Subtitle: A Strategic Reassessment — From "Imported Premium" to "Localized Reality"

From: Henan Liyin Biotech Co., Ltd. — Insights Team

Author: Liyin Market Intelligence

Date: July 7, 2026

For years, the Chinese feed additive market operated on a simple assumption:

European and American companies represent technology. Local companies represent price.

For a long time, this assumption worked. European brands, American technology, international studies, and multinational credibility were enough to earn a second meeting, a trial order, and a premium price.

That logic is collapsing.

Across the industry, a structural shift is underway. Multinational animal nutrition companies are not simply "doubling down" on China. They are recalculating the return on every dollar invested — asking which businesses to keep, which to integrate into global systems, which to hand to distributors, and which markets no longer justify local teams.

This is not a cyclical downturn. It is a structural realignment of the global animal nutrition industry. The following analysis, based on industry developments in 2025-2026, explains why — and what it means for the future .

I. The Industry Hasn't Died. The Old Playbook Has.

First, be clear: the feed additive industry is not losing relevance.

Global animal protein consumption continues to rise. Antibiotic-free production, precision nutrition, low-protein diets, gut health management, environmental sustainability, and production efficiency are all driving demand for innovative additives.

The real question is not whether the market exists. It's how to compete in it.

Historically, the European and American entry strategy into China followed a predictable pattern:

• A lean local team
• A few flagship products
• A network of distributors
• European trial data
• An international brand name

Remote headquarter support

In the early market, this approach worked. Customers were willing to believe "imported equals advanced." Distributors were willing to invest in market education.

Today's Chinese customer is fundamentally different.

They no longer just ask: Where does this product come from?

They ask:

• Does it work consistently?
• Can the results be replicated?
• Does the cost-benefit justify the price?
• Who provides on-site service?
• Who explains failures?
• Does it fit my production system?

The multinational advantage remains. But the "lean team, brand-heavy, distributor-dependent, slow-service" model is struggling to adapt to a market that demands speed, evidence, and local presence .

II. Global Groups Are Restructuring Their Animal Nutrition Assets

If you look only at China, this might appear as a loss of interest. But viewed globally, a clear pattern emerges: animal nutrition assets are being reclassified, revalued, and in some cases, divested.

dsm-firmenich is the most visible case. In 2025, the company completed the sale of its Feed Enzymes Alliance stake to Novonesis for €1.5 billion. In 2026, it announced the sale of its entire Animal Nutrition & Health business to CVC. The company has been clear: this is the final step in its transformation into a nutrition, health, and beauty consumer company.

Evonik is taking a different path — not exiting, but restructuring its animal nutrition business into distinct operational units. Its official announcement cited approximately €200 million in annual cost savings starting in 2025, with amino acids and specialty nutrition businesses operating under different models.

Adisseo, on the other hand, has chosen acquisition. Its purchase of French plant-based specialty additive company Nor-Feed represents a third logic: acquiring niche expertise to integrate into a global specialty nutrition portfolio .

What do these moves have in common?

Animal nutrition is not disappearing. It is being reclassified.

• Commodity products require scale, cost efficiency, global supply chains, and manufacturing excellence.
• Specialty additives require product definition, application validation, customer service, and system selling capabilities.

Businesses that cannot demonstrate strategic value, capital efficiency, or growth certainty are being sold, restructured, downgraded, or integrated into larger systems .

III. China Is Not Being Abandoned. It Is Being Repriced.

Many multinational companies are not walking away from China.

They are walking away from an old model:

• A small team operating independently
• Remote management from headquarters
• Distributors absorbing market education costs
• European data serving as the sole proof point
• An expectation that customers will accept premium pricing
• Local service dependent on one or two key people

This model is failing — not because China is unimportant, but because China is too big, too complex, and too fast.

Consider the reality:

• Top-tier integrators require systematic service.
• Mid-sized customers demand cost-performance.
• Small farms need immediate, visible results.
• Distributors require margin.
• Business owners value personal relationships.
• Technical managers want data.
• Farm managers need on-site support.

A small European company cannot serve all these segments with a handful of people.

More importantly, Chinese companies have changed. Today's domestic players are no longer just "copycats" — they have built real capabilities in feed acids, enzymes, amino acid applications, probiotics, essential oils, plant actives, palatants, antioxidants, and preservatives.

• Their advantages are significant:
• Lower costs
• Faster response
• Local presence
• Operational flexibility
• Willingness to collaborate on application development

This compresses the premium that imported products once commanded.

So, the problem is not "China is less important." The problem is that China is too important, too demanding, and too heavy to be served by the old lightweight model. Multinational companies must now decide: how many people to deploy, how much service to provide, how much autonomy to give local teams, and how much independence to maintain .

