous fertilizers are one of the highly consumed nutrients across the globe while ammonia is the most common nitrogen product used as a fertilizer. With the emergence of the Haber-Bosch process, ammonia synthesis has increased by a manifold with the help of catalysts. Since ammonia is the most produced fertilizer, which is further converted to urea and ammonium phosphates, Haber-Bosch is the dominant process for ammonia fertilizer production where catalysts are an important part of the plant process design.

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Asia Pacific is estimated to dominate the market in 2018 and is projected to be the fastest-growing in the market through 2023.

With large fertilizer production in the Asia Pacific countries, the region dominated the market in 2017 and is projected to witness the fastest growth in the catalyst fertilizers market through 2023. The Asia Pacific market for catalyst fertilizers is driven by the rising need to increase crop yield and growing production of fertilizers. The growth in the production of fertilizers is mainly attributed to the increase in the consumption of fertilizers and support from the governments to increase production. The expansion of production facilities for ammonia and sulfuric acid in China and India and the growing awareness among manufacturers about the benefits of catalyst fertilizers in emission control of hazardous wastes are expected to provide more scope for market expansion. Moreover, ongoing R&D activities on better and efficient fertilizer manufacturing processes could render a scope for market growth. The government policies adopted by Asian countries toward sustainable agricultural practices and reduced GHG emissions from fertilizer industries, including support for the production of fertilizers in the form of subsidies, are major factors contributing to the growth of this market in the region.

This report includes a study of the development strategies of leading companies. The scope of this report includes a detailed study of catalyst fertilizers manufacturers such as Clariant International (Switzerland), DowDuPont (US), Project & Development India Ltd. (India), Johnson Matthey (UK), Haldor Topsoe (Denmark), LKAB Minerals (Sweden), N.E.Chemcat (Japan), QuantumSphere Inc. (US), Quality Magnetite (US), and Oham Industries (India).

Essential Oils Market by Product Type, Method of Extraction, Application, and Region - Global Forecast to 2022

The report "Essential Oils Market by Product Type (Orange, Lemon, Lime, Peppermint, Citronella, Jasmine), Method of Extraction, Application (Food & Beverage, Cosmetics & Toiletries, Aromatherapy, Home Care, Health Care), and Region - Global Forecast to 2022", The essential oils market is projected to reach USD 11.19 Billion by 2022 growing at a CAGR of 8.83% from 2017 to 2022. The market is driven by economic factors such as rising double income households and increasing disposable incomes among consumers. Moreover, growing research & development activities and increased demand from food & beverage and cosmetic applications are also driving the market.

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Aromatherapy projected to be the fastest-growing segment in the essential oils market, by application, during the forecast period 2017–2022

Essential oils are volatile liquid substances extracted from aromatic plant material by different types of extraction methods. They have potent antioxidant and anti-microbial properties and can be used to treat depression and stress-related diseases. Different types of essential oils used in aromatherapy include tea tree oil, jasmine oil, rosemary oil, and lavender oil. These oils are used in massage therapies, acupuncture, and topical care. Changing lifestyles and their consequences, such as high stress and depression, along with increasing disposable incomes, result in an increase in demand for aromatherapy.

On the basis of method of extraction, the distillation segment is estimated to be the largest market in the essential oil industry in 2017

Distillation is the process of separating components of a mixture by evaporating and then condensing the vapor into liquid. It is a technique which is slightly volatile, where the water-insoluble substances are separated from nonvolatile materials by means of distillation. Different types of distillation methods are used such as water distillation, water & steam distillation, and steam distillation for extraction of oils. Distillation is one of the primary methods used for extraction in essential oil industries.

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Significant growth for essential oil is observed in the Asia-Pacific region

The Asia-Pacific region is segmented into China, Japan, India, Australia & New Zealand, and Rest of Asia-Pacific. The increase in preference of consumers for natural essential oil ingredients such as peppermint & spearmint and rise in purchasing power parity in the region is driving the demand for essential oils in applications such as aromatherapy, health care, and food & beverages.

This report includes a study of marketing and development strategies, along with the product portfolio of leading companies. It includes the profiles of leading companies such as Cargill (U.S.), E.I. du Pont de Nemours and Company (U.S.), Koninklijke DSM N.V. (Netherlands), and Givaudan SA (Switzerland).

High Threat of Diseases in Livestock to Drive the Growth of Feed Phosphates Market

Feed phosphates are used as supplements for the diets of livestock, such as poultry, swine, cattle, and aquatic animals. They help animals attain faster growth, improving gut functionality, fertility, and aiding bone development. Feed phosphates optimize the nutritional value of feed and further enhance the quality of meat and dairy. The market is driven by the rise in consumption of meat and dairy products and high threat of diseases in livestock.

The dicalcium phosphate segment is estimated to be the largest in 2018

The feed phosphates market, by type, is estimated to be dominated by the dicalcium phosphate segment. A good source of nutritional minerals in livestock, dicalcium phosphate helps in regulating the energy metabolism. It is used to maintain adequate dietary levels of phosphorus and calcium in animals. The high bioavailability of phosphorus in dicalcium phosphate, coupled with its low cost, leads to the dominance of dicalcium phosphate in the feed phosphates market.

The poultry segment is projected to be the largest & fastest growing during the forecast period

The poultry segment is projected to be the fastest-growing, by livestock, during the forecast period. Out of all minerals required by poultry, only some can be met by the natural feedstuffs in their diets, thereby resulting in the inclusion of mineral supplements, such as feed phosphates in feed formulations. Poultry requires relatively larger amounts of calcium and phosphorus for normal growth and skeletal development. The most used feed phosphates in poultry diets are dicalcium phosphate, defluorinated phosphate, and tricalcium phosphate, all of which supply both calcium and phosphorus.

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The powder segment set to dominate the market by 2024

The feed phosphates market, by form, is projected to be dominated by the powder segment during the forecast period. Feed phosphates, in their powder form, are widely used in feed formulations due to their free-flowing structure and ability to provide consistency. Such factors are expected to drive the market for the powdered form of feed phosphates during the forecast period.

South America is projected to be the fastest-growing market during the forecast period

The South American market is projected to grow at the highest CAGR from 2018 to 2024 The rising demand for meat and the rising income levels in emerging economies such as Brazil and Argentina are the key factors that drive the feed phosphates market. Countries in this region have been increasing their production of feed phosphates to enhance the meat quality of livestock. Development of the animal husbandry sector drives the demand for feed phosphates, which is further promoted by a growing market for feed additives.

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This report includes a study of marketing and development strategies, along with the product portfolios of leading companies. It includes the profiles of leading manufacturers such as include The Mosaic Company (US), Phosphea (France), Nutrien Ltd. (Canada), OCP Group (Morocco), and Yara International ASA (Norway). EuroChem Group AG (Switzerland), PhosAgro (Russia), Ecophos Group (Belgium), Fosfitalia Group (Italy), J. R. Simplot Company (US), Quimpac S.A. (Peru), Sichuan Lomon Corporation (China), Sinochem Yunlong Co., Ltd. (China), Wengfu Group (China), and Rotem Turkey (Turkey) are other players that hold a significant share in the feed phosphates market.