Increasing Demand for Animal Feed and Meat Proteins to Drive Growth of Global Tocopheryl Acetate Market

In the year 2018, the compound feed production across the globe was projected to be over one billion tons. In recent years, there has been a growing demand for meat proteins, which will continue for a forecast period ranging from 2019 to 2029. Furthermore, the United Nations Food and Agriculture Organization believes that the overall demand for food will rise by around 60% by the year 2050 and consequently the demand for animal protein will also witness a spiking growth.

All these factors are thus highly crucial for the overall development of the global tocopheryl acetate market. In addition to this, a substantial rise in demand for meat production and aquaculture is also expected to create a highly lucrative growth environment for the global market. The figures for global feed production have cross the mark of one billion tons for a third year running. Such developments are also expected to massively help in the overall development of the tocopheryl acetate market in coming years.

East Asia Emerges as the Biggest Regional Segment

Currently, China is the fourth biggest exporter of animal feed in the world with respecshot15.jpgt to value. The China market accounted a considerable share of the global animal feed sector and has been the leading consumer of feed additives. In 2018, it accounted for one third of the global demand for feed additives, highlighting its importance. Furthermore, the country is also among the leading producers of compound feed in the world. All these factors have thus contributed to the rapid development of the tocopheryl acetate market in the region.

Naturally, the regional segment of East Asia of the global tocopheryl acetate market has been the most promising and fast growth segment in recent years. Japan is another major consumer of tocopheryl acetate in the region. Together, Japan and China, collectively form around 90% of the regional demand. Thus, this presence of two highly lucrative and growing nations are expected to contribute to the development of the tocopheryl acetate market in East Asia.

Market Leaders to Eye Strategic Alliances and Partnerships to Improve Profits

The competitive landscape of the global tocopheryl acetate market is a highly consolidated one. This consolidation of the vendor landscape is due to the fact that there are only a handful of players operating in the global market. Moreover, these handful of players have been able to capture majority of the global market. Currently, Zhejiang Pharmaceutical Co. Ltd., Zhejiang NHU Co. Ltd., BASF, and DSM are some of the key leaders in the global tocopheryl acetate market. The market scenario projects that in the near future these companies will continue to expand and generate profits with the help of strategic partnerships, alliances, and joint ventures with key producers.

Even though the market has only a handful of players, complicated manufacturing processes and expanding manufacturing capacities led by Chinese companies currently leave very little room for new comers.

The companies in the global tocopheryl acetate market are also relying on forming joint ventures and mergers with leading local brands. For instance, in 2019, DSM announced that the company has formed a joint venture with Nenter & Co. Inc., a leading tocopheryl acetate producing company in China. This joint venture is of 75/25 nature and helps in strengthening DSM’s position in the China market.