IV. Why French Specialty Additive Companies Are Particularly Vulnerable

France has a unique position in the feed additive world: a cluster of specialized companies focused on plant actives, flavors, natural functional nutrition, and antibiotic alternatives.

These companies are often small, with distinctive products and compelling stories:

• Natural
• Plant-based
• French
• European Union
• Antibiotic-free
• Functional nutrition

These labels open doors in China. But once inside, challenges emerge quickly:

• High price points
• Long trial cycles
• Slow service response
• Small local teams
• Limited headquarters support

Customers demand results, distributors demand margin, headquarters demands profit.

The result is a difficult position:

Customers find the product interesting — but don't buy quickly.

Distributors want to invest — but headquarters may not commit long-term.

The product logic works — but on-farm conversion is slow.

The market looks large — but the investment is heavy.

When global groups emphasize capital efficiency and strategic focus, these businesses are naturally re-evaluated. Not because China has no opportunities, but because the opportunities are too large to be captured by the old "small company" model.

V. The Future Depends on the "Last Mile"

The true strength of European and American companies lies not just in their raw materials — but in their ability to define products.

They convert additives into clear functional concepts and application scenarios:

• Enzymes are not just about digestion; they are tools for flexible raw material use and cost reduction.
• Amino acids are not just nutrients; they are the foundation of low-protein diets and precision nutrition.
• Organic acids are not just acidifiers; they are tools for feed safety, gut health, and weaning stability.
• Probiotics are not just "adding bacteria"; they are a means of managing gut flora and production stability.
• Essential oils and plant actives are not just natural concepts; they are functional modules for intake, gut health, environment, and stress management.
• Antioxidants and preservatives are not just shelf-life tools; they are assurance layers for feed quality and production stability.

This "definition capability" is something Chinese companies still need to learn. But Chinese companies excel in the "last mile" :

• Closer customer relationships
• Lower trial costs
• Faster response
• More flexible cost structures
• Deeper understanding of on-farm pain points

The future belongs not to those who simply copy European products, nor those who continue the race to the bottom. It belongs to those who combine both capabilities:

Use the product definition capability of international companies to reshape local products. Use the on-farm execution capability of Chinese companies to deliver results .

VI. Opportunities for Chinese Companies — Not "Cheaper," but "Better"

Many local companies interpret the opportunity as: Imported products are expensive. I'll make a cheaper version.

This is the lowest-value interpretation.

The real opportunity is not "cheap substitution." It's "redefinition."

Today's customers are not simply looking for lower prices. They want:

• No hassle
• No failures
• Verifiable results
• Repeatable performance
• Stable production support

So the most important capability for Chinese companies is not a cheaper formula — it's a more complete system:

1. Define the product clearly. Not "we have this too," but "this product solves this specific problem in this scenario."
2. Validate the results. Not just mechanism explanations, but clear guidance on how to test, what to measure, and when to evaluate.
3. Simplify the sales process. Customers don't need a full system explanation — they need one actionable entry point.
4. Deliver service on-site. Functional additives are not a one-time sale; their real value is often unlocked during use.
5. The future competition is not "imported versus domestic." It's about who can translate a product into an on-farm result.

VII. Four Key Takeaways for the Chinese Feed Additive Industry

This round of restructuring offers at least four strategic lessons for Chinese companies:

1. Stop assuming "imported brands are inherently superior."

The technology, standards, and definition capabilities of international brands deserve respect — but they no longer automatically translate into market results.

2. Do not underestimate the system capabilities of international companies.

Many Chinese products are not inferior in quality. Where they often fall short is in naming, positioning, validation, communication, and replicability.

3. Functional additives must focus on single-point breakthroughs.

Customers do not buy a system. They often start with one pain point, one scenario, one small trial.

4. The most valuable keyword for the future is stability.

Feed intake stability, gut health stability, environmental stability, quality stability — these are the real, urgent needs of China's livestock industry today.

Conclusion: The Old Model Is Shrinking. The New Model Must Deliver Results.

European and American feed additive companies are recalculating the Chinese market — not because China is less important, but because the market has moved from the "concept introduction" phase to the "result delivery" phase.

In the past, whoever brought international concepts into China had the advantage. In the future, whoever can translate products into on-farm results will have the advantage.

For Chinese companies, this is a window of opportunity. But it does not belong to those who compete only on price. It belongs to those who can do four things:

• Define the product clearly.
• Select the right scenarios.
• Design clear validation pathways.
• Deliver measurable results to customers.

One sentence captures the shift:

International companies are shrinking the old model. Chinese companies must close the gap — not just on products, but on results.

This article is based on a synthesis of industry developments, market reports, and strategic announcements from leading global animal nutrition companies in 2025-2026. For further insights, please contact Henan Liyin Biotech's market intelligence team.

E-mail:
yolanda@liyinbio.com

TEL: 
+86-15824830539

Address:
Zhengzhou, China