Competitive Overview
The global feed acidifiers market is characterized by the presence of many global, regional, and local players. The market is highly competitive, with all the players competing to gain maximum market share. Rapid advancements in processes, increasing focus on animal nutrition, and stringent regulations on the use of antibiotics are the key factors that influence the global market growth. The emergence of antimicrobial resistance (AMR) in human and animal populations has been capturing the attention of regulatory bodies and the public as well. As the industry moves away from over-reliance on antibiotics, feed acidifiers are an effective alternative to maintain animal health and performance. The vendors compete based on cost, brand identity, product quality, and availability and reliability of the products. It is crucial for vendors to provide cost-effective and high-quality products that adhere to the requirements of the animal feed diets as well as the GMP & HACCP standards to compete in the market.
Kemin Industries, Inc., BASF SE, Yara, Perstorp, Biomin Holding GmbH, Addcon GmbH, Impextraco NV, NOVUS INTERNATIONAL, Corbion NV, and Pancosma are some of the leading market players in the global feed acidifiers market.
Among these, Kemin Industries Inc, BASF SE, Yara, Perstorp, Biomin Holding GmbH, Corbion NV, and Addcon GmbH, (comprising both domestic and global players) account for the majority of the global market share, owing to their high revenue generation, availability of raw materials at competitive prices, strong brand identity, diverse product offerings, and wide distribution networks. However, these players need to strive hard to maintain their market positions, considering the presence of other global players in the market.
The growth of market players is dependent on market conditions, regulatory standards, and industry development. Thus, the players should focus on launching new products as per the changing market needs and try to expand their geographic foothold via strategic partnerships & agreements with the distributors in the global market.
The key players in the market have adopted growth strategies such as expanding the existing product portfolios, bringing the existing products to new markets, and active product portfolio management to increase market shares and improve their competitive positioning in the regional markets.
Threat of New Entrants
The initial investments required to set up a feed acidifiers plant are low; the market offers moderate growth potential. The established market players have positioned themselves to target specific customers and, thus, have high brand recognition. Though the entry barriers for new players are low, the prominence of the established players significantly checks the threat of new entrants. The established market players account for a major revenue share of the global feed acidifiers market, especially in North America and Europe. Moreover, the global feed acidifiers market is moderately fragmented due to the presence of several local and global players.
Hence, the threat of new entrants in the global feed acidifiers market is expected to be low during the forecast period.
Bargaining Power of Suppliers
The suppliers in the global feed acidifiers market are traders of raw materials. The presence of numerous suppliers with limited raw material differentiation provides manufacturers of feed acidifiers multiple options and lowers their switching costs. However, many manufacturers enter long-term contracts with these suppliers to ensure quality and uninterrupted supply.
Hence, the bargaining power of suppliers in the global feed acidifiers market is expected to be low during the forecast period.
Bargaining Power of Buyers
The buyer concentration in the global feed acidifiers market is high and the farmers can choose from a wide variety of products available in the market at competitive prices. The limited product differentiation results in low switching costs, thereby increasing the bargaining power of buyers. Moreover, brand recognition plays a negligible role in the purchasing decisions of buyers. In developing countries where product awareness is limited, the existing players are fighting for market share.
Hence, the bargaining power of buyers in the global feed acidifiers market is expected to be high during the forecast period.
Threat of Substitutes
The threat of substitutes in the feed acidifiers market is high due to the availability of immediate alternatives. The major substitutes of feed acidifiers are feed antibiotics, phytochemicals, probiotics, prebiotics, and enzymes. However, the ban on feed antibiotics in the European countries and other developed economies which is anticipated to increase the demand for feed acidifier. Moreover, the usage of prebiotics and probiotics are exceptionally high among farmers. On the other hand, the industry has a high level of internal substitution where one type of feed acidifier can be replaced by other types of feed acidifiers.
Hence, the threat of substitutes in the global feed acidifiers market is expected to be high during the forecast period.
Intensity of Rivalry
The global feed acidifiers market is characterized by a high intensity of rivalry. The established players in the market are targeting competitors in terms of quality and price, thus making the industry competitive and reducing profit potential for the existing firms. The key players invest in research and development to bring about innovation in their product lines and make product development a priority to meet the changing preferences of livestock farmers. Additionally, the number of small and medium-sized players operating in the market is notably high.
Hence, the intensity of rivalry in the global feed acidifiers market is expected to be high during the forecast period.
